Expanding Access to Capital Act of 2023

Floor Speech

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Mr. LUCAS. Madam Chair, I yield myself such time as I may consume.

One of the most difficult decisions a worker will ever undertake is determining how to save for retirement. This requires an individual to forecast decades into the future, ensuring one has the ability to navigate through life, family, and economic events.

For many teachers and nonprofit employees, their retirement savings are through 403(b) plans. However, these public servants in 403(b) plans are unable to benefit from the same cost-effective investment products that are available in all other plans, including 401(k) plans, government 457(b) plans, and the Federal Thrift Savings Plan.

Since the creation of 403(b) retirement plans back in 1958, there have been many changes to how we save for retirement, both in the law and the overall economy.

This amendment will allow 403(b) plans the ability to invest in collective investment trusts, or CITs, and insurance company separate accounts.

CITs and insurance company separate accounts are both pooled investment vehicles sponsored and maintained by a bank or trust company, or an insurance company, respectively.

This measure originated in SECURE 2.0 last Congress, which passed the House Ways and Means Committee unanimously. The SECURE 2.0 Act that ultimately became law included the required changes to the tax code but did not include the necessary changes to securities law.

The data speaks for itself. During the past 10 years, 401(k) plan assets increased by 88 percent, government 457(b) plans increased by 82 percent, but total assets in 403(b) plans only increased by 46 percent.

We have for too long limited the investment options made available to public servants, and this bill will allow for much-needed consistency across retirement plans.

This measure received broad bipartisan support in the Financial Services Committee, and I thank Congressman Gottheimer of New Jersey and Congressman Foster of Illinois for joining me on this amendment.

Madam Chair, I urge my colleagues to support the amendment, and I reserve the balance of my time.

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Mr. LUCAS. Madam Chair, I yield such time as she may consume to the gentleman from Missouri (Mrs. Wagner).

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Mr. LUCAS. Madam Chair, I have no further speakers, and I yield myself the balance of my time.

Madam Chair, I simply wish to say that I have the greatest respect for the ranking member of the Financial Services Committee, but I would note we simply disagree on this amendment.

I believe it is a very effective way to provide equity amongst the various retirement accounts, and it is important that teachers and public service people have the same opportunity to grow their savings so that they, too, can enjoy the best possible golden years.

Madam Chair, I yield back the balance of my time.

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