ABA Letter to Senate Finance EARN Act

Dear Chairman Wyden and Ranking Member Crapo:

The American Bankers Association1 (ABA) writes in support of The Enhancing American Retirement Now Act (EARN Act), which would significantly improve retirement savings for the American people.

In particular, we welcome the helpful enhancement of investment options for participants in 403(b) plans, such as teachers, public servants, and non-profit workers, to include bank-maintained collective investment trusts (CITs). CITs have cost advantages relative to other types of funds, while providing more design and administrative flexibility specific to retirement plan investors. Due to these considerable benefits, retirement plan investments in CITs have grown significantly over the last decade.We thank the Committee for the work done on this legislation in an effort to make retirement savings available to more people. As the various Committees of jurisdiction continue their work on the bill, we hope that the 403(b) plan provision will include the necessary amendments to not only the Internal Revenue Code, but also the Investment Company Act of 1940, the Securities Act of 1933, and the Securities Exchange Act of 1934. Without amendments to all four of these laws, participants in 403(b) plans may not have the advantages of CIT investment options.

Sincerely,

Kirsten Sutton, Executive Vice President, Congressional Relations & Legislative Affairs, ABA

cc: The Honorable Chuck Schumer, Majority Leader, U.S. Senate

The Honorable Mitch McConnell, Minority Leader, U.S. Senate

The Honorable Patty Murray, Chairwoman, Committee on Health Education Labor & Pensions

The Honorable Richard Burr, Ranking Member, Committee on Health Education Labor & Pensions

The Honorable Sherrod Brown, Chairman, Committee on Banking, Housing, & Urban Affairs

The Honorable Pat Toomey, Ranking Member, Committee on Banking, Housing, & Urban Affairs