The University of California will offer in October a pair of collective investment trusts for its 403(b) plan, marking a rare instance of a 403(b) plan, other than a church-sponsored one, offering such an investment option. Collective investment trusts are allowed for most DC plans — 401(k), 457(b), 401(a) and church-sponsored 403(b). But the biggest providers of 403(b) plans — colleges and universities, public school systems and hospitals — cannot offer these options, which many sponsors use to reduce costs to participants. "We saw an opportunity to lower fees," said Arthur Guimaraes, chief operating officer for the University of California, Oakland...
Full story at:
http://www.pionline.com/article/20170821/PRINT/170829984/uc-adds-collective-investment-trusts-to-its-403b-plans
If you poke around on the web, the difference between a mutual fund and a collective investment trust seems to be a lower regulatory burden and - perhaps in consequence - a lower administrative fee.* Thing is that UC has offered its own internally-run menu of investments for decades. No one has to choose an outside option, although they are available. So it's not clear what the new option really is. It would be nice to have some clarification, rather that rely on external news reports.
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*https://admainnew.morningstar.com/webhelp/FAQs/CIT_FAQ.htm
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