Page 41 - DCAC November 2023 Files

History of Collective Investment Trusts

• 1927 – CITs first introduced
• 1936 – CIT use expanded in DB plans when Congress amended the Internal Revenue Code to provide
tax‐exempt status to certain bank‐maintained CITs

• 1955 – CIT use expanded further with the Federal Reserve authorization for banks to combine funds
from pensions, profit sharing and stock bonus plans, and the IRS determination that such CITs could
be tax‐exempt
• 2000 – CITs began trading on the NSCC’s Fund/SERV® platform

• 2012 – To facilitate comparisons across DC investment alternatives, the DOL required plan
administrators to standardize strategy, risk, performance and expense disclosures for plan
participants

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