A bill to prevent assets managed by the Federal Retirement Thrift Investment Board, Washington, from being invested in certain Chinese companies has been reintroduced in the Senate.
Sen. Marco Rubio, R-Fla., reintroduced the TSP Fiduciary Security Act, which would amend the board's fiduciary duty to include a requirement not to harm national security, on Jan. 30.
Under the bill, Thrift Savings Plan assets could not be invested in "Communist Chinese military companies."
Also, the board's investment decisions and the proxy votes associated with TSP funds would be assessed for national security risks by the secretary of Labor, in consultation with the secretaries of Defense, Treasury and Homeland Security and the attorney general.
Mr. Rubio first introduced the bill in June during the previous congressional session, but it was not taken up further.
The board administers the $725.9 billion Thrift Savings Plan, the retirement system for 6.8 million federal employees and members of the uniformed services.
Kim Weaver, the board's director of external affairs, said in an email that the board members and executive director "serve as fiduciaries legally obligated to act 'solely in the interest of the [TSP] participants and beneficiaries' and for the exclusive purpose of providing benefits to participants and their beneficiaries."
Mr. Rubio's bill would impose "a new standard of fiduciary duty, applying only to the TSP," Ms. Weaver added. "The proposed standard overrides the current requirement of acting solely in the interest of TSP participants to state that the Federal Retirement Thrift Investment Board has a duty not to harm national security, a duty that doesn't apply to any other defined contribution plan or financial organization."
Mr. Rubio has long focused on the TSP and China. Last year, he held up the nominations of four current board members until after they said they have no plans to invest TSP assets in Chinese companies.
