This week, Florida Rep. Michael Waltz (R) reintroduced the bipartisan TSP Act, which would prevent the Federal Retirement Thrift Investment Board (FRTIB) from investing the federally funded Thrift Savings Plan (TSP) in Chinese Companies that are reported to have direct ties to the Chinese Communist Party. In the Senate, Florida Senator Marco Rubio (R) has introduced similar legislation. In reintroducing the legislation, Waltz called it “crazy” for U.S. personnel “to indirectly contribute to China’s” control.
In a statement, the Florida lawmaker expressed that “it is absolutely crazy to propose our military and federal employees to indirectly contribute to China’s military buildup, oppression of minority groups, and ultimate goal of global takeover through retirement funds.” “What’s worse is that nearly all of these Americans are completely unaware of this situation,” he added.
It is estimated that 5.6 million U.S. military members and federal employees contribute to the Thrift Savings Plan each month. The plan is a 401K-style plan that is automatically deducted from their paychecks.
The TSP is administered by the FRTIB, and it is responsible for around $700 billion in assets, which makes. It one of the world’s largest retirement funds.
With the bill, it would prevent the FRTIB from investing the TSP in any jurisdictions that restrict U.S. audit inspections. This is because the Chinese Communist Party doesn’t allow U.S. auditors to access financial and accounting records.
At the end of 2017, the FRTIB chose a new index for the TSP I-Fund that includes Chinese markets, and a press release from Waltz’s office argues that “the decision was responsibly tabled by President Trump but the FRTIB maintains the ability to reassess the decision.” Moreover, the introduction of the bill is an effort to confront that “several companies included in the index (MSCI-ACWI ex USA) contract with the Chinese Communist Party’s People’s Liberation Army and provide equipment to oppress the Uighurs.”
“Imagine sending our brave soldiers overseas to fight against our enemies and then telling them they have been footing the bill for our adversary’s military operations,” Waltz further explained, adding that “this is completely unconscionable and needs to be taken off the table.”
The bill is introduced with Bipartisan support, and it has 19 cosponsors in the House.
