Representative Randy Fine (R-FL) has introduced legislation to prevent the investment of Thrift Savings Plan (TSP) funds in countries deemed adversarial.
The TSP is essentially a retirement fund for federal employees, including plans specifically for veterans, and Rep. Fine's TSP Fiduciary Security Act blends national security interests into the system in order to prevent investment of TSP money into countries of concern.
The new bill prohibits investment in entities blacklisted by the Departments of War and Commerce, particularly ones linked to China, and it includes safeguards to prevent catastrophic losses under the new rule.
"It is in the United States' best interest to prevent the TSP from being invested in countries of concern, such as China," said Rep. Fine in a press release. "My bill would prevent excess funds from falling into the hands of our adversaries and stop them from being used to develop weapons that could be turned against the United States."
Senator Rick Scott (R-FL) is introducing the bill in the Upper Chamber of Congress, saying, "Americans' retirement dollars should never fall into the hands of Communist China, a self-declared enemy nation bent on destroying America and our way of life. Doing so puts Americans' futures at risk."
"Our TSP Fiduciary Security Act builds on our work to ensure the hard-earned money that our federal workers invest in their retirement is kept out of enemies' reach by further preventing the TSP from investing in companies based in Communist China," Sen. Scott added.
In November, Representative Cory Mills (R-FL) introduced the Financial Opportunities for Retirees and Warriors Advancing Retirement Development (FORWARD) Act, which allows veterans to continue contributing to their TSPs after leaving service or being rated 100% disabled.
Additional provisions include allowing military retirement pay or VA disability compensation to be rolled into TSPs and requiring the Federal Retirement Thrift Investment Board to implement regulations within 180 days, in coordination with the Departments of Defense and Veterans Affairs.
