Federal Retirement Thrift Investment Board: Difference between revisions

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== Investments in unaudited companies in China ==
The Federal Retirement Thrift Investment Board has been criticized for a 2017 decision to mirror an index that invests in unaudited Chinese companies as well as companies that are sanctioned by the U.S.<ref>{{Cite news|url=https://www.govexec.com/pay-benefits/2019/08/lawmakers-question-tsp-foreign-investment-decisions-and-more/159503/|title=Lawmakers Question TSP Foreign Investment Decisions, and More|last=Wagner|first=Erich|date=August 28, 2019|work=[[Government Executive]]|access-date=September 24, 2019|archive-url=https://web.archive.org/web/20190925025520/https://www.govexec.com/pay-benefits/2019/08/lawmakers-question-tsp-foreign-investment-decisions-and-more/159503/|archive-date=September 25, 2019|url-status=live}}</ref><ref>{{Cite news|url=https://federalnewsnetwork.com/tsp/2019/09/lawmakers-observers-denounce-moving-tsp-fund-to-china-inclusive-index-in-2020/|title=Lawmakers, observers denounce moving TSP fund to China-inclusive index in 2020|last=Brust|first=Amelia|date=September 13, 2019|work=[[WFED]]|access-date=September 24, 2019|archive-url=https://web.archive.org/web/20190925030008/https://federalnewsnetwork.com/tsp/2019/09/lawmakers-observers-denounce-moving-tsp-fund-to-china-inclusive-index-in-2020/|archive-date=September 25, 2019|url-status=live}}</ref><ref>{{Cite news|url=https://www.cnbc.com/2019/09/11/sen-marco-rubio-federal-retirement-dollars-should-not-support-china.html|title=Sen. Marco Rubio wants to make sure federal worker retirement dollars are not invested in China|last=Bursztynsky|first=Jessica|date=September 11, 2019|work=[[CNBC]]|access-date=September 24, 2019|archive-url=https://web.archive.org/web/20190925030002/https://www.cnbc.com/2019/09/11/sen-marco-rubio-federal-retirement-dollars-should-not-support-china.html|archive-date=September 25, 2019|url-status=live}}</ref><ref>{{Cite news|last=Alper|first=Alexandra|date=2020-04-21|title=Trump pressed to halt federal pension investments in China's ZTE, Hikvision|language=en|work=[[Reuters]]|url=https://www.reuters.com/article/us-usa-china-investments-exclusive-idUSKCN2231FE|url-status=live|access-date=2020-05-03|archive-url=https://web.archive.org/web/20200502152217/https://www.reuters.com/article/us-usa-china-investments-exclusive-idUSKCN2231FE|archive-date=2020-05-02}}</ref> Despite scrutiny from the U.S. Senate, Board voted to permit continued investment in an index containing stocks of unaudited companies in the People's Republic of China.<ref>{{Cite news|url=https://www.bloomberg.com/news/articles/2019-11-13/u-s-retirement-fund-okays-china-investment-after-senate-threat|title=U.S. Retirement Fund Okays China Investment After Senate Threat|last=Flatley|first=Daniel|date=November 13, 2019|work=[[Bloomberg News]]|access-date=November 16, 2019|archive-url=https://web.archive.org/web/20191117023045/https://www.bloomberg.com/news/articles/2019-11-13/u-s-retirement-fund-okays-china-investment-after-senate-threat|archive-date=November 17, 2019|url-status=live}}</ref> In November 2019, U.S. senators [[Marco Rubio]] and [[Jeanne Shaheen]] introduced legislation, the Taxpayers and Savers Protection Act, to force the Board to divest from unaudited Chinese companies.<ref>{{Cite news|url=https://www.reuters.com/article/us-usa-trade-tsp-idUSKBN1Y02IK|title=Senators seeking China ban for federal pension plan dispute critics|last=McCrank|first=John|date=2019-11-26|access-date=2019-11-27|work=[[Reuters]]|language=en|archive-url=https://web.archive.org/web/20191127065839/https://www.reuters.com/article/us-usa-trade-tsp-idUSKBN1Y02IK|archive-date=2019-11-27|url-status=live}}</ref> In May 2020, a directive from the [[United States Department of Labor]] ordered the TSP to halt a plan to invest in Chinese stocks.<ref>{{Cite news|last=Tergesen|first=Anne|date=2020-05-12|title=Trump Administration Tells Federal Retirement Plan to Avoid Chinese Stocks|language=en-US|work=The Wall Street Journal|url=https://www.wsj.com/articles/trump-administration-tells-federal-retirement-plan-to-avoid-chinese-stocks-11589322094|access-date=2020-05-13|issn=0099-9660}}</ref> In 2022, a coalition was formed to push for the removal of emerging-market funds that contain companies linked to the [[People's Liberation Army]].<ref>{{Cite news |last=Au-Yeung |first=Angel |date=2022-08-03 |title=U.S. Generals, Diplomats Want Chinese Companies Out of Their Retirement Plan |language=en-US |work=The Wall Street Journal |url=https://www.wsj.com/articles/u-s-generals-diplomats-want-chinese-companies-out-of-their-retirement-plan-11659528001 |access-date=2022-08-05 |issn=0099-9660}}</ref>
Since July 2022, federal employees have the option of investing in mutual funds that have holdings in sanctioned Chinese companies.<ref>{{Cite web |last=Bauman |first=Valerie |last2=Tatlow |first2=Didi Kirsten |date=2023-05-22 |title=Chinese firms threatening US can get investment from federal employees |url=https://www.newsweek.com/federal-retirement-plan-allows-investment-sanctioned-chinese-companies-1798690 |access-date=2023-05-22 |website=[[Newsweek]] |language=en}}</ref>
In November 2023, the Federal Retirement Thrift Investment Board switched the index for its international fund to one that excludes investments in companies in [[Hong Kong]] and [[mainland China]].<ref>{{Cite news |last=Hughes |first=Jennifer |last2=Lockett |first2=Hudson |date=2023-11-15 |title=US federal pension fund to exclude Hong Kong and China investments |work=[[Financial Times]] |url=https://www.ft.com/content/6e5d00ec-de0d-4c57-82ea-4b2846ef8004 |url-access=subscription |access-date=2023-11-15}}</ref>


==See also==
==See also==