WASHINGTON, D.C. – Today, following continuous calls for the Federal Thrift Savings Plan (TSP) to divest from companies controlled by the Chinese Communist Party (CCP), Senator Rick Scott applauded the Federal Retirement Thrift Investment Board for finally announcing today its decision to halt the investment of federal employees’ pension dollars in Communist China and Hong Kong. The decision will remove CCP-run entities in China and Hong Kong from the TSP International “I” Fund and change the index the fund uses to a more expansive index without China. Senator Scott has been adamant about the need to better investigate and understand the risks presented by the volatile and opaque financial environment fostered by Communist China and pushed the federal government to mitigate the threats CCP-controlled companies pose to American investors, families, the economy and national security. He has cosponsored the Taxpayer and Savings Protection (TSP) Act in the 116th, 117th and 118th Congress which aimed to accomplish this goal and stop the investment of federal pension dollars in CCP-run entities.
According to the U.S. Office of Personnel Management, the TSP is a defined contribution retirement savings and investment plan that offers federal employees the same type of savings and tax benefits that many private corporations offer their employees under 401(k) plans. By participating in the TSP, Federal employees and uniformed service members can save part of their income for retirement, receive matching agency contributions, and reduce their current taxes.
Senator Rick Scott said, “After years of slow-walking, the Federal Retirement Thrift Investment Board finally listened to calls from me, Senator Rubio and Representative Michael Waltz and made a good decision to protect the hard-earned retirement dollars of our service members and federal employees from being invested in Communist China and Hong Kong. America’s federal workers have been recklessly and needlessly exposed to the risks posed by Communist China’s unaccountable and belligerent puppet companies. We are fighting to end that and today’s news from Federal Retirement Thrift Investment Board is a step in the right direction. What the Board must do next is finish the job and remove companies controlled by Communist China from the Mutual Fund Window. Retirement accounts still have exposure in that space and we need to eliminate it ASAP to protect retirements and stop funneling your money to the CCP. The private sector should take note and make similar choices to leave Communist China, and sadly Hong Kong too, due to the lack of rule of law and national security risk. The investor risk is too high to stay. More work needs to be done to fully protect all federal retirement dollars, and I won’t stop fighting to pass my bill package to protect your retirement.”
Earlier this Congress, Senator Scott announced a package of five finance-focused bills to hold Communist China accountable and better protect American investors and families. As tensions between the U.S. and Communist China continue to rise, these important bills will put safeguards in place to protect Americans’ hard-earned investments and stop exploitation by the Communist Chinese government. Since being elected to the Senate in 2018, Senator Scott has been urging both federal agencies and private businesses to decouple operations and investments from the genocidal Chinese regime. This comprehensive package builds on Senator Scott’s ongoing leadership to hold Communist China accountable by protecting investors from dubious Chinese companies, demanding additional transparency and accountability, identifying vulnerabilities and requiring disclosures so that transactions are transparent and safe for Americans.