Bill Allows Socially Responsible Investments
The recent introduction of the Federal Employees Responsible Investment Act would permit federal employees the opportunity to select a socially responsible and sustainable investment option in their thrift savings plan.
The proposed legislation would direct the Federal Retirement Thrift Investment Board to select a corporate responsibility index as an option for TSP investment purposes. The new CRI would include companies that meet strict financial criteria, in addition to having strong corporate governance, sustainable environmental policies and practices, solid workplace relations, positive community involvement, safe products and respect for human rights around the world, according to Social Investment Forum.
The TSP is a retirement savings plan for members of the uniformed services and civilians who are employed by the United States government. The Federal Retirement Thrift Investment Board administers the TSP. Today, a total of more than four million current and former federal employees participate in the TSP, which had a reported balance of $244.4 billion at the end of its last fiscal year in December 2009, according to SIF.
Rep. Jim Langevin (D-R.I.) is the original sponsor of the bill. Co-sponsors are Reps. Patrick Kennedy (D-R.I.), Dennis Kucinich (D-Ohio), Nita Lowey (D-N.Y.), and James McGovern (D-Mass.)