NEW YORK (Reuters) – The U.S. lawmakers behind a bill to stop a large federal retirement pension plan from investing in a fund that includes China-listed shares said the pension plan’s administrators are being misleading about what their bill entails.
The Federal Retirement Thrift Investment Board (FRTIB) said last week the bipartisan legislation would, if passed, deprive participants in the Thrift Savings Plan (TSP) it manages of a significant opportunity for better returns. The plan is similar to a private 401(k) and has around $600 billion in assets.
Senators - Marco - Rubio - Jeanne - Shaheen
Senators Marco Rubio and Jeanne Shaheen introduced the TSP Act on Nov. 6 at a time of heightened trade tensions with China and efforts to limit the flow of U.S. capital to Chinese companies due to security concerns.
In a letter to the bill’s backers, the FRTIB said the legislation was discriminatory and, as written, would prevent the board from offering any international investing option to its participants.
Rubio - Office - Case
Rubio’s office denied that was the case.
“Not only is the FRTIB analysis of the bipartisan TSP Act deeply flawed, the Board’s claim that there is no international index available that meets the bill’s criteria is categorically false,” Rubio spokesman Nick Iacovella said in a...
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