Wednesday, June 20, 2007

Federal Retirement Thrift Investment Board Rejects Divestment Plans

The Washington Post is reporting today that the Federal Retirement Thrift Investment Board has approved in a 4 to 0 vote a resolution objecting to any efforts that would "introduce political or social considerations into TSP [Thrift Savings Plan] investment policy."

According to the Washington Post article:

"The TSP, a program that functions like a 401(k) for the civil service, postal and military personnel, has practiced neutrality on political and social issues since its start 20 years ago.

However, bills pending in Congress would pressure the TSP to stop investing in companies that do business with Iran or support, directly or indirectly, the conflict in the Darfur region of Sudan, which the United States has called a genocide.

While the legislation would 'address various meritorious causes,' the board objected to any effort to tamper with the TSP, which uses funds that mirror the ups and downs of stock and bond markets rather than a particular industry or individual companies."

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