In a unanimous decision Wednesday morning, the Federal Retirement Thrift Investment Board voted to defer the implementation of a new, China-inclusive index for the international fund. The board members cited ongoing economic uncertainty from the coronavirus, as well as the president’s three new nominees to FRTIB, as reasons for their decision.
In a rare move, the White House on Monday ordered the Federal Retirement Thrift Investment Board to “immediately halt” plans to transition the international fund to a new, China-inclusive benchmark.
President Donald Trump hadn’t appointed his own nominees to the fill the Federal Retirement Thrift Investment Board until Monday, months after members of Congress first expressed deep concerns with the TSP’s plans to expand the international fund to a new, China-inclusive index.
The Federal Retirement Thrift Investment Board said it’ll continue its plans to move the international fund to an emerging markets index, despite bipartisan congressional concern that the move would expose employees’ retirement assets to Chinese interests.
After a bipartisan group of senators expressed concern, the Federal Retirement Thrift Investment Board is reconsidering its plans to expand the I fund benchmark to emerging markets. Sen. Marco Rubio (R-Fla.) has said he’ll introduce new legislation to prevent the TSP from moving the I fund to this benchmark.
Two senators are also questioning the Federal Retirement Thrift Investment Board’s decision to move the Thrift Savings Plan’s I fund to a new index.