Rep. Ted Budd Proposes Stopping Military & Federal Savings Plans from Investing in Russia

Statement

Today, Rep. Ted Budd (R-NC) introduced the Terminating Securities from Putin (TSP) Act. The bill prohibits the Thrift Savings Fund from investing in any securities of an entity based in Russia. The Thrift Savings Fund is used by 6 million members of the U.S. military and the federal civilian workforce.

Legislative text of the bill is HERE

Rep. Budd said in a statement:

"Members of our military and federal workforce should not have to wonder whether or not their retirement investments are coming from Vladimir Putin's Russia. I'm proud to introduce legislation that draws a line in the sand and provides moral assurances to 6 million members of the military and the federal workforce."

Background:

The Thrift Savings Plan (TSP) is a tax-deferred 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.

The TSP is used by 6 million members of the U.S. military and federal civilian workforce.

The TSP's International Stock Index Investment Fund (I-Fund) is designed to diversify investor portfolios to include companies from outside of the United States.

Investments in the I Fund offer the opportunity to experience gains from equity ownership of non-U.S. companies.

In 2017 the Federal Retirement Thrift Investment Board (Board), which administers the TSP, planned to shift the I Fund to the MSCI ACWI ex USA Investment Market Index, which includes Russian investments.

This change was ultimately postponed by the Trump administration.

Currently, there is no federal prohibition to ensure that the TSP continues to stay divested from Russia.

The TSP Act of 2022 would prohibit the Federal Retirement Thrift Investment Board from establishing any funds within the TSP that would include an investment of an entity based in Russia.

The Board would also be required to ensure that no funds are invested in Russia, and if so properly divest such funds.

Source