Rep. Jim Langevin, D-R.I., introduced the Federal Employees Responsible Investment Act on Wednesday, which would add a socially responsible investment option to the Thrift Savings Plan (TSP). TSP is the retirement savings and investment plan for federal employees.
The Act would direct the Federal Retirement Thrift Investment Board (FRTIB) to select a “Corporate Responsibility Index” as an option for TSP investment. The index 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.”
“We must create an environment in which businesses take care of–and are held accountable to–their shareholders, employees and customers,” Langevin said in a prepared statement. “Making an investment in companies that are committed to corporate responsibility will have a positive impact on our financial system, while empowering federal employees to reward companies that share their values.”
At least 17 states already allow state employees to consider socially responsible investments for retirement funds.