Congressman Schiff Reintroduces Legislation to Provide Corporate Responsibility Stock Portfolio Options to Federal Employees
Washington, D.C. – Today, Congressman Adam Schiff (D-Calif.) re-introduced the Federal Employees Sustainable Investment Act to create a new retirement investment fund option for federal employees that promotes sustainability and corporate responsibility. The Federal Employees Sustainable Investment Act will help facilitate greater participation in sustainable investments that benefit both the employees and our environment.
Schiff introduced this legislation as Republicans are prepared to scrap a Labor Department rule providing fiduciaries with the ability to consider climate and environmental factors in retirement fund investments. The House passed the GOP measure today.
The legislation will establish a new fund, the Corporate Responsibility Stock Index Fund, which would be provided as an option for federal employees participating in the Thrift Savings Plan. The new fund would have minimum corporate responsibility criteria that stocks would have to meet to be included, giving federal employees far greater options to invest within a fund that aligns with their values.
“As federal employees, our job is to leave our country better off than we found it. So naturally, when we go about developing an investment portfolio that will help us meet our retirement goals, we’re looking for a good return on more than just our money,” said Schiff. “But for too long, investment options for federal employees have been far too limited. This bill will change that and allow federal employees to start making investments in the spirit of public service and with an eye toward sustainable practices that will help combat the climate crisis.”
It has been more than 20 years since federal employees have gotten new investment options for their retirement savings through the Thrift Savings Plan Act of 1996. The limited options mean that by default, most federal employees must invest their retirement savings in big oil, pharmaceutical, tobacco, and other major corporations that do not reflect their values. Meanwhile, there has been increased interest in environmental, social, and governance investments, especially among young investors, and it is estimated that $1 trillion will be put into them by 2030.
Schiff previously introduced this legislation in the 117th Congress.
The bill is co-sponsored by Representatives Jan Schakowsky (D-IL), Gary Connolly (D-VA), Emanuel Cleaver (D-MO), and Teresa Leger Fernández (D-NM).
To read the full bill text, click here.