Government and Politics
August 4, 2022
Rubio Demands Biden Administration Protect Military Retirement Funds from China
An alarming headline from the Wall Street Journal made a longstanding problem personal. The article, “U.S. Generals, Diplomats Want Chinese Companies Out of Their Retirement Plan,” details widespread resistance from federal employees and military personnel to the presence of Chinese companies in their federally sponsored retirement plans.
U.S. Senator Marco Rubio (R-FL) first raised the issue in 2019, leading a successful bipartisan effort to block the Federal Retirement Thrift Investment Board (FRTIB) from investing retirement savings in Chinese companies. In June, the FRTIB again opened the door to allowing these funds to be invested in blacklisted Chinese companies.
Rubio is demanding answers from FRTIB Chairman Michael Gerber.
-“American servicemembers’ retirement funds should never be used to finance an adversary of the United States, nor should they bankroll foreign weapons or technology designed to someday harm them.”
-“Current and former service-members and diplomats have registered their alarm regarding new offerings to TSP account-holders via the new mutual fund window. Several of the more than 5,000 funds available to federal employees reportedly included companies on the U.S. Department of Commerce’s Entity List and the U.S. Department of Defense’s Chinese Military Companies trade blacklist, as well as others alleged to engage in Uyghur forced labor.”
-“It is not an exaggeration to say that the FRTIB appears to be failing in its fiduciary duty to our servicemembers and federal employees.”
Looking ahead … Rubio will continue to work with the Public Company Accounting Oversight Board (PCAOB) to fully implement his Holding Foreign Companies Accountable Act. Under that law, hundreds of China’s biggest companies will be delisted in 2024 if the Chinese Communist Party does not allow them to comply with U.S. securities rules.