S. 1368 · Where this bill is now
In committee
Introduced in the Senate, Apr 9, 2025
What this bill does
In plain words · AI-written from the official summaryAdds national security rules to federal retirement investments
The bill asks the people who manage the Thrift Savings Fund—a retirement investment program for federal employees—to avoid investing in companies that could harm U.S. national security. This includes companies on national security watchlists, like certain Chinese military companies. Starting in 2027, managers of the fund can face personal financial penalties if they break these rules. The bill also prevents mutual funds available through the retirement program from investing in Chinese companies.
How it affects you
If you're a federal employee or retiree with money in the Thrift Savings Fund, your investment options may change because some companies could be excluded based on national security concerns. Fund managers now have to think about security risks alongside financial returns when deciding where to invest your retirement money.
Read the official summary (Introduced in Senate, Apr 9, 2025)
TSP Fiduciary Security Act of 2025
This bill incorporates national security interests into management of the Thrift Savings Fund.
Specifically, the bill requires fiduciaries that are responsible for managing the fund (i.e., the Federal Retirement Thrift Investment Board) to prevent fund investments and associated votes that harm the national security of the United States, including investments in entities on certain lists maintained by the Department of Defense and the Department of Commerce (e.g., Chinese military companies). The Department of Labor must issue implementing regulations that include these and other standards for compliance.
Beginning January 1, 2027, fiduciaries may be held personally liable for monetary damages and may be assessed civil penalties for failing to meet these requirements.
The bill also prohibits mutual funds that are accessible through an authorized mutual fund window from investing in any entity that is based in China or any subsidiary of such an entity.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionS. 1368
A BILL
TSP Fiduciary Security Act of 2025
Sponsor: Sen. Rick Scott (R-FL) · Introduced Apr 9, 2025 · Government Operations and Politics · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Apr 9, 2025: “Read twice and referred to the Committee on Homeland Security and Governmental Affairs.”
Sections
Sections · 5
- Sec. 1Short titleNo change
- Sec. 2FindingsNo change
- Sec. 3Fiduciary responsibilities with respect to Thrift Savings FundNo change
- Sec. 4Review of Thrift Savings Fund for compliance with fiduciary dutiesNo change
- Sec. 5Prohibition on investment of Thrift Savings Fund sums in entities based in the People’s Republic of China through the TSP mutual fund windowNo change