Thrift Savings Plan: Adding a Socially Responsible Index Fund Presents Challenges

Congress has proposed legislation to require TSP to offer additional investment options in an effort to give participants and beneficiaries greater investment choice. Several of these proposals have sought to require TSP to include a responsible investment index fund that would track a market index comprised of stocks that were prescreened for corporate governance, environmental practices, workplace relations and benefits, product safety and impact, international operations and human rights, involvement with repressive regimes, and community relations.