Frequently Asked Questions| Investment Management |
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| > | Why can't I vote proxies for shares of the TSP Funds in which I have invested? |
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1. Why can't I vote proxies for shares of the TSP Funds in which I have invested? 
The Federal Employees’ Retirement System Act of 1986, which established the TSP, provides that “The Board, other Government agencies, the Executive Director, an employee, a Member [of Congress], a former employee, and a former Member may not exercise voting rights associated with the ownership of securities by the Thrift Savings Fund.” 5 U.S.C. § 8438(f) (insert added). The Conference Report that accompanied the legislation also states that “The legislation bars Board members, the Executive Director, and employees from voting proxies owned by the stock index fund.” Thus, the Board and TSP participants are prohibited by law from voting proxies in the TSP stock index funds.
The Board’s procurements for asset management do include a clause requiring that the contractor “Vote all proxies and address all corporate actions in a manner which will result in maximum financial benefits to TSP participants and in accordance with fiduciary responsibilities.” This requirement is permissible under our law, and we do ensure that it is part of the performance under the contracts.