| FOR IMMEDIATE RELEASE April 1, 2004 |
Contact: Michael K. Guilfoyle (401) 732-9400 |
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Congressman Wants Federal Retirement Plan To Offer Responsible | |
| (Washington, D.C.)–Congressman Jim Langevin today introduced legislation that would add a corporate responsibility stock index option to the federal employee retirement plan, providing approximately 5,820 Rhode Islanders, and millions of federal employees nationwide, the option to invest in responsible companies. The Federal Employee Responsible Investing Act would direct the Thrift Investment Board, which oversees the federal Thrift Savings Plan (TSP), to choose a widely known stock index that only invests in stocks that meet strict financial and social responsibility criteria. These companies must meet standards including safe environmental practices, sound corporate governance, community involvement, and human rights worldwide. Langevin's legislation will allow federal employees the option of investing in companies that meet their values, as well as encourage companies to improve their practices in order to be included in this index. "Since the collapse of Enron and the accounting scandals that have left a lasting mark on Wall Street, investors have expressed an interest in cleansing their stock portfolios," said Congressman Langevin. "This bill will allow federal employees to invest in companies that have strong corporate governance, positive environmental practices, and do not use sweatshops or child labor overseas. Many states already offer employees this kind of investing, which provides solid returns while rewarding companies that are making the country and the world better." The bipartisan legislation, introduced by Langevin and Congressman Chris Shays (R-CT), explicitly states that the index selected must have comparable past performance to the other options available in the TSP. Responsible indices have a history of exceeding the performance of other indices because companies with ethical practices are better suited for long-term sustainable growth. Approximately 1 of every 9 dollars invested in the United States is done so in a responsible manner, and at least 18 states currently offer a responsible investment option to state employees, as do many corporations. "Investing in responsible companies not only provides investors with competitive returns, but also sends a strong message to organizations that disregard responsible business practices," added Langevin. "Giving investors this option when making important decisions about their financial future is the very least Congress can do for federal employees." The Federal Employee Responsible Investing Act has been endorsed by two of the largest government employee unions, the American Federation of Government Employees and the National Treasury Employees Union, as well as the "Social Investment Forum," a group of responsible investment managers. -30- | |
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