# Plain Language Summary of the TSP Act

This bill prevents federal employees' retirement savings from being invested in companies listed on foreign stock exchanges where the U.S. government can't properly inspect accounting records. Specifically, it targets countries that block the Public Company Accounting Oversight Board (PCAOB)—a U.S. watchdog agency—from fully auditing the accounting firms that verify company finances. The main target here is China, which has long refused to allow complete PCAOB inspections of Chinese accounting firms.

The Thrift Savings Fund (TSP) is the retirement account system for federal employees, military members, and other government workers. Currently, the TSP invests in various funds that include stocks from around the world. Under this bill, the TSP would be prohibited from investing in securities listed on exchanges in countries where the PCAOB faces obstruction. This means federal employees' retirement money wouldn't be funneled into companies operating in jurisdictions that prevent U.S. financial oversight.

The practical effect is that federal workers' retirement portfolios would shift away from certain foreign markets, particularly China's stock exchanges. Supporters argue this protects American workers' savings from being invested in countries that don't meet U.S. transparency standards and may pose national security concerns. The bill requires the TSP board to work with the Securities and Exchange Commission every two years to identify which countries meet these criteria and adjust investments accordingly. For most federal employees, this would likely mean their retirement funds are redirected toward domestic investments or other international markets with more transparent accounting practices.

TSP Act

Waltz, Michael

Taxpayers and Savers Protection Act or the TSP Act This bill prohibits any sums in the Thrift Savings Fund from being invested in a security that is listed on an exchange in a jurisdiction in which the Public Company Accounting Oversight Board is prevented from conducting the mandatory inspection or investigation of a registered public accounting firm because of a position taken by an authority in that jurisdiction.