Should federal pension billions be invested in China? Sen. Shaheen and Trump may find themselves on [View all]

Should federal pension billions be invested in China? Sen. Shaheen and Trump may find themselves on same side


President Donald Trump's intensifying showdown with China over its handling of the coronavirus pandemic is expanding to a new battlefield: the retirement portfolios of 5.9 million federal employees and U.S. service members.

In recent days, White House officials have moved to seize control of a little-known board that administers the $557 billion federal retirement program for most active and retired federal employees and military members, with some aides eager to halt the flow of billions of dollars into an index fund that includes Chinese companies, according to two White House officials and an outside Trump adviser involved in the discussions.

Trump on Monday nominated three members to replace the majority on the Federal Retirement Thrift Investment Board, made up of five investment experts who oversee the retirement plan. All of their four-year terms have expired, and Senate Majority Leader Mitch McConnell, R-Ky., and House Speaker Nancy Pelosi, D-Calif., have not replaced those serving in the two seats they control.

With its new nominees, the White House is taking steps to block the plan's $40 billion international fund from investing in a fund that contains about 11 percent of China-based stocks, according to people familiar with the strategy.

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