Federal retirement plan should consider climate change: GAO

Federal retirement plan should consider climate change: GAO
The board overseeing the Thrift Savings Plan, which has 6 million active and retired participants, says that it subscribes to a strict indexing discipline.
JUN 25, 2021

After reviewing literature and conducting interviews with stakeholders knowledgeable about climate change and financial markets, the Government Accountability Office has found that federal employees saving for retirement in the government’s Thrift Savings Plan could be exposed to financial risks from climate change.

It has recommended that the Federal Retirement Thrift Investment Board, which oversees the TSP, evaluate its investment offerings in light of those risks. The GAO report says the board didn't indicate whether it agreed or disagreed with the recommendation and said that it subscribes to a strict indexing discipline and efficient market theory.

“Climate change is expected to have widespread economic impacts and pose risks to investments held by retirement plans, including the federal government's TSP,” the GAO said in a release. “As of November 2020, TSP had six million active and retired federal employee participants and nearly $700 billion in assets.”

The GAO said that when it confirms what actions, if any, the agency has taken in response to its recommendation, it will provide updated information.

Latest News

Five-person Raymond James team jumps to Janney in Maryland
Five-person Raymond James team jumps to Janney in Maryland

The group led by a 37-year industry veteran brings $470 million in assets to the Philadelphia-based broker dealer.

$20B Merit looks to next phase as Constellation takes minority stake
$20B Merit looks to next phase as Constellation takes minority stake

The Atlanta, Georgia-based national wealth firm revealed its new PE partner as prior backers Wealth Partners Capital Group and HGGC’s Aspire Holdings exited their investments.

$350M father-son duo hops from Osaic to Equitable Advisors
$350M father-son duo hops from Osaic to Equitable Advisors

The latest departures in Ohio mark another setback for the hybrid RIA, which is looking to "expanding its presence across all models and segments of the wealth management industry.”

Fresh off HPS acquisition, BlackRock inks deal for $7.3B ElmTree Funds
Fresh off HPS acquisition, BlackRock inks deal for $7.3B ElmTree Funds

The St. Louis-based real estate investment firm gives the asset management giant a valuable access point to the roughly $1 trillion net lease market.

SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees
SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees

Eliseo Prisno, a former Merrill advisor, allegedly collected unapproved fees from Filipino clients by secretly accessing their accounts at two separate brokerages.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.