TSP Fiduciary Security Act of 2023

This bill requires the Federal Retirement Thrift Investment Board (which manages the TSP for federal employees) to ensure TSP investments and voting rights do not harm U.S. national security. It specifically prohibits investments in entities linked to certain countries (like China, Russia, or Iran) or activities that could undermine defense production, critical technology, or government contracts. The bill mandates annual reviews by the Labor Secretary (with Defense, Justice, and Treasury) to assess compliance, including a presumption against investments in listed entities or votes supporting restricted transactions. It also temporarily shields fiduciaries from liability for breaches until 2025, after which full accountability resumes. The policy directly affects TSP beneficiaries (federal retirees and uniformed service members) and the TSP investment board’s decision-making.