I 

108TH CONGRESS 

2D SESSION H. R. 4140 

To amend title 5, United States Code, to provide for a corporate responsibility 

investment option under the Thrift Savings Plan. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 2, 2004 

Mr. LANGEVIN (for himself, Mr. SHAYS, Mr. MATSUI, Mr. SIMMONS, Mr. 

PASCRELL, Mrs. MCCARTHY of New York, Mr. VAN HOLLEN, Mr. KENNEDY of Rhode Island, Mr. LARSON of Connecticut, Mrs. DAVIS of California, Ms. MCCOLLUM, Mr. TIERNEY, Ms. SCHAKOWSKY, Mr. 

KUCINICH, and Mr. NEY) introduced the following bill; which was referred to the Committee on Government Reform 

A BILL 

To amend title 5, United States Code, to provide for a 

corporate responsibility investment option under the 

Thrift Savings Plan. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Federal Employees Re5 sponsible Investment Act’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 
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1 (1) The Department of Labor has asserted that 

2 socially responsible investments meet the fiduciary 

3 standards set in the Employee Retirement Income 

4 Security Act. 

5 (2) 84 percent of mutual fund investors would 

6 be more likely to invest in a fund if one of its prin7 ciples was to invest in companies that engage in eth8 ical business practices in terms of operations and re9 porting. 

10 (3) 71 percent of investors agree that compa11 nies that operate with higher levels of integrity carry 

12 less investment risk, and 67 percent of investors be13 lieve that these companies deliver better investment 

14 returns. 

15 SEC. 3. CORPORATE RESPONSIBILITY STOCK INDEX FUND. 

16 (a) DEFINITION.—Section 8438(a) of title 5, United 

17 States Code, is amended— 

18 (1) in paragraph (9), by striking ‘‘and’’ at the 

19 end; 

20 (2) in paragraph (10), by striking the period at 

21 the end and inserting ‘‘; and’’; and 

22 (3) by adding at the end the following: 

23 ‘‘(11) the term ‘Corporate Responsibility Stock 

24 Index Fund’ refers to the fund established under 

25 subsection (b)(1)(F).’’. 
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1 (b) ESTABLISHMENT.— 

2 (1) IN GENERAL.—Section 8438(b)(1) of title 

3 5, United States Code, is amended— 

4 (A) in subparagraph (D), by striking 

5 ‘‘and’’ at the end; 

6 (B) in subparagraph (E), by striking the 

7 period at the end and inserting ‘‘; and’’; and 

8 (C) by adding at the end the following: 

9 ‘‘(F) a Corporate Responsibility Stock Index 

10 Fund as provided under paragraph (5).’’. 

11 (2) FUND REQUIREMENTS.—Section 8438(b) of 

12 title 5, United States Code, is amended by adding 

13 at the end the following: 

14 ‘‘(5)(A) The Board shall select an index which is a 

15 commonly recognized, passively managed index comprised 

16 of domestic stocks that have been analyzed based on cri17 teria consistent with the purposes of this paragraph. Such 

18 criteria may include corporate governance, environmental 

19 practices, workplace relations and benefits, product safety 

20 and impact, international operations and human rights, 

21 involvement with repressive regimes, and community rela22 tions. The index’s financial track record must be com23 parable to that of the other options available under the 

24 Thrift Savings Plan. 
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1 ‘‘(B) The Corporate Responsibility Stock Index Fund 

2 shall be invested in a portfolio designed to replicate the 

3 performance of the index in subparagraph (A). The port4 folio shall be designed such that, to the extent practicable, 

5 the percentage of the Corporate Responsibility Stock 

6 Index Fund that is invested in each stock is the same as 

7 the percentage determined by dividing the aggregate mar8 ket value of all shares of that stock by the aggregate mar9 ket value of all shares of all stocks included in such 

10 index.’’. 

11 (c) ACKNOWLEDGMENT OF RISK.—Section 8439(d) 

12 of title 5, United States Code, is amended— 

13 (1) by striking ‘‘or the Small Capitalization 

14 Stock Index Investment Fund,’’ and inserting ‘‘the 

15 Small Capitalization Stock Index Investment Fund, 

16 or the Corporate Responsibility Stock Index Fund,’’; 

17 and 

18 (2) by striking ‘‘and (10),’’ and inserting ‘‘(10), 

19 and (11),’’. 

20 SEC. 4. EFFECTIVE DATE. 

21 The fund required under this Act shall be made avail22 able beginning with the earliest election period (under sec23 tion 8432(b) of title 5, United States Code) practicable, 
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1 as determined by the Executive Director of the Thrift Sav2 ings Fund in regulations. 

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