{"id":19767,"date":"2024-03-12T13:44:00","date_gmt":"2024-03-12T17:44:00","guid":{"rendered":"https:\/\/www.merkley.senate.gov\/?p=19767"},"modified":"2024-06-26T16:56:20","modified_gmt":"2024-06-26T20:56:20","slug":"rep-cleaver-introduces-legislation-to-protect-federal-pensions-from-economic-impact-of-climate-change","status":"publish","type":"post","link":"https:\/\/www.merkley.senate.gov\/es\/rep-cleaver-introduces-legislation-to-protect-federal-pensions-from-economic-impact-of-climate-change\/","title":{"rendered":"Rep. Cleaver, Sen. Merkley Introduce Legislation to Protect Federal Pensions from Economic Impact of Climate Change"},"content":{"rendered":"

(Washington DC)<\/strong> \u2013 Today, U.S. Representatives Emanuel Cleaver, II (D-MO) and Rashida Tlaib (D-MI), along with Senator Jeff Merkley (D-OR), re-introduced the Restructuring Environmentally Sound Pensions in Order to Negate Disaster (RESPOND) Act<\/em>. The legislation would require the Federal Retirement Thrift Investment Board (FRTIB) to conduct a thorough assessment to determine the extent to which federal workers\u2019 pensions are exposed to climate-related financial risks.<\/p>\n\n\n\n

The lack of a climate-related risk assessment leaves the pensions of millions of federal employees blindly vulnerable to the economic consequences of climate change, with the potential for catastrophic losses now and in the decades to come. If the Board finds these risks to be legitimate upon completion of its assessment, the bill would then require the Board to prepare and implement a strategy to transition the pension program\u2019s holdings out of fossil fuel-related investments to better insulate retirement benefits from these risks.<\/p>\n\n\n\n

In 2021, the GAO published a formal recommendation<\/a> that the FRTIB conduct this analysis to ensure that federal pensions can be better protected from the growing financial risks posed by our changing climate.<\/p>\n\n\n\n

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\u201cWith more than 6 million federal workers across the country, including 38,000 across Missouri\u2019s Fifth Congressional District, it is pivotal that Congress take steps to ensure that their well-earned pensions are not vulnerable to the current and future economic consequences of climate change,\u201d said Congressman Cleaver<\/strong>. \u201cOur RESPOND Act will require federal regulators to compile and analyze the data necessary to accurately assess climate-related risks to federal pensions. Such commonsense due diligence in the face of a worsening climate crisis will protect the retirements of federal workers nationwide, which is why I\u2019m proud to introduce this legislation with Rep. Tlaib and Senator Merkley.\u201d<\/p>\n<\/blockquote>\n\n\n\n

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\u201cFederal workers should not be forced to invest their hard-earned savings in corporate polluters that are threatening our health, communities, and environment. The $700+ billion in retirement savings under federal management are a crucial opportunity to divest from fossil fuels that are killing our planet. Federal workers deserve real retirement security\u2014based on both financial and environmental sustainability. I\u2019m grateful to Rep. Cleaver and Sen. Merkley for leading this effort and look forward to working with them to pass this important bill,\u201d said Congresswoman Tlaib<\/strong>.<\/p>\n<\/blockquote>\n\n\n\n

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“Some of the world’s largest and most sophisticated investors are divesting from fossil fuel projects because of the risk that they pose to investors\u2019 bottom lines,”\u202fsaid Senator Merkley<\/strong>. “It’s time for the Thrift Savings Plan to explore whether millions of federal employees would be better off if their retirement funds are in a less risky and more sustainable, socially responsible portfolio.”<\/p>\n<\/blockquote>\n\n\n\n

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\u201cFederal employees, like all Americans, should have the freedom to invest responsibly in ways that mitigate the systemic risks that the climate crisis poses to our economy and retirement savings. We thank Representative Cleaver for recognizing the serious financial risks associated with the climate crisis and taking action to protect workers from those risks,\u201d said Ben Cushing, Fossil-Free Finance campaign director, Sierra Club<\/strong>.<\/p>\n<\/blockquote>\n\n\n\n

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\u201cAs the climate crisis continues to ravage our planet, and we experience 80 degree winter days right here in Missouri, it is vital that we invest our funds responsibly rather than waste money on outdated and unprofitable investments. The Sierra Club, Missouri Chapter, is proud to stand with Congressman Cleaver to protect the futures of federal workers,\u201d said Gretchen Waddell Barwick, Sierra Club Missouri Chapter Director<\/strong>.<\/p>\n<\/blockquote>\n\n\n\n

The FRTIB currently oversees $770 billion in retirement benefits for over 6 million federal employees, including 38,000 in Missouri\u2019s Fifth Congressional District. The RESPOND ACT<\/em> would take steps to protect these retirement benefits by:<\/p>\n\n\n\n