RRB not investing in questionable Chinese companies

INDEPENDENCE, Ohio, July 15 — The U.S. Railroad Retirement Board (RRB) advised the White House on July 8 that it is not investing railroad workers’ money in questionable companies headquartered in the People’s Republic of China.

On July 7, the Chairman of the RRB received a letter from White House officials expressing concerns over the RRB’s alleged investment in Chinese companies. The National Railroad Retirement Investment Trust (NRRIT) manages railroad retirement funds and makes investment decisions on behalf of the RRB. The letter further alleged that NRRIT was investing in two Chinese companies that specifically pose an economic risk to the trust funds of railroad employees.

With the concurrence of RRB Labor Member John Bragg and RRB Industry Member Thomas Jayne, RRB Chairman Erhard R. Chorlé responded to the White House on July 8.

“Regarding the specific companies you cite in your letter, Hikvision and ZTE, NRRIT assured us in mid-June that the Trust held no interest in either of those companies,” Chorlé wrote.

In a separate letter to Rail Labor unions, Brother Bragg defended the NRRIT and RRB, and said the Board is taking the White House inquiry very seriously. He also assured Rail Labor members that their retirement funds are being invested wisely.

“Our retirement trust fund is one of the healthiest in the country,” Bragg wrote. “The NRRIT manages and makes the investment decisions of the railroad retirement funds and to date has helped produce returns that secure our trust fund well into the future. NRRIT is an independent non-federal entity governed by a seven-member Board, with three selected by rail management, three selected by rail labor, and one independent trustee selected by the six rail trustees. The best interest of the trust fund and the security that it provides to the rail community is always at the forefront of their duties.”

A copy of RRB Chairman Chorlé’s letter to the White House is available here (PDF).

Wednesday, July 15, 2020
bentley@ble-t.org

http://www.ble-t.org/pr/news/newsflash.asp?id=12373

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