Retirement Fund Tapped to Avoid National Debt Limit
The Washington Post, March 8th, 2006
The Treasury Department has started drawing from the civil service pension
fund to avoid hitting the $8.2 trillion national debt limit. The move to tap the
pension fund follows last month's decision to suspend investments in a
retirement savings plan held by government employees.
In a letter to Congress this week, Treasury Secretary John W. Snow
said he would rely on the Civil Service Retirement and Disability Fund to avoid
bumping up against the statutory debt limit. He said the Treasury is suspending
investments and will redeem a portion of the money credited to the fund.
Once Congress raises the debt limit, the Treasury will "restore all due interest
and principal" to the pension fund as soon as possible, Snow said. He made a
similar promise when the Treasury announced that reinvestment of some assets in
the Thrift Savings Plan's government securities fund, or G Fund, had been
suspended.
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