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Treasury Secretary Janet Yellen told Congress this week that the Treasury Department would begin taking “extraordinary measures” until lawmakers raise the debt ceiling.
One of these “extraordinary measures” is to suspend investments in the Civil Service Retirement and Disability Fund and reinvestment of Treasury securities held by the TSP’s G-Fund.
While these “disinvestments” concern many employees and retirees, they can earn the same interest and withdraw or borrow against their money as usual. And under federal law, the government is required to make these funds whole for all contributions and interest lost during the period of the diversion, and has done so in each previous instance.
While federal employees will not be affected by these actions, NTEU continues to believe that workers should not have to worry about their retirement nest egg being used for general government expenses.
Sec. Yellen is urging Congress to act swiftly, and NTEU expects Congress will raise the debt limit before “extraordinary measures” are exhausted.
We will keep you updated on developments.