January 15, 2013 / 9:10 PM / in 5 years

U.S. Treasury taps retiree fund to push off debt limit

WASHINGTON, Jan 15 (Reuters) - The U.S. Treasury said on Tuesday it was temporarily tapping the retirement funds of government workers to avoid hitting the debt ceiling, adding retirees would nonetheless continue to receive benefits.

The Treasury has previously estimated this measure would give it around $156 billion in additional spending capacity.

In a letter to U.S House of Representatives Speaker John Boehner, Treasury Secretary Timothy Geithner said the government would stop fully investing in the Government Securities Investment Fund (G Fund).

However, the letter said, the fund will be made whole once the debt limit is raised.

“Both my predecessors and I have taken this suspension action during previous debt limit impasses,” Geithner wrote.

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below