Federal workers: How would default affect us?

Tuesday, July 19, 2011

(Washington Post)

A coalition of federal employee organizations wants the administration to clarify the impact a failure to raise the governments debt ceiling could have on federal workers.

In a letter to Jacob J. Lew, director of the Office of Management and Budget, and Treasury Secretary Timothy F. Geithner, more than 20 members of the Federal-Postal Coalition said, the prospect of Congressional inaction by Aug. 2 over raising the debt ceiling is generating significant concern throughout the federal community over its impact on the continuity of government operations.

The coalition asked the administration officials these questions:

--If the debt ceiling is not raised by Aug. 2, will all departments and agencies continue to remain operational, or will a government shutdown result? If so, what plans are in place to assure the continuity of government operations?

-- How will the assets of the Civil Service Retirement and Disability Fund and the G-Fund of the Federal Employees Retirement System be impacted, given the continued suspension of additional investments in these funds since May 16?

-- Will federal employees become subject to release through furloughs, and how will their wages and benefits be affected?

As the Federal Diary has reported, the Thirft Savings Plan has already said the G-Fund is safe.


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