Mnuchin announces halt in payments into 2 retirement funds

[Eugene]

Source: Associated Press

Mnuchin announces halt in payments into 2 retirement funds

By MARTIN CRUTSINGER
March 4, 2019

WASHINGTON (AP) — Treasury Secretary Steven Mnuchin informed Congress on Monday that he will stop making payments into two government retirement funds now that the debt limit has gone back into effect.

In a letter to congressional leaders, Mnuchin said that he would stop making investments into a civil service retirement fund and a postal service retirement fund.

These are among the actions that Mnuchin is allowed to take to keep from exceeding the debt limit, which went back into effect on Saturday at a level of $22 trillion.

The debt limit had been suspended for a year under a 2018 budget deal. The Congressional Budget Office estimates that Mnuchin likely has enough maneuvering room to avoid a catastrophic default on the national debt until around September.

-snip-

Read more: https://apnews.com/25cc3de2c7f24635ad5c3541a10c0655

[Quemado]

1. I am a federal retiree. Am I affected?

The Federal Government has two retirement systems for civil service employees: The Civil Service Retirement System (CSRS) and the Federal Employee Retirement System (FERS). I am a FERS retiree.

Does anyone know if FERS retirees are affected by this?

Thanks

[FBaggins]

2. No

It’s accounting. It doesn’t change the payments they owe for earned benefits... it just changes how well funded the program is temporarily