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As widely reported in the news, our government has reached its debt limit. U.S. Treasury Secretary Geithner has since declared a “debt issuance suspension period” for the Civil Service Retirement and Disability Fund (which funds our retirees). By law this allows the Treasury to redeem (or cash out) a portion of existing Treasury securities held by the fund. The same law also requires that the government repay the fund with interest.
Bottom line: This action will not affect CSRS and FERS annuity payments to retirees. All payments will continue as normal and on schedule.
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