Yellen reiterated that the period of time that the extraordinary measures will avoid the government running out of cash is “subject to considerable uncertainty,” and urged Congress to act promptly to boost the debt limit. Last week she said the steps wouldn’t likely be exhausted before early June.
The specific funds affected by the Treasury’s move are:
- The Civil Service Retirement and Disability Fund, or CSRDF, which provides defined benefits to retired and disabled federal employees
- The Postal Service Retiree Health Benefits Fund, or PSRHBF, which provides postal-service retiree health-benefit-premium payments. The fund is also invested in special-issue Treasuries
The two funds invest in special-issue Treasury securities that count under the debt limit. After the debt limit is increased, the three will be “made whole,” with participants unaffected.