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The Debt Ceiling & Postal Workers

January 20, 2023

READ FULL ARTICLE AT » American Postal Workers Union

No postal worker or federal retiree will see a gap or reduction in pension payments or healthcare coverage.

The Treasury Department announced on Thursday that the United States government has hit its statutory “debt limit.” The next several months will be full of political drama, with serious risks at hand for working people and working-class retirees.

While the debt limit was technically reached this week, the Treasury Department has begun certain accounting measures to extend its ability to pay the government’s bills. Among the “extraordinary measures” announced by Treasury are some that are of serious concern to postal workers.

The Treasury Department has announced it will begin a “debt issuance suspension period” which will affect the Civil Service Retirement and Disability Fund (CSRDF), the Postal Service Retiree Health Benefit Fund (PSRHBF), and the G Fund of the Thrift Savings Plan

These funds are normally invested in U.S. Treasury bonds. By suspending the debt issuance, Treasury temporarily saves the interest that would normally be paid into the funds.

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