In addition to the pay freeze that has been in effect for some time, federal employees are also helping with the government’s spending problem through the involuntary use of the G fund. Here is how that works and how the scenario is likely to play out when all is said and done.
How will your investment in the G fund and your federal retirement funds be used if there is no resolution on the debt ceiling?
The G fund is again being used as a stop-gap measure to avoid the federal government hitting the debt ceiling for the second time in a few months.
Congressman Jerrold Nadler (D-NY) said in a recent statement that he plans to introduce legislation to repeal the debt ceiling, saying that it is “arbitrary and has nothing to do with the deficit.”
In part two of Carol Schmidlin’s interview with Rodney Johnson, President of HS Dent Publishing, she asks him about the prospects of investing in gold, the devaluation of the U.S. dollar, and the growing federal debt. She also asks Johnson for his advice for federal employees and actions they should take in light of some of the proposed cuts on their salaries and benefits.
Carol Schmidlin recently interviewed Rodney Johnson, President of HS Dent Publishing, an independent economic research company, about the spending cuts in the new debt agreement and who can be affected.
How much money have federal retirement funds contributed to help the government continue to operate? About $186 billion.
Twenty different groups signed a letter addressed to OMB Director Jacob Lew and Treasury Secretary Tim Geithner seeking answers to several questions about how a debt default would affect federal employees.
The federal government will receive about $172 billion in August. That is not enough to pay expenses. Who will get paid and who won’t get paid if the debt ceiling is not raised?
Senator Barbara Mikulski (D-MD) sent a letter to Treasury Secretary Tim Geithner urging him to take federal employees’ pension funds off of the list of available resources used to prevent the country from defaulting on its debt obligations.