Retirement Gambit OK'd

September 9, 1996

Retirement Gambit OK'd

Last fall, lawmakers were deeply critical of Treasury Secretary Robert Rubin's decision to dip into federal employee retirement funds to keep the government running during the budgetary stand-off. A panel of Republicans, led by Rep. Nick Smith, R-Mich., even urged Rubin's resignation. Many federal employees were also concerned that Rubin's actions might have put their retirement funds at risk.

The General Accounting Office, however, has concluded in a new report that Rubin's action was "in accordance with statutory authority provided by Congress." Rubin temporarily transferred money out of the retirement accounts to prevent the Treasury department from reaching its $4.9 trillion limit on borrowing (since raised to $5.5 trillion).

According to GAO, interest lost during the time the money was borrowed has been repaid to all but one of the retirement funds. The administration is requesting an appropriation from Congress to cover the remaining lost interest.

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
Close [ x ] More from GovExec

Thank you for subscribing to newsletters from
We think these reports might interest you:

  • Sponsored by eSignLive by VASCO

    Mobile E-Signatures for Government

    Learn 5 key trends that accelerate government demand for mobile signing.

  • Sponsored by Management Concepts

    SPONSORED: Successful Change Management Practices in the Public Sector

    How governmental agencies implement organizational change management.

  • Sponsored by Kronos

    Solving the Workforce Compliance Challenge

    Download this eBook to learn how data and automation can help state and local agencies.


When you download a report, your information may be shared with the underwriters of that document.