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:

  • Forecasting Cloud's Future

    Conversations with Federal, State, and Local Technology Leaders on Cloud-Driven Digital Transformation

  • The Big Data Campaign Trail

    With everyone so focused on security following recent breaches at federal, state and local government and education institutions, there has been little emphasis on the need for better operations. This report breaks down some of the biggest operational challenges in IT management and provides insight into how agencies and leaders can successfully solve some of the biggest lingering government IT issues.

  • Communicating Innovation in Federal Government

    Federal Government spending on ‘obsolete technology’ continues to increase. Supporting the twin pillars of improved digital service delivery for citizens on the one hand, and the increasingly optimized and flexible working practices for federal employees on the other, are neither easy nor inexpensive tasks. This whitepaper explores how federal agencies can leverage the value of existing agency technology assets while offering IT leaders the ability to implement the kind of employee productivity, citizen service improvements and security demanded by federal oversight.

  • IT Transformation Trends: Flash Storage as a Strategic IT Asset

    MIT Technology Review: Flash Storage As a Strategic IT Asset For the first time in decades, IT leaders now consider all-flash storage as a strategic IT asset. IT has become a new operating model that enables self-service with high performance, density and resiliency. It also offers the self-service agility of the public cloud combined with the security, performance, and cost-effectiveness of a private cloud. Download this MIT Technology Review paper to learn more about how all-flash storage is transforming the data center.

  • Ongoing Efforts in Veterans Health Care Modernization

    This report discusses the current state of veterans health care


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