Federal-Postal Coalition Seeks Answers About Debt Crisis Impact on Operations

Press Release July 15, 2011

Washington, D.C.—A broad-based coalition of federal employee, management and related organizations, of which the National Treasury Employees Union (NTEU) is a member, is seeking answers to serious questions impacting the federal workforce in the event of a failure of political leaders to reach agreement on raising the nation’s debt limit.

“A potential government default is fast approaching,” said NTEU President Colleen M. Kelley, “and the men and women of the federal workforce need and deserve answers about what that might mean for them and their agencies.”

The questions were raised by the Federal-Postal Coalition in a letter to Office of Management and Budget Director Jacob Lew and Treasury Secretary Timothy Geithner seeking a meeting with “appropriate administration officials” to get answers to critical questions as soon as possible.

The coalition emphasized that the prospect of congressional inaction on this matter “is generating significant concern throughout the federal community over its impact on the continuity of government operations,” and posed these questions:

“If the debt ceiling is not raised by Aug. 2, will all department and agencies continue to remain operational, or will a government shutdown result? If so, what plans are in place to assure the continuity of government operations?

“How will the issue of the Civil Service Retirement and Disability Fund and the G-Fund of the Federal Employees Retirement System be impacted, given the continued suspension of additional investments in these funds since May 16; and

“Will federal employees become subject to release through furloughs, and how will their wages and benefits be affected?”

The group’s letter applauded both Lew and Geithner for their efforts to raise the nation’s debt ceiling, and avoid an impending default.

NTEU is the nation’s largest independent federal union, representing 150,000 employees in 31 agencies and departments.

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