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Washington, D.C.—The leader of the nation’s largest independent union of federal workers today called on the House of Representatives to act in the fiscally responsible manner the public expects and to raise the national debt ceiling by legislation rather than resorting to accounting maneuvers that tamper with the retirement funds of federal employees.

President Colleen M. Kelley of the National Treasury Employees Union (NTEU) was sharply critical of plans by the House Republican leadership to shift some $40 billion from the Thrift Savings Plan (TSP), which forms a substantial portion of the retirement savings of federal employees, so that the government won’t go over the present debt ceiling of $5.95 trillion.

“The position of the House Republican leadership is wrong, inappropriate and fiscally irresponsible, particularly so in the wake of the Enron debacle,” Kelley said.

She added: “This maneuver appears to be driven by the political consideration of not wanting to raise the debt ceiling in an election year. With all House seats and one-third of Senate seats up for election in November, there will be ample opportunity for politics. On this issue, fiscal responsibility to federal employees and the American public should be above politics.”

The NTEU leader noted that even though, under the law, any monies shifted from the TSP in this manner will have to be repaid, with full interest, such a step “sends a terrible message” not just to present federal employees, but to those prospective employees the government will of necessity have to try to recruit in coming years.

“Everyone wants to be confident that his or her employer is not only fiscally responsible, but that it knows the right steps to take and will take those steps,” she said. “This proposed action hardly meets those criteria.”

This is not the first time this maneuver has been done. In 1995, the Treasury Department avoided debt ceiling default by taking more than $60 billion from federal retirement accounts, which was later repaid once a permanent increase in the debt ceiling had been enacted into law.

At that time, NTEU criticized the action as “reprehensible” and warned that the erosion of confidence generated by such a step would lead to a day when Americans would quit investing money in government-sponsored savings programs.

President Kelley also noted that, unlike the 1995 action, when the administration provided briefings at the highest levels on the fiscal steps it was taking to avoid debt ceiling default, to date there has been no contact from the administration and no effort to include representatives of federal employees in discussions on this matter.

She noted, as well, that unlike in 1995, the administration appears to be considering taking the extraordinary action of shifting money from the TSP at a time when Congress has not even attempted to pass debt ceiling increase legislation.

“The men and women whose savings are affected by this have a right to know the full details, including the cost and impact,” the NTEU leader said—“and so do the taxpayers.”

As the largest independent federal union, NTEU represents some 150,000 employees in 25 agencies and departments.