Today, January 19, 2022 Secretary of the Treasury Janet Yellen announced that because the federal government has, once again, met its debt ceiling, the federal government will not be funding either the Civil Service Retirement and Disability Fund or Postal Service Retiree Health Benefit Fund. It sounds like it is time to panic!
This is being brought to our attention because the Democrats want to raise the debt ceiling so the government can spend more of our money and the Republicans want to cut spending. Period. With the announcement that federal employee pension plans will not be funded, surly everyone will say "raise the ceiling!"
The truth is, however, of the 465,120 federal civil service employees, only 4.2%, or 19,535 belong to this pension plan. All the other civil service employees belong to other pension plans. Surely, there are a lot more Postal Workers out there, and the answer is A Lot More. The actual number is 516,636 employees. There has to be a "thing" here, right? Right!
The Postal Service Retirement and Health fund is a newly-created plan (April, 2022) which doesn't go into effect until 2025. No one is hurt and since there is a presidential election in 2024, the Postal Service Retirement Plan might not happen at all.
So, all the fuss about needing to raise the debt ceiling comes from the possibility of 19,535 people's pension fund not being added to for one year. Maybe. We have no idea how much should have or would have been put into the plan, if anything. This used to be called smoke and mirrors, a polite way of saying we're being lied to.