Attachment 1

1

Report on Fund Operations and Status

From December 31, 2012 to June 28, 2013

Pursuant to 5 U.S.C. §§ 8348(l)(1) & 8909a(c)

July 26, 2013

On December 31, 2012, the outstanding debt subject to limit reached the statutory limit of $16,394 billion. 

On the same day, Secretary Timothy F. Geithner notified Congress of his determination that a “debt 

issuance suspension period” would begin on that day, December 31, 2012, and last until February 28, 2013. 

On February 4, 2013, President Obama signed The No Budget, No Pay Act of 2013 (Pub L. 113-3)

temporarily suspending the statutory limit through May 18, 2013, which temporarily rendered further use 

of these extraordinary measures unnecessary. 

Legal Authority and Requirements: 

• Section 8348(j)(1) of Title 5, United States Code authorizes the Secretary to “suspend additional 

investment of amounts in the [Civil Service Retirement and Disability Fund (CSRDF)] if such 

additional investment could not be made without causing the public debt of the United States to 

exceed the public debt limit.” The statute defines a “debt issuance suspension period” as any period 

for which the Secretary determines that the issuance of obligations of the United States may not be 

made without exceeding the public debt limit.

• Section 8348(k)(1) of Title 5, United States Code authorizes the Secretary to “sell or redeem 

securities, obligations, or other invested assets of the [CSRDF] before maturity in order to prevent 

the public debt of the United States from exceeding the public debt limit.” The Secretary may 

redeem such investments only during a debt issuance suspension period, and only to the extent 

necessary to obtain an amount of funds up to the total amount of payments authorized to be made 

from the CSRDF during such period.

• Section 8348(j)(3) requires the Secretary, upon expiration of a debt issuance suspension period, to 

immediately issue to the CSRDF obligations that “bear such interest rates and maturity dates as are 

necessary to ensure that, after such obligations are issued, the holdings of the [CSRDF] will 

replicate to the maximum extent practicable the obligations that would then be held by the [CSRDF]

if the suspension of investment ... and any redemption or disinvestment ... had not occurred.” 

Section 8348(j)(4) further requires the Secretary, on the first normal interest payment date after the 

expiration of the debt issuance suspension period, to pay to the CSRDF any interest that would have 

been earned, during the debt issuance suspension period.

• Section 8348(l)(1) requires submission of a report to Congress on the operation and status of the 

CSRDF during a debt issuance suspension period. The report is to be made “as soon as possible 

after the expiration of such period, but not later than the date that is 30 days after the first normal 

interest payment date occurring after the expiration of such period.” The first normal interest 

payment date after February 4, 2013 was June 28, 2013. This document fulfills this requirement.

• Section 8909a(c) states that investments of the Postal Service Retiree Health Benefit Fund 

(PSRHBF) “shall be made in the same manner” as investments for the CSRDF under section 8348.
Attachment 1

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Operations and Status: On December 31, 2012, in connection with the declaration of the debt issuance 

suspension period, the Secretary redeemed securities of the CSRDF totaling $8,838,002,000. These 

holdings were redeemed earlier than otherwise required in order to avoid exceeding the debt limit. In 

addition, interest payable to both the CSRDF and the PSRHBF on December 31, 2012 ($16,172,291,000 

and $792,828,000, respectively) was not invested. Finally, throughout the period of December 31, 2012 

through February 4, 2013, new CSRDF and PSRHBF receipts were not immediately invested in order to 

keep from exceeding the debt limit. Steps were taken on February 4 and June 28, as appropriate, to 

replicate the portfolio the CSRDF and PSRHBF would have held if the debt issuance suspension period had 

not occurred. A summary of the operations and status of the CSRDF and PSRHBF between December 31, 

2012 and June 28, 2013 is included as Attachment 1.
Attachment 1

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Postal Service

Retiree Health

Benefit Fund

Receipt Redemptions Interest Receipt

Investments Payments for Payments Investments Investments

Suspended/ Covered by During DISP/ Suspended/ Suspended/

(Reinvested) DISP (Reinvestments) (Reinvested) Miscellaneous (Reinvested)

December 31, 2012 $3,537,000 $8,838,002,000 $16,172,291,000 $792,828,000 1

January 2, 2013 $4,943,000 $6,204,417,000 -$2,633,585,000 -$10,561,427,000 -$517,762,000 2

January 3, 2013 -$8,480,000 -$5,610,864,000 -$275,066,000 3

January 4, 2013 $312,165,000 $15,302,000 $15,302,000 4

January 7, 2013 $28,350,000 $3,329,000 $2,914,953,000 5

January 8, 2013 $124,094,000 $279,000 $3,365,328,000 6

January 9, 2013 $10,172,000 $5,008,000 -$5,466,807,000 7

January 10, 2013 $433,964,000 $4,311,000 $3,742,250,000 8

January 11, 2013 $8,164,000 $2,943,000 -$2,034,847,000 9

January 14, 2013 $3,793,000 $300,484,000 10

January 15, 2013 $2,599,000 $30,535,000 $3,458,920,000 11

January 16, 2013 $598,000 $4,901,000

January 17, 2013 $1,097,000 $3,880,000

January 18, 2013 $468,683,000 $15,593,000

January 22, 2013 $122,100,000 $3,648,000

January 23, 2013 $25,443,000 $2,638,000

January 24, 2013 $432,819,000 $1,985,000

January 25, 2013 $1,154,000 $208,423,000

January 28, 2013 $964,000 $1,046,000

January 29, 2013 $1,988,000 $922,000

January 30, 2013 $290,000 $1,517,000

January 31, 2013 $1,779,000 $2,407,000

February 1, 2013 $472,496,000 $5,986,916,000 $222,907,000 12

February 4, 2013 -$2,452,712,000 $0 13

Sub-Total $0 $12,500,000,000 $12,500,000,000 $0 $222,907,000 $0

June 28, 2013 -$222,664 $414,977 14

Total $0 $12,500,000,000 $12,500,000,000 $0 $222,684,336 $414,977

Daily Transaction Detail

Report of the Operation and Status of the

Civil Service Retirement and Disability Fund and

December 31, 2012 - June 28, 2013

Other Transactions

Civil Service Retirement and Disability Fund

Date Notes

the Postal Service Retiree Health Benefit Fund

Daily

Attachment 1
Attachment 1

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Notes from the Daily Transaction Detail

Report on Fund Operations and Status 

From December 31, 2012 to June 28, 2013

1. December 31, 2012: Secretary Geithner notified Congress that a “debt issuance suspension period” 

(DISP) would begin on December 31, 2012, and last until February 28, 2013. [5 U.S.C. § 

8348(1)(2)] . On that day: 

o Treasury did not invest $3,537,000 in new receipts to the CSRDF. Also, Treasury did not 

invest $16,172,291,000 in semi-annual interest due to be paid to the CSRDF on December 

31.

o Treasury redeemed $8,838,002,000 from a CSRDF 1-3/8 percent Special Issue Bond 

maturing June 30, 2027.

o Treasury did not invest $792,828,000 in semi-annual interest due to be paid to the PSRHBF 

on December 31.

2. January 2, 2013:

o Treasury did not invest $4,943,000 in new receipts to the CSRDF.

o Treasury did not redeem $6,204,417,000, which represented a portion of the payments 

authorized to be made from the CSRDF during the period of the DISP. Treasury considered 

this amount to be already included in the DISP redemption.

o As a result of a drop in the level of the debt subject to limit:

 Treasury reinvested $2,633,585,000, which represented a portion of the amount 

originally redeemed from the CSRDF on December 31.

 Treasury reinvested $10,561,427,000, which represented a portion of the semiannual interest not invested into the CSRDF on December 31.

 Treasury reinvested $517,762,000, which represented a portion of the semi-annual 

interest not invested into the PSRHBF on December 31.

3. January 3, 2013:

o As a result of a drop in the level of the debt subject to limit:

 Treasury reinvested $8,480,000, which represented new receipts received on 

December 31 and January 2 and not invested into the CSRDF.

 Treasury reinvested $5,610,864,000, which represented the remainder of the semiannual interest not invested into the CSRDF on December 31.

 Treasury reinvested $275,066,000, which represented the remainder of the semiannual interest not invested into the PSRHBF on December 31. 

4. January 4, 2013:

o Treasury did not invest $312,165,000 in new receipts to the CSRDF.

o Treasury redeemed $15,302,000 from a CSRDF 1-3/8 percent Special Issue Bond maturing 

June 30, 2027 in connection with making a payment of $15,302,000 in CSRDF benefits on 

this day.
Attachment 1

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5. January 7, 2013:

o Treasury did not invest $28,350,000 in new receipts to the CSRDF.

o Treasury did not redeem $3,329,000, which represented a portion of the payments 

authorized to be made from the CSRDF during the period of the DISP. Treasury considered 

this amount to be already included in the DISP redemption.

o Treasury redeemed $2,914,953,000 from a CSRDF 1-3/8 percent Special Issue Bond 

maturing June 30, 2027.

6. January 8, 2013:

o Treasury did not invest $124,094,000 in new receipts to the CSRDF.

o Treasury did not redeem $279,000, which represented a portion of the payments authorized 

to be made from the CSRDF during the period of the DISP. Treasury considered this 

amount to be already included in the DISP redemption.

o Treasury redeemed $3,365,328,000 from a CSRDF 1-3/8 percent Special Issue Bond 

maturing June 30, 2027.

7. January 9, 2013:

o Treasury did not invest $10,172,000 in new receipts to the CSRDF.

o Treasury did not redeem $5,008,000, which represented a portion of the payments 

authorized to be made from the CSRDF during the period of the DISP. Treasury considered 

this amount to be already included in the DISP redemption.

o As a result of a drop in the level of the debt subject to limit, Treasury reinvested 

$5,466,807,000 in CSRDF holdings originally redeemed on January 7 and January 8.

8. January 10, 2013:

o Treasury did not invest $433,964,000 in new receipts to the CSRDF.

o Treasury did not redeem $4,311,000, which represented a portion of the payments 

authorized to be made from the CSRDF during the period of the DISP. Treasury considered 

this amount to be already included in the DISP redemption.

o Treasury redeemed $3,742,250,000 from a 1-3/8 percent Special Issue Bond maturing June 

30, 2027.

9. January 11, 2013:

o Treasury did not invest $8,164,000 in new receipts to the CSRDF.

o Treasury did not redeem $2,943,000, which represented a portion of the payments 

authorized to be made from the CSRDF during the period of the DISP. Treasury considered 

this amount to be already included in the DISP redemption.

o As a result of a drop in the level of the debt subject to limit, Treasury reinvested 

$2,034,847,000 in CSRDF holdings originally redeemed on January 10.

10. January 14, 2013:

o Treasury did not invest $3,793,000 in new receipts to the CSRDF.

o Treasury redeemed $300,484,000 from a CSRDF 1-3/8 percent Special Issue Bond maturing 

June 30, 2027.
Attachment 1

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11. January 15, 2013:

o Treasury did not invest $2,599,000 in new receipts to the CSRDF.

o Treasury did not redeem $30,535,000, which represented a portion of the payments 

authorized to be made from the CSRDF during the period of the DISP. Treasury considered 

this amount to be already included in the DISP redemption.

o Treasury redeemed $3,458,920,000 from a CSRDF 1-3/8 percent Special Issue Bond 

maturing June 30, 2027.

12. February 1, 2013:

o Treasury did not invest $472,496,000 in new receipts to the CSRDF.

o Treasury did not redeem $5,986,916,000, which represented a portion of the payments 

authorized to be made from the CSRDF during the period of the DISP. Treasury considered 

this amount to be already included in the DISP redemptions between December 31, 2012 

and January 15, 2013. Also, following normal redemption rules, Treasury redeemed an 

amount, including interest, totaling at least $222,907,000, which represented the amount 

needed to make the remainder of the benefit payments from the fund for February 1.

13. February 4, 2013:

o The President signed The No Budget, No Pay Act of 2013 (Pub. L. 113-3), which 

suspended the statutory debt limit through May 18, 2013. Upon expiration of the DISP, the 

Secretary issued obligations that ensured the holdings of the CSRDF and the PSRHBF 

replicated to the maximum extent practicable the obligations the funds would have held if 

the DISP had not occurred. [5 U.S.C. 8348(j)(3)]

o Treasury invested $2,452,712,000 in the CSRDF in a 1-5/8 percent Certificate of 

Indebtedness maturing June 30, 2013. This represented receipts not invested during the 

DISP between December 31, 2012 and February 1, 2013. (Additionally, the requests from 

the Office of Personnel Management for the investment of $1,131,000 and the redemption of 

$2,454,000 were processed as requested.)

o Treasury redeemed $12,500,000,000 from current Certificates of Indebtedness and bonds, 

using normal redemption rules, and reinvested this amount in the 1-3/8 percent Special Issue 

Bond maturing June 30, 2027 (net $0 transaction reflected in miscellaneous column). This 

represented principal from the $12,500,000,000 in net redemptions that were used to make 

benefit payments during the DISP. (Had there been no DISP, benefit payments would have 

been paid through normal redemption rules.)

14. June 28, 2013: 5 U.S.C. 8348(j)(4) requires the Secretary to pay to the CSRDF, on the first normal 

interest payment date following the expiration of the DISP, the amount of interest that would have 

been earned by the CSRDF if the DISP had not occurred. Since June 30, 2013 was a non-business 

day, the interest payment was made on June 28, in accordance with longstanding practice.

o Treasury paid interest of $222,664.48 to the CSRDF. This amount represents interest 

foregone during the period of the DISP, December 31, 2012 to February 4, and accrued 

since February 4.

o Treasury redeemed $10,135,239,000.00 from the Certificates of Indebtedness maturing June 

30, 2013 and reinvested the same amount in the 1-3/8 percent Special Issue Bond maturing 

June 30, 2027.1

 1 Between December 31, 2012 and January 15, 2013, a total of $22.6 billion was redeemed from the 1-3/8 percent Special Issue 

Bond maturing June 30, 2027. $10.1 billion was reinvested in Certificates of Indebtedness maturing June 30, 2013. On 

February 4, 2013, $12.5 billion, matching the net amount redeemed early, was reinvested in the 1-3/8 percent Special Issue Bond 
Attachment 1

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o Treasury paid interest of $414,976.72 from the PSRHBF to the Restitution of Foregone 

Interest Account. This amount represents excess interest earned by the PSRHBF during the 

period of the DISP, December 31, 2012 to February 4, and accrued since February 4.2

 maturing June 30, 2027. The balance of $10.1 billion remained invested in the Certificate of Indebtedness. If not for the DISP, 

these funds would have been invested in a 1-3/8 percent Special Issue Bond maturing June 30, 2027. 2 On December 31, 2012, an investment of $792,828,000.00 was suspended. If not for the DISP, these funds would have been 

invested in a Certificate of Indebtedness maturing on June 30, 2013 at 1-3/8 percent, the statutory rate of interest for December 

2012. The funds, however, were subsequently reinvested on January 2 and 3, 2013, in a Certificate of Indebtedness maturing on 

June 30, 2013 at 1-1/2 percent, the statutory rate of interest for January 2013. Because the January 2013 interest rate was greater 

than the December 2012 rate, the PSRHBF earned more interest than it would have if not for the DISP. The excess interest 

earned by the PSRHBF was transferred to the Restitution of Foregone Interest Account.