DEPARTMENT OF THE TREASURY
WASHINGTON, D.C. 20220

ASSISTANT SECRETARY

March 20, 2014

Mr. Gregory T. Long

Executive Director

Federal Retirement Thrift Investment Board
77 K Street, NE

Washington, DC 20002

Dear Mr. Long:

Section 8438 of Title 5 of the United States Code requires the Secretary of the Treasury to report
to Congress on the operation and status of the Government Securities Investment Fund of the
Federal Employees’ Thrift Savings Plan (the G Fund) during any debt issuance suspension
period. The Secretary is also required to send a copy of this report to the Executive Director of
the Federal Retirement Thrift Investment Board.

Enclosed is the report covering the operation and status of the G Fund during the most recent
debt issuance suspension period. As explained in the report, Treasury has fully restored the G
Fund to the position it would have been in had there not been a debt issuance suspension period.
Sincergly,
as fab pana
Alastair M. Fitzpayne
Assistant Secretary for Legislative Affairs

Enclosure


DEPARTMENT OF THE TREASURY
WASHINGTON, D.C, 20220

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ASSISTANT SECRETARY

March 20, 2014

The Honorable Mitch McConnell
Republican Leader

United States Senate
Washington, DC 20510

Dear Leader McConnell:

Section 8438 of Title 5 of the United States Code requires the Secretary of the Treasury to report
to Congress on the operation and status of the Government Securities Investment Fund of the
Federal Employees’ Thrift Savings Plan (the G Fund) during any debt issuance suspension
period.

Enclosed is the report covering the operation and status of the G Fund during the most recent
debt issuance suspension period. As explained in the report, Treasury has fully restored the G
Fund to the position it would have been in had there not been a debt issuance suspension period.

Sincerely,

aS fale hi ade
Alastair M. Fitzpayne
Assistant Secretary for Legislative Affairs

Enclosure

Identical letters sent to:
The Honorable John A. Boehner, Speaker of the House
The Honorable Nancy Pelosi, House Democratic Leader
The Honorable Harry Reid, Senate Majority Leader

ce: The Honorable Dave Camp, Chairman, House Committee on Ways and Means
The Honorable Sander M. Levin, Ranking Member, House Committee on Ways and
Means
The Honorable Ron Wyden, Chairman, Senate Committee on Finance
The Honorable Orrin Hatch, Ranking Member, Senate Committee on Finance


Report on the Operation and Status of the
Government Securities Investment Fund
February 10, 2014 to February 18, 2014
Pursuant to 5 U.S.C. § 8438(h)

March 20, 2014

On February 8, 2014, the outstanding debt subject to the limit was at the statutory debt limit. In
order to protect the full faith and credit of the United States, beginning on February 10, 2014, the
Secretary of the Treasury employed statutory authority to suspend investments in the Government
Securities Investment Fund (G Fund) of the Federal Employees’ Retirement System. The
Temporary Debt Limit Extension Act operated to suspend the statutory limit beginning February
15, 2014, rendering further use of this authority unnecessary. The G Fund was fully restored on
the following business day, February 18, 2014.

Legal authority: Section 8438(g)(1) of Title 5, United States Code, empowers the Secretary of the
Treasury to “suspend the issuance of additional amounts of obligations of the United States [to
this fund], if such issuances could not be made without causing the public debt of the United
States to exceed the public debt limit.” The statute defines the period of this suspension as a
“debt issuance suspension period.” § 8438(g)(6)(B).

Reporting requirement: Section 8438(h) requires submission of a report to Congress on the
operation and status of the G Fund during this period. The report is to be made “as soon as
possible after the expiration of such period, but not later than 30 days after the first business day
after the expiration of such period.” § 8438(h)(2). This document fulfills the requirement of
section 8438(h). A copy of this report is being concurrently transmitted to the Executive Director
of the Federal Retirement Thrift Investment Board.

Restoration requirement: Section 8438(g) requires the Secretary to make the G Fund whole upon
expiration of a debt issuance suspension period. Treasury must issue obligations sufficient to
ensure that the G Fund’s portfolio replicates what it would have been upon the expiration of the
period, as if the suspension had not occurred. § 8438(g)(3). Treasury must also pay the G Fund
an amount equal to the interest that the fund would have earned. § 8438(g)(4).

Status and operations: Throughout this period, a portion of the G Fund’s holdings could not be
re-invested without exceeding the debt limit. Treasury has now replicated the portfolio the G
Fund would have held but for the suspension, and has paid the G Fund $28,163,241.35 for
interest it would have earned, accounting for receipts and withdrawals.

The table included as Attachment 1 details the daily and cumulative amounts of G Fund principal
and interest that were suspended and restored. With the restoration of $67,972,480,931.76 in
principal and $28,163,241.35 in interest on February 18, 2014, the G Fund was fully restored to
the condition it would have been in had there not been a debt issuance suspension period.


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DEPARTMENT OF THE TREASURY
WASHINGTON, D.C. 20220

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ASSISTANT SECRETARY

March 20, 2014

The Honorable John A. Boehner
Speaker of the House

U.S. House of Representatives
Washington, DC 20515

Dear Speaker Boehner:

Section 8438 of Title 5 of the United States Code requires the Secretary of the Treasury to report
to Congress on the operation and status of the Government Securities Investment Fund of the
Federal Employees’ Thrift Savings Plan (the G Fund) during any debt issuance suspension

period.

Enclosed is the report covering the operation and status of the G Fund during the most recent
debt issuance suspension period. As explained in the report, Treasury has fully restored the G
Fund to the position it would have been in had there not been a debt issuance suspension period.

Sincerely,

Af devi thy fn
Alastair M. Fitzpayne
Assistant Secretary for Legislative Affairs

Enclosure

Identical letters sent to:
The Honorable Nancy Pelosi, House Democratic Leader
The Honorable Harry Reid, Senate Majority Leader
The Honorable Mitch McConnell, Senate Republican Leader

ce: The Honorable Dave Camp, Chairman, House Committee on Ways and Means
The Honorable Sander M. Levin, Ranking Member, House Committee on Ways and
Means
The Honorable Ron Wyden, Chairman, Senate Committee on Finance
The Honorable Orrin Hatch, Ranking Member, Senate Committee on Finance


Status of the Attachment 1
Government Securities Investment Fund
Principal Interest
Daily
(Suspension) (Foregone)
or Cumulative or Cumulative

Date Restoration (Suspension) Restoration (Foregone)
February 10, 2014) (3,527,254,194.88) (3,527,254,194.88)| (220,453.39) (220,453.39)|
February 11, 2014 (54,734, 158,23 1.44)} (58,261,412,426.32)| 3,64 1,352.06)| (3,861,805.45,
February 12, 2014 10,426,672,253.60 (47,834,740,172.72)| (2,989,912.63) (6,851,718.08)
February 13, 201 (21,208, 187,383.89) (69,042,927,556.61 (4,315,611.21, 11,167,329.29)
February 14, 201: 1,070,446,624.85 (67,972,480,93 1.76) 16,995,912.06) 8,163,241.3:
February 18, 201. 67,972,480,931.76 0.00 28,163,241.35 0.00



DEPARTMENT OF THE TREASURY
WASHINGTON, D.C. 20220

ASSISTANT SECRETARY

March 20, 2014

The Honorable Nancy Pelosi
Democratic Leader

US. House of Representatives
Washington, DC 20515

Dear Leader Pelosi:

Section 8438 of Title 5 of the United States Code requires the Secretary of the Treasury to report
to Congress on the operation and status of the Government Securities Investment Fund of the
Federal Employees’ Thrift Savings Plan (the G Fund) during any debt issuance suspension
period.

Enclosed is the report covering the operation and status of the G Fund during the most recent
debt issuance suspension period. As explained in the report, Treasury has fully restored the G
Fund to the position it would have been in had there not been a debt issuance suspension period.

Sincerely,

df Ay

Alastair M. Fitzpayne
Assistant Secretary for Legislative Affairs

Enclosure

Identical letters sent to:
The Honorable John A. Boehner, Speaker of the House
The Honorable Harry Reid, Senate Majority Leader
The Honorable Mitch McConnell, Senate Republican Leader

cc: The Honorable Dave Camp, Chairman, House Committee on Ways and Means
The Honorable Sander M. Levin, Ranking Member, House Committee on Ways and
Means
The Honorable Ron Wyden, Chairman, Senate Committee on Finance
The Honorable Orrin Hatch, Ranking Member, Senate Committee on Finance


sa
bay DEPARTMENT OF THE TREASURY
WASHINGTON, D.C. 20220

ASSISTANT SECRETARY

March 20, 2014

The Honorable Harry Reid
Majority Leader

United States Senate
Washington, DC 20510

Dear Leader Reid:

Section 8438 of Title 5 of the United States Code requires the Secretary of the Treasury to report
to Congress on the operation and status of the Government Securities Investment Fund of the
Federal Employees’ Thrift Savings Plan (the G Fund) during any debt issuance suspension
period.

Enclosed is the report covering the operation and status of the G Fund during the most recent
debt issuance suspension period. As explained in the report, Treasury has fully restored the G
Fund to the position it would have been in had there not been a debt issuance suspension period.

Sincerely,

Mf, fouté thy A
Alastair M. Fitzpayne
Assistant Secretary for Legislative Affairs

Enclosure

Identical letters sent to:
The Honorable John A. Boehner, Speaker of the House
The Honorable Nancy Pelosi, House Democratic Leader
The Honorable Mitch McConnell, Senate Republican Leader

cc: The Honorable Dave Camp, Chairman, House Committee on Ways and Means
The Honorable Sander M. Levin, Ranking Member, House Committee on Ways and
Means
The Honorable Ron Wyden, Chairman, Senate Committee on Finance
The Honorable Orrin Hatch, Ranking Member, Senate Committee on Finance