ASSISTANT SECRETARY 

The Honorable John A. Boehner 

Speaker of the House 

U.S. House ofRepresentatives 

Washington, DC 20515 

Dear Speaker Boehner: 

DEPARTMENT OF THE TREASURY 

WASHINGTON, D.C. 20220 

January 30, 2014 

Title 5 of the United States Code requires the Secretary of the Treasury to report to Congress on 

the operation and status of certain federal fund accounts during any debt issuance suspension 

period. Enclosed is the report covering the operation and status of the relevant federal fund 

accounts during the debt issuance suspension period that ended on October 17, 2013. As 

directed by law and explained in the report, Treasury has fully restored the federal fund accounts 

to the condition they would have been in had there not been a debt issuance suspension period. 

Sincerely, 

Al :!:: . fi:t: 

Assistant Secretary for Legislative Affairs 

Enclosure 

Identical letter sent to: 

The Honorable Nancy Pelosi, House Democratic Leader 

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 Max Baucus, Chairman, Senate Committee on Finance 

The Honorable Orrin Hatch, Ranking Member, Senate Committee on Finance 
Attachment 1

1

Report on Fund Operations and Status

From May 20, 2013 to December 31, 2013

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

January 30, 2014

On May 19, 2013, the outstanding debt subject to limit was at the statutory debt limit. The 

following business day, Secretary Jacob J. Lew notified Congress of his determination that a 

“debt issuance suspension period” (DISP) would begin on May 20, 2013, and last until August 2, 

2013. On August 2, 2013 Secretary Lew notified Congress of his determination that the DISP

would continue through October 11, 2013. On October 1, 2013, Secretary Lew notified Congress 

of his determination that the DISP would continue through October 17, 2013. The Continuing 

Appropriations Act, 2014 (Pub L. 113-46), operated to suspend the statutory debt limit beginning 

October 17, 2013, rendering 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 October 17, 2013 was December 

31, 2013. This document fulfills this requirement.

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

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: Between May 20, 2013 and August 2, 2013, in connection with the 

declaration of the debt issuance suspension period, $31,992,199,000 was redeemed earlier than 

otherwise required in order to avoid exceeding the debt limit. In addition, principal and interest 

payable to both the CSRDF and the PSRHBF on June 28, 2013 ($74,107,109,000 and 

$4,601,284,000, respectively) was not invested. Finally, throughout the period of May 20, 2013

to October 17, 2013, new CSRDF and PSRHBF receipts were not invested in order to keep from 

exceeding the debt limit. Steps were taken on October 17 and December 31, 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 May 20, 2013 and December 31, 2013 is included as Attachment 1.
Attachment 1

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Attachment 1
Attachment 1

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Attachment 1

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Attachment 1

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Attachment 1

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Attachment 1

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Notes from the Daily Transaction Detail

Report on Fund Operations and Status 

From May 20, 2013 to December 31, 2013

1. May 20, 2013: 

o Secretary Lew notified Congress that a “debt issuance suspension period” would 

begin on May 20, 2013, and last until August 2, 2013.

o Treasury did not invest $552,000 in new receipts to the CSRDF.

o Treasury did not redeem $4,439,000, 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 $1,988,295,000 from a CSRDF 1-3/8 percent Special Issue 

Bond maturing June 30, 2027.

2. May 21, 2013:

o Treasury did not invest $1,935,000 in new receipts to the CSRDF.

o Treasury did not redeem $3,722,000, 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 $2,796,561,000 from a CSRDF 1-3/8 percent Special Issue 

Bond maturing June 30, 2027.

3. May 22, 2013:

o As a result of a drop in the level of the debt subject to limit to an amount below 

the statutory debt limit:

 Treasury reinvested $2,487,000, which represented receipts received on 

May 20 and May 21 and not invested into the CSRDF.

 Treasury invested normally $1,697,000, which represented new receipts 

to the CSRDF.

 Treasury reinvested $4,776,377,000, which represented the remainder of 

the early redemptions from the CSRDF through May 22.

o Treasury did not redeem $318,000, 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.

4. May 23, 2013:

o As a result of the debt subject to limit remaining below the statutory debt limit 

for a consecutive day:

 Treasury invested normally $468,000, which represented new receipts to 

the CSRDF.

 Treasury redeemed normally $3,119,000, which represented new 

disbursements from the CSRDF. Because this transaction was processed 

normally, the redemption was made from the Certificates of 

Indebtedness, and not the 1-3/8 percent Special Issue Bond maturing 

June 30, 2027.
Attachment 1

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5. May 24, 2013:

o As a result of the debt subject to limit remaining below the statutory debt limit 

for a consecutive day:

 Treasury invested normally $466,020,000, which represented new 

receipts to the CSRDF.

 Treasury redeemed normally $4,682,000, which represented new 

disbursements from the CSRDF. Because this transaction was processed 

normally, the redemption was made from the Certificates of 

Indebtedness, and not the 1-3/8 percent Special Issue Bond maturing 

June 30, 2027.

6. May 28, 2013:

o Treasury did not invest $121,391,000 in new receipts to the CSRDF.

o Treasury did not redeem $1,181,000, 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 $305,478,000 from a CSRDF 1-3/8 percent Special Issue 

Bond maturing June 30, 2027.

7. May 29, 2013:

o Treasury did not invest $26,898,000 in new receipts to the CSRDF.

o Treasury did not redeem $1,080,000, 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 $6,042,760,000 from a CSRDF 1-3/8 percent Special Issue 

Bond maturing June 30, 2027.

8. May 30, 2013:

o Treasury did not invest $430,691,000 in new receipts to the CSRDF.

o Treasury did not redeem $15,848,000, 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 $4,942,097,000 from a CSRDF 1-3/8 percent Special Issue 

Bond maturing June 30, 2027.

9. May 31, 2013:

o Treasury did not invest $893,000 in new receipts to the CSRDF.

o Treasury redeemed $7,893,385,000 from a CSRDF 1-3/8 percent Special Issue 

Bond maturing June 30, 2027.

10. June 3, 2013:

o As a result of a drop in the level of the debt subject to limit to an amount below 

the statutory debt limit:

 Treasury reinvested $3,189,655,000, which represented a portion of the 

early redemptions not invested into the CSRDF through June 3.

o Treasury did not invest $2,831,000 in new receipts to the CSRDF.

o Treasury did not redeem $6,289,748,000, 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.
Attachment 1

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11. June 4, 2013:

o Treasury did not invest $922,000 in new receipts to the CSRDF.

o Treasury did not redeem $3,330,000, 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 $3,189,655,000 from a CSRDF 1-3/8 percent Special Issue 

Bond maturing June 30, 2027.

12. June 28, 2013:

o Treasury did not invest $693,975 in new receipts to the CSRDF. Also, Treasury 

did not invest $74,107,109,025 in semi-annual principal and interest due to be 

paid to the CSRDF on June 28. 

o Treasury did not invest $4,601,284,000 in semi-annual principal and interest due 

to be paid to the PSRHBF on June 28.

o Treasury did not redeem $1,042,000, 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.

13. August 2, 2013: 

o Secretary Lew notified Congress that the current DISP would be extended 

through October 11, 2013.

o Treasury did not invest $435,573,000 in new receipts to the CSRDF.

o Treasury did not redeem $3,811,000, 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 $12,800,000,000 from a CSRDF 1-3/8 percent Special Issue 

Bond maturing June 30, 2027.

14. September 30, 2013:

o Treasury did not invest $334,191,464 in new receipts to the CSRDF. Also, 

Treasury did not invest $32,994,540,536 in General Fund contributions due to be 

paid to the CSRDF on September 30. 

o Treasury did not redeem $487,000, 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.

15. October 1, 2013: 

o Secretary Lew notified Congress that the current DISP would be extended 

through October 17, 2013.

o Treasury did not invest $80,046,000 in new receipts to the CSRDF.

o Treasury did not redeem $6,228,782,000, 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 normally $72,651,000, which represented the amount needed 

to make the remainder of the new disbursements from the CSRDF.
Attachment 1

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16. October 17, 2013

o The President submitted a written certification to Congress, which operated to 

suspend the statutory debt limit through February 7, 2014.

o Treasury invested $76,807,518,000 into the CSRDF in accordance with the 

established rollover investment plan for the fund. This represented the June 30 

maturing principal and interest payments totaling $74,107,109,025, which were 

not invested in the fund during the DISP, as well as receipts not invested between 

May 20, 2013 and June 30, 2013 totaling $2,700,408,975.

 -$74,107,109,025 - $2,700,408,975 = -$76,807,518,000

o Treasury invested $40,885,804,000 into the CSRDF in a 2-1/4 percent Certificate 

of Indebtedness maturing June 30, 2014. This represented receipts not invested 

between July 1, 2013 and October 16, 2013. 

 -$43,586,212,975 + $2,700,408,975 = -$40,885,804,000

(Additionally, the requests from the Office of Personnel Management for the 

investment of $304,560,000 and the redemption of $3,152,000 were processed as 

requested. These represented the new receipts and new disbursements for 

October 17, and were processed normally.)

o Treasury redeemed $31,922,199,000, including interest paid at redemption, from 

current Certificates of Indebtedness and bonds, using normal redemption rules.

o Treasury reinvested $31,922,199,000 in the CSRDF in the 1-3/8 percent Special 

Issue Bond maturing June 30, 2027. This represented principal that was 

redeemed early from the 1-3/8 percent Special Issue Bond. (Had there been no 

DISP, benefit payments would have been paid through normal redemption rules.)

o Treasury reinvested $4,601,284,000 in the PSRHBF in accordance with the 

established rollover investment plan for the fund. This represented the June 30 

maturing principal and interest payments which were not reinvested in the fund 

during the DISP.

17. December 31, 2013: 

o Treasury paid interest of $539,287,885 to the CSRDF. This amount represents 

interest foregone during the period of the DISP, May 20, 2013 to October 17, and 

accrued since October 17.

o Treasury paid interest of $24,046,436 to the PSRHBF. This amount represents 

interest foregone during the period of the DISP, May 20, 2013 to October 17, and 

accrued since October 17.

o Treasury redeemed $70,000,000 from current Certificates of Indebtedness and 

bonds, using normal redemption rules.1

o Treasury reinvested $70,000,000 in the CSRDF in the 1-3/8 percent Special Issue 

Bond maturing June 30, 2027. This represented the remaining principal from the 

$31,992,199,000 that was redeemed early from the 1-3/8 percent Special Issue 

Bond. (Had there been no DISP, benefit payments would have been paid 

through normal redemption rules.)

 1 Between May 20, 2013 and June 4, 2013, a total of $31,992,199,000 was redeemed from the 1-3/8 percent 

bond maturing June 30, 2027. On October 17, 2013, a total of $31,922,199,000 was reinvested into the 

bond. The remaining $70,000,000 difference remained invested in Certificates of Indebtedness. Absent a 

DISP, these funds would have been invested in the 1-3/8 percent bond maturing June 30, 2027.