Daily Transaction Detail
Report on Fund Operations and Status
From May 16, 2011 to December 30, 2011

Postal Service
Civil Service Retirement and Disability Fund | Retiree Health
Date Daly Benefit Fund {votes
Other Other

Investments | Redemptions
Suspended _| Not Processed
$876,000) $3,092,000

Il ||
|
— =

$424,105,000|

$1,463,

a
51,642,000] $120,000 |
pei alr ie L |
S| nen ome
May 31, 2011 eee ae remepy
June 1, 2011 $3,097,000] ss

| me 22011 | eee —
Pee | S450 sea $14,441,000]

Se
Sinem] sramasapo PY

June 8, 2011

June 9, 2011

[me 5201 | $25,277,000] ——

or a a

a
———

Jume 22, 2011 —— ae

June 23, 2011

Attachment 1


Attachment 1

5. June 1, 2011:
o Treasury did not invest $3,097,000 in new receipts to the CSRDF.
o. Treasury did not redeem $5,710,150,000, 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.

6. June 30, 2011:

o Treasury did not invest $17,416,286,000 in semi-annual interest paid to the
CSRDF on June 30.

o Treasury did not invest $808,879,000 in semi-annual interest paid to the
PSRHBF on June 30.

o Treasury did not invest $63,062,518,000 in securities maturing, and eligible
for rollover, to the CSRDF on June 30.

o. Treasury did not invest $8,724,468,000 in securities maturing, and eligible for
rollover, to the PSRHBF on June 30.

o Treasury did not invest $440,806,000 in other new receipts to the CSRDF.

o Treasury did not redeem $831,000, 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.

7. July 1, 2011:
o Treasury did not invest $1,920,000 in new receipts to the CSRDF.
o Treasury did not redeem $5,722,396,000, 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.

8. August 1, 2011:

o Treasury did not invest $1,829,000 in new receipts to the CSRDF.

o Treasury did not redeem $5,270,507,000, 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 $462,375,000, which represented the amount needed to
make the remainder of the benefit payment from the fund this day.

9. August 2, 2011: The President signed legislation (The Budget Control Act of 2011,
P.L. 112-25), resulting in an increase of the statutory debt limit from $14,294 billion
to $14,694 billion. 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()(3)]

o Treasury invested $84,109,884,000 of principal in the CSRDF in accordance
with the established rollover investment plan for the fund in effect on June
30. This represented the June 30 maturing principal and interest payments
which were not reinvested in the fund during the DISP and receipts not
invested between May 16 and June 30.


Operations and Status: On May 16, 2011, in connection with the declaration of the debt
issuance suspension period, the Secretary redeemed securities of the CSRDF totaling
$17,100,000,000. These holdings were redeemed earlier than otherwise required in order to
avoid exceeding the debt limit. In addition, throughout the period of May 16 through August
2, new CSRDF and PSRHBF receipts were not invested in order to keep from exceeding the
debt limit. Steps were taken on August 2 and December 30, 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 16 and December 30 is included as Attachment 1.

Richard L. Gregg
Fiscal Assistant Secretary


Attachment 1

Daily Transaction Detail
Report on Fund Operations and Status
From May 16, 2011 to December 30, 2011

Postal Service
Civil Service Retirement and Disability Fund | Retiree Health
Date 5 Benefit Fund |W otes
ily Other Other

Investments | Redemptions
Suspended _| Not Processed
Tune 24,2011 | $346,150,000| $13,338,000]

Transactions | Transactions

June 27, 2011 $1,042,000) $1,773,000|
June 28, 2011 $121,872,000) $1,891,000)
June 29, 2011 $11,727,000} $1,662,000)

June 30, 2011 $440,806,000} $831,000] $80,478,804,000] $9,533,347,000) 6

Suly 1, 2011 $1,920,000] $5,722,396,000] 7
July 5, 2011 $1,204,000] $2,563,000)
Suly 6, 2011 $1,542,000] $9,885,000
July 7, 2011 $10,739,000] $2,399,000

July 8, 2011 $31,418,000] _ $1,687,000
July 11, 2011 $8,495, $2,974,000
July 12,2011 | $121,805,000| $2,279,000
July 13, 2011 $26,752,000

July 14, 2011 $424,844,000| $1,729,000)

July 15, 2011 $768,000) _ $27,258,000]
July 18, 2011 $2,389,000) $7,252,000)
July 19, 2011 $674,000} $2,744,000)
July 20, 2011 $1,507,000) $4,346,000)
July 21, 2011 $192,000) $1,750,000)

July 22, 2011 $346,575,000| $9,869,000)
July 25, 2011 $374,000! $2,380,000}
July 26, 2011 $122,071,000) $1,356,000)
July 27, 2011 $11,556,000) $182,497,000)

July 28, 2011 $438,331,000) $480,000)

July 29, 2011 $1,075,000) $694,000}
st 1, 2011 $1,829,000] $5,270,507,000} _ $462,375,000} 8
it 2, 2011 $85,965,944,000] $9,533,347,000] 9
December 30, 2011 $516,907,000) $21,547,000] 10



Attachment 1

o Treasury invested $1,856,060,000 in the CSRDF in a 2% percent certificate of
indebtedness maturing June 30, 2012. This represented receipts not invested
during the DISP between July 1 and August 1. (Additionally, the requests
from the Office of Personnel Management for the investment of $1,223,000
and the redemption of $2,538,000 were processed as requested.)

o Treasury redeemed $17,100,000,000 from current Certificates of
Indebtedness and bonds, using normal redemption rules.

o Treasury reinvested $17,100,000,000 in the CSRDF in the 2-7/8 percent bond
maturing June 30, 2025. This represented principal from the redemption on
May 16 that was used to make benefit payments during the DISP. (Had there
been no DISP, benefit payments would have been paid through normal
redemption rules.)

o Treasury invested $9,533,347,000 of principal in the PSRHBF in accordance
with the established rollover investment plan for the fund in effect on June
30. This represented the June 30 maturing principal and interest payments
which were not reinvested in the fund during the DISP.

10. December 30, 2011: 5 U.S.C. 8348(j)(4) requires the Secretary to pay the amount of
interest that would have been earned by the CSRDF if the DISP had not occurred on
the first normal interest payment date following the expiration of the DISP. Since
December 31, 2011, the first normal interest payment date following the expiration of
the DISP, is a non-business day, the interest payment was made on this day.

o Treasury invested $516,907,000 in the CSRDF. This investment represents
interest foregone during the period of the DISP, May 16 to August 2, and
accrued since August 2.

0. Treasury invested $21,547,000 in the PSRHBF. This investment represents
interest foregone during the period of the DISP, May 16 to August 2, and
accrued since August 2.


DEPARTMENT OF THE TREASURY
WASHINGTON, D.C

ASSISTANT SECRETARY

January 27, 2012

The Honorable Harry Reid
Majority Leader

United States Senate
Washington, DC 20510

Dear Mr. Leader:

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 federal fund accounts described in the report during the most recent debt issuance
suspension period. 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,

Richard L. Gregg
Fiscal Assistant Secretary

Identical letter 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


Attachment 1

Notes from the Daily Transaction Detail
Report on Fund Operations and Status
From May 16, 2011 to December 30, 2011

1. May 16, 2011: Secretary Geithner notified Congress that a “debt issuance
suspension period” (DISP) would begin on May 16, 2011 and last until August 2,
2011. [5 U.S.C. § 8348(1)(2)] . On that day:

o Treasury did not invest $876,000 in new receipts.

o Treasury redeemed $17,100,000,000 from a 2-7/8 percent Special Issue Bond
maturing June 30, 2025. Also, Treasury did not redeem $3,092,000, 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.

2. May 26, 2011:

o Treasury did not invest $576,000 in new receipts to the CSRDF.

o Treasury did not redeem $1,117,000, which represents 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 Asaresult of a drop in the level of the debt subject to limit, Treasury
reinvested $5,536,814,000, which represented a portion of the amount
originally redeemed from the CSRDF on May 16 at the beginning of the
DISP.

3. May 27, 2011:

o Treasury did not invest $471,257,000 in new receipts to the CSRDF.

o Treasury did not redeem $12,210,000, which represents 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 Asa result of a drop in the level of the debt subject to limit, Treasury
reinvested $5,693,696,000, which represented a portion of the amount
originally redeemed from the CSRDF on May 16 at the beginning of the
DISP.

4. May 31, 2011:

o Treasury did not invest $137,606,000 in new receipts to the CSRDF.

o Treasury did not redeem $8,530,000, 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 $11,230,510,000 reinvested on May 26 and May 27 but
originally redeemed from the CSRDF on May 16 at the beginning of the
DISP.


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

Enclosure


Report on Fund Operations and Status
From May 16, 2011 to December 30, 2011
Pursuant to 5 U.S.C. §§ 8348(I)(1) & 8909a(c)

January 27, 2012

On May 16, 2011, the outstanding debt subject to limit reached the statutory limit of $14,294

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, May 16,
2011, and last until August 2, 2011. On August 2, 2011, President Obama signed legislation
(P.L. 112-25) increasing the statutory limit to $14,694 billion.

Legal Authorities 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()(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(1)(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 August 2,
2011 was December 30, 2011. 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.