Ehrlich on Washington column, January 7, 1996

NEWS FROM Robert L. Ehrlich, Jr. Second Congressional District of Maryland 1407 York Road, Suite 304 Lutherville, Maryland 2 1 093 315 Cannon House Office Building Washington, D.C. 20515 EHRLICH ON WASHINGTON Week of January 7, 1 996 By Congressman Robert L. Ehrlich, Jr. CLINTON RAIDS PENSION FUNDS The Clinton Administration has been playing a shady game with the retirement funds of millions of Americans. It has raided federal workers’ retirement funds as a means of artificially extending the debt limit. Clinton also is tinkering with private pension plans in order to finance his own social agenda. Both actions constitute an historic breach of faith and contract to working families. Last month— after President Clinton vetoed the debt ceiling extension bill passed by Congress— Treasury Secretary Robert Rubin converted $61.3 billion in federal retirement funds into cash in order to preserve the government’s short-term borrowing ability. Federal workers have been left with IOUs to fund their retirement years. This self-serving maneuver jeopardizes millions in pension dollars, violating both the Constitution and federal law. By disregarding the existing debt ceiling law, Clinton is allowing the Administration to spiral further into debt. I urge the Administration to find a more appropriate and forthright solution to the debt ceiling extension issue. Clinton has also looted the $3.5 trillion private pension system. As Congress seeks to rein in federal spending, the President has found a new source of revenue to finance its agenda- private pensions. Labor Secretary Robert Reich has been pressuring investment managers to