May 17th, 2011, Fairfax, VA—Americans for Limited Government President Bill Wilson today issued a statement on the Treasury's suspension of investments to and taking loans from federal employee pension funds:
"When it came to avoiding the hitting the debt ceiling, the Obama-Geithner Treasury Department's first choice was to tap federal employee pensions — their very first choice. This should serve as a warning against Obama Administration plans to eliminate 401(k) tax deferred savings accounts, and replace them with government-managed retirement annuities.
"A decade or so from now, when the national debt becomes so large that it cannot be refinanced, let alone be repaid, the Treasury has tipped its hand on whose moneys will be taken first: the American people's retirement savings. If our spending is not brought under control now, the first victims of the sovereign debt crisis will be Baby Boomers' retirements.
"As the Treasury tries to avoid hitting the debt ceiling, the American people will learn more about the choices the Treasury will make when the nation really does default down the road. Everyone should be guarding their retirement savings closely against government seizure, and demanding that government cut spending, balance the budget, and restore order to the nation's fiscal house."