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Investment Policies, Practices, and Performance of Federal Retirement Systems

FPCD-79-17 Published: Aug 31, 1979. Publicly Released: Aug 31, 1979.
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Highlights

Because of the importance of investment earnings to retirement system financing, a review was made of the investment policies and practices of six Federal retirement systems that invest funds. Four of the six retirement systems in the study were established by law. The retirement systems of the civil service, the Foreign Service, the judicial survivors, and the U.S. Tax Court are required by law to invest only in Federal securities or other securities guaranteed by the United States. Receipts, including employee and agency contributions, are transmitted to the Department of the Treasury and credited to trust funds maintained there for each retirement system. The Federal Reserve System and the Tennessee Valley Authority initiated their own retirement systems and manage their funds like private pension funds. They independently establish investment policies and accumulate assets that can be converted to cash when needed. The Department of Treasury's investment policy is to sell special nonmarketable issues to the four Federal retirement trust funds.

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Federal agenciesFederal employee retirement programsFinancial management systemsFunds managementInvestment planningPension plan cost controlTrust fundsSecuritiesInterest ratesMortgage market