Through Congress avoided a shutdown at the end of September, 2023, the stop-gap measure only funds the government another 45 days as the House of Representatives continues to struggled over the selection of a new Speaker of the House. Hopefully, a funding bill is approved before the deadline expires. If not, it’s important for federal workers and retirees to understand how a shutdown will affect them so they can prepare accordingly.
GS Workers May Be Furloughed Or Asked To Work Without Pay
Although the Government Employee Fair Treatment Act of 2019 guarantees that all federal employees will be paid following the end of a shutdown, millions will likely be furloughed or required to work without pay. A furlough places an employee in a temporary non-duty, non-pay status while “excepted” workers continue to work essential jobs without pay. For more information, see the “Furlough Guidance” publication on the OPM website.
Active-Duty Service Members Will Continue To Work Without Pay
Without new legislation authorizing military pay during a shutdown, millions of active-duty service members will continue to work without pay or stay home without a paycheck. Military commissaries located in the U.S. and abroad can stay open without appropriations but, when funds run out, only overseas and remote locations will stay open.
TSP Loans During A Government Shutdown
When placed in non-pay status during a shutdown, you don’t have to worry about making payments on your Thrift Savings Plan (TSP) loan. Automatic paycheck deductions for TSP loans will be paused until the shutdown ends. Loans are not considered in default until you’ve missed more than 2½ payments. Since TSP operations continue during a shutdown, you can send loan payments directly to their offices.*
If your agency is among those shut down, the OPM will not receive your application because your payroll staff will be furloughed.
How A Shutdown Affects Processing Retirement Applications
Since OPM Retirement Services operate during a government shutdown, they can process your application if you submit it to your agency before the shutdown begins. Otherwise, expect a delay. Why? If your agency is among those shut down, the OPM will not receive your application because your payroll staff will be furloughed.
If you’re already retired during a shutdown it will not affect your annuity (pension) payments. However, your local IRS offices and Social Security offices will usually be closed during a government shutdown.
Other Interrupted Services That May Affect You & Your Family
Nationwide services provided by Head Start for kids and Meals on Wheels for the elderly may be affected during a government shutdown. National parks and museums may also close when funding runs out.
*https://www.tsp.gov/bulletins/oc11-05.pdf
