Congress is headed for another potential government shutdown as the House of Representatives battles over the SAVE Act. The Republican majority in the House insists that any stopgap spending bill must include legislation that prohibits non-citizens from voting in elections starting with the November 2024 presidential election. Since non-citizens are currently prohibited from voting, the Democratic majority in the Senate vowed to oppose the SAVE Act as a voter suppression strategy. Here’s how a shutdown will affect federal workers and retirees.
“A furlough places an employee in a temporary non-duty, non-pay status while “excepted” workers continue to work essential jobs without pay.”
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.
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. Roughly half of the Pentagon’s 800,000 civilian employees would be furloughed. The IRS will stop auditing tax returns and the majority of its employees will be furloughed. Other agencies that will be affected include The U.S. Departments of Agriculture, Energy, Housing and Urban Development, Transportation and Veterans Affairs, and local Social Security offices.
Impact Of A Shutdown On The Thrift Savings Plan (TSP)
Since federal workers are not paid during a furlough, TSP contributions will stop and FERS employees will not receive agency contributions. By law, you can take out a TSP loan during a shutdown when you’re furloughed. For workers who already have a TSP loan, automatic paycheck deductions for payments will be paused until the shutdown ends. Loans are not considered in default until 2½ payments have been missed. Since TSP operations continue during a shutdown, loan payments can be mailed using the Loan Payment Coupon available in the Forms & Publications section on the TSP website.
How A Shutdown Affects Pre-Retirees & Retirees
If you’re already retired during a shutdown you will continue to receive your FERS/CSRS annuity (pension) payments or Social Security retirement benefits. Since OPM Retirement Services operates 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 shutdown, the OPM will not receive your application because your payroll staff will be furloughed.
For complete information, download Guidance for Shutdown Furloughs on the OPM website.
