Written By
By Mike Vajda, Sharon Ginley, Michael Rogers
With Congress at an impasse over federal spending, the government shutdown took effect at 12:01 Wednesday. While most shutdowns have been brief, the most recent lasted more than a month. We recognize that a shutdown can be stressful, financially challenging, and leave employees with many questions. To help, the Office of Personnel Management (OPM) has developed a detailed Guide on Shutdown Furloughs. In addition to guidance provided by your organization, OPM’s guide provides clear, straightforward information about furloughs, what they are, how they may affect your pay and benefits, and what steps you may need to take.
Key Points to Keep in Mind
Scope of Furloughs: Shutdown-related furloughs generally apply only to activities and employees funded by annual appropriations. Employees funded through other sources are usually exempt, and those performing legally authorized “excepted” duties continue working. Agencies are responsible for notifying employees of their specific status and issuing furlough notices where applicable.
Pay and Benefits: Federal employees are entitled to back pay for furlough days once operations resume. Enrollment in benefit programs—including the Federal Employees Health Benefits (FEHB), Federal Employees Dental and Vision Insurance Program (FEDVIP), Federal Employees’ Group Life Insurance (FEGLI), and Federal Long Term Care Insurance Program (FLTCIP) continues without interruption. Premiums are deferred until employees return to duty. However, employees cannot contribute to their Thrift Savings Plan (TSP) while on furlough.
Reduction in Force (RIF): There have been discussions about a potential reduction of the workforce during the shutdown. Unlike a furlough, which places employees in a temporary non-pay status due to lack of work or funds, a Reduction in Force (RIF) is used to permanently separate or reassign employees when their positions are abolished. OPM has clarified that agencies may conduct a RIF and issue notices during a lapse in appropriations as an excepted activity. Affected employees must receive a RIF notice normally at least 60 days in advance, though in some cases no fewer than 30 days before the effective date. Please see articles on RIF, listed below, to obtain additional information on the process and the steps employees can take to properly prepare themselves in the event a RIF is conducted:
Because each employee’s situation is unique, we encourage you to carefully review guidance provided by your organization and OPM’s comprehensive guide, which covers the essentials in detail and directs you to the right resources for additional support.
