Government Shutdown: Will Federal Retirees Continue to Receive Annuity Payments?

If you are a federal retiree, will you continue to receive your annuity payments in the event of a government shutdown?

Federal retirees may be wondering whether or not they will continue to receive their annuity payments if the government shuts down at the end of the month.

The good news is that retirees under both FERS and CSRS will still receive their scheduled payments on the first business day of the month in the event of a government shutdown.

What effect would a shutdown furlough have on your high-3? According to OPM, there most likely will be no negative impact: “Generally there will be no effect on the high-3 average pay unless the furlough causes the employee to be in a nonpay status for more than 6 months during the calendar year.”

What will happen to employees who would have retired during a shutdown furlough?

According to OPM: “Employees who, on or before the requested retirement date, submitted some notice of their desire to retire, agencies should, when the lapse in appropriations ends, make the retirement effective as of the date requested. The retirement request may be informal (such as a letter requesting retirement), and can be either mailed or personally submitted to the agency. Any additional required paper work, such as the formal retirement application form, may be completed when the agency reopens. No time spent by the retiree in such actions after the effective date of the retirement may be considered as duty time, since the individual would no longer be an employee of the agency.”

For more answers to common questions about a shutdown and its impact on your pay and benefits, see OPM’s guidance on shutdown furloughs.