With a doable authorities shutdown looming, federal staff and retirees are asking questions of the way it impacts their pay, go away and annuity funds.
Under are a some ceaselessly requested questions from the Workplace of Personnel Administration’s most up-to-date Steerage for Shutdown Furloughs.
SEE ALSO: What Occurs to Federal Pay, Depart & Holidays Throughout a Authorities Shutdown?
Federal Advantages
1. What occurs if company staff answerable for processing Federal Workers Well being Advantages (FEHB) or Federal Workers’ Group Life Insurance coverage (FEGLI) transactions are furloughed?
A. Companies will proceed to course of FEHB and FEGLI transactions throughout a lapse in appropriations. Workers answerable for processing FEHB or FEGLI transactions have to be excepted to carry out this work as a result of the legislation designates the processing of those transactions as emergency companies that should proceed below the Antideficiency Act. (See 5 U.S.C. 8702(d), 8905(i); 5 CFR 870.106, 890.113.)
Federal Workers Well being Advantages Program — Normal
2. Will an enrolled worker proceed to be lined below the FEHB Program throughout a lapse in appropriations if the company is unable to make its premium funds on time?
A. Sure. The worker’s FEHB protection will proceed even when an company doesn’t make the premium funds on time. Following the lapse, every worker who returns to pay standing will mechanically start to repay their share of FEHB premium that gathered in the course of the lapse by means of payroll withholding. If FEHB premiums aren’t withheld from retroactive pay, one further fee along with the present pay interval quantity shall be withheld in every subsequent pay interval till the worker’s gathered share of premiums have been paid.
3. What occurs if an worker needs to terminate FEHB protection whereas in a non-pay standing so as to keep away from the expense?
A. Not like different forms of non-pay standing, staff in a non-pay standing resulting from a lapse in appropriations (shutdown furlough) won’t have the chance to terminate or cancel FEHB protection exterior of Open Season or experiencing a qualifying life occasion. The worker will stay lined; the enrollee’s share of their FEHB premium will accumulate and be withheld from pay upon return to pay standing.
4. Can an worker who has been furloughed enroll or make modifications to their FEHB enrollment throughout a furlough resulting from a lapse in appropriations?
A. Sure. An worker who’s furloughed and experiences a qualifying life occasion can enroll or make modifications in enrollment within the FEHB Program. (See 5 CFR 890.301.) Workers may also enroll or make modifications in the course of the annual Open Season. Workers are inspired to contact applicable company human sources workers to make sure they observe the correct processes.
FEHB Program—Open Season Enrollments/Modifications
5. Would a lapse in appropriations alter the efficient date of an FEHB Open Season enrollment change if an enrollment request was absolutely processed by an company and submitted to the well being plan previous to the lapse?
A. No. If an enrollment change request was submitted to the well being plan and processed, the efficient date of an FEHB Open Season change would nonetheless be the primary day of the primary full pay interval in January.
6. An worker is in a non-pay standing resulting from a shutdown furlough and is enrolled in a brand new FEHB plan efficient at the start of the plan 12 months as a result of their present plan is terminating participation within the FEHB Program. Which service is answerable for offering advantages for lined companies in January?
A. It relies upon upon the date in January that companies are wanted. Protection below the brand new plan begins on the primary day of the primary pay interval that begins on or after January 1. Earlier than that protection efficient date, the terminating plan is answerable for offering advantages for lined companies.
Different Federal Worker and Retiree Insurance coverage Applications
7. What occurs to an worker’s Federal Workers’ Group Life Insurance coverage (FEGLI) Program protection if furloughed?
A. The worker can preserve their FEGLI protection for as much as 12 months in a non-pay standing. When the lapse ends, the worker will obtain retroactive pay below 31 U.S.C. 1341(c)(2) and retroactive FEGLI premiums could also be withheld from that pay. If FEGLI premiums aren’t withheld from retroactive pay, no a couple of further fee shall be withheld in every subsequent pay interval till all premiums have been paid.
8. What occurs to an worker’s Versatile Spending Account (FSAFEDS) protection if furloughed?
A. Payroll deductions will stop for any worker that doesn’t obtain pay. The worker stays enrolled in FSAFEDS, however claims for eligible well being care bills incurred throughout a non-pay standing won’t be reimbursed till the worker returns to a pay standing following the lapse and allotments are efficiently restarted. The remaining allotments are recalculated over the remaining pay durations to match the participant’s election quantity. Nonetheless, any declare submitted with dates of service previous to an worker coming into non-pay standing shall be paid in accordance with current procedures, as much as the steadiness of the worker’s annual election.
Eligible dependent care bills incurred throughout a non-pay standing could also be reimbursed as much as no matter steadiness is within the worker’s dependent care account— so long as the expense incurred in the course of the non-pay standing permits the worker (or partner if married) to work, search for work, or attend college full-time.
9. Will the efficient date of my FSAFEDS enrollment be affected?
A. No.
10. What occurs to an worker’s Federal Lengthy Time period Care Insurance coverage Program (FLTCIP) protection if furloughed?
A. FLTCIP protection will proceed for enrollees who’re furloughed or excepted from furlough and dealing with out pay throughout a shutdown furlough primarily based on a lapse in appropriations. As well as, FLTCIP protection will not be canceled because of non-payment of premiums or different periodic prices resulting from a lapse in appropriations. (See 5 CFR 875.302.) Workers paying premiums through Direct Invoice or Computerized Financial institution Withdrawal will proceed to be billed, however the insurer won’t terminate for non-payment of premium in the course of the lapse in appropriations. Concerning claims eligibility requests for FLTCIP throughout a shutdown furlough, declare advantages won’t be reimbursed to the enrollee till all overdue premiums are paid.
On the finish of the shutdown, FLTCIP premiums shall be paid from retroactive pay supplied below 31 U.S.C. 1341(c)(2) or could also be paid again from one other supply (i.e., computerized financial institution withdrawal) for FLTCIP enrollees who elected to make funds on to the Provider.
If missed premium funds are unable to be collected through computerized financial institution withdrawal or deductions from the enrollee’s payroll or annuity/pension, enrollees shall be billed straight for the premium quantity due. After the shutdown, if the enrollee elected to pay their premium through computerized financial institution withdrawal, overdue premiums shall be collected by withdrawing as much as two months of premiums from the enrollee’s checking account every month till it’s present. For enrollees who didn’t elect to make fee straight, FLTCIP premiums shall be paid to the Provider from enrollees’ retroactive pay made accessible as quickly as practicable upon the top of the lapse.
11. What occurs to an worker’s Federal Workers Dental and Imaginative and prescient Insurance coverage Program (FEDVIP) protection if furloughed?
A. Protection will proceed for a person enrolled in FEDVIP who’s furloughed or excepted from furlough and dealing with out pay throughout a lapse in appropriations, and an enrollment will not be canceled because of nonpayment of premiums or different periodic prices resulting from a lapse. (See 5 CFR 894.405.) Payroll deductions will briefly stop for any worker that doesn’t obtain pay.
Workers are entitled to retroactive pay below 31 U.S.C. 1341(c)(2) for excepted work carried out in the course of the lapse and for furlough durations at the usual charge of compensation. On the finish of the shutdown, the gathered FEDVIP premium for this era shall be withheld from their pay. If FEDVIP premiums aren’t withheld from retroactive pay, no a couple of further fee shall be withheld in every subsequent pay interval till all premiums have been paid.
12. Will the efficient date of my FEDVIP Open Season enrollment be affected?
A. No.
Federal Retirement
1. If a shutdown furlough happens in the course of the worker’s highest years of wage, what impact will time in a furlough standing have on an worker’s high-3 common pay?
A. As soon as the lapse in appropriations ends, staff who would have been in pay standing however for the lapse will obtain retroactive pay for furlough durations pursuant to 31 U.S.C. 1341(c)(2). Thus, there shall be no impact on such an worker’s high-3 common pay.
2. Are the retirement guidelines regarding the impact of a shutdown furlough the identical for workers below the Civil Service Retirement System (CSRS) and the Federal
Workers Retirement System (FERS)?
A. Sure.
3. What is going to occur to staff who would have retired throughout a shutdown furlough?
A. For workers who, on or earlier than the requested retirement date, submitted some discover of their need to retire, businesses ought to, when the lapse in appropriations ends, make the retirement efficient as of the date requested. The retirement request could also be casual (resembling a letter requesting retirement), and may be both mailed or personally submitted to the company. Any further required paper work, such because the formal retirement utility type, could also be accomplished when the company reopens. No time spent by the retiree in such actions after the efficient date of the retirement could also be thought-about as responsibility time, for the reason that particular person would now not be an worker of the company.
4. If an worker is scheduled to retire earlier than the top of the go away 12 months with an annual go away steadiness of over the utmost go away ceiling (e.g., 240, 360, or 720 hours, as relevant) and the furlough prevents the worker’s retirement from getting processed till January, does the worker lose his or her annual go away above the utmost go away ceiling?
A. No. The worker’s retirement could be retroactively utilized to a date previous to the top of the go away 12 months, and the worker would obtain the complete quantity of gathered and accrued annual go away in a lump-sum fee.
Federal Retirement Companies: Authorities Shutdown
1. I’m a Federal retiree. Will I nonetheless obtain my month-to-month annuity fee throughout a Authorities shutdown?
A. Sure. Federal retirees below the CSRS and FERS retirement techniques will nonetheless obtain their scheduled annuity funds on the primary enterprise day of the month.
2. How can I make updates or modifications to my retirement advantages?
A. OPM’s Retirement Companies is accessible to help you along with your retirement advantages. As all the time, you can also make many of those modifications on-line by means of Companies On-line or by calling Retirement Companies at (888) 767-6738. As a result of quantity of calls, we advocate that you simply first use the net companies website to make instant updates and modifications. You may also discover normal info on-line.
3. How do I report the demise of a member of the family throughout a Authorities shutdown?
A. You’ll be able to confer with our web site Annuitant Demise Index – RS Reporting (opm.gov) for info on reporting the demise of a present retiree and making use of for any advantages, or by calling us straight at (888) 767-6738. If the member of the family was a Federal worker on the time of demise, survivors should contact the company for which the deceased labored. If the using company is closed, it’s possible you’ll want to attend till after the shutdown ends to start the method.
4. I just lately retired from Federal service. Will my retirement utility be delayed by a Authorities shutdown?
A. In case your company or payroll middle submitted your retirement utility to OPM, you’ll start receiving interim annuity funds whereas OPM Retirement Specialists course of your utility. As a result of OPM Retirement Companies is funded by the belief fund it manages, OPM Retirement Companies staff will nonetheless be working regular working hours throughout a Authorities shutdown.
In case your company or payroll middle has not but submitted your retirement utility or the appliance is incomplete, you’ll seemingly expertise some delay as OPM should wait on different businesses to submit all the data wanted to course of your retirement. Some features of those businesses will not be working throughout a Authorities shutdown.
5. I utilized for incapacity advantages. Will my utility nonetheless be processed?
A. Workers in Retirement Companies at OPM will proceed working in your utility. If the appliance requires further info from different businesses, anticipate delays throughout a Authorities shutdown.
6. Can I submit a courtroom order that awards a retirement profit to OPM throughout a Authorities shutdown?
A. Sure. OPM staff will proceed working to course of courtroom ordered retirement advantages.
Funds upon Separation from Federal Service
1. If there’s a shutdown furlough, how does this impression a separating worker’s lump-sum fee for his or her unused annual go away?
A. Within the occasion of a shutdown furlough, any funds incurred by the company for an worker’s lump-sum fee shall be delayed till funds can be found.
2. How are separated staff’ entitlements to severance pay affected by a shutdown furlough?
A. Funds for severance pay are obligated on a day-to-day foundation because the recipient accrues persevering with entitlement to severance pay by not being reemployed by the Authorities of america. (Severance pay is suspended or terminated when the person is reemployed by the Federal Authorities.) Severance pay is paid on the identical pay interval intervals as if the recipient had been nonetheless employed. Any severance fee (on a payroll payday) is linked to the corresponding pay interval throughout which the recipient accrued persevering with entitlement to severance pay. If the recipient is reemployed by the Federal Authorities throughout a pay interval, she or he is entitled to a prorated severance fee masking the times within the interval previous to reemployment (e.g., 2/5 of 1 week’s pay if the recipient was reemployed on the third workday of the pay interval).
Thus, within the case of a shutdown furlough, accrued however unpaid severance pay represents an obligation to be paid from funds accessible earlier than the lapse in appropriations occurred. Simply as payroll checks for work carried out previous to a lapse in appropriations may be processed as a part of the orderly suspension of nonexcepted actions, severance pay checks masking days earlier than the lapse can also be processed.
No funds could also be licensed for severance funds for days in the course of the lapse till an appropriation is enacted.
To learn the complete Workplace of Personnel Administration’s most up-to-date Steerage for Shutdown Furloughs, click on right here.
