Potential Government Shut Down Threatens Federal Benefits and Retirement
Congressman Rick Nolan, a Democrat from Minnesota is trying to equalize penalties for a government shutdown by ensuring that lawmakers lose access to their federal benefits during a shutdown. The bill was introduced in the House and would not apply to the current congress.
Because the constitution does not allow pay changes to occur during current terms, the changes would only affect newly elected members of Congress. Nolan argued that this bill is necessary to ensure that Congress is in the same position as other federal employees. If passed, this legislation could help encourage inter-party cooperation.
- Also Read: 3 Reasons Certain Federal Employees Can Retire Years Earlier Than Their Peers Without Penalties
- Also Read: CSRS Retirement in 2024: Are You Making the Most of What This Classic Plan Has to Offer?
- Also Read: Roth IRA Basics for Beginners: What’s There to Learn?
Members of Congress currently make $174,000.
Possible Protection during the Shutdown
Senator Ben Cardin, a democrat from Maryland is trying to protect federal workers during a potential government shutdown. Cardin sponsored legislation, “The Federal Employee Fair Treatment Act of 2015.” This legislation would allow “excepted” employees to take leave during a government shut down and ensure that excepted employees receive payment quickly following a furlough, no matter when their paychecks are normally scheduled.
“Our bill is the right thing to do and the fair thing to do. Federal workers are dedicated public servants who simply want to do their jobs on behalf of the American people. They shouldn’t suffer because of extreme partisan gamesmanship,” Cardin said in a statement.
The legislation is received vocal support by federal employee unions who argue that the proposal would allow a more fair treatment of federal employees during a government furlough.
The federal government has until midnight on October 1 to reach a budget agreement or face a massive government shutdown.
Some Employees Would Still Have to Work
In the event of a shutdown furlough, some employees may be working despite receiving funding from appropriate committees. These employees are typically referred to as “excepted” and include workers that are essential to the health, welfare and safety of individuals. This category typically includes police officers and military.
Other federal employees that will continue to work and see to delay in pay include federal employees that do not receive funding from appropriate committees, like postal workers. These employees will continue to work normally with no impact to their pay or benefits.
Employees that are not excepted or exempt may not work during a shutdown, except to maintain basic order in the agencies. Employers are responsible for notifying affected employees. If the government fails to come to an agreement on the budget by Oct. 1, federal employee benefits could be at risk. Not only could employees lose access to pay and retired federal employees have retirement payments delayed, current federal employees with approved paid time off will not be paid if their time off falls during the furlough period. The last government shut down occurred in October 2013 and left many federal employees without pay.
