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Overview

The U.S. Office of Personnel Management (OPM) has prepared human resources guidance for agencies and employees in the event of shutdown furloughs (also called emergency furloughs). A shutdown furlough occurs when there is a lapse in annual appropriations. Shutdown furloughs can occur at the beginning of a fiscal year, if no funds have been appropriated for that year, or upon expiration of a continuing resolution, if a new continuing resolution or appropriations law is not passed.

In a shutdown furlough, an affected agency would have to shut down any activities funded by annual appropriations that are not excepted by law. Typically, an agency will have very little to no lead time to plan and implement a shutdown furlough.

NOTE: This guidance applies to activities that are funded by annual appropriations. Some agency functions have alternative funding sources and, as a result, are not directly affected by a lapse in annual appropriations. Employees performing those functions will generally continue to be governed by the normal pay, leave, and other civil service rules. Agencies should consult with their legal counsel if they have further questions concerning this distinction. Employees should consult with their human resources office.

Supplemental Guidance on Shutdown Furloughs Relating to a Potential Lapse in Appropriations for Some Agencies

Note: References below to other Q&As refer to Q&As in OPM's general furlough guidance.

1. PAY

   1. Will employees receive a paycheck for hours worked prior to a lapse in appropriations?

      Yes. (See Q&A-D.3. for more information.)

   2. Will furloughed employees eventually receive pay for the furlough period?

      Congress will determine whether furloughed employees receive pay for the furlough period. (See Q&A-D.2.)

   3. Will employees who fall under an exception requiring them to work during a furlough despite a lapse in appropriations (excepted employees) be paid for their services during the furlough?

      Agencies will incur obligations to pay for services performed by excepted employees during a lapse in appropriations, and those employees will be paid when Congress passes and the President signs a new appropriation or continuing resolution. (See Q&A-D.1.)

   4. What happens if the furlough is still in effect on a holiday (e.g., the Christmas and New Year's Day holidays)?

      An employee (including an excepted employee) who does not work on a holiday will not receive pay for a holiday that occurs during a shutdown furlough, unless Congress provides otherwise. (See Q&A-G.1.)

2. LEAVE

   1. If there is a shutdown furlough, how does this impact a separating employee's lump-sum payment for his or her unused annual leave?

      In the event of a shutdown furlough, a separating employee will not receive a lump-sum leave payment until the lapse in appropriations ends and funds are available. (See Q&A-M.1.)

   2. What happens to furloughed employees who are already on paid leave or who are scheduled to take paid leave?

      All paid time off during a shutdown furlough period must be canceled because the requirement to furlough supersedes leave and other paid time off rights. (See Q&A-F.1., F.7., and F.8. for more information.)

   3. May excepted employees use paid leave during a furlough?

      No. Excepted employees also may not use paid leave. Rather, they must be furloughed for any approved absence during the furlough period. (See Q&A-F.2. and F.7. for more information.)

   4. If an employee has properly scheduled "use-or-lose" annual leave before the start of the third biweekly pay period prior to the end of the leave year, but is unable to use some or all of the scheduled leave because of the furlough, does the furlough constitute an "exigency of the public business" that would permit an agency to restore the leave after the beginning of the new leave year?

      Employees in this situation should make every effort to reschedule "use-or-lose" annual leave for use before the end of the current leave year. However, if this is not possible due to a lapse in appropriations, agency heads (or their designees) are encouraged to use their discretionary authority to restore any lost annual leave by determining that the employee was prevented from using his or her leave because of an exigency of the public business - namely, the need to furlough employees because of the lapse in appropriations.

   5. If an employee has properly scheduled use of "restored annual leave" that is due to expire at the end of the leave year (because it is the end of the 2-year restoration period) but that leave is canceled and lost due to lapse of appropriations, may the employing agency restore that leave again?

      Unfortunately, no - unless Congress enacts legislation providing otherwise. There is nothing in existing law or regulation that allows restored annual leave to be restored a second time. In fact, the Comptroller General has determined that unused restored annual leave may not be restored after expiration of the 2-year period. (See B 188993, December 12, 1977)

3. RETIREMENT

   1. If an employee is planning on retiring at the end of December, will a shutdown furlough affect the employee's retirement date?

      If the employee provides notice to the employing agency on or before the requested retirement date, the shutdown furlough will not affect the retirement date. (See Q&A-L.3. and L.a.4. for more information.)

   2. If an employee is scheduled to retire before the end of the leave year with an annual leave balance of over the maximum leave ceiling (e.g., 240, 360, or 720 hours, as applicable) and the furlough prevents the employee's retirement from getting processed until January, does the employee lose his or her annual leave above the maximum leave ceiling?

      No. The employee's retirement would be retroactively applied to a date prior to the end of the leave year, and the employee would receive the full amount of accumulated and accrued annual leave in a lump-sum payment.

4. FEDERAL EMPLOYEE HEALTH BENEFITS (FEHB) OPEN SEASON

   1. Would a lapse in appropriations alter the effective date of an Open Season enrollment if an enrollment request was fully processed by an agency and submitted to the health plan prior to the lapse?

      No. The effective date would still be the first day of the first full pay period in January.

   2. What happens if agency employees responsible for processing paper SF-2809 Open Season enrollment requests are furloughed?

      Agencies will have to determine whether those employees may continue to process the enrollment requests if a lapse in appropriations occurs. If agencies conclude that they cannot, pending enrollment requests will not be processed until those employees return to pay status.

   3. What happens if an individual makes an Open Season enrollment change but the agency did not process the request before the furlough?

      The individual should continue to use the old health plan until he or she returns to pay status and the enrollment is processed to the new health plan.

   4. If an enrollee required healthcare and received coverage under the old health plan, will the new health plan be responsible for the coverage received once the furlough is over?

      Yes.

   5. If a furlough delays processing of Open Season enrollment changes, will the enrollment be retroactive?

      Yes. Per FEHB regulations, all Open Season enrollments and enrollment changes are effective on the first day of the first full pay period in January.

   6. If an individual's health plan is terminating participation in the FEHB Program at the end of the current benefit year, and an Open Season enrollment change has not been processed, what should the individual do in January?

      If the individual needs services urgently, he or she should incur the expenses and file a claim with the new plan once the enrollment change has been processed.

   7. How will someone know whether his or her enrollment request was fully processed and sent to the new health plan?

      If the individual receives an ID card, the enrollment in the new plan is effective. If an ID card is not received, the enrollment has not been processed.

   8. How will someone know if an electronic Open Season enrollment change was fully processed?

      If an ID card is received, the enrollment in the new plan is effective. If an ID card is not received, the enrollment has not yet been processed.

   9. What happens to an individual not currently covered under the FEHB who elected to enroll during Open Season if the enrollment has not been processed and will not be processed until after the furlough? Does this individual still have coverage with the elected plan? If so, when?

      Yes, such an individual would have coverage beginning on the first day of the first full pay period in January. Expenses incurred will be reimbursed by the plan once the enrollment has been processed. We suggest that such individuals ensure they use the plan's providers to get the maximum benefits. For fee-for-service plans, check the health plan's website for a list of network providers. (See Q&A-H.1.)

5. FEDERAL EMPLOYEES DENTAL/VISION PROGRAM (FEDVIP) OPEN SEASON

   1. Will the effective date of my FEDVIP Open Season enrollment be affected?

      No. (See Q&A-H.7.)

6. FLEXIBLE SPENDING ACCOUNT (FSA) OPEN SEASON

   1. Will the effective date of my FSA enrollment be affected?

      No. (See Q&A-H.5.)

Answers to additional questions concerning shutdown furloughs is available on OPM's Frequently Asked Questions for Shutdown Furloughs.