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A last-minute compromise to avoid a government shutdown doesn’t look probable as the deadline approaches. Federal News Network “Federal Drive” host Terry Gerton has tips on what federal workers could be doing.
As of Friday afternoon, Congress has four days to agree on a stopgap bill that would avoid leaving thousands of federal employees without pay or without a job entirely.
The first thing Gerton recommended federal employees do is address if you have rent or loans that will have payments due during the potential shutdown.
“Talk to creditors, landlords, those kinds of things, to let them know that this may be coming up, and see if they can negotiate or are covered by some extenuating period of time when they may be able to make reduced payments or may be able to delay those payments,” Gerton said.
In the event of a shutdown, this time around would be different for one group in particular — those who opted into the deferred resignation and retirement program, whose last day on the federal payroll is Sept. 30.
“They may not have had their paperwork processed,” she said. “They may not have their retirement package submitted, and it’s not clear whether on Oct. 1, if we’re in a shutdown, agency/HR folks are going to be around and able to process those retirements.”
The good thing is federal workers receive back pay following a shutdown.
In 2019, Congress passed a law ensuring federal employees, regardless of their status during the shutdown and who are actively on the federal rolls, would be entitled to back pay for the duration of the shutdown.
While they will eventually get paid, the furloughed workers as well as those who remain on the job may have to go without one or more of their regular paychecks, depending upon how long the shutdown lasts, which will create financial stress for many families.
“That helps a little bit in that, at the end of the shutdown, you’re going to get a check that covers their back pay,” Gerton said.
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