In case you’re wondering what the potential impact could be on a Federal government shutdown, here are some items of note:
 
Veterans Affair’s
  • Potential suspensions from the VA could include answering inquiries (by e-mail, mail or telephone), as well as recruiting, hiring and training.
  • The Department of Veterans Affair’s (VA) will continue to provide 100 percent of healthcare services to veterans who are enrolled at VA medical facilities across the country. Appointments will not be delayed or canceled.
  • There will be a decrease in benefits staffing. However, the VA has been taking actions to make sure payments are still received without interruption and on a timely basis.
  • Even in the event of a partial government shutdown, the VA will continue to provide final resting places at national cemeteries. However, some cemeteries may be forced to operate on a modified schedule.  
  • Advance appropriations that are received from Congress make up more than 80 percent of the VA’s discretionary appropriations.
Social Security, Medicare and Medicaid

  • These operate under indefinite appropriations. In these cases, benefits payments will continue to be issued. Since there would be no lapse in relevant appropriations, they would continue to be honored by the Department of the Treasury.
Federal Employees
  • Federal employees who are asked to keep working during a shutdown will be paid after a budget deal to resume government operations is passed.
  • Congress decides whether to pay furloughed employees.
  • Retirees should receive their annuity payments as usual and on time.
  • For newly retired employees, a shutdown could delay paperwork processing.
  • Regarding benefits, there would be no interruption of coverage.
  • Staff members who answer retirement and health benefit questions will be available. 
  • A shutdown would not impact the Thrift Savings Plan (TSP) since it receives no monies from Congress. This would operate as usual. 
In the event of a federal government shutdown, make sure you do your research to see if you would be impacted in any way.
 
Modern Business Associates is an HR company that focuses on payroll and HR outsourcing. We routinely work with clients on employee benefits. As a Professional Payroll and HR outsource organization, our clients rely on us to help them effectively deal with these kinds of topics.