Common questions from federal employees about how a government shutdown can impact the retirement process.

Government shutdowns come with no shortage of confusion, complicating an already complex FERS process. The end of a shutdown only further muddies the waters. Below are some of the common federal employee questions we receive: from both those in the process of applying for retirement and those still in the planning stages.

Will the shutdown affect my retirement calculations?

No; retirement is calculated based on the highest average for three consecutive years of work (high-3s). Even if the shutdown takes place during your high-3 years, you should receive backpay. This backpay is applied retroactively to any calculations affected by a government shutdown. Any backpay you receive plays into your high-3 calculations the same way it would have without a government shutdown: meaning, as if you had been paid as normal. So, your overall salary and retirement calculations should not be affected.

I’m planning for retirement; could I still apply for retirement during another government shutdown?

Yes; you can apply for retirement while the government is shut down. A number of HR offices keep running, as does OPM. However, furloughs cause a backlog in most, if not all, HR offices and OPM.

But if you have been terminated and would like to apply for retirement during a shutdown, your application will go directly to OPM, and they should still be functioning.

What can I do to make sure nothing goes wrong with my application during and after a government shutdown? Are there any steps I can take to make sure everything goes smoothly?

Much of what can go wrong that is unique to a shutdown situation is not in your control: like, backlogs at OPM. But these backlogs only make it all the more imperative to avoid mistakes that could delay your application even further. Here are some best practices to follow regardless of shutdown status.

Write clearly without crossing out errors

When completing any retirement application, it is important to write clearly on the forms, whether typing or using pen. If you do write in pen, make sure the information is legible. If you make a mistake, print new forms rather than scratching out the error. OPM will not accept forms where information has been altered after the fact.

Sign with pen

OPM can get very particular about signatures. If possible, submit your forms with an original signature: by hand, using a pen. Do not digitally sign if you can avoid it.

Triple-check your application for completeness (then check it again)

It may seem obvious, but even the best of us can miss a small part of a form. Make sure you have answered every question in its entirety. Many questions have subparts. If you leave one of these subparts blank, OPM will send the paperwork back for completion.

If I retired during the shutdown, will I receive my annuity payments on time?

Probably not; understand that the phrase “on time” is simply a construct for OPM. Many factors have bearing on whether you receive your annuity in a timely manner.

OPM needs to first approve your application. In many scenarios, OPM might ask you for additional information before signing off.

Once your application is received, OPM must contact your HR office to retrieve your paperwork, including your payroll information and SF 50s to evaluate your high-3 average salary, your years of service, etc. After connecting with your HR office, OPM will calculate your annuity and provide you with a breakdown of what your annuity would look like.

The following fact is true whether we are in a government shutdown or not: if your HR office is not fully functioning, that will affect how quickly OPM can complete your annuity calculation and issue your booklet. Backlogs don’t disappear once the government reopens. Processing times will be affected, and likely continue to be affected for some time after the shutdown ends.

If the shutdown delayed my annuity payments, am I guaranteed to receive those payments?

Yes; if your annuity was delayed, you are entitled to receive those payments now that the shutdown has been resolved. As a new annuitant, your annuity will be backdated from your last date of work. Thus, even if the payments are delayed, you’ll be entitled to receive every annuity from your last working date.

I am meant to retire with a lot of accrued leave. If the backlog keeps my retirement from being processed until 2026, do I lose it?

No, you should still receive the anticipated lump-sum payment for your accrued annual leave. Your effective retirement date will reflect the day you applied for (or, during a shutdown, informally requested) retirement. That effective retirement date will retroactively apply. Assuming you applied for or requested to retire during 2025, you should still be paid in full for your accumulated or accrued annual leave, and any unused sick leave will apply towards your creditable service.

Federal employment is subject to laws and regulations that differ significantly from those in the private sector; consulting with a federal employment lawyer can make all the difference. Tully Rinckey’s team of dedicated federal employment attorneys is available to assist you today. Please call 8885294543 to schedule a consultation, or schedule a consultation online.

See this article on FedSmith.