A question about the federal shutdown and the federal employee benefits

[dsc]

One of the things that I wondered about the day the cop was injured protecting Congress while not being paid. Usually benefits are paid on a monthly basis ahead of time (thus October benes were paid at the end of September) so he was clearly covered despite the shutdown. But what happens if such an employee gets injured in November?

[charlyvi]

1. As a federal employee

I received my pay through September 30, less than half of what I was due as the shutdown occurred at the middle of a pay period. I am considered an essential employee, so I am currently working without knowing when I will next be paid.

[dsc]

2. I know how the pay works

but am wondering about the benefits. Did they cancel benes last time? It is bad enough about the pay but at least you know that will eventually come but the benefits, once lost, can't really be restored.

[charlyvi]

4. My taxes and insurance were taken out.

Also, my life insurance and the government contribution to my Thrift Saving Plan (kind of a government 401K), but my voluntary contribution to that plan was not taken as my check was not enough to cover it. Also, I have a small TSP loan I'm paying back and that was not deducted from my check either. TSP says I can go 2 months without the loan payment, and they will simply tack the extra two months on the back. I was also told that our insurance would continue during the shutdown, but if there is a debt default, all bets are off.

[dsc]

5. glad your benes will continue

at least if there is no default.

[grantcart]

6. interesting

millions of federal employees have regular deductions taken out for private insurance (by using biweekly allotments). Some of those will now be missing their premiums, for the reason you stated - not enough balance to pay, and will be technically 'lapsed'. I expect that they also will be paid back when the IOU payments are made.

[charlyvi]

7. Yes,

We are technically working under an IOU basis. Sucks.

[historylovr]

8. This,

on top of furlough days because of the sequester. Really sucks.

[charlyvi]

9. A single gal sits next to me at work.

Bought a house about a year ago. Saved for a long time to get a down payment. Her savings haven't built back up enough to weather this shutdown. She is FREAKED. She has a big extended family though, but she hates to ask for help.

[eqfan592]

12. I work with somebody in the same boat.

Thankfully this hit after we had built up some savings both to cover my wife's maternity leave and eventually a house.

[grantcart]

3. Not sure about processing benefit payments but

Federal Employees get paid biweekly. This last paycheck was paid on Friday and they should have seen a 40% reduction in their pay, the balance is an IOU.

If however the shutdown were to extend another two weeks there would be no payment for their biweekly pay. All of the different insurance plans that they pay into would technically go into a lapsed category and theoretically the insurance companies could have a legal challenge to any claims.

I don't think that would happen but it illustrates how confusing it will get.

[eqfan592]

10. We are good for twelve months still.

I'm not sure about the specifics, but management informed us that we would be good for twelve months still before insurance becomes an issue. If this goes on that long, tho, we'll be having much larger problems.

[grantcart]

13. "management informed" worries me a little

Unless you have received something in writing I would not put much stock in it. If you have received an email in it I would love to see it.

Part of my job is to give seminars on federal benefits and very few managers have a working knowledge of the benefits. Indeed many of the HR associate positions are not particularly well informed.

For example your FEGLI life insurance is not a funded government benefit but a Met life policy. I would say that the same is true with all of your health insurance. These are all private carriers and the policy is based on paid up premium. I doubt that when the companies signed up as providers that they also agreed to fund the premiums in the case of a shut down, how are they, for example, going to be able to differentiate between a terminated employee and a furloughed one?

Again I don't think there is any real concern but the idea that not paying Met Life for a year and expecting those policies to be in force doesn't seem to jive.

We are going into deeply unchartered waters and I would advise all federal employees to take any verbal explanations on pay and benefits at a 'provisional' level and rely only on written explanations.

[eqfan592]

14. See the post below mine.

Also our union rep seems to feel that we are good for a year. Believe me, I'm not one to just blindly trust management, but we have a good relationship with them at our facility, and I tend to trust our union FACREP as well.

[grantcart]

17. Interesting. Suprised about the health insurance, not about the dental and vision.

[NutmegYankee]

11. The health insurance (FEHB) will stay active up to a year in non-pay status.

The dental and vision plans that are bought separately under FedVIP, will need to be paid or they will be canceled. The company will mail you a bill. Those plans have very low premiums (~$10-$30).

[grantcart]

16. In CA family dental plans go for about $ 50-60 biweekly for family plans.

[NutmegYankee]

18. Must be a zone thing.

[grantcart]

19. Very much so, individual plans are inexpensive but family plans

are not very competitive.

in AZ family plans are about $ 40 biweekly.

[sammytko]

15. no, benefits are not cancelled