With the federal government reopened after the prolonged shutdown, agencies are actively restoring operations and ensuring employees receive all owed pay and benefits.
Retroactive Pay Underway
Agencies have started processing full back pay for the roughly 1.4 million federal employees affected by missed paychecks. Key points:
- Excepted employees who continued working will receive full pay for hours worked, including overtime, night pay, and other premiums.
- Furloughed employees will be paid for the hours they would have worked if the shutdown had not occurred.
- Retroactive pay places employees back into full pay status for the entire shutdown period.
Some payroll adjustments, particularly for overtime, premium pay, or unique schedules, may require follow-up corrections. Employees who applied for state unemployment benefits may need to repay those benefits once federal back pay is received.
Leave Accruals Restored
Shutdown time is now treated as paid, restoring annual and sick leave accruals for both furloughed and excepted employees. Agencies are correcting leave records to reflect:
- Full annual and sick leave accrual during the shutdown
- Restoration of any leave advanced or charged in error
- Proper crediting for excepted employees who worked without pay
The November 29 “use-or-lose” annual leave deadline still applies. Employees must schedule excess leave by this date to retain it, even if the shutdown disrupted prior plans. Separation-related payments, such as severance, VSIP buyouts, and lump-sum payments for unused leave, are also resuming.
Benefits Coverage and Open Season Updates
Federal benefits programs continued uninterrupted during the shutdown, including:
- FEHB health insurance
- FEDVIP dental and vision
- FEGLI life insurance
- FLTCIP long-term care insurance
- FSAFEDS flexible spending accounts
Premiums not withheld while employees were unpaid will be reconciled in upcoming paychecks or spread across future pay periods. Open Season deadlines remain unchanged, although agencies may accept late elections for employees who were unable to make changes due to the shutdown.
With operations back in full swing, agencies are focused on making employees financially whole, restoring leave balances, and clarifying benefit rules.
