Author: Bob Braunstein, Federal Benefits Specialist
Now that the shutdown has ended, many employees—both furloughed and essential—are understandably eager to know when paychecks will resume, how back pay will be processed, and what happens to benefits and leave balances both during and after the shutdown. Here is a brief synopsis of what to expect in these categories when a shutdown ends.
Back Pay Timing and Payroll Resumption
Once a continuing resolution or appropriations bill is signed into law, agencies typically resume normal payroll operations within several business days. During the 2018–2019 shutdown, most Federal employees received their back pay within 3 to 10 calendar days after the government reopened. For example, the government reopened on January 25, 2019, and many employees saw back pay deposited by February 1, 2019.
Employees who were furloughed and those who were required to work without pay (i.e., “excepted” employees) are both entitled to full back pay under the Government Employee Fair Treatment Act of 2019 (Pub. L. 116-1). This law mandates that all Federal employees affected by a lapse in appropriations receive retroactive pay “at the earliest date possible after the lapse ends, regardless of scheduled pay dates.”
Leave Balances and Accrual
During a shutdown, furloughed employees do not accrue Annual or Sick Leave. However, once the government reopens and back pay is issued, OPM guidance states that leave accrual is retroactively restored as if the furlough had not occurred. This means that leave balances will be adjusted to reflect the full period of service, including the shutdown days. Employees who were excepted and continued to work during the shutdown accrue leave normally, and their balances should reflect uninterrupted service.
Health, Life, Dental, Vision, and Long Term Care Insurance Coverage and Premiums
Federal Employees Health Benefits (FEHB), Federal Employees’ Group Life Insurance (FEGLI), Federal Employees Dental and Vision Insurance Program (FEDVIP), and Federal Long Term Care Insurance Program (FLTCIP) coverages all continue during a shutdown. Premiums are not deducted from paychecks during the furlough period, but once pay resumes, agencies will retroactively deduct the missed premiums from back pay. There is no lapse in coverage, and employees are not required to pay premiums out-of-pocket during the shutdown.
Flexible Spending Accounts (FSAs) cannot be made up and can only be contributed while in active pay status. As such, missed deductions are not recoverable and employees cannot increase future deductions to make up the gap.
Thrift Savings Plan (TSP) Contributions
TSP contributions are paused during furloughs for affected employees. Per TSP Bulletin 25-2, agencies will process TSP contributions and loan repayments when employees receive back pay and deduct missed contributions and matching from these payments. However, these contributions will receive not receive retroactive earnings.
TSP loans are not considered in default during shutdowns, but payments are paused and must be resumed once pay restarts. Any agency with a payroll system that does not deduct loan payments from back pay is encouraged to inform its employees to submit their loan payments directly to the TSP by check, money order, or direct debit. All loan repayments (whether submitted by the agency via back pay or by the participant via the channels outlined above) should be received by December 5, 2025. If loan repayments are not received, either from the participant or employing agency, the TSP will re-amortize participant loans for any payments missed due to the lapse in appropriations and notify affected participants. Participants making a loan payment by check or money order can mail them to the following address:
ThriftLine Service Center
c/o Broadridge Processing
PO Box 1600
Newark, NJ 07101-1600
For more information, please see:
Concluding Recommendations
Employees should monitor their agency’s human resources communications and check the National Finance Center or Defense Finance and Accounting Service (DFAS) portals for pay updates. OPM’s official shutdown guidance and agency-specific FAQs are also valuable resources.
For specific references, please consult the following links:
Furlough Guidance (OPM): https://www.opm.gov/policy-data-oversight/pay-leave/furlough-guidance/
Your Guide to Pay and Benefits During a Shutdown (Government Executive): https://www.govexec.com/pay-benefits/2025/09/your-guide-pay-and-benefits-during-shutdown/408288/
Government Employee Fair Treatment Act of 2019 (Congress.gov): https://www.congress.gov/bill/116th-congress/senate-bill/24
Guidance for Shutdown Furloughs (OPM): https://www.opm.gov/policy-data-oversight/pay-leave/reference-materials/guidance-for-shutdown-furloughs-sep-28-2025/
Special Instructions for Agencies Affected by a Possible Lapse in Appropriations Starting on October 1, 2025 (OPM): https://www.opm.gov/policy-data-oversight/pay-leave/reference-materials/special-instructions-for-agencies-affected-by-a-possible-lapse-in-appropriations-starting-on-10-1-2025/
Effect of Nonpay Status on Thrift Savings Plan Participation (TSP): https://www.tsp.gov/bulletins/20-2/
Bob Braunstein is a retired Federal employee who was last employed as a Senior Human Resources Consultant with the Office of the Comptroller of the Currency (OCC) at the Department of the Treasury. During his Federal career, he served in a full range of HR positions spanning recruitment, staffing, employee relations, retirement and benefits, and position classification/management disciplines. He is a retirement and benefits instructor for NITP.
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