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POTENTIAL GOVERNMENT SHUTDOWN: IMPACTS ON PAY

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In case of a potential government shutdown, the Department of Defense has no legal authority to pay any personnel - military or civilian - for the days during which the government is shut down.  The shutdown will not affect payments to retirees and annuitants as those funds come from a retirement trust fund.  Below is the effect the potential government shutdown will have on active duty military, civilian personnel, retirees and annuitants, and DoD contractors.

Military: Active, Reserve, and National Guard members will be paid on time for pay entitlements earned September 30th or earlier.  Military members cannot be paid for duty performed after the expiration of the current CRA on September 30th.  Once a CRA or an appropriations act is signed into law, normal disbursement of military pay will resume. 

Civilians: All civilian employees will be paid on their normal pay date for all entitlements earned through September 30.  After September 30, the following rules apply:

  • Excepted employees who perform duty during the shutdown will be entitled to retroactive payments once another CRA or an appropriations act is signed into law.
  • For furloughed employees, Congress will have to provide authority for retroactive payments to be made.
  • Employees whose organizations have available resources such as Defense Working Capital Fund, will be paid as normal until such time as cash reserves are exhausted. 
  • Non Appropriate Fund (NAF) civilian employees:  Your pay will be processed and paid as normal.

Retirees/Annuitants: Military retirees and annuitants are not paid from Continuing Resolution Act (CRA) appropriations, so those payments will continue as scheduled.

DoD Contractors: As a revolving fund organization, so long as the DFAS Working Capital Fund has adequate funds for normal operations, DFAS will continue to make contract and vendor payments.  

GOVERNMENT SHUTDOWN: IMPACTS ON PAY

READ OUR FREQUENTLY ASKED QUESTIONS

During the government shutdown, the Department of Defense will have no legal authority to pay any personnel - military or civilian - for the days during which the government is shut down.  The shutdown will not affect payments to retirees and annuitants as those funds come from a retirement trust fund.  Below is the effect the government shutdown will have on active duty military, civilian personnel, retirees and annuitants, and DoD contractors.

ATTENTION:

Military members:  Final guidance on making military pay under the Pay Our Military Act was received from the DoD late yesterday.  Normal pay and allowances have been processed and you will receive them in you mid-month pay.  The amount reflected in your mid-month statement will be deposited.

Civilian employees:  DFAS has also processed civilian payroll.  All employees will receive normal pay through September 30.  The amount of pay for Oct 1-5 will be dependent on whether an employee is exempt, excepted from furlough or furloughed.  Pay will be received on your normal pay dates beginning Oct 11.

Military: Reserve, and National Guard members will be paid on time for pay entitlements earned September 30 or earlier.  These members cannot be paid for duty performed after the expiration of the current CRA on September 30.  Once another CRA or an appropriations act is signed into law, normal disbursement of military pay will resume. 

Civilians: SEE NOTE AT TOP OF PAGE

Retirees: Military retirees and annuitants are not paid from Continuing Resolution Act (CRA) appropriations, so those payments will continue as scheduled.

DoD Contractors: As a revolving fund organization, so long as the Department's Working Capital Fund has adequate funds for normal operations, DFAS will continue to make contract and vendor payments.

Updated October 8, 2013