Do military retirees get paid during a shutdown?

Do Military Retirees Get Paid During a Shutdown?

As the federal government repeatedly finds itself in shutdown territory, a common concern echoes among military retirees: will I still receive my pay during a shutdown? The answer, in most cases, is a resounding yes, but there are exceptions to consider.

Background

For those unfamiliar, federal government shutdowns occur when Congress fails to pass or sign a budget, prompting a lapse in government operations and funding. Almost 800,000 civilian employees are immediately impacted, with 1 out of 4 government departments and agencies fully closing.

Military Retirement Payments During a Shutdown

Luckily, military retiree pay is considered essential government function, as it is not optional for the government. Payroll processing for all uniformed services, including active duty, Reserve, and National Guard personnel, is not affected by shutdowns.

To further clarify, here is what is typically exempt from government shutdowns:

• Active duty pay: Continue to receive paychecks uninterrupted.
• Reserve and National Guard pay: Will not be impacted either, as they are covered by the same authority that covers active duty pay.
• Retirement and pension payments: Most importantly for our focus, these are considered essential functions, so retirees will receive their usual payments.
• Veterans’ compensation benefits: These are not budgeted through the annual appropriation process and are thus shielded from shutdown effects.

Important Caveat

While routine retiree pay and related benefits are secure during shutdowns, some individual-specific circumstances might differ. Potential exceptions include:

• Special circumstances, like military retirees who work part-time for the federal government in non-essential jobs (e.g., at museums or national parks): They may be affected or face delayed pay due to their non-essential, civilian roles.
• Veterans’ service disability benefits: While disability compensation itself is not directly affected, related administrative delays or processing issues could arise due to furloughed claims processing staff.
• Long-term care or specialized programs: Some veteran- targeted programs, such as home care or mental health services, might operate at reduced capacity during shutdowns, which may result in delayed access to benefits.

Impact of a Shutdown on Other Related Services

In addition to potential exceptions, some non-essential, supporting services linked to military retirement may face temporary disruptions or suspensions, including:

• Defense Finance and Accounting Service (DFAS) operations: While retirement pay should still be processed, the agency’s non-essential staff might be furloughed, which may delay some paperwork, records, or certifications.
• Veterans Affairs (VA) claims processing: While critical patient care services will continue uninterrupted, non-emergency administrative tasks and other related services might be reduced or delayed.
• Mortgage or VA-guaranteed home loans: While the loans themselves remain unaffected, the government’s ability to ensure mortgage insurance or guarantor might be hindered due to the shutdown, which could lead to complications in the event of property transactions.

Conclusion

To summarize, in general, military retirees should not experience a reduction in pay or benefits due to a government shutdown. However, as important exceptions can and do arise, it’s essential for retirees to closely monitor their specific situation. With this knowledge, we hope to alleviate some worry for our nation’s finest: your service will be rewarded, regardless of shutdowns.

Remember:

• Military retirement pay (routine and pension-related payments) is considered essential functions, unaffected by government shutdowns.
• Potential exceptions to this rule might relate to special circumstances, disabled veterans’ benefits, long-term care programs, and related services.
• A government shutdown may affect related supporting services, like administration or claims processing, albeit minimally.

Please continue to stay informed, prepared, and vigilant – with our military retirees at their usual best, they shall prevail!