In a chilling new development, the Office of Personnel Management (OPM) has officially advised federal agencies that they can proceed with Reduction in Force (RIF) layoffs during a government shutdown. This updated guidance, as reported by FEDweek, transforms a temporary funding gap into a potential permanent termination, fundamentally altering the landscape of federal employment and placing every employee’s career on precarious ground.
This is a stark and unprecedented departure from all previous government shutdowns. Historically, furloughs were temporary measures. While they caused immense financial hardship, employees eventually returned to their jobs and received back pay. This new guidance shatters that precedent. Following a directive from the Office of Management and Budget (OMB), OPM has confirmed that the administrative work necessary to process RIFs is now considered an “excepted activity” that can continue even when the government is closed.
This directive is not happening in a vacuum. It comes at a time of extreme anxiety for the federal workforce.
- Economic Impact: The last major shutdown in 2018-2019 permanently erased $3 billion from the U.S. economy, according to the Congressional Budget Office (CBO), largely due to the financial distress of 800,000 affected federal workers.
- Plummeting Morale: The 2024 Federal Employee Viewpoint Survey (FEVS) has already revealed that the Job Security and Satisfaction Index has fallen to a 10-year low. This new policy, which weaponizes a shutdown to facilitate layoffs, will undoubtedly send those numbers plummeting further.
The message to every federal employee is unambiguous: the ground beneath your career has shifted in a fundamental and dangerous way.
Your Only Defense Is a Proactive Financial Plan
In an environment where a political dispute can now directly lead to the elimination of your job, the traditional promise of a stable federal career is over. The only reliable security you and your family have is a powerful, resilient personal financial plan that you control. This is your personal defense—a financial fortress that can withstand the chaos of a shutdown, a RIF, or any other career uncertainty.
This is where the specialized expertise of Internal Benefit Advisors becomes the most critical component of your personal security. They are dedicated to educating federal employees on the intricacies of their benefits, helping them build a financial foundation strong enough to weather any political storm.
Here’s how they empower you to take command of your future:
- “RIF-Proofing” Your Finances: They work with you to create a robust financial strategy that can withstand a sudden loss of income. This includes building an emergency fund, understanding your options for your Thrift Savings Plan (TSP), and ensuring your family is protected.
- Comprehensive Separation Analysis: In the face of a potential RIF, you need to know exactly what you are entitled to. They provide a complete analysis of your FERS/CSRS pension, FEGLI, and health benefits to ensure you understand all your options upon separation.
- Empowerment Through Education: Knowledge is your strongest defense against uncertainty. Internal Benefit Advisors provides the clear, unbiased education you need to navigate complex federal benefits and make confident, proactive decisions for your financial well-being.
The rules have changed. A shutdown is no longer just about a missed paycheck; it’s about losing your job.
Take the definitive step to build your own unshakable foundation. Contact Internal Benefit Advisors today for a confidential consultation and forge the resilient financial future your family deserves.
References
- FEDweek. “OPM Advises Agencies on Conducting RIFs During Shutdown.”
- Congressional Budget Office. (2019, January). The Effects of the Partial Shutdown Ending in January 2019.
- Best Places to Work in the Federal Government. (2024). Government-Wide Findings.
- Internal Benefit Advisors. Retrieved from https://internalbenefitadvisors.com
