How a Government Shutdown Impacts Pay, Benefits

Collage of money

When the nation slips into a government shutdown, military members are sometimes among those to feel the pinch.

How does a shutdown impact military and retiree pay and benefits or payments from the Department of Veterans Affairs?

Related: For First Time in Recent History, a US Military Service Is Working Without Pay

Although each shutdown situation is slightly different, guidance issued by the Defense Department and VA tends to be similar during each instance in which the Defense Department is impacted.

During the Jan. 2018 government shutdown the following guidance was issued.

Troop Pay

Although active duty troops and Guard and Reservists on active duty orders are expected to show-up for work during a shutdown, they do not get paid unless Congress passes a separate piece of legislation to do so.

Guard and Reserve drill days scheduled for during the shutdown were to be canceled, while those at drill when the shutdown started were likely to be sent home. Guardsmen and Reservists were instructed to check with their units for more information.

Retiree Pay and SBP Payments

Military retirees were to still receive their regular pension checks in the event of a shutdown in Jan. 2018, as were those receiving a Survivor's Benefit Plan (SBP) payment.

That's because those funds were paid from a different account that was not impacted by the annual funding bill Congress had yet to pass.

Troops Killed in Action

During the Jan. 2018 shutdown, newly bereaved family members were not to receive the Pentagon's $100,000 death gratuity during a shutdown or military-funded travel to Dover Air Force Base, Delaware, or elsewhere for the dignified transfer or military funeral or memorial.

Servicemembers Group Life Insurance (SGLI) payments, however, were not to be affected.

VA Disability Pay & GI BIll Benefits

Like retiree pay, VA disability pay and GI Bill payments were both funded through different legislation than was at risk on the Hill during the Jan. 2018 shutdown. For that reason, those checks were not to be affected.

However, during the 2013 shutdown, VA officials warned that if the closure extended beyond several weeks, disability checks were unlikely to go out to more than 5.1 million veterans.

Military Moves and Travel

Military families about to make a permanent change of station (PCS) move or troops preparing for temporary travel (TDY) had their travel on hold until after the Jan. 2018 shutdown.

Those who already had departed on military move orders were to complete their move, according to the guidance. Those in the midst of TDY travel were to return to their duty station, the guidance said.

Medical Care on Base

While military hospitals and on base dental clinics were scheduled to stay open for emergencies, inpatient care and acute care, all other types of care -- including elective procedures and primary-care appointments -- was to be canceled until the shutdown was lifted.

Families were instructed to contact their clinic or hospital to find out more about their scheduled care.

Medical Care off Base

The shut down did not impact off base medical care provided through Tricare, the guidance noted.

On-Base Child Care

On-base military child care centers were to stay open on a case-by-case basis, depending on whether they are seen as "essential." Users were asked to contact their specific Child Development Center (CDC) for details.

On-Base Schools

Department of Defense Education Activity (DoDEA) schools were to stay open during a shutdown. However, all extracurricular activities, such as sporting events, were to be canceled, the guidance said.

On-base schools that are operated by local school districts were not affected by a shutdown.

Commissaries, Exchanges and MWR

In Jan. 2018 Military exchanges were to remain open during a shutdown thanks to the way they are funded.

Stateside commissaries, however, were to close by three days after the shutdown started, officials said, while those outside the U.S. and in some rural locations were to remain open since they are considered "essential." Those included two stores in Guam, a store in Puerto Rico, and commissaries at Marine Corps Mountain Warfare Training Center Bridgeport and Fort Irwin in California; Coast Guard Station Kodiak and Fort Greely in Alaska; and Dugway Proving Ground, Utah.

MWR activities were to temporarily shutter on a case-by-case basis due to how those services are funded.

Keep Up With Military Pay Updates

Military pay benefits are constantly changing. Make sure you're up-to-date with everything you've earned. Join Military.com for free to receive updates on all of your military benefits, delivered straight to your inbox.

-- Amy Bushatz can be reached at amy.bushatz@military.com.

Show Full Article