NASCOE Legislative News Flash – Update on Update on Furloughed Employee Benefits Legislation

As we approach the 30-day mark in the Government Shutdown, federal employees are feeling more repercussions and stress due in large part to the absence of a full pay check and the overall uncertainty of when the government will reopen.  It is our desire to communicate with NASCOE’s members to the maximum extent to provide accurate and timely information.

In this report, we hope to provide information pertaining to available benefits, proposed legislation, as well as recently passed legislation regarding our pay and benefits during this shutdown. We want to express our appreciation to Clint Bain, Southeast Area Legislative Chairperson assigned benefits legislation, for compiling the following information in this report.

2018 W-2s are available on the Employee Personal Page
NFC is in the process of mailing out tax year 2018 W-2s. The mailing process will continue through Thursday, January 31, 2019.  Of the approximately 705,000
W-2s to be issued, all but about 9,000 are expected to be available on the Employee Personal Page (EPP).  If an employee’s W-2 is not there, they are among the 9,000 in suspense and will require manual intervention by NFC.  As they are released from suspense, they will be mailed and updated to EPP and the reporting center.


Presidential Signed Legislation

2019 Government Employee Fair Treatment Act
The President signed into law on Wednesday, January 16, 2019 the Act that will allow all federal employees who have been furloughed to receive back pay once the government has been funded. It also specifies that federal payroll providers begin to process checks as soon as the lapse in appropriations ends, regardless of the next scheduled pay date.  While furloughed government employees do not accrue leave, Congress and the President have authorized a retroactive accrual of leave in the Jan. 16 back pay bill.

Sponsor: Sen. Cardin, Benjamin L. [D-MD] (Introduced 01/03/2019)
Latest Action: 01/16/2019 Signed by President.  
Roll Call Votes: There has been 1 roll call vote




Proposed Legislation

Financial Relief for Feds Act (H.R. 545)
This piece of legislation if passed will allow Federal Employees to withdraw money from their TSP account without penalty.  The Financial Relief for Feds Act allows furloughed federal employees, “essential” federal employees working without pay to make a withdrawal from their retirement savings accounts without the 10% penalty that normally applies. That includes not only Thrift Savings Plans (TSP) but also accounts such as IRAs. Individuals will be able to make multiple withdrawals from their retirement accounts without penalty and will be allowed to recontribute the money to their accounts once the government reopens.

Sponsor: Rep. Olson, Pete [R-TX-22] (Introduced 01/15/2019)
Committees: House – Ways and Means; Oversight and Reform
Latest Action: House – 01/15/2019 Referred to the Committee on Ways and Means, and in addition to the Committee on Oversight and Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

To provide loans to employees of the Federal Government and the government of the District of Columbia affected by a Government shutdown, and for other purposes (H.R. 657) introduced by Representative T.J. Cox, D- California
This piece of legislation willgive Federal employees access to a $6,000 loan which would be withdrawn from their pay check once government has reopened.

Sponsor: Rep. Cox, TJ [D-CA-21] (Introduced 01/17/2019) Cosponsors: (84)
Committees: House – Oversight and Reform
Latest Action: House – 01/17/2019 Referred to the House Committee on Oversight and Reform.

The End Government Shutdown Act (S. 104) introduced by Senator Rob Portman, R-OH
This piece of legislation will allow government to run on previous spending levels, an automatic continuing resolution, in the event Congress fails to approve a spending package. 

Sponsor:Sen. Portman, Rob [R-OH] (Introduced 01/10/2019) Cosponsors: (10)
Committees: Senate – Appropriations
Latest Action: Senate – 01/10/2019 Read twice and referred to the Committee on Appropriations.

The Government Shutdown Prevention Act (S. 147) introduced by Senator Rand Paul, R-KY
Would prevent government shutdowns by keeping the government open but instituting a one-percent cut to then-current funding levels for any agency, program, and activity that Congress failed to fund by the start of the fiscal year (October 1). Funding would be reduced by another one percent every 90 days thereafter that an agreement is still not enacted.

Sponsor:Sen. Paul, Rand [R-KY] (Introduced 01/16/2019) Cosponsors: (2)
Committees: Senate – Appropriations
Latest Action:Senate – 01/16/2019 Read twice and referred to the Committee on Appropriations.

The Federal Employee Civil Relief Act
Would prohibit landlords and debt collectors from taking action against federal employees unable to pay their bills because of the shutdown.

Sponsor: Sen. Schatz, Brian [D-HI] (Introduced 01/09/2019)
Committees: Senate – Finance
Latest Action: Senate – 01/09/2019 Read twice and referred to the Committee on Finance.

NASCOE fully understands the concerns of FSA employees and we will continue to do our best to serve our membership by providing factual and timely communications as developments in this situation occur.