HR-5674 and S-2966 would make employees automatically eligible for financial hardship withdrawals from their TSP accounts. Image: SeaRick1/Shutterstock.com
By: FEDweek StaffA series of bills has been offered in Congress to ease the impact on employees either furloughed without pay or continuing to work without pay. These include:
* HR-5628, to require the government to reimburse costs incurred by an employee as a direct result of a lapse in appropriations such as expenses for loans and credit cards, and any fees, fines, or interest resulting from the employee’s inability to make payments as a direct result of a loss in salary due to the lapse.
* HR-5689, to require regulators to issue guidance encouraging financial institutions to recognize that consumers and businesses affected by a shutdown may lose access to credit and face temporary hardship in making payments on debts; consider efforts to modify terms on existing loans or extend new credit to assist consumers and businesses affected by a shutdown; and take steps to prevent adverse credit information from being reported in a manner that harms consumers affected by a shutdown.
* S-2982, to temporarily suspend certain judicial and administrative proceedings against a federal employee furloughed or required to work without pay during a shutdown related to rent, mortgage, tax, fine, penalty, insurance premium, student loan repayment, or other civil obligation or liability that the worker owes or would owe, during the duration of the shutdown.
* HR-5674 and S-2966 would make employees automatically eligible for financial hardship withdrawals from their TSP accounts without having to otherwise document such a hardship if a shutdown lasts at least two weeks; waive the 10 percent early withdrawal penalty for those taking withdrawals before age 59 ½; and allow those who took such withdrawals to repay the money into their accounts, which otherwise not allowed for withdrawals.
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Financial Impact of Shutdown Starts to Hit Home; WH Threatens No Back Pay
Surge of Retirement Applications Is in the Pipeline, Says OPM
See also,
TSP Takes Step toward Upcoming In-Plan Roth Conversions
5 Steps to Protect Your Federal Job During the Shutdown
Over 30K TSP Accounts Have Crossed the Million Mark in 2025
The Best Ages for Federal Employees to Retire
