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DCMA Administrative Record for FY 2013 Furlough Appeals

TABLE OF CONTENTS

Part 2

Location

(tab)

Agency 

File Part

Date Document Source

17 Part 2 of 5 3/8/2013 OPM Guidance on Administrative Furloughs (with 

supplements)

Agency

18 3/5/2013 USD Additional Guidance for Handling Budget 

Uncertainty for FY 2013

Agency

19 3/1/2013 DSD letters to various state Governors Agency

20 3/1/2013 MOU between AFGE Council C170 and DCMA Agency/ 

AFGE

21 3/1/2013 EO President, Issuance of Sequestration Order 

Pursuant to Section 215A of the BB and Emergency 

Deficit Control Act of 1985 as Amended

Agency

22 3/1/2013 Sequestration Order for FY 2013 Agency

23 3/1/2013 DOD Press Briefing on Sequestration from the 

Pentagon

Agency
Guidance for 

Administrative Furloughs

June 10, 2013 a New Day for Federal Service

080 DCMA Administrative Record for FY 2013 Furlough Appeals
Overview 

The U.S. Office of Personnel Management (OPM) has prepared human resources guidance for 

agencies and employees on administrative furloughs. An administrative furlough is a planned 

event by an agency which is designed to absorb reductions necessitated by downsizing, reduced 

funding, lack of work, or other budget situation other than a lapse in appropriations. 

Table of Contents 

A. General ...................................................................................................................................... 1

B. Covered Employees .................................................................................................................. 2

C. Working During Furlough ........................................................................................................ 5

D. Pay ............................................................................................................................................. 6

E. Leave and Other Time Off ...................................................................................................... 12

F. Holidays .................................................................................................................................. 15

G. Benefits ................................................................................................................................... 15

H. Employee Assistance .............................................................................................................. 18

I. Service Credit for Various Purposes ....................................................................................... 19

J. Federal Employees on Military Duty ...................................................................................... 19

K. Benefits under the Federal Employees’ Compensation Act (FECA) ...................................... 20

L. Scheduling Furlough Time Off ............................................................................................... 21

M. Procedures—22 Workdays or Less ......................................................................................... 22

N. Procedures—More than 22 Workdays (Extended Furlough) .................................................. 28

O. Labor Management Relations Implications ............................................................................ 33

P. Travel ...................................................................................................................................... 36

Q. Foreign Area Allowances, Differentials, and Danger Pay ...................................................... 38

R. VERA/VSIP ............................................................................................................................ 40

S. Federal Employees Health Benefits Program ......................................................................... 40

T. Federal Employees’ Group Life Insurance Program ............................................................... 44

Sample Notices 

Furlough Proposal Due to Planned Reduction In Agency Expenditures (5 CFR Part 752) .......... 47

Notice of Decision to Furlough (5 CFR Part 752) ........................................................................ 49

Notice of Career SES Furlough (5 CFR Part 359) ........................................................................ 52

Furlough Due to Planned Reduction in Agency Expenditures (5 CFR Part 351) ......................... 55

Table of Changes 

Table of Recent Changes to Guidance for Administrative Furloughs .......................................... 58

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NOTE: Certain Qs and As in this document, “Guidance for Administrative Furloughs,” assume 

coverage under provisions of law or regulation specified in the given Q and A. To the extent that 

a particular employee is not covered by those specified provisions, the guidance in the Q and A 

may not be applicable.

A. General 

1. What is a furlough? 

A. A furlough is the placing of an employee in a temporary nonduty, nonpay status because 

of lack of work or funds, or other nondisciplinary reasons. 

2. What is an administrative furlough and why are administrative furloughs necessary?

A. An administrative furlough is a planned event by an agency which is designed to absorb 

reductions necessitated by downsizing, reduced funding, lack of work, or any other budget 

situation other than a lapse in appropriations. This type of furlough is typically a nonemergency furlough in that the agency has sufficient time to reduce spending and give 

adequate notice to employees of its specific furlough plan and how many furlough days will 

be required. An example of when such a furlough may be necessary is when, as a result of 

Congressional budget decisions, an agency is required to absorb additional reductions over 

the course of a fiscal year. 

3. What human resources guidance applies for furloughs that are caused by a lapse of 

appropriations (i.e., shutdown furloughs)? 

A. In the event that funds are not available through an appropriations law or continuing 

resolution, a “shutdown” furlough occurs. A shutdown furlough is necessary when an agency 

no longer has the necessary funds to operate and must shut down those activities which are 

not excepted pursuant to the Antideficiency Act. For additional information on shutdown 

furloughs, see OPM’s Guidance for Shutdown Furloughs at http://www.opm.gov/policy-dataoversight/pay-leave/furlough-guidance/#url=Shutdown-Furlough. 

4. What does it mean to be in furlough status? 

 

A. Furlough status means that, because of a furlough (as described in Question A.1.), the 

employee is placed in a nonpay, nonduty status for designated hours within the employee’s 

tour of duty established for leave usage purposes (i.e., the tour of duty for which absences 

require the charging of leave). Furlough hours are a type of leave of absence without pay. 

Employees are in furlough status only during designated furlough hours, not for entire 

calendar days. Furlough status may be designated as the employee’s full daily tour of duty or 

part of that tour of duty. For example, an employee may be furloughed for half of an 8-hour 

daily tour of duty, or 4 hours. An employee who is in furlough status during a daily tour of 

duty may be ordered to perform work outside that tour, and such work would be subject to 

normal compensation requirements. (See also Questions D.4. and D.5.) 

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5. Does placement in furlough status cause a full-time employee to be converted to parttime or a part-time employee to be converted to a reduced part-time work schedule? 

A. No. Placement in furlough status or any other kind of temporary nonpay, nonduty status 

does not affect the nature of an employee’s official work schedule as full-time or part-time. 

For a full-time employee who is furloughed during a 40-hour basic workweek, the employee 

continues to have a full-time 40-hour basic workweek. For a part-time employee who is 

furloughed, the part-time tour of duty established for leave usage purposes also remains the 

same. 

B. Covered Employees 

1. Which employees may be affected by an administrative furlough? 

A. Agencies are responsible for identifying the employees affected by administrative 

furloughs based on budget conditions, funding sources, mission priorities (including the need 

to perform emergency work involving the safety of human life or protection of property), and 

other mission-related factors. See also Procedures and Labor Management Relations 

Implications. 

2. How will employees be notified whether they are affected by an administrative 

furlough? 

A. Each agency will determine the method and timing of notifying employees of whether they 

are affected by an administrative furlough. See also Procedures and Labor Management 

Relations Implications. 

3. Are political appointees (such as Executive Schedule officials, noncareer members of 

the Senior Executive Service (SES), and Schedule C appointees) subject to 

administrative furlough? 

A. All political appointees who are covered by the leave system in 5 U.S.C. chapter 63, or an 

equivalent formal leave system, are subject to administrative furlough. For example, 

Schedule C appointees in the General Schedule or Senior Level (SL) pay systems and 

noncareer SES members are all covered by the leave system and subject to administrative 

furlough. However, regular procedural requirements may not apply. (See Q&As M.5., M.6., 

N.12., and N.13.) Individuals appointed by the President, with or without Senate 

confirmation, who are not covered by the leave system in 5 U.S.C. chapter 63, or an 

equivalent formal leave system, are not subject to furlough. (See Q&A B.4. for more 

information on why certain Presidential appointees are not subject to furlough.) 

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4. Why are leave-exempt Presidential appointees not subject to furlough? 

A. Individuals appointed by the President, with or without Senate confirmation, who are not 

covered by the leave system in 5 U.S.C. chapter 63, or an equivalent formal leave system, are 

not subject to furlough. An exemption from the chapter 63 leave system may be based on 

5 U.S.C. 6301(2)(x) or (xi). (See also OPM regulations at 5 CFR 630.211.) These leaveexempt Presidential appointees are not subject to furloughs because they are considered to be 

entitled to the pay of their offices solely by virtue of their status as an officer, rather than by 

virtue of the hours they work. 

A leave-exempt Presidential appointee cannot be placed on nonduty status. Thus, the 

appointee’s pay cannot be reduced based on placement in nonduty status, including via the 

mechanism of a furlough. As explained above, a leave-exempt Presidential appointee is 

entitled to the established pay of the position based on the holding of the office, not on the 

hours of duty. 

Presidential appointees who are covered by the chapter 63 leave system are not considered to 

be entitled to pay based solely on their status as officers; thus, these individuals are subject to 

furlough in the same manner as other Federal employees. (See 5 U.S.C. 5508.) Any 

Presidential appointee who is a member of the Senior Executive Service (SES) or in a senior 

level (SL/ST) position paid under 5 U.S.C. 5376 may not be exempted from the chapter 63 

leave system. All SES and SL/ST employees are subject to furlough on the same basis as 

other employees. (The furlough of career SES members is subject to the procedures in 

5 CFR 359, subpart H, and the furlough of SL/ST employees is subject to the procedures in 

5 CFR 752, subpart D, or 5 CFR part 351, as applicable.) 

While employees may be subject to furlough, the applicable due process procedures depend 

on the type of employee in question. For example, all Presidential appointees are excluded 

from the adverse action procedures in 5 U.S.C. chapter 75, based on 5 U.S.C. 7511(b)(1) and 

(3). In addition, Presidential appointees subject to Senate confirmation are excluded from 

reduction in force procedures, based on 5 CFR 351.202(b). If a Presidential appointee is 

subject to furlough but not subject to adverse action or reduction in force procedures, the 

agency should follow any administrative procedures required by any applicable internal 

personnel policies. 

Note: A former career Senior Executive Service (SES) appointee who receives a Presidential 

appointment that would normally convey an exemption from the leave system may be eligible 

to elect to retain SES leave benefits under 5 U.S.C. 3392(c). If SES leave benefits are so 

elected, such a Presidential appointee would be subject to furlough under 5 CFR part 359, 

subpart H. 

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5. Are furloughed detailees returned to their home agencies following any furlough? 

A. Detailed employees remain officially assigned to their permanent positions during the 

detail. During a furlough, each agency will determine the status of their employees on detail 

within the agency or to another agency. 

6. Do all detailees follow the furlough policies and procedures of their home agencies if the 

detail continues? 

A. Yes, because all detailees remain officially employed by the agencies from which they are 

detailed. If furlough is required, the home agency will determine if and how the detailed 

employee is affected. The home agency and the receiving agency should discuss how a 

detailee will be affected if a furlough is not required in the home agency but is required in the 

receiving agency. 

7. I have a detailee from another agency working in my unit. Who can I contact to discuss 

any flexibility the home agency may be willing to exercise regarding scheduling of any 

required furlough days? 

A. Generally, the point of contact would be the human resources office of the employee’s 

home agency. If the point of contact within that office is unknown, OPM suggests contacting 

the employee’s supervisor at the home agency to determine who to contact about potential 

flexibility in scheduling required furlough days. 

8. Can an employee request to be furloughed as a way of reducing the hours of furlough 

required of other employees? 

A. An employee cannot request to be furloughed. A furlough is an agency adverse action 

that places an employee in a temporary nonduty, nonpay status because of lack of work or 

funds, or other nondisciplinary reasons. 

An employee may voluntarily request leave without pay which also places an employee in a 

nonpay, nonduty status. However, approval of leave without pay does not provide any due 

process rights (unlike a furlough action), and approval is subject to your organization’s 

policies, procedures, and any collective bargaining agreement provisions. An employee 

should discuss with their human resources office any personnel implications of additional 

time in a nonpay, nonduty status. An agency should not pressure employees to request leave 

without pay. Such requests should be made on a purely voluntary basis. 

While the granting of leave without pay to a significant number of employees may produce 

savings that could potentially affect the extent to which an agency needs to use furloughs to 

achieve the savings required by sequestration, employees should be aware that there is no 

guarantee that volunteering for unpaid leave will have a significant enough effect on an 

agency’s operations to affect the agency’s need to furlough employees. Moreover, there are 

many other factors that may potentially affect an agency’s budget, and therefore affect the 

extent to which an agency needs to use furloughs to achieve cost savings. 

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Note 1: Leave-exempt Presidential appointees may not take leave without pay, as explained 

in Question B.4. 

Note 2: This matter, like others involving the impact and implementation of furloughs, may 

be subject to collective bargaining for union-represented employees. 

C. Working During Furlough 

1. May an employee volunteer to do his or her job on a nonpay basis during any hours or 

days designated as furlough time off? 

A. No. Unless otherwise authorized by law, an agency may not accept the voluntary services 

of an employee. (See 31 U.S.C. 1342.) 

2. What happens to employees scheduled for training during an administrative furlough? 

A. Since agencies typically have sufficient time to give employees adequate notice and to

plan for administrative furloughs, furlough time off may be scheduled so as not to conflict 

with scheduled training. In the event that scheduled training occurs during a furlough period, 

affected employees must be placed in a furlough status and ordered not to attend the 

scheduled training. 

3. May employees take other jobs during a period designated as furlough time off?

A. While on furlough time off, an individual remains an employee of the Federal 

Government. Therefore, executive branch-wide standards of ethical conduct and rules 

regarding outside employment continue to apply when an individual is furloughed 

(specifically, the executive branch-wide standards of ethical conduct at 5 CFR part 2635). In 

addition, there are specific statutes that prohibit certain outside activities, and agency-specific 

supplemental rules that require prior approval of, and sometimes prohibit, outside 

employment. Therefore, before engaging in outside employment, an employee should review 

these regulations and then consult his or her agency ethics official to learn if there are any 

agency-specific supplemental rules governing the employee. (Also, see the Office of 

Government Ethics’ March 13, 2013, legal advisory entitled, “A reminder that ethics laws 

and regulations continue to apply to Federal Government employees during furlough 

periods.”) 

4. May an employee work during a period designated as furlough time off to earn credit 

hours under a flexible work schedule?

A. No. An employee may not work to earn credit hours during hours and/or days designated 

as furlough time off.

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5. May an employee work during a period designated as furlough time off to accumulate 

religious compensatory time off hours for religious observances? 

A. No. An employee may not work during a period designated as furlough time off, even to 

accrue religious compensatory time. 

6. What is the effect of an agency ordering an employee to work during scheduled 

furlough hours?

A. If an agency official orders an employee to work during scheduled furlough hours (e.g., to 

respond to an emergency), the assignment of work cancels the employee’s furlough status for 

the duration of the ordered work, and such work would be subject to normal compensation 

requirements.

D. Pay 

1. When an employee’s pay is insufficient to permit all deductions to be made because 

furlough time off occurs in the middle of a pay period and the employee receives a 

partial paycheck, what is the order of withholding precedence?

A. Agencies will follow the guidance at 

http://www.chcoc.gov/transmittals/TransmittalDetails.aspx?TransmittalID=1477 to 

 determine the order of precedence for applying deductions from the pay of its civilian 

 employees when gross pay is insufficient to cover all authorized deductions. 

2. May agencies deny or delay within-grade or step increases for General Schedule and 

Federal Wage System employees during a furlough?

A. It depends on the length of the furlough. Within-grade and step increases for General 

Schedule (GS) and Federal Wage System employees are awarded on the basis of length of 

service and individual performance. Such increases may not be denied or delayed solely 

because of lack of funds. However, extended periods of nonpay status (e.g., because of a 

furlough for lack of funds) may affect the timing of such increases. For example, a GS 

employee in steps 1, 2, or 3 of the grade who is furloughed an aggregate of more than 2 

workweeks during the waiting period would have his or her within-grade increase delayed by

at least a full pay period. (See 5 CFR 531.406(b).) 

3. What issues arise with the furloughing of employees who would otherwise reach the 

biweekly cap on premium pay? 

A. Under 5 U.S.C. 5547, premium pay may not normally be paid to the extent the payment 

would cause the sum of the employee’s basic pay plus premium pay received in a biweekly 

pay period to exceed the higher of (1) the biweekly rate for level V of the Executive Schedule 

(EX-V) or (2) the biweekly rate of basic pay for GS-15, step 10 (including any applicable 

locality payment or special rate supplement). (Note: In all locality pay areas within the 

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United States, the applicable GS-15, step 10, rate is higher than the EX-V rate.) Certain 

employees regularly receive a recurring type of premium pay that causes them to reach the 

premium pay cap each biweekly pay period. For example, certain employees regularly 

receive law enforcement availability pay (LEAP), administratively uncontrollable overtime 

(AUO) pay, standby duty premium pay, or regularly scheduled firefighter overtime pay. 

The biweekly premium pay cap limits premium pay based on the aggregate sum of basic pay 

plus premium pay in a biweekly pay period. Thus, if a furlough causes basic pay to be 

reduced, it may result in an increased payment of premium pay that had been limited by the 

premium pay cap. 

If an employee is furloughed, he/she will not receive basic pay or premium pay during the 

furlough period. If the furlough is for a full pay period, then the employee will not receive 

any pay for the pay period and the biweekly premium pay cap is not an issue. 

However, there are issues if an employee who normally reaches the premium pay cap is 

furloughed for part of a pay period. The employee’s total basic pay will be reduced and, as a 

result, the uncapped amount of premium pay for the pay period will be reduced. 

(“Uncapped” refers to the amount of premium pay that would be payable if the biweekly 

premium pay cap did not apply.) If the employee was reaching the premium pay cap in a 

normal pay period and receiving less than the full amount of premium pay available under the 

given premium pay provision, the reduction of basic pay could allow otherwise blocked 

premium pay to become payable—even if the uncapped amount of premium pay is reduced. 

In fact, the employee could receive the same capped total pay while working less hours. In 

this case, a furlough would not save money and would actually reduce productivity. 

For example, consider a GS-15, step 10, criminal investigator in Washington, DC. Criminal 

investigators are entitled to LEAP equal to 25% of the investigator’s basic pay, subject to the 

biweekly premium pay cap, which can reduce or eliminate the LEAP payment. Normally, a 

GS-15, step 10, investigator would receive 0% LEAP since his/her adjusted rate of basic pay 

is already at the cap. 

 Assume the investigator is entitled to a GS-15, step 10, locality rate of $155,500 (EX-IV 

locality rate cap). The hourly rate is $74.51 and the biweekly rate is $5,960.80. Let’s say 

this investigator is furloughed for 2 workdays. The investigator’s basic pay would be 

reduced to $4,768.64 (80-16=64 hours, 64 hours x $74.51 = $4,768.64). 

 Uncapped LEAP for 80 hours of basic pay = 25% x $5,960.80 = $1,490.20 

 Uncapped LEAP for 64 hours of basic pay = 25% x $4,768.64 = $1,192.16. 

 Basic pay + uncapped LEAP = $4,768.64 + $1,192.16 = $5,960.80, which equals the 

premium pay cap. So, the investigator receives the full 25% LEAP. 

 In this example, the investigator’s hours were reduced by 16 hours out of 80 (20%), 

leaving basic pay at 80% of the normal amount. 25% LEAP x 80% of normal basic pay = 

088 DCMA Administrative Record for FY 2013 Furlough Appeals
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20% of normal basic pay for an 80-hour biweekly pay period (which would have applied 

but for the furlough). Thus, the LEAP replaced the lost basic pay exactly. 

o Uncapped LEAP decreased from $1,490.20 to $1,192.16. 

o Capped LEAP increased from $0 to $1,192.16. 

o Basic pay decreased from $5,960.80 to $4,768.64, a reduction of $1,192.16. 

o Capped LEAP increase = Basic pay decrease. 

 In this scenario, no budget savings would be realized by furloughing the investigator. 

The investigator would receive the same amount of pay while working fewer hours, 

resulting in a loss in productivity. 

An agency is not required to furlough an employee when the workings of the premium pay 

cap prevent budget savings or provide limited savings relative to the loss in productivity. As 

a general rule, an agency may selectively furlough employees, but an explanation must be 

provided to employees in the advanced written proposal notice regarding the agency’s 

justification as to why the administrative furlough is being implemented. The notice should 

contain an explanation of other employees who may not have been furloughed in that 

particular employee’s same competitive level. (See 5 CFR 752.404(b)(2).) 

For example, see the language below from Sample Notice 1—Furlough Proposal Due to 

Planned Reduction in Agency Expenditures (5 CFR Part 752): 

If other employees in your competitive level (i.e. generally, positions at the same 

grade level and classification series, the duties of which are generally interchangeable 

– see 5 CFR 351.403(a)) are not being furloughed or are being furloughed for a 

different number of days, it is because they (1) are currently in a nonpay status, (2) are 

under an Intergovernmental Personnel Act mobility assignment, (3) are on an 

assignment not otherwise causing an expenditure of funds to the agency or, (4) are in 

a position whose duties have been determined to be of crucial importance to this 

agency’s mission and responsibilities, and cannot be curtailed. [Note: These are the 

most common reasons for excluding employees from furlough. If there are other 

reasons that arise, you must include them in this listing.] 

Based on the above, in deciding which employees should be subject to an administrative 

furlough, an agency should take into account the effects of the premium pay cap and should 

address in the furlough notice the exclusion of any employees who are affected by the 

premium pay cap. 

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4. May Federal agencies require employees who are placed on administrative furlough for 

all or part of their basic workweek to work hours outside the basic workweek? 

A. Yes. An agency may assign work during hours outside the employee’s basic workweek, 

subject to any applicable agency policies or collective bargaining agreements. 

Employees are only in furlough status for designated furlough hours. Furlough status means 

the employee is placed in nonpay, nonduty status for certain hours within the employee’s tour 

of duty established for leave usage purposes (i.e., the tour of duty for which absences require 

the charging of leave). Thus, for full-time employees with a 40-hour basic workweek, 

furlough hours must be within the 40-hour basic workweek. For part-time employees, 

furlough hours must be within the employee’s part-time basic workweek based on the parttime tour of duty established for leave usage purposes. For employees on an uncommon tour 

of duty established under 5 CFR 630.210, furlough hours must be within the uncommon tour 

of duty. (See Question L.3.) 

Note: During a shutdown furlough in response to a lapse in appropriations, an agency may 

not allow an employee (unless the employee is excepted or exempt from furlough) to perform 

work outside his or her basic workweek because it would create a budgetary obligation before 

an appropriation is made, which is barred by the Antideficiency Act (31 U.S.C. 1341 et seq.). 

5. How are employees compensated when they are required to work hours outside a basic 

workweek in which they have been furloughed? 

A. Employees who are required to work hours outside of a basic workweek during which 

they have been furloughed are compensated with their rate of basic pay if overtime thresholds 

have not been met, and/or with overtime pay or compensatory time off in lieu of overtime 

pay, as appropriate, once the thresholds have been met. Normally applicable overtime rules 

apply. Most employees are subject to a 40-hour weekly overtime threshold and an 8-hour 

daily overtime threshold. Leave without pay hours (such as furlough hours) do not count as 

hours of work in applying overtime thresholds. 

As provided by 5 CFR 550.112(d)(1), an employee’s hours of work outside of his or her basic 

workweek, but occurring in the same administrative workweek as furlough hours, must be 

substituted for furlough hours in pay computations, as long as the hours of work outside the 

basic workweek do not qualify for an overtime rate on the basis of exceeding 40 hours in a 

workweek. (Note: For hours that qualify for an overtime rate on the basis of exceeding 8 

hours of work in a day, this substitution rule does not apply.) Those substituted hours are 

paid for at the rate applicable to hours in the employee’s basic workweek. After all furlough 

hours during the employee’s basic workweek are substituted for, any remaining hours of 

work are overtime hours on the basis of exceeding 40 hours in a workweek. 

Similarly, as provided by 5 CFR 550.112(d)(2), an employee’s hours of work outside of his 

or daily tour of duty, but in the same workday as furlough hours, must be substituted for such 

furlough hours in pay computations. Those hours are paid for at the rate applicable to the 

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employee’s daily tour of duty. After all furlough hours during the employee’s daily tour of 

duty are substituted for, any remaining hours of work are overtime hours on the basis of 

exceeding 8 hours in a workday (for employees subject to the 8-hour daily overtime 

threshold). 

The substitution rule in 5 CFR 550.112(d) does not change an employee’s basic workweek or 

daily tour of duty. The hours worked outside the employee’s basic workweek or daily tour of 

duty are substituted for the purpose of pay computations. Under the rule, substituted hours 

are paid at the rate “applicable to” hours in the basic workweek or daily tour of duty, even 

though the hours were worked outside those periods. This rule simply recognizes that leave 

without pay hours (such as furlough hours) do not count toward weekly and daily overtime 

thresholds. 

Examples 

For purposes of these examples, an employee with a Monday–Friday, 8-hour per day work 

schedule is required to work overtime in a workweek during which he or she also has 1 day 

(8 hours) of designated furlough time off. (As described in Question L.1., agencies have 

discretion to implement an administrative furlough to best absorb budget reductions over the 

course of the fiscal year and do not need to follow the same procedures.) 

 Example A. An employee is furloughed for 8 hours on Monday, works 8 hours per day on 

Tuesday–Friday, and is required to work 4 hours on Saturday. 

The 4 hours of work on Saturday are substituted for 4 of the furlough hours on Monday and 

paid at the rate applicable to the employee’s basic workweek (i.e., basic rate), consistent with 

5 CFR 550.112(d)(1). The employee cannot receive overtime pay, or compensatory time off 

in lieu of overtime pay, for the 4 hours of work on Saturday. 

 Example B. An employee is furloughed for 8 hours on Monday, works 8 hours per day on 

Tuesday–Friday, and is required to work 4 additional hours on Friday evening after 

completing his 8-hour daily tour of duty. 

The additional 4 hours of work on Friday evening are beyond the 8-hour daily overtime pay 

threshold and the employee is entitled to an overtime rate for those hours based on 5 U.S.C. 

5542(a). The substitution rule in 5 CFR 550.112(d)(1) bars paying an overtime rate for 

substitutable hours outside the basic workweek “on the basis of exceeding 40 hours in a 

workweek.” However, the 40-hour overtime pay threshold is not the basis for paying an 

overtime rate for the 4 additional hours of work on Friday evening. Since the 8-hour 

overtime pay threshold is being used, those 4 hours are not substituted for the Monday 

furlough hours in pay computations; thus, an overtime rate applies. If appropriate, the 

employee may receive compensatory time off in lieu of overtime pay for the 4 additional 

Friday hours under the normal rules governing compensatory time off. 

 Example C. An employee is furloughed for 8 hours on Monday and works 8 hours per day 

091 DCMA Administrative Record for FY 2013 Furlough Appeals
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on Tuesday–Friday. The employee is required to work 4 hours on Monday evening during 

hours outside of his daily tour of duty. 

For purposes of pay computations, the 4 hours of work on Monday evening are substituted 

for 4 hours of furlough time off taken during the employee’s daily tour of duty on Monday 

and paid for at the rate applicable to the employee’s daily tour of duty (i.e., basic rate), 

consistent with 5 CFR 550.112(d)(2). The employee cannot receive overtime pay, or 

compensatory time off in lieu of overtime pay, for the 4 hours worked on Monday evening 

because the hours are not overtime hours. 

Note 1: The above scenarios assume the employee’s administrative workweek and workdays 

are based on calendar days. The administrative workweek can be based on any 24-hour 

period. (See 5 CFR 610.102.) That would affect application of 5 CFR 550.112(d), which is 

based on the applicable “administrative workweek” and “workday.” 

Note 2: For employees on flexible or compressed work schedules, the “basic work 

requirement” is generally equivalent to the “basic workweek.” However, no hour within the 

basic work requirement can be an overtime hour, even if those basic work requirement hours 

exceed 8 hours of work in a day or 40 hours of work in a week. For example, if an employee 

on a flexible or compressed work schedule has a 9-hour basic work requirement on a given 

day, only hours of work outside the 9-hour basic work requirement could be overtime hours. 

In other words, while hours of work (including any paid time off but excluding hours in 

nonpay status) within the basic work requirement count as hours of work in applying the 8-

hour daily and 40-hour weekly overtime thresholds, only hours of work outside the basic 

work requirement may receive an overtime rate. Hours outside the daily or weekly basic 

work requirement are substituted, as appropriate, for furlough hours under the rules in 5 CFR 

550.112(d). For example, if an employee is placed in furlough status during a 9-hour daily 

basic work requirement and works 4 hours outside the basic work requirement on that same 

day, those 4 hours would be substituted and paid at the rate for basic work requirement hours. 

 An employee on a flexible work schedule may have the option to earn credit hours by 

working hours outside the basic work requirement. The rules governing credit hours remain 

applicable in the context of an administrative furlough. See Questions C.4., D.6., and E.1. 

for additional information on earning and using credit hours. 

6. May an employee on a flexible work schedule earn credit hours by working during a 

week or on a day when the employee is furloughed? 

A. During a week or on a day when an employee is furloughed during certain basic work 

requirement hours, the employee may earn credit hours by electing to work in excess of his or 

her basic work requirement, subject to all legal requirements and applicable agency policies 

or collective bargaining agreements. An employee may not earn credit hours by working 

during designated furlough hours within the employee’s basic work requirement. (See 

Question C.4.) Also, an employee may not use previously earned credit hours during 

furlough hours. (See Question E.1.) 

092 DCMA Administrative Record for FY 2013 Furlough Appeals
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The substitution rule in 5 CFR 550.112 may not be applied to credit hours—that is, the rule 

cannot be used to convert earned credit hours into paid hours that substitute for furlough 

hours in pay computations. 

E. Leave and Other Time Off 

1. May an employee take paid leave or other forms of paid time off (e.g., annual, sick, 

court, or military leave, leave for bone marrow or organ donor leave, credit hours 

earned, any compensatory time off earned, or time off awards) instead of taking 

administrative furlough time off? 

A. No. During an administrative furlough, an employee may not substitute paid leave or 

other forms of paid time off for any hours or days designated as furlough time off. 

2. Can agencies furlough employees who are on approved leave without pay (LWOP) 

during a time when administrative furloughs are being conducted for other employees? 

A. Agencies have discretion in determining whether to furlough employees who are in 

LWOP status, since both furloughs and LWOP are periods of nonpay status. Employees may 

already be scheduled for LWOP for a variety of reasons and for various lengths of time on 

either a continuous or discontinuous basis. An employee’s LWOP may or may not fully 

encompass the period during which administrative furloughs are being conducted for other 

employees in the same organization. For example, for one employee, a continuous 1-year 

period of leave without pay to accompany a military spouse overseas may encompass the 

entire period during which administrative furloughs are being conducted in an employee’s 

organization, while another employee’s continuous LWOP may end during that period. 

Other employees may be scheduled to take LWOP on a regular but discontinuous basis under 

the Family and Medical Leave Act. (See Question E.3.) 

Agencies are responsible for determining (1) whether employees already scheduled for 

LWOP during a period when administrative furloughs are being conducted will be subject to 

furlough and (2) the hours of furlough required of such employees. If an agency decides to 

place an employee in furlough status during hours that were originally scheduled to be 

LWOP, all applicable procedural requirements must be met, including a furlough notice. 

3. May an employee take LWOP under the Family and Medical Leave Act (FMLA) 

during a time when administrative furloughs are being conducted for other employees? 

A. Yes. An employee may take LWOP under FMLA during a time when administrative 

furloughs are being conducted for other employees in the same organization, subject to the 

conditions in 5 U.S.C. 6382. (See Question E.2.) However, if an employee is placed in 

furlough status during hours that were previously scheduled to be LWOP under FMLA, those 

furlough hours will no longer be considered to be LWOP under FMLA. Furlough hours will 

not count toward the employee’s 12-week FMLA leave entitlement. An employee may not 

later substitute paid leave for furlough hours. 

093 DCMA Administrative Record for FY 2013 Furlough Appeals
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As explained in Question E.2., agencies are responsible for determining the extent to which 

employees with scheduled LWOP (including LWOP under FMLA) are placed in furlough 

status. If employees are placed in furlough status instead of LWOP under FMLA, all 

applicable procedural requirements must be met, including a furlough notice. 

4. Does a furlough affect the accrual of annual leave and sick leave? 

A. If an employee is furloughed (i.e., placed in nonpay status) for part of a biweekly pay 

period, the employee’s leave accrual will generally not be affected for that pay period. 

However, the accumulation of nonpay status hours during a leave year can affect the accrual 

of annual leave and sick leave over a period of time. (See 5 CFR 630.208 and Notes 1 and 2 

below.) For example, when a full-time employee with an 80-hour biweekly tour of duty 

accumulates a total of 80 hours of nonpay status from the beginning of the leave year (either 

in one pay period, or over the course of several pay periods), the employee will not earn 

annual and sick leave in the pay period in which that 80-hour accumulation is reached. If the 

employee again accumulates 80 hours of nonpay status, he or she will again not earn leave in 

the pay period in which that new 80-hour total is reached. At the end of the leave year, any 

accumulation of nonpay status hours of less than 80 hours is zeroed out so that the 

accumulation of nonpay status hours for the next leave year starts at zero. 

For part-time employees, the rule blocking accrual of leave based on the accumulation of 

nonpay status hours (5 CFR 630.208) does not apply. Instead, leave accrual for part-time 

employees is prorated based on hours in a pay status in each pay period; thus, time in nonpay 

status reduces leave accrual in each pay period containing such time (5 CFR 630.303 and 5 

U.S.C. 6307). 

Also, please see OPM’s fact sheet on the Effect of Extended Leave Without Pay (LWOP) (or 

Other Nonpay Status) on Federal Benefits and Programs, which has a section entitled, 

“Accrual of annual and sick leave.” 

Note 1: The term “nonpay status” refers to period during which an employee is absent from 

his or her tour of duty established for leave usage purposes and receives no pay for such 

absence. Furlough is one type of nonpay status. 

Note 2: The term “leave year” is defined as the period beginning on the first day of the first 

full biweekly pay period in a calendar year and ends on the day immediately before the first 

day of the first full biweekly pay period in the following calendar year. (For example, for 

employees on the standard biweekly payroll cycle, the 2013 leave year is January 13, 2013, 

through January 11, 2014.) (See fact sheet at http://www.opm.gov/policy-data-oversight/payleave/leave-administration/fact-sheets/leave-year-beginning-and-ending-dates/.) 

Note 3: For full-time employees with an uncommon tour of duty under 5 CFR 630.210, the 

accumulation limit used in applying 5 CFR 630.208 is the number of hours in the uncommon 

tour of duty for a biweekly pay period. 

094 DCMA Administrative Record for FY 2013 Furlough Appeals
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5. May an employee who takes furlough hours off be permitted to substitute annual leave 

retroactively for furlough hours taken, if the agency finds sufficient funds to cover the 

hours the employee was in a furlough status? 

A. Generally no. However, if an employee has proactively taken more than the required 

number of furlough hours under an agency’s phased furlough plan prior to the agency 

cancellation of the furlough, the employee may retroactively cancel excess furlough hours 

and substitute annual leave for those hours, as determined by the agency. (See B-219211, 

December 9, 1985.) For example, an agency’s furlough plan requires each employee to take 

176 furlough hours (22 days) between April and September. The agency requires the 

employee to take 8 furlough hours off each week in the month of April (for a total of 32 

furlough hours (4 days)) and provides the employee with an option of when to take his/her 

remaining furlough hours off at a time of the employee’s choosing, but no later than the end 

of September. If the employee takes all 176 furlough hours off (22 days) in April and the 

agency cancels the furlough on May 1 due to improved financial conditions, the employee 

would have taken 144 furlough hours more than what was needed (176 hours (22 days) - 32 

hours (4 days)). Upon the determination to cancel the furlough, the agency must decide how 

to handle the 144 furlough hours (18 furlough days) off the employee has taken ahead of 

schedule in accordance with internal agency procedures and any applicable collective 

bargaining agreement. Any annual leave substituted for furlough hours would be calculated 

at the same compensation rate the employee would have received had he or she used annual 

leave at that time. 

Note: This matter may be subject to collective bargaining for union-represented employees 

to the extent an agency has discretion to retroactively substitute annual leave for furlough 

hours taken. 

6. May an employee who takes furlough hours off be granted excused absence to 

substitute retroactively for the furlough hours taken, if the agency finds sufficient funds 

to cover the hours the employee was in a furlough status? 

A. Agencies have the discretionary authority to determine the situations in which an 

employee may be excused from duty without loss of pay or charge to leave in accordance 

with internal agency policy and any collective bargaining agreement. However, agencies are 

not required to provide excused absence unless specifically required by statute or Presidential 

directive. For example, if an employee has proactively taken more than the required number 

of furlough hours under an agency’s phased furlough plan prior to the agency cancellation of 

the furlough, the agency is not required to provide excused absence for the excess furlough 

hours, as determined by the agency. (See B-219211, December 9, 1985.) If the agency 

decides to cancel certain furlough hours and substitute excused absence, the excused absence 

should be provided to all similarly situated employees. Any retroactive substitution of 

excused absence would be calculated at the same compensation rate the employee would 

have received had he or she used annual leave at that time. 

Note: This matter, like others involving the impact and implementation of furloughs, may be 

095 DCMA Administrative Record for FY 2013 Furlough Appeals
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subject to collective bargaining for union-represented employees. 

F. Holidays 

1. May employees be administratively furloughed on a holiday? 

A. Employees may be furloughed for periods of time that include holidays. However, an 

agency should select the furlough days off on programmatic and administrative grounds that 

are unrelated to the fact that the period includes a holiday. For example, an agency may not 

properly furlough employees for a 3-day period, the middle of which is a holiday, for the sole 

purpose of saving 3 days’ pay while losing only 2 days of work. (See Comptroller General 

opinion B-224619, August 17, 1987.) Neither would it be proper to furlough an employee 

solely on a holiday. (See Comptroller General opinion B-222836, May 8, 1986.) 

2. If employees have a designated administrative furlough day off on the last workday 

before a holiday or the first workday after a holiday (but not on both days), will they be 

paid for the holiday? 

A. Yes. The general rule is that an employee is entitled to pay for a holiday so long as he or 

she is in a pay status on either the workday preceding a holiday or the workday following a 

holiday. The employee is paid for the holiday based on the presumption that, but for the 

holiday, the employee would have worked. (Note: A holiday should not be the first or last 

day of the period covered by a furlough.) 

3. If employees have a designated administrative furlough day off on the last workday 

before a holiday and the first workday after a holiday, will they be paid for the holiday? 

A. No. If a furlough includes both the last workday before the holiday and the first workday 

after the holiday, the employee is not entitled to pay for the holiday because there is no longer 

a presumption that, but for the holiday, the employee would have worked on that day. (See 

Comptroller General opinion B-224619, August 17, 1987.) Agencies that allow employees to 

choose their furlough days off should explain that the employee will not be paid for the 

holiday if the employee chooses to take a furlough day off both before and after the holiday. 

G. Benefits 

1. How does an administrative furlough impact the Federal Employees Health Benefits 

Program? 

A. Please see Section S (Federal Employees Health Benefits Program).

096 DCMA Administrative Record for FY 2013 Furlough Appeals
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2. Will an employee’s Federal Flexible Spending Account Program (FSAFEDS) be 

impacted during an administrative furlough? 

A. The employee’s FSAFEDS coverage continues, and allotments made by the employee 

continue if the employee’s salary in each pay period is sufficient to cover the deduction(s). If 

the employee’s salary is insufficient to cover his or her allotment(s), then incurred eligible 

health care expenses will not be reimbursed until the allotments are successfully restarted (in 

which case the remaining allotments would be recalculated over the remaining pay periods to 

match the employee’s annual election amount). Incurred eligible dependent care expenses 

may be reimbursed up to whatever balance is in the employee’s dependent care account, as 

long as the expenses incurred allow the employee (or employee’s spouse if married) to work, 

look for work or attend school full-time. Once dependent care allotments are successfully 

restarted, remaining allotments would be recalculated over the remaining pay periods to 

match the employee’s annual election amount. 

3. How does an administrative furlough impact the Federal Employees’ Group Life 

Insurance (FEGLI) Program? 

A. Please see Section T (Federal Employees’ Group Life Insurance Program). 

4. Will an employee continue to be covered under the Federal Dental and Vision 

Insurance Program (FEDVIP) during an administrative furlough? 

A. Yes. Just as with scheduled LWOP, if BENEFEDS is unable to take the necessary 

premium deduction from an employee’s pay, BENEFEDS collects premium up to twice the 

biweekly amount from the next full pay period to make up for the missed premium 

deduction. If the furlough continues for more than two consecutive pay periods, BENEFEDS 

will mail a direct bill to the employee. The enrollee should pay premiums directly billed to 

him/her on a timely basis to ensure continuation of coverage. 

5. Will an employee continue to be covered under the Federal Long Term Care Insurance 

Program (FLTCIP) during an administrative furlough? 

A. Yes, eligible claims will continue to be paid. Coverage will terminate if premiums are not 

paid. If the contractor does not receive premium for two or fewer pay periods, they will 

adjust future premium deductions, increasing by no more than $50 per pay period to recover 

the missed premiums. Three consecutive pay periods of no premium will result in the 

contractor billing the participant directly. 

The employee also has the option to change to direct billing or to payment via electronic 

funds transfer (EFT). If premiums are not collected or a final bill is not paid within a 30 day 

grace period, FLTCP will send a termination letter. The employee has 35 days from the date 

of the letter to pay the premium; otherwise the employee will be disenrolled retroactively to 

the last pay period in which premium was paid. 

097 DCMA Administrative Record for FY 2013 Furlough Appeals
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6. How does a furlough affect retirement annuity benefits? 

A. Generally, furloughs will not affect an annuity benefit under the Civil Service Retirement 

System (CSRS) or the Federal Employees’ Retirement System (FERS). 

The amount of a CSRS or FERS annuity paid by OPM is based primarily on the amount of 

creditable service an employee performs and the employee’s high-3 average salary. Both 

CSRS and FERS allow service credit for up to 6 months of nonpay status in any calendar 

year. If a furlough period does not cause an employee to be in a nonpay status for more than 

6 months in a calendar year, the furlough period will be included as creditable service in 

determining the employee’s total creditable service used in the annuity computation. If the 

total amount of time an employee spends in a nonpay status in a calendar year exceeds 

6 months, the amount of nonpay status in excess of 6 months in the calendar year will not be 

creditable for retirement purposes. 

The high-3 average salary used to compute CSRS and FERS annuities is the largest annual 

rate resulting from averaging an employee’s rates of basic pay in effect over any period of 

3 consecutive years of creditable civilian service, with each rate weighted by the length of 

time it was in effect. If a period of nonpay status (such as a furlough) that is creditable for 

retirement occurs during the 3-year period used to compute the high-3 average salary, the loss 

of actual pay during that nonpay status period generally would have no effect on the high-3 

computation. The basic pay rate in effect during that nonpay status period would be used in 

the high-3 average salary calculation. For example, if an employee whose annual rate of 

basic pay is $85,000 is placed in a furlough status for two weeks and that 2-week period falls 

in the employee’s average salary period, that 2-week furlough period will be credited in the 

high-3 average salary calculation using the $85,000 annual rate of basic pay that was in effect 

during the furlough period. In this example, the loss of actual pay (or earnings) during that 

period is not material in the high-3 average salary calculation. 

Basic pay for retirement includes locality pay and certain types of additional pay, such as law 

enforcement availability pay (LEAP), administratively uncontrollable overtime (AUO) pay, 

standby duty pay, firefighter pay (annualized salary), and market pay for physicians. These 

types of additional pay are included in the basic pay used to calculate the high-3 average 

salary during periods of creditable nonpay status as long as the authorization for the payments 

remains in effect. 

Other additional types of basic pay, however, including night shift differential and 

environmental differential for wage grade employees, and certain overtime pay for customs 

officers are included in the average salary computation only when an employee has received 

that type of pay. 

098 DCMA Administrative Record for FY 2013 Furlough Appeals
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H. Employee Assistance 

1. Are employees entitled to unemployment compensation while on furlough? 

A. It is possible that furloughed employees may become eligible for unemployment 

compensation. The various State unemployment compensation requirements differ. Some 

States require a 1-week waiting period before an individual qualifies for payments. In 

general, the law of the State in which an employee’s last official duty station in Federal 

civilian service was located will be the State law that determines eligibility for 

unemployment insurance benefits. Agencies or employees should submit questions to the 

appropriate State (or the District of Columbia, Puerto Rico, or the Virgin Islands) office. The 

Department of Labor (DOL) website provides links to individual State offices at 

http://www.servicelocator.org/OWSLinks.asp.

For additional information on Unemployment Compensation for Federal Employees (UCFE), 

see DOL’s UCFE webpage at http://workforcesecurity.doleta.gov/unemploy/unemcomp.asp, 

fact sheet at http://www.dol.gov/sequestration/ucfe.pdf, and frequently asked questions at 

http://www.dol.gov/sequestration/ucfe-faqs.pdf.

2. What resources are available if a Federal employee needs financial assistance during a 

furlough period? 

A. Some agency employee assistance programs (EAPs) include financial consultation 

services. In addition, employees may want to contact their financial institution or credit 

union or learn about their options through the Thrift Savings Plan (http://www.tsp.gov). The 

Federal Retirement Thrift Investment Board, which administers TSP, has posted guidance 

regarding the effect of nonpay status on TSP accounts at www.tsp.gov/PDF/formspubs/oc95-

4.pdf, and specific guidance regarding the March 1, 2013 sequester at 

https://www.tsp.gov/PDF/formspubs/oc13-7.pdf, and can be reached at 1-877-968-3778 for 

additional information. 

3. Can I take a TSP loan while I’m furloughed? What is the effect of an administrative 

furlough on Thrift Savings Plan (TSP) contributions, investments, and loans? 

A. Agencies and employees should refer to the TSP website (http://www.tsp.gov) or contact 

their agency representative for information. Specifically, the Federal Retirement Thrift 

Investment Board, which administers TSP, has posted guidance regarding the effect of 

nonpay status on TSP accounts at www.tsp.gov/PDF/formspubs/oc95-4.pdf, and specific 

guidance regarding the March 1, 2013 sequester at 

https://www.tsp.gov/PDF/formspubs/oc13-7.pdf, and can be reached at 1-877-968-3778 for 

additional information. 

099 DCMA Administrative Record for FY 2013 Furlough Appeals
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I. Service Credit for Various Purposes 

1. Is being furloughed or on leave without pay (LWOP) considered a break in service?

A. No, both mean the employee is in a nonpay, nonduty status for those days/hours. 

However, an extended furlough or extended LWOP may affect the calculation of creditable 

service for certain purposes.

2. To what extent does nonpay status affect Federal employee benefits and programs?

A. The effects of a nonpay status (which includes furlough, leave without pay, absence 

without leave, and suspension) on Federal employee benefits and programs vary based on 

current law and regulation. For additional information, see OPM’s fact sheet on the “Effect 

of Extended Leave Without Pay (or Other Nonpay Status) on Federal Benefits and Programs” 

at http://www.opm.gov/policy-data-oversight/pay-leave/leave-administration/factsheets/effect-of-extended-leave-without-pay-lwop-or-other-nonpay-status-on-federalbenefits-and-programs/. 

J. Federal Employees on Military Duty 

1. Will employees continue to receive a reservist differential payment (5 U.S.C. 5538) if 

they are affected by an administrative furlough from their Federal civilian position 

while on active duty? 

A. It depends. In computing a reservist differential, the employing agency must compare the 

employee’s projected civilian basic pay to the allocated military pay and allowances for each 

civilian pay period. If an employee is affected by a furlough from his or her Federal position 

while on active duty, the employing agency must reduce the employee’s projected civilian 

basic pay during any pay period in which furlough time off occurs. If the allocated military 

pay and allowances are greater than or equal to the projected civilian basic pay adjusted for 

furlough time off, no reservist differential is payable for that pay period. If the projected 

civilian basic pay (as reduced to account for furlough time off) is greater than the allocated 

military pay and allowances, the difference represents the unadjusted reservist differential. 

2. Will there be an impact on an employee’s General Schedule or Federal Wage System 

within-grade increases (WGI) waiting period if the employee is affected by an 

administrative furlough while in an Absent – Uniformed Service status? 

A. No. A furlough has no impact on an employee’s General Schedule or Federal Wage 

System WGI waiting period if the employee is affected by a furlough while in an Absent – 

Uniformed Service status (i.e., Nature of Action Code 473, which is used when the employee 

has restoration rights). An absence for the purpose of engaging in military service is 

creditable service in the computation of waiting periods for successive WGIs when an 

employee returns to a pay status through the exercise of a restoration right provided by law, 

Executive order, or regulation. (See 5 CFR 531.406(c)(1)(i) and 5 CFR 532.417(c)(4).) 

100 DCMA Administrative Record for FY 2013 Furlough Appeals
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K. Benefits under the Federal Employees’ Compensation Act (FECA) 

1. Are employees who are injured while on furlough or LWOP eligible to receive workers’ 

compensation?

A. No. Federal workers’ compensation is paid to employees only if they are injured while 

performing their duties. Employees on furlough or LWOP are not in a duty status for this 

purpose. A Federal employee who is receiving workers’ compensation payments under the 

FECA will continue to receive workers’ compensation payments during a furlough and will 

continue to be charged LWOP. 

2. How does an administrative furlough affect the compensation of an employee who is 

receiving FECA benefits and is under medical orders to work part-time?

A. When an employee is already out on total or partial wage loss benefits, FECA 

compensation continues at the usual rate. Claims for FECA compensation benefits submitted 

as a result of missing a partial day due to a furlough are not payable under the FECA. 

3. How does an administrative furlough impact the compensation of an employee who is 

receiving FECA benefits and is required to work a modified light duty schedule? 

A. FECA compensation benefits are not payable for work days lost as a result of 

administrative furlough. 

4. How does a furlough affect Continuation of Pay (COP)?

A. If an employee sustains a traumatic injury and is receiving COP before furlough days 

have been scheduled, COP should continue. However, if an employee sustains a traumatic 

injury and has already been scheduled for one or more furlough days, then there would be no 

COP entitlement for any day that the employee was not scheduled to work due to an 

administrative furlough. 

5. Are schedule awards or medical benefits affected by an administrative furlough?

A. No. Schedule award and medical benefits continue regardless.

Note to Section K: Any additional questions regarding Federal workers’ compensation benefits 

should be directed to the Division of Federal Employees’ Compensation, Office of Workers’ 

Compensation Programs, U.S. Department of Labor. See http://www.dol.gov/owcp/dfec. 

101 DCMA Administrative Record for FY 2013 Furlough Appeals
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L. Scheduling Furlough Time Off 

1. How should agencies schedule administrative furlough time off? Must all agencies 

follow the same procedures for furloughing employees? 

 

A. An administrative furlough will impact each agency differently depending on the extent of 

the agency’s budget reduction. Agencies have discretion to implement such a furlough to 

best absorb budget reductions over the course of the fiscal year and do not need to follow the 

same procedures. For example, an agency may furlough employees for 1 day a pay period for 

a finite period of time, designate a number of furlough hours, shut down the entire agency for 

a defined number of days, designate specific dates as furlough days off, or allow employees 

to select their own furlough time off, etc.

2. How should agencies schedule administrative furlough time off for employees on 

flexible or compressed work schedules under an alternative work schedule (AWS) 

program? 

 A. Because the definition of a workday will vary based on the type of work schedule and/or 

appointment, it is best for an agency to develop a policy that provides equity and consistency, 

subject to all legal requirements and applicable agency policies or collective bargaining 

agreements. For ease of administration and equity, agencies may schedule furloughs for all 

employees (both alternative work schedule and regular tours of duty) in terms of hours. For 

example, in the event that all full-time employees are furloughed for 40 hours, for some 

employees the actual number of furlough days could be more or less than 5 days, depending 

on their work schedules. 

Many employees who are on flexible work schedules normally have a great deal of flexibility 

in the starting and stopping times within their basic work schedule. When furloughing 

employees with a flexible work schedule, agencies should identify specific hours during 

which the employee is in furlough status—e.g., 8:00 am–4:00 pm. Thus, if an employee is 

called into work (e.g., due to an emergency), it will be clear as to whether the hours of work 

occur during or outside scheduled furlough hours. Any work ordered during scheduled 

furlough hours cancels the furlough for those hours, and such work would be subject to 

normal compensation requirements. (See Question C.6. See also Questions D.4., D.5., and 

D.6 dealing with employees working outside basic workweek hours during a day or week in 

which they are placed in administrative furlough status.) 

3. How should agencies schedule administrative furlough time off for employees who do 

not work a standard work schedule (e.g., part-time or uncommon tour of duty)? 

A. Agencies must enact furloughs in a manner that reduces operation risks and minimizes 

impacts on agency core mission in service of the American people, but should strive to 

impact employees in an equitable manner regardless of work schedule. Furloughs of parttime or uncommon tour of duty employees must comply with the procedures of 5 CFR part 

752 or part 351, as applicable, if the employees are otherwise covered. 

102 DCMA Administrative Record for FY 2013 Furlough Appeals
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In determining furloughs for part-time employees, agencies should consider whether or not to 

prorate furlough hours requirements based on the number of scheduled part-time work hours 

relative to a full-time work schedule of 80 hours in a biweekly pay period to achieve the same 

percentage pay reduction for both full-time and part-time employees. For example, a parttime work schedule of 64 hours per biweekly pay period would equate to 64/80 of a full-time 

work schedule, or 80 percent. This percent could then be multiplied by the number of hours 

that a full-time employee is furloughed to derive the appropriate number of furlough hours 

for the part-time employee. Thus, if a full-time employee were required to be furloughed for 

40 hours, a part-time employee with a 64-hour biweekly tour could be furloughed for 32 

hours (40 x .80 = 32). 

In the case of employees with an uncommon tour of duty, such as firefighters and 

paramedics, agencies should consider the impact that a furlough has on regular pay (in 

percentage terms), rather than the impact on hours (in percentage terms). An uncommon tour 

of duty is a tour of duty in excess of 80 hours in a biweekly pay period that is established for 

the purpose of charging leave. Thus, it includes overtime hours for which an employee 

receives regular overtime pay or standby duty premium pay. (See definition of “uncommon 

tour of duty” in 5 CFR 630.201 and 630.210.) Generally, for employees on an uncommon 

tour of duty, furlough hours will reduce regular pay by a greater percentage than the 

percentage reduction in hours. In connection with the furlough of employees with an 

uncommon tour of duty, agencies should consider whether or not the number of furlough 

hours should be set in a manner that achieves the same percentage pay reduction experienced 

by full-time employees with an 80-hour biweekly tour of duty who are covered by the same 

furlough policy. 

4. How should agencies schedule administrative furlough time off for employees who work 

on a seasonal or intermittent basis?

A. Whether either group is called for work during an administrative furlough is discretionary 

with agencies. Seasonal employees are recalled to duty at identified periods of the year in 

accordance with pre-established conditions. Intermittent employees are non-full-time 

employees without a regularly scheduled tour of duty. 

M. Procedures—22 Workdays or Less 

1. May an agency schedule administrative furlough days consecutively and 

discontinuously (e.g., one workday per week for 15 weeks)? 

A. Yes. Nothing in law or regulation prohibits discontinuous furloughs, and they have been 

upheld by the Merit Systems Protection Board on appeal. Moreover, discontinuous furloughs 

can be advantageous to both employees and the agency by distributing the furlough days over 

time, thereby minimizing the financial impact on employees as well as lessening disruption 

of agency services to the public. 

103 DCMA Administrative Record for FY 2013 Furlough Appeals
23 

In AFGE, Local 32 and OPM, 22 FLRA 307 (1986), the Federal Labor Relations Authority 

held that a proposal giving the furloughed employee the right to determine whether his/her 

furlough was to be continuous or discontinuous is a negotiable 5 U.S.C. 7106(b)(3) 

“appropriate arrangement.” 

For ease of administration and equity, agencies may also schedule furloughs for all 

employees (both alternative work schedule and regular tours of duty) in terms of hours. For 

example, all full-time employees would be furloughed for 40 hours, even though for some 

employees the actual number of furlough days could be more or less than 5 days. 

2. How is an administrative furlough documented? 

 

A. Agencies must prepare an SF-50, “Notification of Personnel Action,” for each employee 

subject to furlough (or a List Form of Notice may be prepared for a group of employees who 

are to be furloughed on the same day or days each pay period). Chapters 15 and 16 of The 

Guide to Processing Personnel Actions provide complete guidance on documenting a 

furlough. 

3. If a discontinuous administrative furlough extends for more than 30 calendar days, is it 

a furlough covered by adverse action procedures in 5 CFR part 752, or is it covered by 

the reduction in force (RIF) procedures of 5 CFR part 351? 

A. Based on the definition of “day” as “calendar day” (5 CFR 210.102 and 752.402), OPM 

has determined that 22 workdays equate to 30 calendar days for adverse action purposes for 

employees. Thus, a discontinuous furlough of 22 workdays or less would be covered by 

adverse action procedures, and one of more than 22 workdays would be covered by the RIF 

procedures of 5 CFR part 351. (If a holiday is included in a furlough of 22 consecutive

workdays, the furlough might equate to more than 30 calendar days. For example, the month 

of November has two holidays: Veterans Day and Thanksgiving Day. Therefore, the number 

of calendar days will be extended beyond 30 by two days.) 

4. What procedural rights would apply for an administrative furlough of 30 calendar days 

or less for employees covered under 5 CFR part 752? 

A. For a short furlough of a covered employee, the law (5 U.S.C. 7513) gives a covered 

employee the following rights: 

 At least 30 calendar days advance written notice by the agency stating the specific reasons 

for the proposed action. (Typically, the reasons for the action would involve a lack of 

work or funds.) The 30 calendar day period begins upon an employee’s receipt of the 

written notice. Therefore, agencies should plan accordingly to allow time for mailing the 

notice when hand-delivery is not possible. (See Sample Notice 1 for proposal to furlough 

and Sample Notice 2 for decision to furlough.) 

 At least seven calendar days for the employee to answer orally and in writing to the 

104 DCMA Administrative Record for FY 2013 Furlough Appeals
24 

proposal notice and to furnish documentary evidence in support of his or her answer. (A 

summary of any oral answer must be made and maintained by the agency.) 

 The right of the employee to be represented by an attorney or other representative. 

 A written decision by the agency with the specific reasons for its action at the earliest 

time practicable. 

 The right to appeal the agency’s action to the Merit Systems Protection Board. 

In addition, OPM’s regulations (5 CFR 752.404) require that the agency inform the employee 

of the right to review the material it relied on to support the reasons for its action. The 

agency must designate an oral reply official who can either make or recommend a decision, 

and must issue its decision at or before the effective date of the action. The regulations 

(5 CFR 752.405) also provide that where applicable, the affected employee may elect to 

grieve under a negotiated grievance procedure (NGP) or appeal to the Merit Systems 

Protection Board, but not both. 

Note: Under 5 CFR 752.404(b)(2), if the agency is furloughing some, but not all, employees 

in a competitive level, the notice of proposal must state the basis for selecting the particular 

employee as well as the reasons for the furlough. Agencies who anticipate furloughing some, 

but not all employees, should ensure the accuracy of established competitive levels in order 

to meet their obligations under this regulation. In general, the term competitive level refers to 

positions at the same grade level and classification series, the duties of which are 

interchangeable (see 5 CFR 351.403(a)). Where bargaining unit employees are concerned, 

additional procedural rights may be provided by their negotiated agreement. 

Adverse action procedures in 5 CFR part 752, subpart F, covering Senior Executive Service 

(SES) career appointees and certain SES limited term or emergency employees do not apply 

to short furloughs because those procedures provide only for removal from the civil service 

or suspension for more than 14 days based upon misconduct, neglect of duty, malfeasance or 

failure to accept a directed reassignment or to accompany a position in a transfer of function. 

 

4a. What supporting material must be made available for review by employees to support 

an administrative furlough action as required under 5 CFR 752.404? 

A. Since decisions on whether to conduct an administrative furlough and the length of any 

furlough are based on each agency’s unique circumstances, each agency would need to 

identify the appropriate documentation that supports its own particular reasons for any 

administrative furlough action. Because the reasons and methods to furlough may vary from 

agency to agency, (e.g. downsizing, reduced funding, lack of work, or any other budget 

situation) supporting documentation may also vary. 

While it is the responsibility of each agency to make an independent determination of 

supporting documentation for any administrative furlough action due to sequestration, 

potential general documentation related to sequestration could include, but is not limited to: 

105 DCMA Administrative Record for FY 2013 Furlough Appeals
25

1) Balanced Budget and Emergency Deficit Control Act of 1985 

2) Budget Control Act of 2011 - http://www.gpo.gov/fdsys/pkg/BILLS112s365enr/pdf/BILLS-112s365enr.pdf,

3) American Taxpayer Relief Act - http://www.gpo.gov/fdsys/pkg/BILLS112hr8enr/pdf/BILLS-112hr8enr.pdf, 

4) OMB Memorandum M-13-03, “Planning for Uncertainty with Respect to Fiscal Year 

2013 Budgetary Resources,” dated January 14, 2013 - 

http://www.whitehouse.gov/sites/default/files/omb/memoranda/2013/m-13-03.pdf, 

5) OMB Memorandum M-13-05, “Agency Responsibilities for Implementation of 

Potential Joint Committee Sequestration,” dated February 27, 2013 - 

http://www.whitehouse.gov/sites/default/files/omb/memoranda/2013/m-13-05.pdf, 

and

6) OMB Report to the Congress on the Joint Committee Sequestration for Fiscal Year 

2013, dated March 1, 2013 - 

http://www.whitehouse.gov/sites/default/files/omb/assets/legislative_reports/fy13omb

jcsequestrationreport.pdf

4b. What procedural rights apply to employees who are veterans covered under 5 U.S.C. 

chapter 75 and 5 CFR part 752 for an administrative furlough of 30 calendar days or 

less? 

A. For a short furlough of a covered veteran employee, the law (5 U.S.C. 7513) gives a 

covered veteran employee the same procedural rights as other covered employees as 

explained in Question M.4. Employees should consult with their agency human resources 

office to determine whether they are covered by 5 U.S.C. 7513 and what procedures may 

apply to them. 

5. What procedures are applicable to members of the Senior Executive Service affected by 

an administrative furlough of 30 calendar days or less? 

A. Under SES furlough regulations at 5 CFR part 359, subpart H, an agency need not use 

competitive procedures in selecting SES appointees to be furloughed for 30 calendar days or 

less, or for 22 workdays or less if the furlough does not cover consecutive days; however, the 

agency must provide career SES appointees (other than reemployed annuitants) a 30-day 

advance written notice of a furlough of any length. The written notice must tell the appointee 

the reason for the furlough; the expected duration of the furlough and the effective dates; the 

basis for selecting the appointee when some but not all SES appointees in a given 

organizational unit are being furloughed; the location where the appointee may inspect the 

regulations and records pertinent to the action; the reason, if the notice period is less than 30 

calendar days; and the appointee’s appeal rights to the Merit Systems Protection Board. For a 

probationer, the notice should also explain the effect (if any) on the duration of the 

probationary period. However, the full notice period may be shortened, or waived, in the 

event of unforeseeable circumstances, such as sudden emergencies requiring immediate 

curtailment of activities. This regulation does not require that appointees be afforded an 

106 DCMA Administrative Record for FY 2013 Furlough Appeals
26

opportunity to respond or that agencies issue a separate decision notice. A career appointee 

(other than a reemployed annuitant) who has been furloughed and believes 5 CFR part 359, 

subpart H, or the agency’s procedures have not been correctly applied may appeal to the 

Merit Systems Protection Board under provisions of the Board’s regulations. 

SES noncareer, limited term and limited emergency appointees and reemployed annuitants 

holding career SES appointments are not covered by 5 CFR part 359, subpart H, and may be 

furloughed under agency designated procedures, which need not include a 30-day advance 

written notice, an opportunity to respond, or a separate decision notice. 

6. What procedures and appeal rights are applicable for probationers, employees under 

temporary appointments in the competitive service, employees who are nonpreference 

eligible employees in the excepted service with less than 2 years of continuous service, 

Schedule C employees, and others not covered by 5 U.S.C. chapter 75 but also affected 

by an administrative furlough? 

A. There are no mandatory procedures; however, agencies should ensure that all 

administrative procedures required by negotiated agreements or internal personnel policies 

are followed, subject to any exceptions to those procedures that would apply in the event of 

an administrative furlough. 

6a. What if an agency initiates an administrative furlough for a probationer, but the 

individual satisfactorily completes their probationary period before furlough days are 

taken or completed?

A. Once a probationer satisfactorily completes the required probationary period and meets 

the definition of “employee” under 5 U.S.C. 7511, the employee is entitled to the same 

procedural rights as other covered employees as explained in Question M.4. 

Before any furlough days are taken after the individual has become an “employee” under 

5 U.S.C. 7511, the agency should provide: at least 30 calendar days advance written notice; 

at least 7 calendar days for the employee answer orally and in writing; the right of the 

employee to be represented by an attorney or other representative; a written decision; and the 

right of the employee to appeal the agency’s action to the Merit System Protection Board. 

See Question M.4. for additional information on these procedural rights. 

7. How do agencies implement an administrative furlough for administrative law judges? 

A. 5 U.S.C. 7521 provides that adverse action furloughs of 30 calendar days or less may be 

taken against an administrative law judge “only for good cause established and determined by 

the Merit Systems Protection Board on the record after opportunity for hearing before the 

Board.” The Merit Systems Protection Board has adopted procedures for implementing such 

an action, which are described in 5 CFR 1201.137-141. 

8. How should the decision letter for an administrative furlough be framed if the agency 

107 DCMA Administrative Record for FY 2013 Furlough Appeals
27

has not set a specific number of furlough days? 

A. While it is desirable when possible to inform the affected employee of a specific number 

of furlough days in the decision letter, the agency needs only to set out the maximum time 

that may be involved, so employees have as much information as possible. 

9. If an employee decides to challenge a discontinuous administrative furlough, from what 

point would the time for appeal to the Merit Systems Protection Board run? 

A. Employees must file an appeal within 30 days after the effective date of their first furlough 

day, or 30 days after the date of their receipt of the decision notice, whichever is later. 

10. May an agency provide an employee electronic notice of a furlough action? 

A. Agencies that issue furlough notices should consult with their respective General 

Counsels to ensure each step of the process is consistent with regulatory and legal 

requirements. If an agency determines to electronically notify affected employees of a 

furlough action, OPM recommends that the agency include each employee’s name, address, 

and/or e-mail address on both the proposal and decision notifications so that it is clear that an 

employee is receiving personal notification. Agencies should also consider including in the 

body of the electronic correspondence, the requirement that the employee provide an email 

acknowledgement of receipt. If an agency doesn’t receive a requested acknowledgement of 

receipt of an e-mail notification, it should consider delivering a paper copy of the proposal 

and/or decision notifications to the employee at his or her home address by registered mail 

with a return receipt requested. Similarly, agencies must deliver hard copy furlough notices 

to those employees without agency email access. 

Additionally, OPM recommends that agencies consider informing employees in advance of 

when and how the furlough notices will be issued and providing a contact person who can 

confirm whether or not an employee is subject to the furlough and answer questions. 

Finally, agencies with bargaining unit employees are reminded that they must provide notice 

and opportunity to bargain over negotiable procedures and appropriate arrangements to any 

unions representing their employees. 

11. What are an agency’s regulatory obligations in providing an appellant the Merit 

Systems Protection Board (MSPB) appeal information in the adverse action furlough 

decision notice? 

A. As summarized in the April 11, 2013, Federal Register 

(http://www.gpo.gov/fdsys/pkg/FR-2013-04-11/pdf/2013-08503.pdf) an agency must satisfy 

the obligation to provide a copy of the MSPB appeal form when issuing a decision notice. 

Providing this MSPB appeal hyperlink form electronically (https://e-appeal.mspb.gov/) will 

typically satisfy the requirement of ensuring that employees subject to a decision appealable 

to MSPB will have effective access to the MSPB regulations and appeal form. However, if 

108 DCMA Administrative Record for FY 2013 Furlough Appeals
28 

the employee informs the agency that he or she lacks Internet access, the agency is required to 

take steps to ensure that the employee has actual access to the MSPB’s regulations and the 

appeal form, including providing the employee with a hard copy of these documents upon the 

employee’s request. See Sample Notice 2 for sample decision notice language. 

N. Procedures—More than 22 Workdays (Extended Furlough) 

1. When is an agency required to use reduction in force (RIF) procedures to 

administratively furlough employees? 

 

A. Agencies must follow RIF procedures for an extended furlough of more than 30 

continuous calendar days, or of more than 22 discontinuous workdays (though, importantly, a 

furlough is a temporary placement in non-pay/non-duty status; it is not a permanent 

separation from service). 

2. Is there a maximum period an employee may be administratively furloughed for an 

extended period? 

A. Yes. An employee may be placed on an extended furlough only when the agency plans to 

recall the employee to his or her position within 1 year. Therefore, the furlough may not 

exceed 1 year. 

3. If an agency needs to administratively furlough employees for more than 30 calendar 

days (or more than 22 workdays), must the complete 5 CFR part 351 procedures be 

followed? 

A. Yes. The complete procedures in 5 CFR part 351 must be followed, including a 

minimum 60 days specific written notice of the furlough action. (Question 16 has additional 

information on notice requirements.) The only exception to the regular procedures involves 

assignment rights (i.e., “bump” and “retreat” rights; see question 4).

4. When does an employee who is reached for an extended furlough action during an 

administrative furlough have a right of assignment to another position? 

A. An employee reached for release from the competitive level because of an extended 

furlough has assignment rights to other positions on the same basis as an employee reached 

for release as a result of other RIF actions (e.g., separation or downgrading). 

Because of the requirement in 5 CFR 351.701(a) that assignment rights apply only to 

positions lasting at least 3 months, an employee reached for an extended continuous furlough 

does not have assignment rights to a position held by another employee who is not affected 

by the furlough unless the furlough extends for 90 or more consecutive days. Also, an 

employee reached for a discontinuous extended furlough action does not have assignment 

rights to another position. 

109 DCMA Administrative Record for FY 2013 Furlough Appeals
29

The undue interruption standard could apply to an extended furlough over 90 consecutive 

days. (As defined in 5 CFR 351.203, “undue interruption” essentially means that a higherstanding employee who is otherwise qualified for the assignment may exercise the 

assignment right only if the employee is able to perform the work of the position of the 

lower-standing employee within 90 days of the assignment.) The agency must consider 

whether undue interruption would result from both (1) the displacement of a lower-standing 

employee from the competitive level affected by the furlough, and (2) the recall of both 

employees to their official positions at the end of the furlough period. 

5. Are there any other situations in which agencies may restrict employees’ assignment 

rights in an administrative furlough situation? 

A. An agency may make a temporary exception to order of release and assignment rights to 

keep the incumbent in his or her position for 90 days or less after the commencement of the 

furlough when needed to continue an activity without undue interruption. (For additional 

reasons that a temporary exception may be used, see 5 CFR 351.608(a).) 

An agency may make a continuing exception to order of release and assignment rights to 

keep the incumbent in a position that no higher standing employee can take over within 90 

days and without undue interruption to the activity. (See 5 CFR 351.607.) 

6. Some employees within a competitive area are paid from appropriated funds. Some are 

paid from a variety of other funding sources, such as trust funds, working capital, user 

fees, etc. Are employees who are paid from these other sources exempt from an 

administrative furlough and the 5 CFR part 351 process? 

A. Regardless of the source from which an employee is paid, each employee within a 

competitive area would be subject to displacement by higher standing employees within the 

same competitive area. 

7. If a program, project, or activity (PPA) takes other actions to obviate or lessen the need 

for an extended administrative furlough, how will the employees in the PPA be affected 

by the process? 

A. Even though their positions are not subject to furlough, the employees in the PPA would 

be subject to displacement by higher standing employees in other PPAs within the 

competitive area. 

8. What action is taken if an employee refuses an offer of assignment during an 

administrative furlough? 

A. The employee is furloughed from his or her position. 

110 DCMA Administrative Record for FY 2013 Furlough Appeals
30

9. If an employee bumps or retreats to a different job as a result of an administrative 

furlough, is the employee temporarily assigned to that job? 

A. No. The employee becomes the incumbent of that job even though the furlough 

anticipates the employee’s eventual recall to his or her former job. 

10. If circumstances change and the agency is unable to recall administratively furloughed 

employees at the point specified in their extended furlough notice, what additional 

action is required? 

A. In this situation, the agency must issue those employees new notices of either an extended 

furlough or proposed RIF separation, as the situation requires. This new action must meet all 

the requirements in the 5 CFR part 351 regulations (for example, 60 days advance notice). 

11. Do these requirements also apply if an agency finds that it can recall employees before 

they have reached the administrative furlough limits specified in their notice? 

A. No. 

12. Are employees who are appointed by the President with Senate confirmation (PAS), 

Schedule C employees, and members of the Senior Executive Service (SES) covered by 

extended furlough procedures of 5 CFR part 351 during an administrative furlough? 

A. Extended furlough procedures of 5 CFR part 351 do not apply to an employee who is a 

member of the Senior Executive Service or to an employee whose appointment is required by 

Congress to be confirmed by, or made with the advice and consent of the Senate, except a 

postmaster. All Schedule C employees are covered by part 351 except those under 

appointments of 1 year or less who have less than 1 year of service. 

13. What procedures are applicable to members of the Senior Executive Service (SES) 

affected by an administrative furlough of more than 30 calendar days, or more than 22 

discontinuous workdays? 

A. Career SES members (other than reemployed annuitants) are covered by separate furlough 

procedures in 5 CFR part 359, subpart H, which provide that an agency must use competitive 

procedures in selecting SES career appointees for furloughs of more than 30 calendar days, or 

for more than 22 workdays if the furlough does not cover consecutive calendar days. SES 

regulations at 5 CFR part 359, subpart F, do not apply, but agencies may use the same 

competitive procedures they have established for SES RIF. Any competitive procedures used 

must be made known to the SES members. These career appointees are entitled to a 30-day 

advance written notice of a furlough, which must tell the appointee the reason for the 

furlough; the expected duration of the furlough and the effective dates; the basis for selecting 

the appointee when some but not all SES appointees in a given organizational unit are being 

furloughed; the location where the appointee may inspect the regulations and records 

pertinent to the action; the reason, if the notice period is less than 30 calendar days; and the 

111 DCMA Administrative Record for FY 2013 Furlough Appeals
31

appointee’s appeal rights to the Merit Systems Protection Board. For a probationer, the 

notice should also explain the effect (if any) on the duration of the probationary period. 

However, the full notice period may be shortened, or waived, in the event of unforeseeable 

circumstances, such as sudden emergencies requiring immediate curtailment of activities. 

(See, for example, http://www.opm.gov/policy-data-oversight/pay-leave/furloughguidance/#url=Shutdown-Furlough for information on shutdown furloughs.) This regulation 

does not require that appointees be afforded an opportunity to respond or that agencies issue a 

separate decision notice. A career appointee (other than a reemployed annuitant) who has 

been furloughed and believes 5 CFR part 359, subpart H, or the agency’s procedures have not 

been correctly applied may appeal to the Merit Systems Protection Board under provisions of 

the Board’s regulations. 

SES noncareer, limited term and limited emergency appointees and reemployed annuitants 

holding career SES appointments are not covered by 5 CFR part 359, subpart H, and may be 

furloughed under agency designated procedures, which need not include a 30-day advance 

written notice, an opportunity to respond, or a separate decision notice. 

14. What happens to temporary employees serving under appointments limited to 1 year or 

less in extended administrative furlough situations? 

A. An agency may not retain a temporary employee in pay status to furlough a competing 

employee in the same competitive level. Temporary employees may be either separated or 

furloughed in such situations, but they are not entitled to the protections of adverse actions or 

5 CFR part 351 procedures when this occurs. As a matter of good human resources 

management, however, the agency should try to give these employees as much advance 

written notice as possible. 

Time spent in furlough status by temporary employees counts the same as time in a pay status 

toward their appointment’s not-to-exceed date and the 2-year limit on their overall service 

specified in 5 CFR 316.401(c). 

15. How do agencies administratively furlough administrative law judges for more than 30 

calendar days (or more than 22 workdays)? 

A. Administrative law judges are subject to the procedures in 5 CFR part 351. However, 

since judges are not given performance ratings, the provisions dealing with the effect of 

performance ratings on retention standing would not apply. 

16. What notice must an agency provide an employee of an extended administrative 

furlough action? 

A. An agency must give an employee covered by 5 CFR part 351 a minimum 60-day specific 

written notice before the effective date of any action, including furlough. The statutory basis 

for the notice requirements is found in 5 U.S.C. 3502(d). The notice requirements are further 

implemented through regulations published in 5 CFR part 351, subpart H. 

112 DCMA Administrative Record for FY 2013 Furlough Appeals
32

The same notice requirements are applicable to both a continuous and a discontinuous 

furlough. 

17. What option is available if an agency is unable to provide an employee with the 

minimum required notice of an extended administrative furlough? 

A. When the action is caused by unforeseeable circumstance, an agency may request OPM to 

authorize a notice period of less than 60 days. However, the agency must still provide each 

employee with a minimum of 30 calendar days specific written notice of the action. (See 5 

U.S.C. 3502(e) and 5 CFR 351.801(b).) 

18. Section 351.806 of 5 CFR states that during the notice period when, “in an emergency 

the agency lacks work or funds for all or part of the notice period, it may place the 

employee . . . in a nonpay status without his or her consent.” If an agency is unable to 

give 60 calendar days notice in an emergency (or longer period if required by 

administrative or negotiated provisions), may an agency use 5 CFR 351.806 to place 

employees on administrative furlough before the notice period is satisfied? 

A. Yes. 

19. Is the agency required (or permitted) to register employees administratively furloughed 

under 5 CFR part 351 in the agency’s Reemployment Priority List, or is the employee 

eligible for priority consideration under placement programs such as Career Transition 

Assistance Program or the Interagency Career Transition Assistance Program? 

A. No. All of these programs are available only to employees who are separated, not to 

employees who are furloughed. 

20. During an administrative furlough, competitive service employees may appeal the 

action to the Merit Systems Protection Board (MSPB). What about excepted service 

employees? 

A. Excepted service employees, as well as competitive service employees, who are covered 

by 5 CFR part 351 may appeal or grieve as follows: An employee covered by a negotiated 

grievance procedure that does not exclude 5 CFR part 351 actions must use the negotiated 

grievance procedure. See 5 U.S.C. § 7121, et seq. Otherwise, an employee may appeal to 

MSPB. See 5 CFR 351.202, 351.901, and 1201.3(c). 

113 DCMA Administrative Record for FY 2013 Furlough Appeals
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21. What if an agency plans for and gives notice of an administrative furlough of 22 

workdays or less, but then determines that another furlough is necessary for different 

reasons? Must the agency use 5 CFR part 351 furlough procedures if it determines that 

an additional furlough is necessary when the additional furlough follows a 22 workday 

or less furlough? 

A. If an agency’s initial assessment resulted in a furlough of 22 workdays or less, OPM 

recommends that the agency complete that furlough and then issue new furlough notices 

under either 5 CFR part 752 or 5 CFR part 351, as appropriate depending on the length of the 

newly required furlough, in the event it determines that additional savings are necessary for 

different reasons. 

O. Labor Management Relations Implications 

1. When an agency is required to effect an administrative furlough, what is the agency’s 

obligation to bargain? 

A. The decisions whether to furlough employees and which activities to except from a 

furlough are management rights that are not subject to bargaining. See 5 U.S.C. 7106(a). 

However, when an agency determines that an administrative furlough is necessary, agencies 

have a duty to notify their exclusive representatives, if any, prior to initiating and 

implementing any furlough actions. Upon request, agencies must bargain over any negotiable 

impact and implementation proposals the union may submit, unless the matter of furloughs is 

already covered by a collective bargaining agreement. 

Agencies should be aware that their collective bargaining agreements may also contain 

provisions with respect to the time frame within which to provide the labor organization 

notice of a change in conditions of employment. It is advisable to check the agency’s 

individual labor agreements for applicable notice provisions, and for agencies to comply with 

those provisions. 

Agency contracts may also contain provisions regarding adverse actions and reductions in 

force (RIF) with which agencies must comply in giving notice to bargaining unit employees 

of pending furloughs. It is advisable to check the agency’s individual labor agreements for 

applicable adverse action and reduction in force notice provisions, and to comply with those 

provisions.

However, in the event that agencies are required to absorb unexpected substantial budget cuts 

during a short-term continuing resolution or because of the limited time remaining in the 

fiscal year to absorb these unexpected budget cuts, then agencies might be required to 

furlough without delay because the cuts must be absorbed during the term of the continuing 

resolution or remainder of the fiscal year and cannot be deferred until later in the year or into 

a new budget year. In this event, OPM regulation 5 CFR 752.404(d)(2) states that written 

notice of furlough to individual employees and opportunity to be heard are not required 

because of unforeseeable circumstances. Unforeseeable circumstances could include 

114 DCMA Administrative Record for FY 2013 Furlough Appeals
34

unexpected cuts by the Congress to an agency’s budget late in the fiscal year. This regulation 

does not apply to the statutory requirement that agencies provide appropriate notice to labor 

organizations of changes in conditions of employment. 

1a. Must agencies complete collective bargaining prior to issuing any furlough notices to 

bargaining unit employees? 

A. To the extent required by law, agencies must satisfy applicable collective bargaining 

obligations prior to issuing any furlough notices to bargaining unit employees. Issuance of a 

furlough notice itself has been found to constitute a change in employees’ conditions of 

employment, which means that unless the matter is already “covered by” a collective 

bargaining agreement, an agency must provide a union with advance notice of the proposed 

change (e.g. furlough notices being sent to employees) and an opportunity to bargain over any 

aspects of the change that are negotiable. 

2. May an agency effect an administrative furlough for employees in a bargaining unit 

before negotiations are completed?

A. If the parties bargain to impasse and the union does not invoke the services of the Federal 

Service Impasses Panel in a timely manner, the agency may furlough employees without 

further delay provided the agency gives the union adequate notice of its intent to implement 

its last bargaining offer on a specific date. If the union invokes the services of the Federal 

Service Impasses Panel by that date, the agency may not furlough employees unless it can 

show it is necessary to do so without further delay. 

Agencies required to absorb substantial budget cuts during a short term continuing resolution 

or because of the limited time remaining in the fiscal year to absorb those cuts might be 

required to furlough without further delay because the budget cuts must be absorbed during 

the term of the continuing resolution or the current fiscal year and cannot be deferred until 

later in the year or into a new budget year. However, in the case of cuts that can be absorbed 

over the course of the fiscal year, it would be difficult to demonstrate that the furloughs could 

not be delayed pending resolution of the bargaining impasses. If bargaining is not completed 

and the agency must furlough employees, the agency should continue to bargain and, if 

possible, implement any agreement retroactively. We caution agencies that this should be a 

last resort approach. All attempts should be made to complete the collective bargaining 

process first, if possible. 

115 DCMA Administrative Record for FY 2013 Furlough Appeals
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3. While no decision has been made to administratively furlough employees, our union has 

submitted a midterm bargaining request on furlough procedures regarding any 

possible future administrative furlough. Our collective bargaining agreement is silent 

on furlough procedures and the union is invoking its right to initiate mid-term 

bargaining on matters not covered by the agreement. Do we have an obligation to 

bargain when no decision has been made to furlough employees? 

A. Even though no decision has been made to furlough employees, it is possible you have a 

duty to bargain regarding the union initiated mid-term bargaining request, assuming the 

matter is not already covered by your collective bargaining agreement. The law requires an 

agency to bargain during the term of a collective bargaining agreement on negotiable unioninitiated proposals concerning matters that are not expressly contained in, or otherwise 

covered by, the collective bargaining agreement, unless the union has waived its right to 

bargain about the subject matter involved. With this in mind, you will have to evaluate the 

circumstances of your situation to determine whether you have a duty to bargain on furlough 

procedures. 

4. Along with a bargaining request on furloughs, our union has submitted an information 

request under 5 U.S.C. 7114 seeking information such as the agency administrative 

furlough plan and a list of employees expected to be furloughed, and whether or not the 

furloughs are planned to be continuous or discontinuous. Do we have to provide this 

information? 

A. It depends. An agency is required to provide data that is normally maintained, reasonably 

available, and necessary to perform the representational duties of a union. A union 

requesting information must establish a particularized need for the information by 

articulating, with specificity, why it needs the requested information, including the uses to 

which the union will put the information and the connection between those uses and the 

union’s representational responsibilities under the statute. The union must establish that the 

requested information is required in order for the union to adequately represent its members. 

An agency denying a request for information must assert and establish any countervailing 

anti-disclosure interests. An agency may not satisfy its burden by making conclusory or bare 

assertions; its burden extends beyond simply saying “no.” With this in mind, you will have 

to evaluate the circumstances of your situation to determine whether you should provide the 

requested information. 

5. If a bargaining unit employee decides to challenge a discontinuous administrative 

furlough, what is the timeframe for the employee to file a grievance under the 

negotiated grievance procedure (NGP)? 

A. The time limits and other procedures applicable to bargaining unit employees are spelled 

out in applicable provisions of negotiated agreements. 

116 DCMA Administrative Record for FY 2013 Furlough Appeals
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6. May a manager or supervisor have a meeting with employees in a bargaining unit to 

discuss an administrative furlough without a union representative present? 

A. The law grants a union the right to be represented at certain meetings between managers 

and one or more bargaining unit employees if the meeting concerns issues such as 

personnel policies or practices or other general conditions of employment. Under the 

law, this meeting is referred to as a “formal discussion.” With this in mind, you will have 

to evaluate the circumstances of your situation to determine whether the meeting 

constitutes a formal discussion. If you have determined the meeting is a formal 

discussion, advance notice of the meeting must be provided to the union. See 5 U.S.C. 

7114(a)(2)(A). 

P. Travel 

1. Must agencies cover travel expenses during a furlough day, if an employee’s travel 

status requires his/her stay to include that furlough day? 

A. Yes. Agencies must provide per diem or actual expenses to employees whose travel 

status requires a stay that includes a furlough day. 

2. Can an employee be engaged in official travel during furlough hours? 

A. No. By statutory definition in 5 U.S.C. 7511(a)(5), a furlough under 5 U.S.C. chapter 75 

can apply only when an employee is “without duties.” Official travel is a duty within the 

meaning of the term “duties” in 5 U.S.C. 7511(a)(5). Thus, even if the official travel does 

not qualify as compensable hours of work, the scheduling of official travel would 

automatically cancel furlough status during affected hours—just as would the scheduling of 

work. (See Question A.4. regarding when employees are in furlough status—i.e., only during 

designated hours within the employee’s tour of duty established for leave usage purposes.) 

Note: As used in Questions P.2.-P.6., “official travel” refers to actual time spent traveling on 

officially authorized Government business and does not include time spent between travel 

trips at a temporary location away from the employee’s official duty station. 

3. If official travel cancels furlough status during affected hours, how are those travel 

hours treated? 

A. For days other than holidays, official travel during previously designated furlough hours 

would be considered compensable hours of work, since those furlough hours would have 

been within the employee’s regularly scheduled administrative workweek. Any official travel 

within an employee’s regularly scheduled administrative workweek qualifies as compensable 

hours of work under 5 U.S.C. 5542(b)(2)(A). 

Under certain conditions, an employee may be legitimately scheduled to be furloughed on a 

holiday (during holiday hours within the employee’s normal tour of duty). (See Section F.) 

In the case of holidays, official travel during previously designated furlough hours would be 

117 DCMA Administrative Record for FY 2013 Furlough Appeals
37 

compensated by either holiday premium pay or holiday time off pay. If the travel time 

qualifies as work under 5 U.S.C. 5542(b)(2)(B), the employee would be entitled to holiday 

premium pay for those travel hours under 5 U.S.C. 5546(b). If the travel time does not 

qualify as work under 5 U.S.C. 5542(b)(2)(B), the employee would be entitled to holiday 

time off pay for those travel hours. 

4. Can official travel hours outside the employee’s basic workweek that are compensable 

hours of work be substituted and paid at a basic rate under the LWOP substitution 

rule? 

A. Yes. Travel time outside the basic workweek that qualifies as work (i.e., meets one of 

conditions in 5 U.S.C. 5542(b)(2)(B)) is covered by the LWOP substitution rule in 5 CFR 

550.112(d), just like any other period of work. (See Questions D.4. and D.5.) 

5. Can official travel hours outside the employee’s basic workweek for which an employee 

earns compensatory time off for travel be substituted and paid at a basic rate under the 

LWOP substitution rule? 

A. No. Hours that are credited under the compensatory time off for travel provision in 

5 U.S.C. 5550b and 5 CFR part 550, subpart N, are hours that are not otherwise compensable 

under title 5. The LWOP substitution rule in 5 CFR 550.112(d) applies to a period of 

qualifying work—that is, service that would qualify as work for the purpose of applying 

overtime thresholds and would generate compensation. 

6. Can an employee earn compensatory time off for travel for official travel time during 

furlough hours? 

A. No. As explained in Question P.2., official travel would cancel the employee’s furlough 

status. As explained in Question P.3., official travel during previously designated furlough 

hours would be compensable under the normal pay rules. Since the official travel hours 

would already be compensable, the employee could not earn compensatory time off for travel 

for those hours. (Under 5 U.S.C. 5550b, an employee may earn compensatory time off for 

travel for a period of time only if that period of time is not otherwise compensable.) 

7. Can an employee use compensatory time off for travel during furlough hours? 

A. No. No paid time off may be used during furlough hours. Under 5 U.S.C. 7511(a)(5), the 

term “furlough” is defined as a period during which an employee is without duties and pay. 

Use of compensatory time off for travel results in pay and thus is inconsistent with furlough 

status. (See Question E.1.) 

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Q. Foreign Area Allowances, Differentials, and Danger Pay 

1. Do administrative furloughs interrupt or reduce civilian Living Quarters Allowances 

(LQA) or a Post Cost of Living Allowances (COLA)? 

A. An administrative furlough doesn’t interrupt Post COLA if the nonpay status period, 

including periods outside the employee’s regular tour of duty (e.g., weekends), does not 

exceed 14 consecutive calendar days. If an employee is in furlough status that results in a 

continuous nonpay status period that exceeds 14 consecutive calendar days, then the Post 

COLA is interrupted for the duration of the furlough status. (Source: 

http://aoprals.state.gov/content.asp?content_id=231&menu_id=92, DSSR 051.2) LQA 

continues without interruption while the employee is in nonpay status not in excess of 30 

consecutive calendar days at any one time. For periods in nonpay status longer than 30 

consecutive calendar days, LQA payment shall be suspended as of the day the employee 

enters such status, and payment is not to be made for any part of such period. (Source: 

http://aoprals.state.gov/content.asp?content_id=231&menu_id=92, DSSR 051.2 and DSSR 

132.2b(2)) 

2. Do administrative furloughs interrupt Danger Pay or Post Hardship Differentials for 

civilians stationed at a those posts? Do they impact differential eligibility for TDY 

employees at such posts? 

A. Yes. Employees do not receive Danger Pay or Post Hardship Differential for any 

furlough days. (Source: http://aoprals.state.gov/content.asp?content_id=231&menu_id=92,

DSSR 052.2) 

Furlough days do not count toward differential eligibility for TDY employees. (Source: 

http://aoprals.state.gov/content.asp?content_id=231&menu_id=92, DSSR 052.2 and DSSR 

541) 

3. Do administrative furloughs interrupt Difficult-To-Staff Incentive Differentials (SND) 

for civilians stationed at a those posts? 

A. No. Length of furlough does not affect SND eligibility. This benefit is based on 

continuing presence at post. (Source: 

http://aoprals.state.gov/content.asp?content_id=231&menu_id=92, DSSR 1020) 

4. Do administrative furloughs interrupt evacuation payments/Subsistence Expense 

Allowances (SEAs) for civilians evacuated and working from safehavens? 

A. An administrative furlough doesn’t interrupt an SEA if the nonpay status period, 

including periods outside the employee’s regular tour of duty (e.g., weekends), does not 

exceed 14 consecutive calendar days. If an employee is in furlough status that results in a 

continuous nonpay status period that exceeds 14 consecutive calendar days, then the SEA is 

interrupted for the duration of the furlough status. (Source: 

119 DCMA Administrative Record for FY 2013 Furlough Appeals
39

http://aoprals.state.gov/content.asp?content_id=231&menu_id=92, DSSR 051.2) 

5. I have transferred back to Washington, DC, from a foreign post and am using the 

subsistence expense portion of the Home Service Transfer Allowance. Do 

administrative furloughs interrupt my eligibility for reimbursement? 

A. An administrative furlough doesn’t interrupt an HSTA if the nonpay status period, 

including periods outside the employee’s regular tour of duty (e.g., weekends), does not 

exceed 14 consecutive calendar days. If an employee is in furlough status that results in a 

continuous nonpay status period that exceeds 14 consecutive calendar days, then the HSTA is 

interrupted for the duration of the furlough status. (Source: 

http://aoprals.state.gov/content.asp?content_id=231&menu_id=92, DSSR 051.2) 

6. I am transferring from Washington, DC, to Pakistan. I’ve been authorized the predeparture subsistence expense portion of the Foreign Transfer Allowance. Do 

administrative furloughs interrupt my eligibility for reimbursement? 

A. An administrative furlough doesn’t interrupt an FTA if the nonpay status period, 

including periods outside the employee’s regular tour of duty (e.g., weekends), does not 

exceed 14 consecutive calendar days. If an employee is in furlough status that results in a 

continuous nonpay status period that exceeds 14 consecutive calendar days, then the FTA are 

interrupted for the duration of the furlough status. (Source: 

http://aoprals.state.gov/content.asp?content_id=231&menu_id=92, DSSR 051.2) 

7. I am stationed at a foreign post and my family is on Separate Maintenance Allowance 

(SMA) in the United States. Do administrative furloughs interrupt the SMA? 

A. An administrative furlough doesn’t interrupt an SMA if the nonpay status period, 

including periods outside the employee’s regular tour of duty (e.g., weekends), does not 

exceed 14 consecutive calendar days. If an employee is in furlough status that results in a 

continuous nonpay status period that exceeds 14 consecutive calendar days, then the SMA is 

interrupted for the duration of the furlough status. (Source: 

http://aoprals.state.gov/content.asp?content_id=231&menu_id=92, DSSR 051.2) 

120 DCMA Administrative Record for FY 2013 Furlough Appeals
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R. VERA/VSIP 

1. Can agencies offer early retirements (VERAs) or separation incentives (VSIPs) to 

furloughed employees? Can VERA/VSIP be offered during sequestration? Can 

VERA/VSIP be offered in lieu of a furlough? 

A. Both Voluntary Early Retirement Authority (VERA) and Voluntary Separation Incentive 

Payments (VSIP) are programs to incentivize voluntary separations to avoid involuntary 

personnel actions associated with an agency’s decision to restructure its workforce. Agencies 

with OPM-approved VERA and or VSIP may continue offering these options to covered 

employees during a furlough. 

VERA and VSIP result in permanent separations from the agency workforce. (Please note 

that VSIP recipients may not be reemployed by the Federal Government within 5 years unless 

they repay the VSIP to the agency that paid it.) Furloughs are associated with temporary 

issues, such as lack of work or funds, with the intention that employees would return to their 

jobs after the furlough. The agency would decide which option to take based on its situation, 

e.g., the need to permanently reduce or restructure its workforce or to save funds by 

furloughing employees. 

S. Federal Employees Health Benefits Program 

1. If an employee is furloughed, does their FEHB coverage continue or terminate? 

A. The employee’s FEHB coverage will continue if the employee’s salary is sufficient to pay 

the premiums. If pay becomes insufficient to cover premiums, an employee that has FEHB 

coverage and participates in premium conversion (paying his or her share of FEHB premiums 

on a pre-tax basis) has several options available. 

If the furlough results in pay for a regular pay period to be insufficient for the employee’s 

employing office to withhold the employee’s share of premium from that pay (after the 

agency applies all deductions in accordance with the required order of precedence, see 

Question D.1.), the employing office must notify the employee and give the employee an 

opportunity to elect to either continue or terminate FEHB coverage. If the employee does not 

respond to this notice within the time for response, the employing office will terminate the 

FEHB coverage. In some instances, an employee may cancel FEHB coverage. See 

Questions S.7., S.8., and S.9. for more information. 

2. Can an employee terminate FEHB coverage because he/she thinks it’s not affordable? 

 

A. No, the employee’s view of his/her ability to afford FEHB coverage is not a basis for 

terminating coverage. However, if the employee has insufficient pay to cover the employee 

share of the premium (as explained in Question S.1.), the employee may choose to terminate 

coverage. 

121 DCMA Administrative Record for FY 2013 Furlough Appeals
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3. How can an employee continue FEHB coverage if his or her pay is not enough to cover 

the premium? 

A. If an employee elects to continue FEHB coverage, the employee may directly pay the 

employing office to keep premiums current, or the employee may incur a debt that the 

employing office will recover when the employee’s pay becomes sufficient to cover the 

premium. 

4. What happens if FEHB coverage terminates for insufficient pay during furlough? 

A. If an employee elects to terminate FEHB coverage, or if the employee does not respond to 

the election notice, the coverage will end retroactive to the last day of the last pay period in 

which the premium was withheld from pay. The employee and any covered family members 

are entitled to a 31-day temporary extension of coverage which commences retroactively to 

the day after the coverage ended. The employee will also have the right to convert to an 

individual contract for health benefits. 

5. If an employee’s coverage terminates, can the employee re-enroll once pay returns to a 

level that covers the employee’s share of the FEHB premium? 

A. Yes. An employee may re-enroll in FEHB upon returning to sufficient pay status and 

does not have to wait for an open season to re-enroll. The employee must reenroll within 60 

days of becoming eligible as a result of renewed sufficient pay. Otherwise, the employee will 

be required to wait for an open season or a Qualifying Life Event (QLE) that allows for 

enrollment outside of open season. 

6. How will the employee’s termination affect his or her 5-year participation for purposes 

of continuing FEHB after retirement? 

A. For purposes of meeting the 5-year participation requirement, counting of the time the 

employee is covered under FEHB will stop when the employee’s enrollment terminates and 

resume upon re-enrollment provided the employee reenrolls within 60 days of becoming 

eligible as a result of renewed sufficient pay. In other words, the employee does not start a 

new 5-year participation period in this circumstance. However, the period of time in which 

the employee is not covered due to insufficient pay will be considered a period of ineligibility 

for FEHB, and will not be held against the employee for purposes of meeting the 5-year 

continuous coverage requirement. 

An employee who does not re-enroll within 60 days but postpones re-enrollment until the 

next open season must begin a new 5-year participation period for purposes of continuing 

FEHB coverage into retirement. 

122 DCMA Administrative Record for FY 2013 Furlough Appeals
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7. Can an employee who participates in premium conversion (paying his or her share of 

FEHB premiums on a pre-tax basis) just cancel FEHB coverage if the employee is 

furloughed? 

A. No. For employees participating in premium conversion (paying his or her share of 

FEHB premiums on a pre-tax basis), an administrative furlough is not a Qualifying Life 

Event (QLE) that would allow a cancellation. 

If the administrative furlough causes an employee’s pay for a pay period to become 

insufficient for the employing office to withhold his or her share of the FEHB premium for 

that pay period, the employing office must give the employee an opportunity to elect to 

continue his or her FEHB and incur a debt or to terminate enrollment. The employing office 

will terminate FEHB coverage if no response is timely received. This termination, either by 

election or by default, is not a cancellation for FEHB purposes. 

8. What options are available to an employee who does not participate in premium 

conversion (therefore, paying his or her share of FEHB premiums after taxes) and gets 

furloughed? 

A. An employee who specifically waived premium conversion (therefore, paying their share 

of FEHB premiums after taxes), and whose pay for a pay period is insufficient to cover the 

employee’s share of premium, will be offered the same choices available to an employee 

covered by Question S.7. However, unlike an employee who participates in premium 

conversion, he or she may cancel FEHB coverage at any time. He or she does not need a 

QLE. 

9. If an employee cancels his or her FEHB enrollment, will the employee forfeit rights to a 

31-day temporary extension, Temporary Continuation of Coverage and conversion to 

an individual policy, coverage while receiving workers’ compensation, continuation into 

retirement, and coverage for survivors? 

A. An employee who elects to cancel coverage should be made fully aware that if coverage 

is cancelled: 

(1) the employee and all eligible family members do not get a 31-day temporary extension of 

coverage upon cancellation, and the employee may not reenroll in FEHB until he or she has 

another QLE that permits enrollment, or the next FEHB Open Season, even upon transfer to 

another Federal agency; 

(2) if the employee separates from employment without reenrolling before separation, he or 

she will not be eligible to purchase temporary continuation of coverage (TCC) or an 

individual conversion policy; 

(3) if the employee is injured and receives benefits from the Office of Workers’ 

Compensation Programs (OWCP) during the time coverage is cancelled, the employee will 

123 DCMA Administrative Record for FY 2013 Furlough Appeals
43

not have an FEHB enrollment to continue during the period of OWCP coverage; 

(4) if the employee retires while coverage is cancelled, the employee will not have a FEHB 

enrollment to continue into retirement. Moreover, even if the employee while still employed 

reenrolls in FEHB on account of a QLE or at FEHB Open Season, the period of cancellation 

is considered a break in FEHB coverage that may preclude his or her ability to continue 

FEHB coverage into retirement; 

(5) if an employee dies while coverage is cancelled, there will be no self and family 

enrollment for survivors to continue, even if they are eligible for a survivor annuity. 

10. Can an employee make an enrollment change because the employee is under an 

administrative furlough? 

A. No. An administrative furlough is not a QLE that would permit an employee to change 

his or her FEHB plan or option. An employee who participates in premium conversion 

(paying his or her share of FEHB premiums on a pre-tax basis) may not change to a self only 

enrollment. 

Note that an employee who waived premium conversion (therefore, paying his or her share of 

FEHB premiums after taxes) may change to self only at any time. However, the employee 

should be aware that this will deprive his or her covered family members of FEHB coverage 

and the employee cannot change back to self and family until the employee has a QLE or the 

next FEHB Open Season. In the event of the employee’s death, there will be no FEHB 

enrollment for surviving family members to continue, even if they are eligible for a survivor 

annuity. 

11. Will full-time employees receive a lower, pro-rated Government share of FEHB 

premiums if their hours are reduced under an administrative furlough? 

A. No. FEHB law (title 5, U.S. Code, section 8906(b)(3)) requires the Government 

contribution toward FEHB premiums to be prorated (thus a larger employee share) for parttime career employees, i.e. employees with a documented regularly scheduled workweek of 

16-32 hours per week. An administrative furlough does not change an employee’s regular 

work schedule, e.g., from full-time to part-time. 

 

Thus, as long as a full-time employee does not change to part-time career employment, the 

employee remains entitled to a full Government contribution and the proration does not apply 

even if the number of hours per pay period is reduced during the furlough to within 16-32 

hours per week. 

124 DCMA Administrative Record for FY 2013 Furlough Appeals
44

12. Will part-time employees receive a lower prorated Government share of the FEHB 

premiums if their hours are reduced under an administrative furlough? 

A. No. The Government contribution toward the FEHB premium for an employee working 

part-time is prorated based on the employee’s regular work schedule. An employee’s 

Notification of Personnel Action (SF 50) documents the employee’s work schedule and 

number of part-time hours the employee is scheduled to work per pay period (blocks 32 and 

33). This part-time schedule should be the part-time schedule established for leave usage 

purposes (i.e., the schedule from which leave is charged for absences). A furlough action 

will place the employee in a non-duty/non-pay status during an otherwise scheduled workday, 

but it does not change the employee’s regular work schedule. Therefore, the Government’s 

prorated share of FEHB premium will not decrease. 

Note to Section S: Additional Sources of Information 

A list of QLEs for the FEHB Program may be obtained at 

http://www.opm.gov/forms/pdf_fill/sf2809.pdf.

OPM’s FEHB webpage on Leave Without Pay and Insufficient Pay Status may be found at 

http://www.opm.gov/healthcare-insurance/healthcare/reference-materials/reference/leavewithout-pay-status-and-insufficient-pay.

T. Federal Employees’ Group Life Insurance Program 

1. Will an employee continue to be covered under the Federal Employees’ Group Life 

Insurance (FEGLI) Program during an administrative furlough that results in a 

reduction of hours and pay during a pay period, if there is sufficient pay in the pay 

period to cover the employee’s share of the FEGLI premium for that pay period? 

A. If the furlough is for only part of a pay period and the pay for that pay period is sufficient 

to cover the full FEGLI premium, then the full FEGLI premium will be withheld and the 

employee will continue to be covered under FEGLI, even during the furlough period. 

2. Will an employee continue to be covered under FEGLI during an administrative 

furlough that results in no pay at all for at least one pay period and less than 12 

months?

A. The employee’s FEGLI coverage continues while in a leave without pay (LWOP) status 

due to furlough for up to 12 months, without cost to the employee or to the agency. Neither 

the employee nor the agency incurs a debt during this period of furlough. This provision does 

not apply if the employee in LWOP status is receiving workers’ compensation from OWCP. 

125 DCMA Administrative Record for FY 2013 Furlough Appeals
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3. Will an employee continue to be covered under FEGLI during an administrative 

furlough that results in no pay at all for more than 12 months? 

A. Generally, Basic and Optional insurance of an insured employee who is in LWOP status 

stops on the date the employee completes 12 months in LWOP status. Your life insurance 

coverage terminates at the end of this 12-month period, with a 31-day extension of coverage 

and right to convert to an individual policy. 

4. What happens if, due to an administrative furlough that results in a reduction of hours 

and pay during a pay period, an employee’s regular pay for a pay period, after all other 

deductions, will not be enough to cover the employee’s share of premium for all of the 

employee’s FEGLI Options? 

A. As a general matter, if an employing agency determines that an employee’s regular pay 

for a pay period, after all other deductions, will not be enough to cover the employee’s share 

of premium for all of the employee’s FEGLI Options, the employing agency must notify the 

employee. The employing office must provide the employee with a choice to either terminate 

some or all FEGLI coverage, or to make premium payments directly. 

If the employee elects to continue coverage and pay directly, the process is detailed in the 

FEGLI regulations at 5 CFR 870.405(c). See http://www.opm.gov/healthcare-insurance/lifeinsurance/reference-materials/#url=Regulations.

If the employee elects to terminate coverage, any amount available for life insurance 

withholdings must be applied first to Basic, with any remainder applied to Optional insurance 

(first to Option B, then Option A, then Option C). If the employee does not respond to the 

election notice in a timely manner, the employing agency will terminate coverage in the order 

stated above to the extent required due to insufficient pay. Terminated coverage is subject to 

a free 31-day extension of coverage and the employee has a right to convert. 

As provided for in 5 CFR 870.603, when group coverage terminates for any reason other than 

voluntary cancellation, an employee may apply to convert all or any part of his or her Basic 

and Optional insurance to an individual policy. An employee who elects to make premium 

payments directly and whose coverage is cancelled for nonpayment is not entitled to a 31-day 

extension of coverage and is not entitled to convert to an individual policy. For more 

information regarding conversion of insurance, please see 5 CFR 870.603. 

5. If an employee’s FEGLI coverage is terminated for insufficient pay during a furlough 

because the employee initially declined to elect direct premium payments, can the 

employee reinstate the FEGLI coverage when the furlough ends or pay becomes 

sufficient? 

A. Yes the employee may reinstate any FEGLI coverage terminated for insufficient pay, back 

to the original elections, upon return to sufficient pay. 

126 DCMA Administrative Record for FY 2013 Furlough Appeals
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6. Will an employee incur a debt to the agency if the agency underwithholds FEGLI 

premium as a result of insufficient pay during a furlough? 

A. Yes, the agency may consider underwithholding to be a debt. In such cases, agencies 

must follow their regular processes (including any applicable processes set forth by statute) 

regarding the collection of these debts. 

127 DCMA Administrative Record for FY 2013 Furlough Appeals
47 

Sample Notice 1 

Furlough Proposal Due to Planned Reduction In Agency Expenditures (5 CFR Part 752) 

[Note: This is the advance written notice required by 5 U.S.C. 7513, when an agency effects an 

administrative furlough in order to absorb reductions in funding over a period of time. This 

sample has been written for the scenario where an agency chooses to furlough on discontinuous 

days. Agencies who choose to furlough on a continuous-day basis should amend the sample 

accordingly.] 

This memorandum notifies you that [agency name] proposes to furlough you no earlier than 30 

days from receipt of this notice. The furlough is being proposed under the authority of 5 CFR 

part 752, subpart D [briefly explain reason for furlough, e.g., because the agency has received a 

20 percent reduction in salaries and expenses (S&E) funding and the present rate of spending 

when annualized will result in an expenditure in excess of our authorized budget]. This furlough 

is proposed to promote the efficiency of the service by avoiding a deficit of funds in FY [year]. 

If other employees in your competitive level (i.e., generally, positions at the same grade level and 

classification series, the duties of which are generally interchangeable – see 5 CFR 351.403(a)) 

are not being furloughed or are being furloughed for a different number of days, it is because they 

(1) are currently in a nonpay status, (2) are under an Intergovernmental Personnel Act mobility 

assignment, (3) are on an assignment not otherwise causing an expenditure of funds to the 

agency, or (4) are in a position whose duties have been determined to be of crucial importance to 

this agency’s mission and responsibilities, and cannot be curtailed. [Note: These are the most 

common reasons for excluding employees from furlough. If there are other reasons that arise, 

the agency must include them in this listing.] 

We plan to apply the following procedures and conditions related to the furlough: 

1. The furlough will be on discontinuous (intermittent) days, beginning [date], through 

approximately [date]. Full time employees will be furloughed no more than 22 workdays or 

176 hours. If you are a part-time employee, your furlough time off will be prorated, based on 

your work schedule. 

[Note: The agency determines the maximum number of pay periods over which 22 furlough 

days would suffice to meet agency spending levels. For example, if an agency’s spending 

limits require 5 furlough days per pay period, employees would reach the 22-day limit in 

approximately 10 weeks.] 

2. Due to the uncertain and potential fluctuating amount of funding which may be available to 

this agency, the number of hours per pay period required for the furlough may vary. 

Accordingly, if the decision is made to furlough, you will be advised in advance of each pay 

period of the number of furlough hours required to allow this agency to meet its financial 

obligations. In any case, however, you will not be furloughed for more than [number] hours 

for each pay period between [date] and [date]. 

128 DCMA Administrative Record for FY 2013 Furlough Appeals
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3. You may request a specific schedule for furlough time off subject to management approval 

based upon mission and workload considerations. 

4. Annual, sick, court, or military leave which has been approved for a day which is later 

designated as a furlough day will be recorded as a furlough and you will be placed in a 

nonpay status for the day. However, when you receive the notice of your furlough dates, you 

may request that the furlough time off be rescheduled, as provided in paragraph 3 above, if 

you wish to use leave as approved. 

At this time, we do not reasonably anticipate the need for furlough beyond 22 workdays. 

However, should additional furlough days be necessary, employees will be given another notice. 

We recognize the difficult personal financial implications of any furlough, no matter how limited 

its length. We will make every effort to keep you informed as additional information regarding 

the agency funding level becomes available. If you have questions, contact [contact name, phone 

number, and email address]. 

You will be allowed seven calendar days from receipt of this letter to respond orally and/or in 

writing, to review the supporting material, and to furnish any affidavits or other supporting 

documentary evidence in your answer. You have the right to be represented in this matter by an 

attorney or other person you may choose. If you are in active duty status, you and/or your 

representative, if an agency employee, will be allowed up to four hours of official time to review 

the supporting material, seek assistance, prepare your reply, secure affidavits and statements, 

consider appropriate courses of action, and make a response. Contact your supervisor to arrange 

for official time. The deciding official has designated representatives to hear oral replies in 

his/her behalf. To arrange for an oral reply or review the supporting materials, please contact the 

appropriate individuals listed below: 

[contact names, phone numbers, and email addresses.] 

Your written reply should be mailed to the deciding official, Mr./Ms.[ name and title],[address] 

or may be delivered to [address/room number]. 

A final written decision, including an explanation of the specific reasons for the action taken, 

will be given to you as soon as possible after the seven days allowed for your reply. 

No decision to furlough you has been made or will be made until full consideration is given to 

your reply. 

 __________ 

Proposing Official Date 

I acknowledge receipt of this notice.

 ___________ 

Employee’s signature Date 

129 DCMA Administrative Record for FY 2013 Furlough Appeals
49 

Sample Notice 2 

Notice of Decision to Furlough (5 CFR Part 752) 

By written notice of [date], you were notified of a proposal to furlough you pursuant to the 

authority in 5 CFR part 752, subpart D. 

All written and oral replies received in response to that notice have been reviewed and carefully 

considered. I have determined that all of the reasons for the proposed furlough, as stated in the 

notice of the proposal, remain valid. The procedures and conditions related to the furlough as 

proposed have been determined to be the most equitable means of implementing the furlough. 

Therefore, you will be required to be on a discontinuous furlough during the period beginning 

[date] through [date]. 

In accordance with the procedures and conditions outlined in the notice of proposal, dated [insert 

date], if you are a full-time employee, you will be furloughed for no more than [number] hours 

in each of the pay periods or parts thereof, between [date] and [date]. The maximum furlough 

time for full-time employees will be no more than 22 workdays, or 176 hours. For full-time 

employees, this maximum is based on a regular work schedule of 80 hours per pay period. If you 

are a part-time employee, the number of hours required for furlough will be prorated according to 

your specific work schedule. 

Your supervisor will inform you of the amount of furlough time off required prior to each pay 

period. To schedule your furlough time off, contact your supervisor. 

When you are on furlough, you will be in a nonpay, nonduty status. Also, during any furlough 

period, you will not be permitted to serve as an unpaid volunteer, but must remain away from 

your workplace. 

If you have completed a probationary or trial period or one year of current continuous 

employment in the competitive service under other than a temporary appointment you may 

appeal this action to the Merit Systems Protection Board (MSPB). If you are a preference 

eligible employee in an excepted service appointment you may appeal to the MSPB if you have 

completed one year of current continuous service in the same position or positions similar to the 

one you now hold. Employees in the excepted service who do not have veterans preference and 

who are not serving a probationary or trial period under an initial appointment pending 

conversion to the competitive service may appeal to the MSPB if they have completed two years 

of current continuous service in the same or similar positions in an Executive agency under other 

than a temporary appointment limited to two years or less. You have the right to be represented 

in this matter by an attorney or other person you may choose. 

If you have the right of appeal and wish to appeal this action to the MSPB, you must file the 

appeal within 30 days after the effective date of your first furlough day, or 30 days after the date 

of your receipt of this decision, whichever is later. If you do not submit an appeal within this 

timeframe, the MSPB will dismiss it as untimely filed unless a good reason for delay is shown. 

You may obtain a copy of the appeals form and a copy of the Board’s regulations from the MSPB 

130 DCMA Administrative Record for FY 2013 Furlough Appeals
50

website at http://www.mspb.gov. 

Your appeal must be filed with the MSPB regional or field office serving the area of your duty 

station when the action was taken. Based upon your duty station, the appropriate field office is 

[identify appropriate regional office]. MSPB also offers the option of electronic filing at 

https://e-appeal.mspb.gov/.

The Board will send an Acknowledgment Order and copy of your appeal to [contact information 

including the official’s mailing address, email address, telephone and fax number.] 

If you are a bargaining unit employee, you may grieve this action in accordance with the 

applicable negotiated agreement [negotiated agreement citation] or you may appeal to the MSPB 

in accordance with the procedures outlined above, but not both. Your election to proceed under 

one process will be considered made when you timely file a grievance in writing, or timely file a 

notice of appeal, whichever event occurs first. To obtain information on filing a grievance under 

the negotiated grievance procedure, contact [name of exclusive union representative]. 

[Under the Board’s October 2012 regulations, notices must also include: 

Notice of any right the employee has to file a grievance or seek corrective action under 

subchapters II and III of 5 U.S.C. chapter 12, including: 

(1) Whether the election of any applicable grievance procedure will result in 

waiver of the employee's right to file an appeal with the Board; 

(2) Whether both an appeal to the Board and a grievance may be filed on the 

same matter and, if so, the circumstances under which proceeding with one will 

preclude proceeding with the other, and specific notice that filing a grievance will 

not extend the time limit for filing an appeal with the Board; 

(3) Whether there is any right to request Board review of a final decision on a 

grievance in accordance with § 1201.155 of this part; and 

(4) The effect of any election under 5 U.S.C. 7121(g), including the effect that 

seeking corrective action under subchapters II and III of 5 U.S.C. chapter 12 will 

have on the employee’s appeal rights before the Board.] 

Notice of any right the employee has to file a complaint with the Equal Employment 

Opportunity Commission or to grieve allegations of unlawful discrimination, consistent 

with the provisions of 5 U.S.C. 7121(d) and 29 CFR 1614.301 and 1614.302.] 

We recognize the difficult financial implications of any furlough, no matter how limited its 

length. We will make every effort to keep you informed as additional information regarding the 

agency funding level becomes available. If you have questions, contact [contact name, phone 

number, and email address].

131 DCMA Administrative Record for FY 2013 Furlough Appeals
51

 _______ 

Deciding Official Date 

I acknowledge receipt of this decision. 

______________ _________ 

Employee’s signature Date 

132 DCMA Administrative Record for FY 2013 Furlough Appeals
52 

Sample Notice 3 

Notice of Career SES Furlough (5 CFR Part 359) 

This is a sample of the 30 day advance written notice of furlough required for career SES 

appointees by 5 CFR part 359, subpart H. It should be used only as an illustration in preparing 

an agency’s own notice, which must be based on specific circumstances in the agency. This 

sample communicates the agency’s decision to implement an administrative furlough on 

discontinuous days (i.e., 22 workdays or less). Agencies choosing to furlough on a continuousday basis (i.e., 30 calendar days or less) should amend the sample accordingly.

This memorandum notifies you that [agency name] intends to furlough you no earlier than 30 

calendar days from receipt of this notice. This furlough is being taken pursuant to the authority 

in 5 CFR part 359, subpart H [briefly explain the reason for furlough, e.g., “because the agency 

has received a 20 percent reduction in salaries and expenses (S&E) funding, and the present rate 

of spending, when annualized, will result in an expenditure in excess of our authorized budget”]. 

Although many actions are being taken within the agency to curtail spending, this furlough is 

being taken to avoid a deficit of funds in FY [year]. 

If other employees in your organization are not being furloughed or are being furloughed for a 

different number of days, it is because they (1) are currently in a nonpay status, (2) are under an 

Intergovernmental Personnel Act mobility assignment, (3) are on an assignment not otherwise 

causing an expenditure of funds to the agency, or (4) are in a position whose duties have been 

determined to be of crucial importance to this agency’s mission and responsibilities, and cannot 

be curtailed. [Note: These are the most common reasons for excluding employees from 

furlough. If there are other reasons that arise, the agency must include them in this listing.] 

We plan to apply the following procedures and conditions related to the furlough: 

1. The furlough will be on discontinuous [intermittent] days, beginning [date], through [date]. 

Full time employees will be furloughed no more than 22 workdays or 176 hours. If you are a 

part-time employee, your furlough time will be prorated, based on your work schedule. 

[Note: The agency determines the maximum number of pay periods over which 22 furlough days 

would suffice to meet agency spending levels. For example, if an agency’s spending limits 

require 5 furlough days per pay period, employees would reach the 22-day limit in 

approximately 10 weeks.]

2. Due to uncertain and potential fluctuating amount of funding which may be available to this 

agency, the number of hours per pay period required for the furlough may vary. Accordingly, 

you will be advised in advance of each pay period of the number of furlough hours required to 

allow this agency to meet its financial obligations. In any case, however, you will not be 

furloughed for more than [number] hours for each pay period between [date] and [date]. 

3. You may request a specific schedule for furlough time off subject to management approval 

based upon mission and workload considerations. 

133 DCMA Administrative Record for FY 2013 Furlough Appeals
53

4. Annual, sick, court, or military leave which has been approved for a day which is later 

designated as a furlough day will be recorded as a furlough and you will be placed in a nonpay 

status for the day. However, when you receive the notice of your furlough dates, you may 

request that the furlough time off be rescheduled, as provided in paragraph 3 above, if you wish 

to use leave as approved. 

When you are on furlough, you will be in a nonpay, nonduty status. Also, during the furlough, 

you will not be permitted to serve as an unpaid volunteer but must remain away from your 

workplace. At this time, we do not reasonably anticipate the need for furlough of more than 22 

workdays; however, should additional days be necessary to meet this agency’s financial 

obligations, affected appointees will be given another notice consistent with the provisions of 5 

CFR part 359 subpart H. 

Career SES appointees (except reemployed annuitants) who believe requirements of 5 CFR part 

359 subpart H or this agency’s procedures have not been correctly applied may appeal to the 

Merit Systems Protection Board (MSPB). Career SES appointees may inspect the regulations 

and records pertinent to this action at the following location [identify location and times, as 

appropriate]. 

If you wish to appeal this action to the MSPB, you must file the appeal within 30 days after the 

effective date of your first furlough day, or 30 days after the date of your receipt of this decision, 

whichever is later. If you do not submit an appeal within this timeframe, the MSPB will dismiss 

it as untimely filed unless a good reason for delay is shown. You may obtain a copy of the 

appeals form and a copy of the Board’s regulations from the MSPB website at 

http://www.mspb.gov. 

Your appeal must be filed with the MSPB regional or field office serving the area of your duty 

station when the action was taken. Based upon your duty station, the appropriate field office is 

[identify appropriate regional office]. MSPB also offers the option of electronic filing at 

https://e-appeal.mspb.gov/.

The Board will send an Acknowledgment Order and copy of your appeal to [contact information 

including the official’s mailing address, email address, telephone and fax number.] You also 

have the right to be represented in this matter by an attorney or other person you may choose. 

We recognize the difficult financial implications of any furlough, no matter how limited its 

length. We will make every effort to keep you informed as additional information regarding the 

agency funding level becomes available. If you have questions, contact [contact name, phone 

number, and email address]. 

 ______________________________ 

 Issuing Official 

134 DCMA Administrative Record for FY 2013 Furlough Appeals
54

I acknowledge receipt of this notice. 

_____________________________ __________ 

Employee’s signature Date 

[Note: For a probationary SES employee, an agency should advise that, as provided in 5 CFR 

317.503(d)(2): 1) time in a nonpay status (e.g., LWOP and furlough) while in an SES position is 

credited up to a total of 30 calendar days (or 22 workdays) toward completion of the SES 

probationary period; and 2) after 30 calendar days, the probationary period is extended by 

adding time to it equal to that served in a nonpay status.] 

135 DCMA Administrative Record for FY 2013 Furlough Appeals
55

Sample Notice 4 

Furlough Due to Planned Reduction in Agency Expenditures (5 CFR Part 351) 

More Than 22 Discontinuous Workdays 

[Note: This is a sample written notice for a furlough of more than 22 discontinuous days under 

the reduction in force procedures of 5 CFR 351 (implementing 5 U.S.C. 3502(d)) when an 

agency effects an administrative furlough to absorb funding reductions. Agencies choosing to 

furlough on a continuous basis for more than 90 calendar days may have to conduct full 

reduction in force procedures (, such as round I competition to remain in the competitive level 

and round II to determine assignment rights to another position).] 

SUBJECT: Specific Notice of Furlough under Reduction in Force Procedures 

I regret to inform you that [agency name] will furlough you for 25 discontinuous workdays 

between [date] and [date]. You will be placed in a non-duty and non-pay status on your 

designated furlough days. You will continue in your position of record on your non-furlough 

days. 

[Insert the reason for furlough, e.g., The [agency name] has received a 20 percent reduction in 

salaries and expenses funding. At the present rate of spending, this reduction will result in an 

expenditure in excess of our authorized budget. Although we have taken other cost-cutting 

measures, furlough is required to avoid a deficit of funds in FY [year]. You are included in the 

furlough because you occupy a position that is directly affected by the funding reduction.] 

This action is taken in accordance with the reduction in force (RIF) regulations in title 5, Code of 

Federal Regulations, part 351. Importantly though, while this action is taken in accordance with 

RIF regulations, a furlough is a temporary action, not a permanent separation from service. We 

have determined that assigning you to a different position for [number of days] per pay period 

would result in an undue interruption to required work. Therefore, under 5 CFR 351.607, you do 

not have a right to another position in your competitive level or within your competitive area. 

Your retention standing as of the first furlough date is as follows: 

 Competitive area: 

 Service [i.e., competitive or excepted]:

 Position title, series, and grade: 

 Competitive level: 

 Tenure and subgroup: 

 Service computation date (SCD): 

 Three most recent performance rating with years credited: 

 Adjusted SCD (SCD-RIF): 

Your furlough will be on discontinuous (intermittent) days, beginning [date] through [date]. As a 

full-time employee, you will be furloughed 25 workdays or 200 work hours. You may request a 

specific schedule for your discontinuous furlough days or switch your designated furlough day(s) 

136 DCMA Administrative Record for FY 2013 Furlough Appeals
56

within a pay period through a written request to your supervisor. We will consider all change 

requests with approvals based on position function, workload considerations, and employee 

retention standing. 

[If part-time: As a part-time employee with a work schedule of [xx] hours per pay period, 

your prorated furlough is XX work hours to be served within your designated work 

schedule.] 

Annual, sick, court, or military leave which was approved for a designated furlough day is hereby 

cancelled. However, you may request that the furlough day be rescheduled if you wish to use 

leave as approved. 

Attachment 1 has general information about leave and benefits during a furlough. Attachment 2 

has information on [State] unemployment insurance program. 

At this time, we do not reasonably anticipate the need for furlough beyond 25 workdays. 

However, should additional furlough days be necessary, you will be issued another notice. 

You may review the information related to your furlough action. Copies of retention registers, 

RIF regulations, and related records are available in the Human Resources Office. You may 

make an appointment to review this material by contacting [HRO name and contact information]. 

 

You may appeal this action to the Merit Systems Protection Board (MSPB). You may file an 

appeal within 30 calendar days after the effective date of your first furlough day. If you do not 

file an appeal within this 30-day time limit, the MSPB may dismiss it unless you can show good 

cause for the delay. A copy of the appeal form and the MSPB’s regulations are available on the 

Board’s website at www.mspb.gov. You should send your appeal to the MSPB office at 

[appropriate office address]. The Board will send an Acknowledgment Order and copy of your 

appeal to [contact information including the official’s mailing address, email address, telephone 

and fax number.] [Note: MSPB appeal rights for furloughs apply to non-bargaining unit 

employees or bargaining unit employees where the negotiated grievance procedure excludes 

furloughs from coverage.] 

[If the employee is a bargaining unit employee and furloughs are covered under the negotiated 

grievance procedure: You may grieve this action in accordance with the applicable negotiated 

agreement [negotiated agreement citation] in accordance with the procedures outlined in the 

agreement. To obtain information on filing a grievance under the negotiated grievance 

procedure, contact [name of exclusive union representative]. 

[Under the Board’s October 2012 regulations, notices must also include: 

Notice of any right the employee has to file a grievance or seek corrective action under 

subchapters II and III of 5 U.S.C. chapter 12, including: 

(1) Whether the election of any applicable grievance procedure will result in 

137 DCMA Administrative Record for FY 2013 Furlough Appeals
57

waiver of the employee's right to file an appeal with the Board; 

(2) Whether both an appeal to the Board and a grievance may be filed on the 

same matter and, if so, the circumstances under which proceeding with one will 

preclude proceeding with the other, and specific notice that filing a grievance will 

not extend the time limit for filing an appeal with the Board; 

(3) Whether there is any right to request Board review of a final decision on a 

grievance in accordance with § 1201.155 of this part; and 

(4) The effect of any election under 5 U.S.C. 7121(g), including the effect that 

seeking corrective action under subchapters II and III of 5 U.S.C. chapter 12 will 

have on the employee’s appeal rights before the Board.] 

Notice of any right the employee has to file a complaint with the Equal Employment 

Opportunity Commission or to grieve allegations of unlawful discrimination, consistent 

with the provisions of 5 U.S.C. 7121(d) and 29 CFR 1614.301 and 1614.302.]

This furlough under the RIF regulations does not reflect on your service, performance, or 

conduct. It is taken solely for the reason stated in this notice. 

We recognize the difficult personal financial implications of any furlough, no matter its length. 

We will make every effort to keep you informed as additional information regarding agency 

funding level becomes available. If you have questions, contact [contact name, phone number, 

and email address]. 

 ______________________ __________ 

 Agency Official Signature Date 

Attachments 

I acknowledge receipt of this notice. 

______________ _________ ___________________________ ______ 

Printed name Employee signature Date 

138 DCMA Administrative Record for FY 2013 Furlough Appeals
58

Table of Recent Changes to Guidance for Administrative Furloughs 

Date Question Change Description

June 10, 2013 Note New Added a note regarding the applicability of the guidance

(located before Section A)

P.2. New Effect of scheduling official travel during designated 

furlough hours

P.3. New Treatment of official travel hours during previously 

designated furlough hours

P.4. New Treatment of official travel hours outside the basic 

workweek that are compensable hours of work

P.5. New Treatment of official travel hours outside the basic 

workweek that are credited as compensatory time off for 

travel

P.6. New Inability to earn compensatory time off for travel for 

travel hours during previously designated furlough hours

P.7. New Inability to use compensatory time off during furlough 

hours

May 23, 2013 G.3. Revised Directs readers to new Section T (Federal Employees’ 

Group Life Insurance Program)

T.1. New Impact of employee receiving sufficient pay in pay 

period to cover employee’s share of premium

T.2. New Impact of employee receiving no pay for at least 1 pay 

period but less than 12 months

T.3. New Impact of employee receiving no pay for more than 12 

months

T.4. New Impact of employee’s pay in pay period being 

insufficient to cover premium for all FEGLI options

T.5. New Reinstatement of FEGLI coverage after coverage is 

terminated because of insufficient pay and employee 

declines to make direct premium payments

T.6. New Employee’s debt to agency if agency underwithholds 

FEGLI premium as a result of insufficient pay

April 25, 2013 A.4. New Explanation of what it means to be in a furlough status

A.5. New Clarification that furlough does not affect an employee’s 

status as full-time or part-time 

C.3. Revised Added a link to a relevant Office of Government Ethics 

legal advisory

C.6. New Effect of an agency ordering an employee to work 

during his or her scheduled furlough hours

E.5. New Retroactive substitution of annual leave for furlough 

hours taken in certain limited circumstances

E.6. New Retroactive substitution of excused absence for furlough 

hours taken in certain limited circumstances

139 DCMA Administrative Record for FY 2013 Furlough Appeals
59

L.2. Revised Added language about identifying specific furlough 

hours for employees on a flexible work schedule

M.4a. New Appropriate supporting documentation for an 

administrative furlough action

M.4b. New Procedural rights applicable to veterans for an 

administrative furlough of 30 calendar days or less

M.6a. New Procedural rights for a probationer who completes his or 

her probationary period before fulfilling the agency’s 

furlough time off requirement

M.11. New Obligation to provide Merit Systems Protection Board 

(MSPB) appeal information in adverse action furlough 

decision notices

N.21. Revised Clarified the previous language about the appropriate 

procedures to use if an agency determines an additional 

furlough is necessary

April 2, 2013 G.1. Revised Directs readers to new Section S (Federal Employees 

Health Benefits Program)

Section K 

Title

Revised Changed title of Section K from “Injury While on 

Furlough” to “Benefits under the Federal Employees’ 

Compensation Act (FECA)”

K.1. Revised Minor edits to guidance involving workers’ 

compensation benefits under the FECA

K.2.–K.5. New Department of Labor guidance on workers’ 

compensation benefits during an administrative furlough

Section K 

Note

New Note regarding additional information on Federal 

workers’ compensation benefits

M.2. Revised Directs readers to OPM’s SF-50 processing guidance in 

its entirety for a fuller understanding of the requirements 

S.1. New Continuation of FEHB coverage

S.2. New Ability to afford FEHB coverage

S.3. New Continuing FEHB coverage if pay is insufficient to 

cover premium

S.4. New Termination of FEHB coverage for insufficient pay

S.5. New Re-enrollment following termination of FEHB coverage

S.6. New Impact of terminating FEHB coverage on 5-year 

participation requirement for purposes of continuing 

coverage after retirement

S.7. New Cancellation of FEHB coverage for employees 

participating in premium conversion

S.8. New Options available to employees not participating in 

FEHB premium conversion

S.9. New Impact of cancelling FEHB coverage

S.10. New FEHB enrollment changes

140 DCMA Administrative Record for FY 2013 Furlough Appeals
60

S.11. New Government share of FEHB premiums

S.12. New Government share of FEHB premiums for part-time 

employees

Section S 

Note

New Note regarding additional information on FEHB 

Program

March 25, 2013 A.3. Revised Added language generally describing shutdown 

furloughs

Q.1. New Living Quarters Allowance and Post Cost of Living 

Allowance

Q.2. New Danger Pay, Post Hardship Differential, and differential 

eligibility for TDY employees

Q.3. New Difficult-To-Staff Incentive Differential

Q.4. New Subsistence Expense Allowance

Q.5. New Home Service Transfer Allowance

Q.6. New Foreign Transfer Allowance

Q.7. New Separate Maintenance Allowance

R.1. Moved VERA/VSIP guidance formerly posted as Question H.1. 

of OPM’s “Supplemental Guidance for Sequestration 

and Administrative Furloughs,” which was removed 

from the OPM website on March 25, 2013

March 8, 2013 B.1. Revised Factors used in determining coverage of furlough

B.6. Revised Treatment of detailees

B.8. New Volunteering for leave without pay

H.2. Revised Resources for Thrift Savings Plan guidance

H.3. New Resources for Thrift Savings Plan guidance

L.3. Revised Scheduling furlough time off for employees with parttime or uncommon tours of duty

M.10. New Providing electronic notice of a furlough action

March 5, 2013 B.5. New Treatment of detailees

B.6. New Treatment of detailees

B.7. New Treatment of detailees

E.2. Revised Treatment of employees on approved leave without pay

E.3. Revised Taking leave without pay under the Family and Medical 

Leave Act (FMLA)

H.1. Revised Resources for unemployment compensation guidance

O.1. Revised Collective bargaining obligations

O.1a. New Satisfying collective bargaining obligations before 

issuing furlough notices

February 27, 2013 P.1. New Travel expenses during a furlough

February 26, 2013 E.4. New Accrual of annual and sick leave

G.6. New Retirement annuity benefits

February 20, 2013 D.4. New Assigning work hours outside the basic workweek

D.5. New Compensating employees who work hours outside the basic 

workweek

141 DCMA Administrative Record for FY 2013 Furlough Appeals
61 

D.6. New Earning credit hours

142 DCMA Administrative Record for FY 2013 Furlough Appeals
United StateS 

Office Of PerSOnnel ManageMent

Employee Services 

Pay and Leave

1900 E Street, NW 

Washington, DC 20415

 ES/PL/PS 2013-01

143 DCMA Administrative Record for FY 2013 Furlough Appeals
COMPTROLLER 

UNDER SECRETARY OF DEFENSE 

11 00 DEFENSE PENTAGON 

WASHINGTON. OC 20301·1100 

MAR 5 1013 

MEMORANDUM FOR: SEE DISTRIBUTION 

SUBJECT: Additional Guidance for Handling Budgetary Uncertainty in Fiscal Year 2013 

The purpose of this memorandum is to provide some additional guidance to the Deputy 

Secretary of Defense's memorandum on "'Handling Budgetary Uncertainty in Fiscal Year 2013," 

dated January 10,2013, to ensure consistency in the treatment of issues across the Department of 

Defense (DoD) as the reductions levied by sequestration and a year-long continuing resolution 

are implemented. All of these policies are effective immediately. 

Congressional Travel Support 

The Department will enforce strictly DoD's policies in its support of travel by congressional 

delegations (CODELs) and congressional staff delegations (ST AFFDELs). It is DoD's policy 

that support for approved travel of members and employees of Congress shall be provided on an 

economical basis upon request from Congress, pursuant to law or where necessary to carry qut 

DoD duties and responsibilities. Organizations need to ensure that travel of members and 

employees of Congress is sponsored by the DoD ouly where the purpose of the travel is of 

primary interest to and bears a substantial relationship to programs or activities of DoD and is not 

solely for the purpose of engendering goodwill or obtaining possible future benefits. Specific 

guidance is included in DoD Directive 4515.12 (DoD Support for Travel of Members and 

Employees of Congress) dated January 15, 2010. Some specific policies worth highlighting 

include: 

• Military airlift will not be used for CODELs if commercial airlift is reasonably available. 

• Within the Continental United States (CONUS), no CODELs may use military 

airlift as commercial airlift is readily available. 

• Military airlift may be authorized for CODELs when in a Combatant 

Commander's theater if commercial airlift is limited or unsafe; every effort must 

be made to minimize costs. 

• Spouses may accompany members if there is an official function as long as they 

pay their own expenses and do not increase the number or size of aircraft required~ 

• Minimum number of congressional members for military airlift originating in CONUS. 

• No less than 5 members for large aircraft 

• No less than 3 members for small aircraft 

• Tickets purchased by DoD for CODELs, STAFFDELs, and liaison escorts. 

• Must be economy class; individuals may upgrade a.t their own expense. 

• DoD does not pay for a member's personal staff traveling to his/her horne 

State/District; this includes travel, lodging, meals, or escorts. 

144 DCMA Administrative Record for FY 2013 Furlough Appeals
• All itineraries for CODELs/ST AFFDELs must be approved by the escorting Service's 

2-star Legislative Affairs Director to ensure that the itinellll')' is an efficient use of 

taxpayer's funds. 

Tuition Assistance 

All Services should consider significant reductions in funding new tuition assistance 

applicants after the date of this memorandum for the duration of the current fiscal situation. 

Civilian Monetary Awards 

2 

Consistent with gnidance from the Office of Management and Budget (OMB Bulletin 

#M-13-05, Agency Responsibilities for Implementation of PotentialS oint Comtuittee 

Sequestration), the Department will not issue discretionary monetary awards for its civilian 

employees, which should occur only iflegally required, until further notice. For bargaining unit 

employees, all bargaining obligations must be fulfilled prior to implementing the OMB gnidance. 

Partidpation in International Events 

The Department should limit its participation in international events except in those 

instances where individuals are supporting Foreign Military Sales and the funds supporting these 

efforts are not being sequestered because the accmmts are exempt from sequestration. 

Demonstration Flying 

All aerial demonsttations, including flyovers, jump team demonsttatioos, and participation 

in civilian air shows and military open houses will cease as of April I, 2013. Flyovers in support 

of military funerals will be given special consideration. To ensure consistency across the 

Department all exceptions and waivers for demonsttation flying will require the concurrence of 

the Office of the Assistant to the Secretary of Defense for Public Affairs before approval. 

SuPI!ort to Non-DoD Organizations 

All military support to non-DoD organizations for outreach activities will cease, except 

when the Department has authority to retain any reimbursement and is fully reimbursed for all 

incremental costs incurred in providing the support. This includes, but is not limited to, military 

equipment displays at civilian air shows, parades, and civic events. Fleet/ Service weeks as well 

as military open houses, and local community relations activities are permitted as long as the 

support/equipment can be provided locally an~ at no cost to the Department To ensure 

consistency across the Department, all exceptions and waivers for support to non-DoD 

organizations and special events will require the concurrence of the Office of the Assistant to the 

Secretary of Defense for Public Affairs before approval. 

145 DCMA Administrative Record for FY 2013 Furlough Appeals
3 

Military Musical Unit (and Ceremonial Unit) Travel 

Military musical and ceremonial units will not be permitted to travel beyond the local area 

immediately surrounding their respective duty stations except when all transportation, lodging, 

and subsistence, are provided by the requesting organization and can be accepted in accordance 

with existing law and Department policies, or where the Department has authority to retain any 

reimbursement and is fully reimbursed by the requesting organization for all incremental costs. 

Units may continue to perform locally both on and off military installations as long as those 

performances can be conducted at no cost to the Department. To ensure consistency across the 

Department all exceptions and waivers will require the concurrence of the Office of the Assistant 

to the Secretary of Defense for Public Affairs before approval. 

Additional guidance will be provided as issues surface that require a DoD-wide policy. 

Robert F. Hale 

cc: 

Director of National Intelligence 

DISTRIBUTION: 

SECRETARIES OF THE MILITARY DEPARTMENTS 

CHAIRMAN OF THE JOINT CHIEFS OF STAFF 

UNDER SECRETARIES OF DEFENSE 

DEPUTY CHIEF MANAGEMENT OFFICER 

COMMANDERS OF THE COMBATANT COMMANDS 

ASSISTANT SECRETARIES OF DEFENSE 

GENERAL COUNSEL OF THE DEPARTMENT OF DEFENSE 

DIRECTOR, OPERATIONAL TEST AND EVALUATION 

DIRECTOR, COST ASSESSMENT AND PROGRAM EV ALUA TON 

INSPECTOR GENERAL OF THE DEPARTMENT OF DEFENSE 

ASSIST ANTS TO THE SECRETARY OF DEFENSE 

DEPARTMENT OF DEFENSE CHIEF INFORMATION OFFICER 

DIRECTOR, ADMINISTRATION AND MANAGEMENT 

DIRECTOR, NET ASSESSMENT 

DIRECTORS OF THE DEFENSE AGENCIES 

DIRECTORS OF THE DOD FIELD ACTIVITIES 

146 DCMA Administrative Record for FY 2013 Furlough Appeals
DE PUn< ,S,Il.~RJ;;)"~RY De' DEFENSE 

I 0 I 0 t:I~;F'lii\lsl[: J'iEio:tl\~lil 

WAsHINGTi:)No l)c l!OiiOI;IOtO 

The Honorable Nathan Deal 

Governor 

State of Georsia 

Atlanta, GA 303.34' 

Dear Governor Deal: 

deficit 

in a 

our entire 

Presidenuo exempt. 

~ent's· 

some.eJCaqlples: 

of at 

at 

to 

:' "' - ;~-­

- ;_ :' 

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148 DCMA Administrative Record for FY 2013 Furlough Appeals
DEPUTY SECR6TARY OF C&:f'ENSE 

1010 DEFENS'I' PENTA46N . WASHIN~;DC:ao:JO,l?fOfO 

The Honorable Jerry Btown 

Go"Vemor 

Sllllc of Califumia 

Sacramento, CA 95814 

Dear Governor Brown: 

As you ~cJikejlyaware, 

deficit reduction to 

the 

Defenae 

ina 

ow entire 

President to 

cum:ntly . tum wba1 it means · 

Wedo have 

funding across 

at Sierra AnnyDcpot 

would suff~ a cutofat 

fucilities projects at Beale, 

assessing detailed chimgesand 

California as we compile a more complete Jist. 

-_,----

149 DCMA Administrative Record for FY 2013 Furlough Appeals
In tlddition, to acc i)unod~Jeallt.l!<::cuil}a,clls t!lat Wl?U!~;lle ~ln ~ ~!'i:~f ··.· 

furiher <lolrgressionaJ· aCjfon, w<c:,viU>lle>l'~'to·pi~~Ofout•IJ\:>.Ll•jlj~~~~~~~ unJ>llid fiulouglutatudor. Up tQ22 disc:QntinUO\Jll w<irkda).i;~. i\JnjoSJ;~y. this,~ 

action bas ~Y ba(FsetiPus tldvetse effeot,s on the.morale an\l·.prodilet!Vity oftbii·· .. 

appro~imaf!;Jy.64,00() .. DoD civilian ~W>ployees who work ln:cQI!ifutnia, lf>y;lba\'lO li>'~· · 

these furloUghs, it will meanro~g1iJy a 20 .~t payp~t .ove.;a !>early six lnontit.~for 

these dedicated civil SCrVlllltl),•who in':furn willpresll)il8ljly .. Spel!ll:lossln':Yoqre<;~>Jiooiy. We 

estimate that a 22-worl(dayJ\irlough could I'Csultm•a payroll re.!Oction ofab<>u!·$!!$o,J!ijllion.Jusf .. in Ca.Iiforriia. · ·· , · . . . Lastly, it sbllul4beM~ thal""'!uesth!Uon will;alsoai{~Defe(ISO~.t<>nrand; 

therefore, the .induslfial·b""':ln yo ill' State. 

While ihtsc1'CdOctions.areilnl'Q®nate·aM 'NIII•~'d•masing. tho•~~.i!l d!lltllf 

..,eeything wi\lili1 ol!l' PQWtf to niinintiUJdv~ · !llfe'ol& o)! .®r li!tfiOnal·S!:CU!it¥ mti!lglb ln 

addition,.we ateB~j!jired·IQ •¢llf$iiiYWi)h•yt)u l<~:ll!ij'dljse~•··~'!O·~~Jiult we can. >shollldCoQg1'Css~~el!~nt.~~c~'tl!elev~:oi·~li~t!\8' · reductions, we me WinnJiltlOdlo''W<>riling• tlosefywl!ll~lf.tox®lllage'Ol!.~cJil$': .··· · 

Thank;•you for·yql!l'·con!iJ!Uad:JM1llersliip'will>tit~:pepartm.cot, f•~!ltl~~ coQpe!)tlion as we work togl:thcr't<> acboinnJodllre:~.illlfortunel:e ciro\lll)~, ' · '' ' · 

; 

.;> ''·· ... , '·}; 

2 

150 DCMA Administrative Record for FY 2013 Furlough Appeals
DEPUTY SECRETARY OF" Dli:FENSE' 

IOIO:DEFENSE'PENTA!iOt<f 

WASHINat'(lN,,D<;:·,ltOiOti.iOIO 

The Honorable Robert Bentley 

Governor 

State of Alabama , 

Montgomery, Ali; 3~~30 

Dear Oovemot Bentl~.)l,: 

Ali you Ill'<' lll<'e" aware, 

deficit reductipo 

sequestration 

lhe Federal 

Defense (poD). 

ina combined 

our , 

President to ex!'lllp,t. 

Fiscal· 

supportin8 DoD 

currently have 

tum what it means 

We do 

some 

including 

$8 

Air Force- Base. 

information_ on 

'/ 

151 DCMA Administrative Record for FY 2013 Furlough Appeals
In addition, to accommodate iltt.tbe Auiba~ that:;wi>uld be imposed in the ab.encie.Of 

·~'~'Wessio~ OJlllon; WO \Viff::l\e tll#t to pla<:e!J\Osi•cd"our DoD ci)(liliUI'OlnPJP~·OD · unpai<tt\ltlollgh; lllltusfor up to ;22 <!ilf!»ll!lii~llus WoikdtiY,S. AJmost•cOrtainly,.this Ull\'O!Ilintltlt 

actio1,1 fias.ab:<;aliyh!l(l serious adversi>'~'611 the moraie ai:d pl!ldOJlliVityof\h!: . approximately nopo DoD civiliali'enjployees who wi>rJdn ;\labiuna .. lf.we have to i!DP0!!4> 

.these furloughs, ii will.mean roughly a 20 pettel\t pay Q~to"W a neatly sixJI!Ontb pe®i(.for 

these dedico,ted civil servants, wllo irt 1Wllwill'!i~•1Jn!ib!Y•spend·le!S!l•in.Yolihecon!>IDY. We 

estiinatetfuit a 22-wotkdayfurlollgh;·l'Quld·result in a l'a)'l'Oil redUction ofahcilt Sl84 rili!lioniiOSt 

inA!ahama. 

Lastly, it shoulifhe noted tb~:sequestnftion will alsO affect,!')e.'<>OIJII:OCtors.and, 

therefore, the irtdUS\rial· base in yoqr State. 

While these reductions, !ltil:\!!lfPrtW!l1te •<®i\'(11\ ~·.~• tbe nep.rtnlel!tiisllloi!lg. · e~·wilbili outilj\Ower tti.~•adverie·eiteets:oirotir'nali~>~om.!Y Il!i;'J'l>n~. !il· 

adclitlop,we are p'*pat¢:to worJ!idq~'J~.yoil.!ll·~ag~tbese'l!i41i<!!il1.\'fii!\ille. ~·thai. ·· ,we~ap,· Slio~d~ms•llil¢'~\ll>seq-acti<i~ 'that'c~othalew]'.<)l::!lli\ute•o:fth!>'s'e · · .teduc!ion,s,.W!>:are·tommilted'li>Wo'cl!irt$"16sely.withY<i!t"lo,l)l41lago:~•q\liC!<Jy-'· 

· Thank you .f(>ryour continUad•PIIi'tncrshiP With•tb§•D~tj)j~·IID(!for~ 

coopetation as'we· work'tog<:ti\Otlo ai:CQ!Iilllod!$~.1U>f~ citc!il!lsi&DCe$. ' 

2 

152 DCMA Administrative Record for FY 2013 Furlough Appeals
DEPUTY SECRETARY OF" DEFf::NSE 

1010 DE~NSE PENTAGON 

WASHINGTON, DC 2.030t•tOtO 

The Hcncmble Rebert F. McDonnell 

Governor 

Commonwealth of Virginia 

Richmond, VA 23219 

Dear Governor McDonnell: 

NAR 0 1 Z013 

As yuu ""' likely aware, due to the.inability of C.o~ to reach a deal.on baillru:ed 

deficit reduction to avoid sequestratiOn, the PreSid@t wjll be n::guired by fawtO-issue 11' 

sequeslrtltion order later today canceling I!J!Proximately $85 billion in budgetary resoute"es aciVSs 

the Federal Government; of which nearly $4) bil!ioU wo~~ come frpmthe D¢llart1no:nt of 

Defense (DoD). Another sequestraiion order could be issued latef'thismol!th, which coul<! t\ISU!t 

in a combined reduction for DoD of as rnueh as $4Q biltlon - roughly a 9·percent redu!;lion in 

our entire budget except fur milila!y personn<'l fundil)g, Wbicbcurtent law.permitted the 

President to exempt. 

These cuts must be fully accommodated duringtbe remaining seven months· of 

Fiscal Year (FY) 2013. In addition, the current DoD app!<1priatlon (the so .. alled Continuing 

Resolution) does not allocate adequate funding for current 0peialions, which sreat!Y adds to the 

Department's FY 2013 budgetary problems. Because your Stata.plays an important part in 

supporting DoD and our national·SC'Curity, we Wan~ tb pt'\j!ii.de yoU with th~ infonnalion.~ 

currently bave available about bow these unfortunate budgetaty adjustments impact us, and In 

tum what it means for our installations and contracton in Virginia. 

We do not yet have a complete inventory oftbe•teqlliredCUtbacks, but I can )lltl>ide 

some examples: The Navy will bave to '"""'"' uijlin,tenanl:e on II sbipa.iQJ:Iorfqlk and to defe,r 

four projects at Dahlgren, Oceana, and Norfolk. The Army would lose ~146 million in bese 

operations funding across Virginia, includjng cu~· a.~ Fort Lee .and f(n'i. Belvoir. The Air Force 

would suffer a cut ofabout $8 million to their facilities projects at Langley Air For<e Ba:se. We 

are still assessing detailed changes and will be able to provida adijlfional infortnation on cutbacks 

in Virginia as we compile a more complete list. 

153 DCMA Administrative Record for FY 2013 Furlough Appeals
154 DCMA Administrative Record for FY 2013 Furlough Appeals
The Honorable John Kasich 

Governor 

State of Ohio 

Columbus, OH 43215 

Dear Governor Kasich: 

We do not yet hav~ a conll>lele;ii!Ventocy oft~~,outhatl~s ~lltiJI QB,p•~ 

some examples: the Army·· Wt>t,i1cHose$2 ro11lien·irtiba$l:QpCn~ti~n8•fuit~•~Sj(li)JU6, : 

including cuts ar Canjp. P.ercy, The~ Foree wouJ<ts!lfterl! ouN>faii~~·ll!ilfitm'~ tli\:ii ·· .. operatiol!S in tho Sta,te, mcluding ~tjons in.lllcilitios1lt<Jje<:ts•at Wr\gtltl•~iliirf~ 

Base. We lire still assessingdet8jl¢ c-eoi!Jld will•heabloto provid!'sdcllilollalinf'o~bn 

on cutbacks in Ohio as we compile a more complete liot 

In addition, to accomtnodate.'all•tb~qutbackstbat wolilil:he!lmJ>Ilsed in ~.~{!If . 

~ COngressional action, wewiii:be.io.roecfti, p)B9l> ll!llst ofo!lf j)o~p)Yili!ibl~@:l>!h; ., · 

unpaid furlough. status for Up to 2Z!Ilsoo'lltinuousworkdl;)(•o, ~!!$1·~k~ 'Ji!l"~!v t; ·. 

action has already had serious advetse ~~·on #Je tn~~·'!lld~~I)'J>i'til,t, .: '· . ,·' 

approximately 26,000 DoD civilian employees who w0tk'in 0hio. lfwe;•havcHii'jlliJl!;ii!l'i~ · • 

furl?ughs, i.t ~ill mean roughl.Y a 20 p~tpay cut o~Hn"'!tl~ six month P,I'Pq,difl#l.l~::, . . .·· ·• 

dedicated ciVIl servanta, who m tum will presuma.blx spen~c!~.!ll\'your ""9l10!)1;r: :W~·~· . • · that a 22-workday furlough colild result in a payrOll ~uction ofahout $1661!lillion~~~hll> \ .•· . 

0 

-. (; 

155 DCMA Administrative Record for FY 2013 Furlough Appeals
l.,a,!tly,Jt should~e noted.thatsequestrationwilllil$q!lftectilef"'* corl~ aril!, th.,~,'thc ii\dustrili!'liiise in Yolir Sti!!e. · · · · · 

. Whil~ these redllctions "">mf6~teaild ~lp$,0 ¢il\'~ging,!hc· De~ is ifuil!J 

·-,-"'n "'!ithinour . wer·to'·il!i~~:effeCli'!lnournatio~::y,·. · ntiSS!on'."" ···->•• g . .P<L . . ..... 7 . . . • . . . .. . . . "'· 

. addition, we are prepsred•IQ wo'r!I;.<,Iosi!Y'Wit!i.xouJofl!ii~e.tliese n;'dWllil>n" ·. 'tlit.~Uii!t. 

we.~. Should Con~~ take Stilisequ~~ti~\lbiir~~J)aligclll!:~evol or ~ of~ . 

reductions, w. are col!ii)jitt~·to WOtki,l]g:clo~~~Y Witli;Yoil!C!nulililge ~e5 quicl<ly. . ·' 

.Thllnk. ou•for. ur contirlued•'"""""''""'With'~· ·.r;;...--ent.of~~l!?andifOr our' • . 'I .. YO. . . • . ""',... •. ,...,. • • ·""""'"" . . , . . • . Y 

coo pera ti 0 n .as we ··"-"" 

~,.& t<i g oilier•tO . accoiiDriodali:'thesei\~DioltUDBte . . . . . . . . . . ~ill:liiiiillal1~s. . ·. .. . . 

156 DCMA Administrative Record for FY 2013 Furlough Appeals
The Honorable Ri¢k ~ 

Governor 

State Qf florida . . 

Tallahassee, FL 32399 

Dear Governor Scott: 

in a 

our _ . .· President to exempt. 

tum what it.tneans for 

some examples: . 

'' ,'•' 

157 DCMA Administrative Record for FY 2013 Furlough Appeals
ln .. additiOn. l<>."""ommo<Jal!> allitbe el)t)la~ ~ WQt!!d' l>o'iln jl!J$Od in< !he.~ ,\lf 

fi!rtber Coo,gressioJl81'110tion, ~·WifP~force4·~· J:>l#:i1)~st:9foura.w>;elviliAA:~l<ly~o'' . un .. Ml "d:tiu'lough•statusforu .. . . p to2~~tinuous'wodlilli'';.AJm· . . . . . . . . .l'J. . Oli ~~··l!Usunt'o~'' . . )', .. . . . 

action basalready'had .se'rious ad\<erSeJittet.~onlbe•i;)Qii![~~~·l>fud~~~ihe 

~ppti»dmo.tely 3\,000:f>o))civlJiil)),elllj>loyees who\votkinJii~~J,f~ha~e!Ojln~.tbese 

fui'louglti;'itwJll:m"'ln ro)lghty a2.o p~t~Y~utov«a lil>a.tl}"six ll'iOl\11! ~~~ · 

dedieilted oivil.setvantll, wb6.1r)'JUniwiltpieSuma~l)tsj>end less·ln·Y.Ol!l'~': ·'Wo'~ 

that a 22-Woii«!IIY'furlough could re~lin apiYroit.~on C)f'lii>OiitJtliS~~\IS.ti"IJI morid& · 

Lasdy, it shou)d be note4 !lle):~tJesl!;ation w\1.1'1111!6 alte¢1 tiefe!,.O ¢l>ilttao!<lf!!'ond;l, 

therefore; the indtistrllll base in.YI)IIt:StlJte. · · ·· · 

- -- ',, 

-- Yc" 

2 

·, -; __ 

158 DCMA Administrative Record for FY 2013 Furlough Appeals
DEPUTV·SECRETARV'dF·DEf'ENSE 

101 ODEI;EN.SE fiENTAGOI< 

WASHINGTON, 0~ ;!OSOI·IOIO 

The Honomble Tom Corbett 

Governor 

Commonwealth of Pennsylvania 

Hllllisburg, PA 1712Q 

Dear Governor Corbett: 

As you are likely aware, du~'IQ the inabilit)l of.~'IQ reaclt:a,40!!1·®•l!el•nr<# 

deficit reduction lo avojd s~uestratio~.!l\e.Pn:Sidllll.t will bewas~til!>1d bY·IIfl\'.11>•~. · 

sequestration order later todl!Y canoej@~'·I!PJ)tOxltn!\tely-~85, bllli1:!ftiln ll!l<jg~.~~~· ~ 

the Federal'Oi>Vert\llWI11, ofwliich fi~y:$41 biljion<\'i~!IJM:®~';@ffi:fll¢1~01)j,!ff: .. ' ;:, . · ·. 

Defense <?oD). An~lher ~uesl(atiiln lli~J'iCO\l[d'lle!~~later thisJll.Odth,'!llll~lj;~~~f •· 

'" a combined reduction.ffir OoD'ofllllltlU~ as·$46 bUI•on -,to~gl,ily ,.,9;~'Mjl¢tj9!Hn · our entire budget excqn for miliUUy.Jielsollllel funding, .which ®rrehtlaw pc1'Jiiitted'!hll-. 

President 1o exempt. · · · 

These 

Fi~al ··.'.' 

Departrnenf.s 

tum what it nteans· for our 

We do not yet have acoii!pllote. invl!i)!9fY ofthHe!!'lited cut~ b!¢11\oali:@i¥1!1~ . t ··. 

some ei<amples; Th,e.Army wouldlo~ $7@llioo iid>li~ o~!ilions:fli!ldi,Og;Jieio$&, . \ :· ' Penus~Jvania,.inclildiilgcuts atCarliSie!Bmac)fs:!ll\df~>ri~~~- •l!l';~il'O.I\-~.•· operations at Tobyhanna and Letter~eunY cp'IJd expen""-"" lfred~~<;tion:ofaslriiliCh:as. . ,: ·• · · '' .. 

$75 I million. We are stillassesslnj! det3ile<fcillanges aridewill be alil~.ro pr<l'vi~ aj(i!fficin!il?if .. infonnation on cutbacks in Pennsylvania.., we compil~ a more<:omplete list. ·. . ' ;. 

' 

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·< 

2 

160 DCMA Administrative Record for FY 2013 Furlough Appeals
DEPUTY SECR!tl'AR:Y C$'sDI;I'EfltSE 

1010 DEFENsE PENTAGON 

. WASRINGTON; DC~t'lt>lO 

The Honorable Martin O'Malley 

Governor 

Stale of Mary!Bijd 

Annapolis, M0:2140! 

Dear Governor O'Miilley: 

As you llf<l.likely 

deficit 

the 

Defense 

ina 

our entire 

currently 

tum wliat it means 

some.ex@lp)eSt We do:~~t:~~:£\i,~t~}~ ~of·t including.cilt$ ai' 

of ill least 

and will.be ti> provide 

more complete list. 

",_._-;, 

161 DCMA Administrative Record for FY 2013 Furlough Appeals
_ bradditiO!l, IQ ~mmOii8te:\111 the cut\>IICics tl;atiWould be im~ hi the ~!>e'9f 

furth<!< Congressil!ll!ilaotion, ~·'will!>e f~.!Q p1~ Jllllstot'Oilr~D civililm employees 0n 

nn~id --.-:- furlOugh· _. status _ -~ _ f1 or • __ up. t o _ :'21 disco n~ ~•li' o~)¥"0.1:'~~· ""' ·' · '-'~"- - ~-• bnost , __ """"'"h•, --~~,.-,.~.w.uv~~~ '"'""'"-"-"'-·-·-

action has already-ba;<!,~ri.ous ad~~ e'!!:acl$<>ti;lli¢ 1ll9!;!11~¥d productiviC¥:o~'ll!e' _ · - approximately 46,01)0 DoD· civilian :e!hplbyeesNilil! Wt>tj< ip; Mai;y!ancj .• If welil!V.-!Q impqse 

these furloughs, it Willmeao rougblp:2o:~tpaY C\l!'c>yet a De;~rly~ik·inOlllll-pO!tQd 10);:, · 

these iledi¢1ited civilservanf;, who ip tl!"i will Jll"$11inaljly•Sjljmd I., in: Y<lUr -~l)IY-, }Ye ' "• estil))~te fbat a 22-worilday 1\ir!qllgh. COuld resUlt Iii it I>JlYr<>lfie<iucti~~~ of' ibi>lli'•S!f5'9:liiilli!lrrjil$t • 

in Maryland. 

~tly, it sbould be nQ!ed-tbat s¢q!ICS!tilion will alsoaffecHlefense con~~-lli!jl, 

therefore, tbeindUSlrlal l>aSeinyoiJrStale. ·· · · 

_ Wb* t)lese red)i!;tiops ai;e lttlf~itunale l!il'd:Wil)ibe1im);aging;th~'~i.~c!k>~ 

evecy;tl)ing within outpl!Wei to.¢iniri!i~a<jii~-~ on:.\lW'""P~:rllil'~llrilY'Dii~io!!, :hi· . _ additi' Ollj~ ? e•ate.~·~":W•Wt>!i'<ilos~l"With: .Y'~"" . ' ·--' .· yon . ··_- -tn•""•••>~et)lesi>~ns-t!l\tbe:~tthat: ... ...,... ·-··. . ' ... , , .· .. we eao -· . -· ShoUld:C': .. ~-~ · '' •bike• __ so.,._" 'b'""\itrii aoti®s-·•~"'"""~e:ilie:lavel:oi.naiu&:'Of.th* __ . · · ..... ,_..... < .. ··.<····· 

roductions, wo'are ctimml~lb . . ·worklng1itos~l:i'\Vifh)iQ~'lQ•lhitllil&e~~ '-· - . . . qui~. v 

Thank you for your t\)ntinue(f~,rutj> Wilhcilie ~~~of ~OIIIi~andfpryour cooparation ' . ll!i we work together W acC!>Iriinodafe . ihese-unfurt'unBte citcum•"""""'•' 

162 DCMA Administrative Record for FY 2013 Furlough Appeals
DEPUTY SECRETARY OF DEFENSE 

1010 DEFENSE PENTAGON. 

WASI:fiNGTON,. DC ZoliOI·IOtO 

lbe Honorable Jay Inslee 

Governor 

State of Washington 

Olympia, WA 985.04 

Dear Oovemor Inslee: 

IU you arc likely aware, 

deficit-rcductipn to avoid 

the 

in a 

our entire ·budget 

President to exempt. 

MAR 0 I (Ofl.···· 

These cuts must beofuUy ,llqCQllJll\odaled during•llie;rti!J'ailiing sev~'l'!~<lt. · '·· ·· Fiscal Year (fY) 2013. In adlliti!Jti, t)i~.~~Qt Dp!) il!lEroi>rilliio:O..(thes().:ca)l!!ill.~~;;: . , · · 

Resolution) d oea not·ailocate•alf . .~_, · · tefundil1 "'·, . g .fO r c · Unent:<"""'''~'ri"''"h•""""'"':;d!li.iii~ . 9,. ... ,.~. • '1""M!' ~.~;rt~~'--' ., ·· '' 

Department's FY 2013 budgetarJ6pl'QDl.~. B~¢aUSe·¥out.Sta.te plays 11Ji·lmport8#t'p~·i'Jt.t; .. , •.. 

supporting DoD .and our national secUiity; we wruill:<l ib·pi'QvkleyottWilli;t'lw~!ll!i~•i(:• .· · 

cUirently have available•about how lliese unfot~Unaleibitdg$ty a~]Usjllreljta~!U!;;Oti!lii!l ... 

turn· what it meansfor.our·in~lationHndconiractors in llie Sll)teiofW~IIg,t<lii> . · , > 

We do hOt yet h~v. a col!llll$ il\ventorr o.ftl}e:tequired;outl\ael<.i .bin;lj<lli!.~~'••i' · 

some examples: TII!>·Atmy.wowd l<ill<l'$1 i4.lJiilli~n•in l!@e p~6~fi!n4JDi:I\Cl'i!SS', (, ·. 

W~n. in!>.lllding:outs atJ~lirt Blll!e I.~Wis.McCo•~Y•TilMlt~ wolllJf ~tr~~r~ Wf~iatr 

least $3 million, mc(uQJng redUCtip~ill facilities f!!Qii\C-IS.~tFiildtild ~·~"~ 'flll'•'NaV§. , 

would fa¢e canceUatibn of:al!ct8t\depot~l¢'Whidbey ISI.~d •UI<U demolhlll!F :: · 

project in Brometton. We are still IISSei!Sjng.dotai\ed'i~gcalllld will be able .to t!t0Vide3 

additional .information on cutbacks in·W~gton a8,we compile. a more complete list 

163 DCMA Administrative Record for FY 2013 Furlough Appeals
( 

2 

164 DCMA Administrative Record for FY 2013 Furlough Appeals
DEPUTY SECRETARY OF DEI;ENSE 

I 010 DEFE~l!SE PENTAGC!N 

WASHING'tON, CC ~t·1Qf0 

The Honorable Rick Pony 

Governor 

State of Texas 

Austin, IX 78701 

Dear Governor Pony: 

As you ""'likely 

deficit reduction to a\'Qid 

sequestration order 

the Federal 

Defellsc (DOD). 

our-entire 

President to exempt. 

Fiscal · 

supporting DoD and· . 

currently have availatile 

twn what it means-for our 

We 

including 

and 

would 

Randolph, and 

procuremeDt of 'the 

to provide additional· 

- . \- -" 

0 . . . 

~O.ll913 .... ' _-: { 

165 DCMA Administrative Record for FY 2013 Furlough Appeals
Lastly; lt sl!<>ula·b!l no~ tbat ~on will ·alsoiil!'ectDe~.~:'(ljjd. · •. 

therefore,·the industrial base.iJ!·Y9ut'$ili~. · · · ',/; 

2 

166 DCMA Administrative Record for FY 2013 Furlough Appeals
Memor;mdum of Understanding 

Between 

The Defense Contract Management Agency 

And 

The American Federation of Government Employees, Council170 

Process Covering Potential for Administrative Furlough for FV 2013 

On 20 February 2013 DoD notified Congress of the potential fo_r an administrative flitlough for 

up to 22 workdays in FY13. DoD also notified the National Unic:>ns (thos-e with national 

consultation rights) on 20 February 2013. 

The legal maximum for an administrative furlough (without using Reduction In Force 

procedures) is 22 discontinuous d;:~ys (176 hours). 

Any decision to hold a furlough Will come from the Office ofthe Se_cretary of Defense, on or 

after 1 March 2013, depending on sequestration eve.nts. The provisions in this Memorandum of 

Understanding are the results of collaboration between DCIV!A HQ and AFGE Council170 and 

will be applied agency-wide without further negotiation below the level of recognition (DCMA 

HQ and AFGE Council170). Negotiations below the level of recognition (DCMA HQ and AFGE 

Council170) are not authorized. Provisions contained in this plan may be subject to fur:ther 

collaboration depending on actual DoD furlough guidance. 

DCMA will follow parameters establlsh~d by DoD: 

• Conduct furlough equitably atross DoD 

• General rule is that full-time employees will be furloughed 16 hours per pay period 

across 11 pay periods (176 total furlough hours starting 25 April2013). There are 11 pay 

periods between 25 April 2013 and 27 September 2013. 

• Exceptions: 

o Employees deployed in a combat zone 

o Foreign Nationals 

• Involve unions in the Pre-Decisional Involvement {PDI) and Impact and Implementation 

(1&1) process 

• Part-time employees will be furloughed on a pro-rata basis based on average number of 

hours worked per pay period (e.g. 20 hours/week- 88 hours furlough; 32 hour/week132 hours furlough) 

March 1, 2013 

167 DCMA Administrative Record for FY 2013 Furlough Appeals
• Temporary employees, term employees and re-employed annuitants may be released or 

Included In th'e furlough 

• PremiUm pay may not b_e used ta offset effects of a furious~. (overtim~, compensatory 

time) 

Additional DCMA establlshod parameters: 

• Minimiza adverse impact to missi·on 

• En~.ore continuity of operations 

• The only dvilian e•ceptions will be for Individuals deployed for CCAS and locally 

Engaged Staff in DCMA International 

-• To the extent practical, conslder employee preferences-In all furlough scheduling 

decisions 

Scheduling: 

• Full-time employees furloughed 16 hours per pay period for 11 pay periods beginning 25 

April 2013 (part-time employees pro-rated based on average hours worked per pay 

perjod). 

• The proposed furlough notice to be given to employees at least 30 days prior to the 

furlough st<~rt date will include a suspense date by which employees should provide 

their supervls_ors With their proposed furlough schedule for 16 hoUrs per pay p·eriod 

beginning 25 Aprll2013 and ending 21 September 2013 .. 

• To the extent possible, furlough will be s.cheduled In full8 hour days instead of 

scheduling muitiple h()urs across-several days during the same week. 

• Supe_rvisors wiiJ work with employees to set furlough.schedules based on mission 

requirements-and· ernp_loyee considerations. 

• The flr$t·consideration of supeNi.sors· in making-decisions about employee proposed 

furlough days·m.ust be ll'iission requii"_ements-. Supervisors will then consider employee 

financial implications (I.e. vaca"tion.arrange·ments already pur:chased or other financial 

pen·aJties); previo-usly approved leave; chlld .. care; elder-care; and t_ransportation 

arrangements/costs or other employee hardships. If a supervi~or must decide between 

multiple requests for the same furlough day and none of the-above considerations 

apply, then the service computation date for leave (StD leave) wm be used to determl·ne 

the most senior person for approval. 

• Proposed furlough days will-be submitted an(:~ approved using the same process 

currently used for the request and approval of work schedules. 

• To the extent possible, employees will be furloughed 16 hours per p_ay period_ but hours 

in a week or pay period may be·modiHed to accommodate specific situations. f)dended 

March 1, 2013 

168 DCMA Administrative Record for FY 2013 Furlough Appeals
TOY or training may occur that will require furlough days to be taken on an alternate 

furlough schedule. For example, an employee attends a 2 week training course so is not 

furloughed that pay period. The 16 hours of furlough ''missed" will be redistributed 

immediately before and/or after the training. 

• Furlough hours may not be "grouped" at the beginning of the furlough period or 

"postponed" until the end of the furlough period, e.g. an employee may not take the 

total176 hours at the end of April/beginning of May or at the end of August/beginning 

of September. 

• SupeJVisors must consider the impact of furlough on current work schedules and 

telework arrangements. Work schedules and telework arrangements may need to be 

modified to ensure maximum efficiency of operations (changes will be made in 

accordance with CBA procedures). 

• Furlough proposal notices given to employees will include a statement that telework 

arrangements and work schedules may be impacted. 

• Organizations will consider mission impact to determine if certain furlough days/hours 

will be required (e.g. contractor plant is closed every other Friday so all employees will 

be furloughed fOr a full day every other Friday while the remainder of the 16 hours will 

be scheduled the following week). 

• The effects of furlough cannot be offset with contractors, military personnel or premium 

pay. 

Furlough Notices: 

• Notice Requirements: 

o Notice in writing with a 30-day notice period 

o 7 calendar day reply period 

o Right to representation in making a reply 

o Written decision 

o Notice of right to grieve under the negotiated grievance procedure OR appeal to 

the MSPB 

• Proposal notices will be issued to employees on or about 18 March 2013, providing a 7 

calendar day reply period. 

• Decision notices will be issued to employees not later than 24 Apri12013. 

Work Force Communication: 

• HC Messengers 

• DCMA Furlough Website- deploy 1 March 2013 

o OPM Guidance 

March 1, 2013 

169 DCMA Administrative Record for FY 2013 Furlough Appeals
o FAQs 

o Furlough e-mail in~box link for employee questions 

o DCMA developed-guidance 

• Information aboUt h'ow besuo mitigate impact of financial decisions on 

security clearance 

o EAP information about assistance available 

• Periodic Director/Deputy Director updates via multi-media broadcast or On-point 

Memorandums 

Furlough Documentation: 

• After completion of furlough one SFSO will be prepared for each employee specifying 

beginning and endihg d'at~s-of furlough and total number of hours furloughed. 

• SF-50s will be available to employees in eOPF after they are processed. 

,;¥rtheAiency 

VJames Russell, Deputy Director 

March 1, 2013 

170 DCMA Administrative Record for FY 2013 Furlough Appeals
··- -·-·-'9 

-·-"" 

Federal Register/VaL 78, No. 44/Wednesday, March 6, 2013/Presidential Documents 14633 

[FR Doc. 2(}1:J-{)S397 

FUed 'J-5-l:J: 11:15 am] 

Bl!Uug rode 3295-FS 

Presidential Documents 

Order of March 1, 2013 

. •, . ·~·~ I 

I . / 

Sequestration Order for Fiscal Year 2013 Pursuant to Section 

251A of the Balanced Budget and Emergency Deficit Control 

Act, as Amended 

By the authority vestod in me llB President by the laws of the United 

States of America, end in eccm:dance with section 251A of the Balanced 

Budget and Emergency Deficit Control Act, as amended (the ''Act"), 2 U.S.C. 

90te, I hereby order that budgetary resomcea in each non-exempt budget 

nccount be reduced by the amount calculated by the Office of Management 

and Budget in its report to the Congress ofMarcb 1, 2013. 

Pursuant to sections- 250(c)(6), 251A, and 255(e) of the Act, budgetary resources subject to sequestration shall be new budget authority, unobligated 

balances of dofense f!.mction accounts clirried over from prior fiscal years, 

direct spending authority, and obligation limitatioru;. 

All sequestrations shall be made in strict accordance with the requirements 

of section 251A of the Act and the specifications o1 the Office of Management 

and Budget's report of Maxc.h 1, 2013, prepared pursuant to section 251A(11) 

of the Act, 

THE WffiTE HOUSE, 

Washington, March 1, 2013. 

172 DCMA Administrative Record for FY 2013 Furlough Appeals
,r-\ . 

/

,. j/". ' 

M-13-06 

EXECUllVE OFFICE OF THE PRESIDENT 

OFFICE OF MANA'lEMENT AND BUDGET 

WASHINGTON, D.c. 20ZS03 

March I, 2013 

I - \ 

MEMORANDUM FOR TilE HEAJ?\~ECUTIVE DEPARTMENTS AND AGENCIES 

FROM: Jeffrey D. Zientf'. \ J 

Deputy Direct~Manage~ent 

SUBJECT: Issuance of the Sequestration Order Pursuant To S.ection 25IA of the Balanced 

Budget and Emergency Deficit Control Act of 1985, liS Amended 

. 

This memorandum is to inform executive d~ents and agencies (agencies) that the 

President has issued a sequestretion order (order) in accordence with section 25!A of the 

Balanced Budget and Emergency Deficit Control Act, as amended (BBEDCA), 2 U.S.C. 90la, 

The order requires that budgetary resources in each non-exempt bndget account be reduced by 

the amount calculated by the Office ofMaoegement and Budget (OMB) in its report to Congress 

of March I, 2013, entitled OMB Report to the Congress on the Joint Committee Sequestration 

for Fiscal Year 2013 (sequestration report). 

Due to the failure ofthe Joint Select Committee on Deficit Reduction, the President was 

required by law to issue an order canceling $85 billion in budgetary resources across the Federal 

Government for the remainder of Fiscal Year (FY) 2013. OMB has calculated that, over the 

course of the fiscal year, the order requires a 7.8 percent reduction in non-exempt defense 

discretionary funding and a 5.0 percent reduction in non-exempt nondefense discretionary 

funding. The sequestration also requires reductions of2.0 percent to Medicare, 5.1 percent to 

other non·exempt nondefense mandatory programs, and 7.9 percent to non~exempt defense 

mandatory programs. The sequestration report provides calculations ofthe amo1.01ts and 

percentages by which various budgetary resources are required to be reduced, and a Usting of the 

reductions required for each non·exempt budget account. 

Agencies shall apply the same percentage reduction to all programs, projects, and 

activities within a budget account, as required by section 256(k)(2) ofBBEDCA, 2 U.S.C. 

906(1<)(2). Agencies should operate in a manner that is consistent with guidance provided by 

OMB in Memorandum 13-03, P/anningfor Uncertainty with Respect to Fiscal Year 2013 

Budgetary Resources and Memorandum 13~05, Agency ResponsibilitiesforlmplementaHon of 

Potential Joint Committee Sequestration. 

171 DCMA Administrative Record for FY 2013 Furlough Appeals
.l../l;;lCIISt:.gov 1'~ews transcript: DOD Press Briefing on Sequestration from the Pentagon Page I of5 

TOPUM<S 

~·~~-ri'1_o" __ 

Twllte, 

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P~illiOOiiQ.,;-·· ·-

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- lilghllghto 

Phot<> EsMY., wod;""ii>~-

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·-p0fl9tu <iliiii""" .. TrG~f.,blllt\' 

COmmunity 

Relation• 

-Sio':! • ~Pes---· Roco•"'Y Ad: 

-"Sih, Hap 

United States Department of Defense 

U.B.~ofllefanst 

Olllc:e of the Assistant Seeret8ry a( Delens• (Pobllc Atran) 

News Transcript 

March 01,2013 

DOD Prest Brltllng on Stquutratlon from lh• ~ntagon 

SECRETARY OF oi::FENSE CHUCK HAGEL: i}epuly Se<::retary Ca1er ll"ld I wanted lo lake a few mlnut&a IIlia aftG11'10011 lo talk a little bn llbcul 

saqueatratit>n ll"ld whal was 8IIIIOUIICGd today. Many of)'OU srrw the Prolident a few hcxirs ago. And rn make a staremeot and than the Dapury S&Cnl!ary a1t1 

1 will entertain quaatlona. Sa, thank you far coming. · 

I just spent an hour, actually and ~. with tha ~ Chlefa to talk about this !Que and lo talk about oonsaqueocea, and how we wlll 

c:ontnue to adjust to lhil realities !hal fao:e au-QJUI'Itry and face this lnaliMion. 

In parf.:Wr, rd lit& to ac!dresslhil ~hly lhai.II8QU8slratian !a causing, Iandi will contlnoe to cause this department. But ar tha ouiHI of my 

remarks, 181 me makalt clear lila! this 161081tai11y puts Bills!< c..- ability Ia ell'ectiVe/y fulfiJ aK cf o..- mlsslcn$. Leadllrshlp In lhe Penta~. all of U!l. have two $8rklus f;OIIC8m5: first, the abrupt and arbllrarycutq Imposed by sequesler; .-ld! sec:and, tha lad< of budglll m~ l!ex.iJillly that wa now flloe unde( lhe 

cooent <XIIIUoolng rasolulion . 

Over !he pastlwo months, o<io has begullo Me the e11acts m:ld oonse~ oflhatuncerlalnly. AIII&QUII$iar oontlruas, we will be foJWd to 

as01n1e m<lnl rblc, with steps thai will prograsslvaly have rar~ng etreda. 

Let me highlight a ccuple Cf I!Ciloot thai we ara laking as a resuM of !heH budget oonslrtllnl&. The Navy will gi8Ciually stand down at 1aas1 four wi>gs. 

The lim wi'lg wiU slaod down In April · 

Etracilva irnmedialely, J>:r Fotee flying hours wm be cut badl. 1hls wil have a msjcr impact on lrainlng end readlnUs. 

The Army wfll curtail training far aU units ~pt those depleylng to ~ l!ldvar$ely lmpading naso1Y BO percent Cf Atmy operational un~s. 

Later th!a month, we Intend ra Juua pratmina<ynotificallons to~ Cf civilla-! employaas who will be ftrlaughed. The.!te IJ!eps came en toP of 

thaae lhe department began in January to slaw spendino In lliow of this uncartahly. 1hola lncludOO daii)'Wlg deplcyment of naoal assata; lmpa$1ng civlllcln 

hiring fr&ezelo: beginning to lay off temporary and term lllll)lloyⅇ sharply cuttng beck faciitkts mainlanance: and beginning nrvlawa IC delay o:ontracr&. 

If osequaster conlir1Jas and lha oontnulng rasarutlon is alMnded In !Ia cu-wm form, alher darnaglrlg ellects wiU booc:aha l1PP81"8fll 0... number one o:NIC8m Is au- people, millleiy lnd dv!llan. tha millons of mMand wcman of this dopertmant who work V«Y hard GVIII)I day to ensure Amarica's secuncy. 

1 knaw !hal !helle budget IUS wilcauH pain, ~among our civilian wOOd<l«:e and the&- families. rm 8lso ccncarned, as we aK ste. about the 

!mpacl on readiness that these cuta wiU have ac;ross curforl:e. 

Foo- thase raasona, the department's saoJor lasdershlp and I will ecnln.oe to wcrk with tha admlnlslralion and Congr&u to help resolve this 

uncertainly. Spacifically, wa need a balanc<>d deficil redUcli«< plan that leads ID an end ID sequestration. And we need Congress lo pass a~ bills 

far DOD and all federal agencies. 

We will need to maka hard cholcas. And 1 will da evarythlng withO't my power to see that America uphQidt illl commitmant to our 81f1as and our 

~and, most lniportanlly, 1o au- &&Mea members and thalrlamilo». 

Today, America has the best liglltlng lcrce 01 the wcrld capable of responding to any challenge. This unnacessal)' budget crisis makes thai jab much 

harder. 8141 wa will ccntlnue to ensura America's socurily. Thank you. 

rlllake a couple Cf quostlcns, and then rn ask Ash rcr his ra8j)(ll\aes. 

{CROSSTAU<) 

Q; Mr. Seeretary, lhBnkycu. 

Ycu, havilg laid out a number or ccn$equella!s there, you -the language you used Will not as <hlmatit; as been used by cthars in this building in 

recant monthS of talking about "catastrophic" and "disastrous" rasutts if ~lion hsppened. 

Ate you of lhil Yiow lllallhl• is nat a aifualicn whk:h the U.S. will be raducad to a sat:ond-fate mtmary power? 

And may 1 es11 a question aJsc on Syris: v.ttars yourvlow about whelher the U.S. CI!(Otlllo ba doing mora militanly Ia help the rabels? 

SEC. HAGEL: Wei. Bcb, your fil"$1 question, AmBfica, as J concluded Jn mY remarks, has the basi fiahtlng f<llell, the m~l capable ftghllllg loo:e, lhe 

mostP<I\VBiflJI fighting fcn:a In the WOI!d. TM mBnBgamenl cf this lnslffutkln, starting with tha .klint Chlefa. aru not gonna allow this - Jh"' capeeily lo aroda. 

http://www.defense.gov/transcripts!transcript.aspx?transcriptid=5196 8/14/2011 

173 DCMA Administrative Record for FY 2013 Furlough Appeals
.....,..,.._..,u.:n;;;.J:>vv nc:w:s ln:trn;cnpc uuu rress tsne!mg on Sequestration from the Pentagon Page 2 of5 

We win manage thestt issues. These ere ac(tiSimM!s. We antidpated the.., kinds of real~ies. And we will do what we need to dolo assure tha capabi~lles of- of our fon:es. 

On Syria, I think it's clear what our po~cy - the administralloo'S pollc:y is on Syri~t non- lethal assis!atlce. Secretary of State Kerry has recently 

commented. as you know, fotlowing his trip aroood the wOOd. And I think the policy that the Un~ed States has is the correct policy. 

0: SaquastraUon has been described as a slope not a cliff. So in your opinion, how long can s&ep.Jes!raUon go on before them is mal demBgBIO the 

defense of the unned Slates? 

SEC. HAGEL: We are adjusting for the realities !101 just of what happened Ieday. but. as I noted In my ram arks. we have a continuing resolution 11\31 

expi"es on Mllrch 27th th;!rs an additional complication. 

I have c:onfldence in the -the prusidanl and the Congress thai decisions, consensus, to -at some point lo avert tremendous damage to this- this 

institution. 

This Is th& security of the Uniied Stales of America W&'ru talking about That is the hiGhest order of anY government, llt1l' l&ader. And we will - W8 will 

do what is neoeasary, what n takes to assure that security, as I noUced b&fore aod mentioned in my- in my comments. 

0: Mr. Secretary, your predecessor and many other senior readers of the department have 8lCpr&ssed coilcem that th& budget uncertainUes with 

s&ep.~estre!icn and the C.!'!. are going to prevent the department from Implementing the defensa strategy thai the Obama administration unveiled lest year. 

Do you share that view? And, ff so, l'hl9o do you th-...t< you need to srart molflfying the strategy? 

SEC. HAGEl: INuit. as I said, fii"S!. adjustments ere being made. and W&'va anticipated the required adjuslmenls ro our budget to assure the 

capabUitles and readiness of oor- of our rorces. 

As to the issu& of the Presidenrs wateglc gui<lanca, thai Is the polfcy. In my opinion, r think our leadership's opinion, irs the correct policy. 

We have been inplemenUng that strategic guidanee over the last year. We will continue to Implement that- that policy. 

0: (inaudible). Swiss Tlllevislon. 

Given yoox role inskle NATO, what is going to happen to NATO? And ora you in conlact or will you be in contact with me allies and the seemtary 

general to 8lCplaln the situation? 

SEC. HAGEl: Wall. we hava been In touch with our NATO allies. We, as you know, are in coostant c:ommunlaltlon with our NATO al~es. I think that 

they am not unmindful and not o.nawara of this i$.sue that we are CUTe/lily engaged ln. 

Our NATO at~es have difficulties as well, with their economic issues. And the fact is NATO represents probably the most successful collective saQ.I'ily 

relationship in the histO<Y ol man. 

Thai relationship remains srrong: wiU continue lo remain strong: must rlll'llain strong. 

Q; Mr. Secretary, just to darify something you sald earlier, when you sajd the consensus will be reached to avert tremendous damage to th& 

lnstllufKJn, am you saying you thlnl< thara"ll bB some &art of an egf88menl made on sequestration or •.. 

SEC. HAGEL: I said -I said I hoped that and I have coofodence thal we willev<>rtluatly sae a consensus. And that'S the only way 11uo1 we"m going to 

gel out or It This Is a ~ip. This is a -this is a republic, and n Is the 8lCecutive and the congressiontll branches WOI"king together to find a way out. 

If you listen to oor leadars. ell ere saying the same thing. We need lo fl'ld a way lo resolve the Issue. And thai - thars the only way our. 

{CROSSTALK) 

SEC. HAGEL: rm go;ng to leave. This genUeman, who some of you may know, am not unfamiliar. Ash Clrter, who. as you know Is our deputy 

seaetary and haS had a very signifrcant role. a leadership role, on this particular issue as well as ethers. 

And I mlghl say, as t ask hin to come 10 the podk.m, I appreciate very much his leadership and his focus on what ncl only has been going on here, 

but his years of SDnlice lo this insUiution. And it's - irs a benef~ lo our oounlly, ...-.:! ifs a benefit 10 lhia insUM"o:ln, especially ala dlfficu~ lime like this. 

So I don't want lc say anything mot(l about him, ether than thal 

Ash. thank you. 

Q: A couple questions. Can you flesh out over the next couple week$ what practical impacts we will- the Pentagon lll1(j its forces will soo from 

sequeslralion, versus three or four months now, but ever the n&lCIIwo weeks what will we sae? 

DEPUTY SECRETARY OF DEFENSE ASHTON B. CARTER: tat me start with U1e Army. You"m see the Army beginning tc curtalltraining at. for 

example. lhe National Training Cenler. If we go 10 the Air Force now, )'OIJ"tl see the Air Force beginning to curb flying llcM.n. And that means thai the nuclearcapable! Air Force, that part of the Air Force that Js participaUng in op<!relions in Afghanlstao, we will protect them, and U1al means thai the curs caused by 

saque$1ralion, also the continui"lg resolution, will fall more heavily on other partS or the combat Air Force. They'l need to cease training. which means they 

wcn"l bB ready lot Olherconllicta, which Is a serious impact. 

YOOVa srraady •een the Nevy begin to make adjustments in tsrm• at how m!WI)' $hips are at saa. And you w~l see each of our program managersremember, saquesler affects eao;h of 2,500 individual investment programs ildividually. And so we're working w~h our induslly partners on each or those, and 

you'tlth11111 begin to make adjustments, for example, in the number of weapon• systems in a glvan catega<y thai are being purchased. So a different kind of 

arrangement - fawerW&apons systems in a contract thai we anticipated were going to be put in a contract. 

Thars the kind of thing you'll see. And as the secn!lary indicated and as !he president indicalad eartler t<Xlay, this progressively builds over- over 

coming months aod constitutss a serious probJam, partJcuJarfy in the readiness acccunls. 

Q; And one foliOW-I.lp. Don1the services have fle:cibitny within !heir individual- their O&M accounts to protect !he oparaiions -!he operttingforcas 

account thai aC!ually bankro~s training? 

DR. CARTER: They do have some nexibiity even under s&quaslralion with D&M accovnts. They ere using that Hexibilay. They're using lhal fl&lCibility 

to protect op<lrations In Afghanistan. So we am not curbing or wfthholdlng in any way training from units that are going to Afghanistan. 'Mlal that means, 

though. Is that the bu"dan falls more heavily upon the rest of the Air Force. 

A tor of paople ask why does so much happen so fast. And you begin lo s-ee some of the mason for lhal You have the combinarron of sequester aod 

the conlinuing resolution. You·have the faC!Ihat we're rryng to project the war in Afghanistan. Yoo have th& fad that only ha~ of IM fiscal year is ~-

http:/ /-vvww _ defense.gov /transcripts/transcript.aspx?transcriptid=5196 8114/20!3 

174 DCMA Administrative Record for FY 2013 Furlough Appeals
Page 3 of5 

And so what mmains evM In tllc>se O&M aca!Unls, evM aft9ftnsl we move evet)'lhing around- and- and what Seae!aly Hagel just said 18 we'ra 

doilg averything we poS$ibly can to pro!ed natlonaf security and minimize damag&. But the~Unty 19, 8'1811 arter yodve done all or that, even In the O&M 

aa:ounts, Whleh are the latgasl you stif don't hav11 enough money lefl.to do Ill& tralnloQ that lllldetllea readiness. And that's why lh!l reOOineas able !hat the 

chiefs referred to Is very real II builds as the year goes along. 

0: {lllaudibla). !hank you, sir. 

You talked about lh9 programs lhat you're~ sbot.t. Naw, which people are you most cancemed abou! today, /lOW lhat !he se~er Is 

offociet7 Are there any immediate impacts on pei'!OIVIel end their families (lnaudibla)? 

OR. CARTER: I -llhink thefmP8dS ~no Immediate In an th-ee of !he populations lhat we depend on for naliooet defense. Flrsl, for the troops 

lhemsdves. of o;:ourse, the prasident has exemp!ed lh!l pay lor military persomer rrcm sequester -the right decision. 

However, our mmtary personnel wiU still feellhlngs immediately. For example, if you planned to fly or to lraln In th9 next few months, lhars !llelr duly. 

That's !heir profeulon. That's their responsibility to OCII natiClnlll security. lhey're not goilg to be able to do that. lhey'N feellhat inmecfoately, 

Second, ....-civiiiail wodcfOI"Ce. As you l<now, 011" Q'vilian world'orca Is about 800,000 strong. Those people, too, are ded~ad to the defense minion. 

They live a/IOverthecoun(ry, whlct1 J remOld you, 86 patcaoloflhem llveCOFnple!elyoutsldelheWashlngiOII81"88; 86peroanl F~perc:enl of !hem are 

veterans. So lhey're dedil;:a!ad to the mission, too. And aa the year goes on, o'TIIl!l)l oflh81l) will be .ubjed to fu1ough. 

Third, and linally, the eontractorwafd'orce that depends on us, arKI we In tum dapeod on lham. Wfl- we don't make anythl1g hwe n tha Pentagon. 

So we depend t.pon the hllustrlal ba~~a to make our weapons systems, which, &econd only to our people, what make ua, as tha Secre!ary Hagel ..,ld, the 

graat8111 ml~ary n the wotl<t 

Rameml>er. we have to find $46 billion - $46 billion- bGtwoo'l now a:nd the end ollh& )'<1<11". Alld- and the civilian and miRa'y workforce. par se. will 

only provide of 1hoH savings- ev&ll if we do drastic lhloos there- a few biHicln doibn. Th& rest d 1ha! will atlectlh& eontradors. 

So ell three of !hose populations upon whom wu depend, lh& etf&c:ls will be sericlull and Immediate. 

a: The -In your view, haw inaoy of lhaselnillal cuta will have l=tlng ilfr&e~s !hat willric:kla oo and be feH In the y&a"!l ahead? 

DR. CARTER: Tha!'a & good question. 

Q: 'Mil reacfnaas- or l it's no! lmmB<fiaca, how soon unt~ the Q.Jislha:t wiU Impact readiness for years to come? 

DR. CARTER: Irs a good question. Dnl;e again. ;, lhlus iruwery D1h« area, we're doing everything we <;an to millmlza lasHng damage. But you 

can't eliminate it. Let me give you two examples right away. 

'M1en you can't afford to b&gin oveffi&ul or malntenanc:a ot a ship and you deftlr !hat mai1tena-.ce, wh;ot that means - 01:1" shipyardS haY& !hair- their 

plarn!d malntenonoe planned out heal- heal to toe through many years. And so oroca yt:xlva a-aated a gap this yearlhat QBp propogatas Into lh& future. 

Anon- ex~mpla. 1- 1 explained lhatlha Air F«ca wasn't going to bo abis to efl'on:l to have mMy of th& pilots In combat aircraft- Ar Foraltm!n n 

th& latter part af the year. Well, If you atop training fOf a while and )'OU're 11 combat plio!, lh&n you'd lose your IBI!ng &'ld eventiJ8Ily can't fly at all. Because...., 

can't sllcw you to fly if you can111y oafaly. So you not only can't fiji oafely, you obv!owlly canl try p-oficiently if you canl even fly aal"aly. · 

Then you have to go back to lh& long building bac!c process ol geHing )tiiOX readlna8s back. 

So this Is not samethilg lhlll, even If It's tempoouy -and the oecretary axplalned that e\181)'1lody hopes lhatln -In 10m& WBf both eequesl« and !h& 

problems or &xparlencas (inaudible) essocioled with a OXInllnulng resolution will be resolved 1lwugh leglslaUon and a - a l"'llff budget deal of soma kh;l. 

But even wera lha! to oecu- soma months from now, !hera would be lasU-Ig damage from this. rrs very serious. 

Q: ('"'audible), ABC News. 

Of all ol the cuta that you 8(1(1 potentially oomlng down the pipelim. what gives the Pentagon tho gr&atest pausa? 

And can you taU us at midnight today what era lh& spedffc thraa!a to th& Pentagon that you feet- the cuts that you could be S(l(llng i'nmedllltely right 

et midnight tonight? 

DR. CARTER: The -right at miallght lonlght Slid then bulding. as I aaid, tlwJgh th& days and weeks and months into the future. we will begin 

curbilg' !raining fOf units. 

So let me just lake that 9XIII!Iple and 15011 of play that out. IMlat does that mean for naUonal seruity? 'Miat it means iS !hat as the - u th& year goes 

on, apart from Afghanistan, apart from .....aear dllterreoca through two mlsaions"" are l1rictly ~. lh& madlness of lha other ..-.119 to respond to other 

conllngendes will gradually decline. Thai's not aafa. And thai wa're 11yr.g to minimize that In every way we possibly ean. 

B<..C reduced raedinass Is a serious matter. As- as the o:hlefs have emphaslzed and aalhe SBa"8tay emphasized. 

a: r.-urUdibia) do you have any- do you havell'ly ooocemsthat the lac:k cJ any dear Impact on national secuity, short ol something obviOUS and 

tangible, will make people lhilk !he Pentagon can s"urW absab thesa cu!s? 

ArvJ (Inaudible) a lot of these thinQ!I ara kind d <!own the R>ad. They'ru - you know, they're -lhatre "'people wm be less ready, they'll be lass 

capabla. But~ might not be something obvious. Does !hal c:oncem you that ij mlgnt not be rang/b.le enough to really 80Und alarms with th&American pubic? 

DR. CARTER: Well, wa have been trying now fot 16 m~ to SOLnd !he alarm about secroostrBUon. We're describing to you In all the detail that we 

<;an how each and every paa1 of this. arnerprise will be alfacted advoolely -the people, the weapons programs, raadinflss. 

We're not going to taka ectiotls that are WVleoessary just to do something, to use y001word, "obvious.• But an this Is goOlg robe abundantly obvillllS 

star11na tomorrow and building through lha year. Alld I think people when li!GY -those who do not apPfBCiate how serious this Is. as !h& year go.,. on, n wii ' 

be <.nmistl!kabia. TWs rs ilo15Ublle. This Is an abrup~ sl!riws a.rblng of ac:tMty in each and every one o1 ooxkey ca!egories of activity In the Department or 

DefenJ&. rrs not subUe. 

(CROSSTAlK) 

C: Thank you ve<y much. 

http://www.defense.gov/transcripts/transcript.aspx?transcriptid~5196 8/14/2013 

175 DCMA Administrative Record for FY 2013 Furlough Appeals
.......-v ... "' ... '"'""·ovv l'(..,W1:) lHw:s.,;npl; uvu .t'ress tsnenng on :Sequestration from the Pentagon Page 4 of5 

There's a contrarian narra~ve out there_ rm sure y<>u'VB heard il rd (inaudible) to hear )'O.Jl"ras~se. II. says !he war In Iraq Is over. The winding 

down in Afgh..,istan; AJ Oaeda cantral is dimlnish&d; we're nO! in a nuclear slandotl with Russia; China's a competitor, n<>l an enemy. 

So even if we slipulate sequester is a clomsY tool why can'! and why shouldn't this department be forced to operata on less after 10 years of so much 

money coming you- way? 

DR. CARTER: Well, first of al~ beolnning bad< a year ago, the department embatl<ed "" S487 billion in defeme cuts, exactly in accordance with what 

you just said. That In fact buill. upon $300 bilUon or so !hal SBCIBlal)' Gates had beQun beck in the s<>-ea~ted "Bffociency Wlitiative." So we understand that as 

the wsrs in Iraq and Afllhanlstan wind down, !hat our overall budget authority will go down and that will make a contribution to - to de!IC~ reduction. The- but 

sequestration Is a different matter. lt Is arbitrary. It is alnJpl And on top of sequestration, we have a continuing resolution in force which creates ils own sal of 

problems, I won't go Into, but in soma categories are jll$1as serious. 

So. the net 0( this is, liS I described, something that Is abrupt. Irs delelerlovs. Irs a Va/Y real detriment to defense, We Should only get the money that 

we deserve and that lhe nation needs. We understand that, and that is 1M principle upon which buill the new strategy last year. And that's right, and the 

secreta!)' alluded to that. 

This country's tuming a strateg<: ccmer, and lhars the broader poirll, I think, that you're- you're making, Tom. We're coming out of the era of Iraq 

and Afghanistan. We're trying to address the natlollal illlWiily problems !hat ara goirlg to define !his country's fu!...-e and this world'• Mura. And we're 

prepllted to do !hal 

And we also understand that we're going to ha'Ye leas resources th11r1 we did in that laSt decade. All of that is understood. This is a different matter, 

This is something that is n<>t mW'Iagefla~y or, from a natiOM! secuity point of view, prode(IL 

Q; Mr. Secretary, you mentioned before how the civilian WOO<force has a minion with the department also. 

DR. CARTER: rm sorry- the ... 

a: The civilian workfoica has a mission. 

DR CARTER: Yes, indeed. 

Q: And feels they have the mission. 'Mull do vou say to a GS-5 or somebody contemplating a career- a civilian catB<!r with the military (inaudible). 

Do yO<J ~till think it's a good Idea, given !he uncertelnty that this causes? 

DR CARTER: Well, 1 mean, we're reaiO&tic. We-"'-' civilians 1'1110 make important contributions to defense, clhelwise they wouldn' be pert of tha 

defiii1S8 a~tablishmeot. As t explained, 44 percant. of them are vt!ll!fans. They do real things that am really lmportarTt to us. 

And lhey've h&d their pay frozen tor )'BWS. Now, they're subject to lurlcugh. And as I talk to- end you say, ''why woold anybody jcHn our ranks under 

those clrcum&tances." And the reason is -the reason you'd want il to be, they joil with us, and I hope the)"ll sUck with us, because of mO&slon, becausa 

they're comm~tad to what we do, wh'=h is defend the country and help to make a beHer world. 

Thars why theY do il 

(CROSSTALK) 

DR CARTER; Thank you all Vl!fy much. 

0: Thank you. 

~ Pnnter-mand!y Yert<oo I~ Email A CoPY 

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176 DCMA Administrative Record for FY 2013 Furlough Appeals