Q. If the federal government defaulted, would federal retirees receive their monthly annuity? I understand that federal retirees receive their monthly annuity if the federal government shuts down but didn’t know if the same applies for a government default.
A. If the government were to default, all bets are off. Regardless of how the decision-making process plays out of who gets paid and who doesn’t, eventually the government would be out of money. Then, no one would be paid.