Sequestration and annuity payments


Q. What happens to annuity payments to retirees when no budget is passed by Congress? Where does the funding come from for payments of federal retirees’ monthly annuity?

A. The money used to pay federal retiree annuities comes from the Civil Service Retirement and Disability Fund. According to the Office of Personnel Management, “Sequestration will not stop delivery of FERS and CSRS annuity checks. These monthly retirement benefits checks will continue to be issued.”


About Author

Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to

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