General Information on Sequestration and Furloughs

1. WHAT IS SEQUESTRATION?

• The term “sequestration” refers to the mandatory reduction in federal budgetary resources of all budget accounts that have not been exempted by statute. Under the Balanced Budget and Emergency Deficit Control Act of 1985, as amended by the Budget Control Act of 2011 and the American Taxpayer Relief Act of 2012, across-the-board reductions are scheduled to take place Mar. 1, 2013, unless legislation is enacted that avoids such reductions.

• DoD expects to receive $46 billion less in non-exempt accounts than it expected through the remainder of fiscal year 2013 which runs through Sep. 30, 2013.

• DoD has determined that planned furloughs of civilian employees will be required should sequestration occur.

• By law, sequestration will last 10 years and cut a total $1.2 trillion (half from defense, half from non-defense).

2. WHAT IS A FURLOUGH?

• A furlough places an employee in a temporary non-duty, non-pay status because of lack of work, reduction or lack of funds, or other non-disciplinary reason.

• Under the current circumstances, planned furloughs may be required due to the reduction in funding associated with sequestration.

• Extensive information is available at www.opm.gov/furlough/, click on “Guidance for Administrative Furloughs” and “Supplemental Guidance for Administrative Furloughs.”

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