The Impact of the Government Shutdown on Retirement Plans
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On Wednesday, October 1st, the government shut down after budget discussions failed to reach a resolution by the end of September. As a result, many regular government functions have been suspended, and a significant portion of staff have been furloughed.
For retirement plan sponsors, a primary concern is the continued operation of the Employee Benefits Security Administration (EBSA), the agency within the Department of Labor responsible for administering and regulating the Employee Retirement Income Security Act of 1974 (ERISA). During the shutdown, EBSA has suspended many of its operations and furloughed most of its staff, retaining only a small team to handle essential duties.
Our goal is to keep you updated on the most relevant aspects affecting your retirement plan, including the impact of the shutdown on government agencies and how closures or deadline delays could influence your plan.
What Remains Open or On Track
A key question for retirement plan sponsors is whether deadlines for Form 5500 filings will be affected. Currently, all critical requirements for retirement plans, including Form 5500 deadlines, remain unchanged during the shutdown. However, due to limited staffing, processing times may be slower than usual.
Defined benefit plan sponsors should also be aware that the Pension Benefits Guaranty Corporation (PBGC) remains open and operational, ensuring that employees continue to receive their pension benefits.
Closed or Delayed
Many non-essential government functions have been suspended. All regulatory and research activities are on hold, which may delay updates to provisions within SECURE 2.0. Routine Department of Labor investigations, audits, and enforcement actions have also ceased and will not resume until the government reopens.
Additionally, the announcement of Cost-of-Living Adjustments is likely to be delayed. The Social Security Administration was scheduled to announce the 2026 cost-of-living adjustments in October, but this will likely be postponed due to the shutdown, which will affect the release of 2026 contribution limits and other related limits.
Other services that help support plan sponsors, such as the EBSA customer support, will be unavailable during the shutdown. Customer support services provided by EBSA, including the EBSA hotline, will be unavailable during the shutdown.
Stay Informed
Most core functions of your retirement plan remain unchanged, and deadlines have not been extended so your plan should continue to operate under normal circumstances. While guidance, announcements, and operations are subject to delays due to reduced staffing, these delays are not expected to significantly affect your plan’s operation. It is important to stay informed about when the government will resume operations and to monitor any updates from The Department of Labor that may affect your business.
If you would like to learn more about how this government shutdown is impacting employers, check out this article, “The Federal Government is Shut Down: What Employers Need to Know.”
Investment advice offered through OneDigital Investment Advisors LLC
Sources:
PLANADVISOR, "DOL Relies on 'Contingency Plan' During US Government Shutdown"
PLANSPONSOR, "What to Expect if the US Government Shuts Down"
401k Specialists, "Government Shutdown Could Sidetrack 2026 Social Security COLA Announcment"