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Retirement Planning Assistance – Finding Help (2025 Update)

Posted on Thursday, 17th July 2025 by

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Please forward this to others needing retirement planning assistance.

Many federal employees are actively considering retirement today due to early, regular, and deferred options that are now or soon will be available as downsizing initiatives continue throughout the federal sector.

The reconciliation bill includes funding for the major reorganizations, reductions in Force (RIF), and relocations that will result from shedding 10 percent or more of the total federal civilian workforce. Now more than ever, those affected are seeking guidance on how to proceed and protect the benefits that have accrued during their careers.

Finding Your Way

Those planning their retirement and annuitants require accessible resources tailored to their specific situation.

It’s often frustrating and challenging to find competent help. There are many variables to what initially might seem like an obvious resolution; it makes sense to seek out clarifications. There are limits to what OPM can provide.

Retirement planning is, in itself, a complex process with numerous avenues to explore. Fortunately, help is available; what service you require depends on the complexity of the issues and the level of assistance you personally need. Please forward this to others needing retirement planning assistance.

LEVELS OF ASSISTANCE

  • General Assistance
  • Comprehensive Guidance
  • One-on-One Counseling / Assistance

GENERAL ASSISTANCE

Retirement Planning Seminars

Contact your HR department to sign up for a retirement planning seminar. They cover FERS and CSRS employees (including Special provisions) and may be offered in Full or Half-day sessions. The information is generally divided into seven key areas:

  • CSRS or FERS retirement annuity
  • Thrift Savings Plan (TSP)
  • Voluntary Contribution Plan (VCP) – CSRS and CSRS Offsets only
  • Federal Employees Group Life Insurance (FEGLI)
  • Social Security
  • Federal Employees Health Benefits (FEHB)
  • Federal Employees Dental and Vision Insurance Program (FEDVIP) and disability programs

OPM

The Office of Personnel Management (OPM) serves as the HR department for the federal government, administering the retirement benefits program. Active federal employees can research various aspects of retirement on OPM’s site. However, federal employees must contact their agency’s HR office to initiate the process. OPM has helpful retirement planning tools and guides that all should review and use when exploring their options:

OPM services the federal retirement community. If you are an annuitant (retiree), call or use their online services portal to obtain current benefit information, related documents, and payment statements online if registered for their service.

It’s not easy getting through to them by phone, and when you do, expect long wait times. OPM is the only entity that can effect desired changes or update your records.

Federal employees with retirement questions should contact their HR department; OPM only services annuitants and survivors. Your HR department will explain your benefit options and arrange for you to attend a retirement seminar.

COMPREHENSIVE GUIDANCE

Federal Employee’s Retirement Planning Guide (www.federalretirement.net)

I launched this site in 2004 when I was planning my retirement. It is designed to help federal employees and retirees find the information they need to make informed decisions about their benefits and retirement.

A site visitor commented, “I spent 3 hours on the web looking for answers to questions concerning federal retirement. After a Google search yielded your address, it took only 20 minutes to find all the answers I needed. Thank you!!!”

How to Find Essential Retirement and Benefits Information on This Site

Abundant retirement planning guidance is compiled from a multitude of federal agencies: OPM, Social Security, Medicare, TSP, the Department of Labor, and others. Use the main menus and search box at the top of each page to find benefit clarifications, financial planning guidance, FERS / CSRS eligibility determination, annuity estimates, and suggestions that you won’t find elsewhere. The related blog and weekly email newsletter offer advice on current topics of interest.

Federal Employee’s Retirement Planning Software (https://fedretiresoftware.com/)

This easy-to-use and reasonably priced software is uniquely designed for federal employees (full-time, regular CSRS and FERS) to calculate their federal benefits, from start to finish, throughout retirement. You can also add income and/or expenses from other sources.

This calculator is used by tens of thousands of federal employees as well as Federal HR departments to make informed retirement planning decisions. Check out their Sample Report to get a better understanding of how comprehensive their calculator is for federal employees planning their exit.

ONE-ON-ONE COUNSELING / ASSISTANCE

Often, individuals require expert assistance to address complex issues and make informed decisions about what is best for their situation. A professional federal benefits consultant can address your concerns and answer any questions that you may have.

Here is a list of those you can contact to help you address your concerns when the research you’ve done hasn’t provided an answer.

Pensioned Americans Retirement Company (PARCO)

This easy-to-use, free platform enables all Federal Employees (FERS, CSRS, Special FERS, and FSPS) to view all their benefits and optimize their federal retirement. PARCO’s Platform is what I wish existed when I was planning for retirement, and it is used by thousands of FERS and CSRS employees across the country and around the world.

Their team comprises the best federal fiduciary retirement experts who will help you maximize your pension and the benefits that accompany retirement. Their platform guides you through the process step by step.

Federal employees complete their online profile, and PARCO evaluates where you are and what you may need to do to achieve your retirement goals. They put you in touch with specialists who can address your concerns and recommend a personalized path to keep you on track.

 

Retire Federal

This consulting firm is owned by Tammy Flanagan, a federal benefits expert who has been assisting feds since her days of employment with the Federal Bureau of Investigation. She and her staff of experienced counselors offer invaluable fee-for-service personal consulting for civilian federal employees and annuitants, covering pre-retirement preparation to post-retirement decisions and events.

Their staff will assist you with a thorough review of your pre-retirement tasks and help you determine whether to enroll in Medicare Part B and which FEHB plan will best coordinate with your situation. They can address your concerns, answer questions, recommend options, provide details as to why one path is preferred over another, and put your mind at ease.

Consultant – Divorce Related Issues for Federal Employees

Ann Ozuna is a retired Personnel Management Specialist.  She founded Personnel Solutions Federal Benefits Counseling upon retirement from federal service in 1996. In addition to her 25-year federal personnel career, she holds an MBA from Gonzaga University and the Senior Professional in Human Resources (SPHR) and Chartered Federal Employee Benefits Consultant (ChFEBC) designations. She provides consulting services for federal employees facing divorce and attorneys working with federal clients.

If you need answers to retirement questions or don’t know what options are best for you and your family, use the resources listed above or other reputable services.

Helpful Retirement Planning Tools

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Sign up for this Free Service to get started.

Disclaimer: The information provided may not cover all aspects of unique or special circumstances.  Federal regulations, medical procedures, investment, and benefit information are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance, including OPM’s retirement center.

Over time, various dynamic economic factors relied upon as a basis for this article may change. The information contained herein should not be considered investment advice and may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult a financial, medical, or human resource professional where appropriate. Neither the publisher nor the author shall be liable for any loss or other commercial damages, including but not limited to special, incidental, consequential, or other damages.

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Bits and Pieces – Updates, and Subscriber Feedback

Posted on Friday, 11th July 2025 by

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The Department of Veterans Affairs announced on July 7, 2025, that it’s on pace to reduce the total number of VA staff by nearly 30,000 employees by the end of the fiscal year. Employee reductions through the federal hiring freeze, deferred resignations, retirements, and normal attrition have eliminated the need for a RIF.

During President Clinton’s term, he reduced the federal workforce by 400,000, with most of the staffing reductions achieved through normal attrition, the Voluntary Early Retirement Authority (VERA), often accompanied by a $25,000 Voluntary Separation Incentive Payment (VSIP), and by not filling non-critical staffing vacancies.

I believe much of the same will account for the majority of downsizing initiatives by the new administration, considering they also offered deferred resignations initially with almost 8 months of severance pay.  Other agencies will surely follow suit to avoid RIFs.

OPM’s Retirement Application (ORA) Portal Clarification

Paul, a site visitor who recently retired, sent clarification on accessing OPM’s portal using a private email address.

In my ORA article, I mentioned that only those with a .gov email address can access the portal.  Those who accepted a deferred resignation under the Fork in the Road program had no access to government resources or agency email accounts.

The former employee’s Human Resources office must submit their non-government email address, which they will use to complete their retirement application, to the portal. This email address must match the one provided by the employee to HR.

The separating employee then logs into the ORA portal using that email address via “Login.gov”.  Paul completed all required steps in the ORA portal using his personal Gmail address with no issues.

Paul advised that you can use a private non-government email address if it is “pre-authorized” by HR.

New Car Interest Deduction

This new deduction is not only beneficial for many new car purchases but also benefits American-made cars and foreign models assembled in the United States. The One Big Beautiful Bill Act allows auto loan interest deductions of up to $10,000 per year for interest paid on a qualifying auto loan, good news for many but not all.

Fortunately, this tax break starts with purchases made in 2025 and runs through 2028, and you don’t have to itemize to claim the deduction.

Qualifying Criteria

  • New cars must be assembled in the United States, excluding many imports including popular Toyota, Nissan, and Honda models.
  • The deduction is limited to $10,000 per year and is eliminated for individuals earning more than $100,000 or couples making over $200,000. This will exclude many households.
  • The deduction applies to cars purchased after December 31, 2024, and is limited to vehicles assembled in the U.S.
  • This is a temporary tax break, available starting this year and ending in 2028. These dates could be extended when they run out by the new Congress.
  • ATVs, trailers, and campers wouldn’t be eligible.

The Big Beauty Bill Act ends federal tax incentives for electric vehicles. It also reduces penalties for automakers that violate fuel efficiency standards.

No Taxes on Social Security Clarification

I received several comments about the article I wrote on this subject. A newsletter subscriber commented, “I believe your most recent article, ‘Social Security Tax Relief for Millions of Senior Citizens, ‘ is misleading. The bill does not contain any provisions to eliminate or even reduce taxes on Social Security. What it does do is reduce some people’s taxes through a new temporary $6,000 deduction for about 24% of seniors.”

He further states, “Social Security in a message many labeled as partisan, said the legislation included a provision that eliminates federal income taxes on Social Security benefits for most beneficiaries”. You parroted that message, yet it bears repeating that the bill does not contain any provisions to eliminate or even reduce taxes on Social Security.”

He referenced several articles from the Washington Post, CBS News, and The Hill.




My Reply

The Senate and House Parliamentarians didn’t allow changes to the Social Security tax code in the reconciliation bill. Hence, the House and Senate worked around that and developed a senior deduction that provided a similar result, fewer taxes for many seniors.

The bill provides relief in a way that could be included in the bill. The House only approved a $4,000 deduction, and the Senate increased it to $6,000. This bill, along with the new senior deduction, will be a huge help to many. The partisan articles you mention left out these details and didn’t credit Congress for what they did accomplish, tax relief for seniors.

I generally use source documents for my research; for this article, I used the One Big Beautiful Bill Act,  Social Security’s website, and the White House press release. I don’t copy other columnists’ work; instead, I conduct my research. When I do use quotes from others, I list the source often with a link to the referenced document.

The President promised relief on Social Security taxes during his re-election campaign, and the House and Senate approved this workaround to provide relief to millions of Americans.

Even Axios, which is considered a liberal news outlet, said in a recent article, “Trump promised to eliminate taxes on Social Security income. Lawmakers couldn’t pull that off entirely, given the constraints of passing a reconciliation bill and changing Social Security law. This break comes close.”

The End Result

I want to thank all those who subscribe to my newsletter, read my blog, and visit our Federal Employees Retirement Planning site. Your input is invaluable, and I appreciate your constructive feedback; it adds clarity to often-confusing and misunderstood subjects. Please keep your input coming.

Helpful Retirement Planning Tools

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Disclaimer: The information provided may not cover all aspects of unique or special circumstances.  Federal regulations, medical procedures, investment information, and benefit details are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance, including OPM’s retirement center.

Over time, various dynamic economic factors relied upon as a basis for this article may change. The information contained herein may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult a financial, medical, or human resource professional where appropriate. Neither the publisher nor the author shall be liable for any loss or other commercial damages, including but not limited to special, incidental, consequential, or other damages.

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Social Security Tax Relief for Millions of Senior Citizens

Posted on Friday, 4th July 2025 by

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The reconciliation bill HR-1, passed by Congress and signed by the President on Independence Day, ensures that nearly 90% of Social Security beneficiaries will no longer pay federal income taxes on their benefits. This bill provides meaningful and immediate relief to millions of seniors.

Social Security Commissioner Frank Bisignano recently stated, “This is a historic step forward for America’s seniors. For nearly 90 years, Social Security has been a cornerstone of economic security for older Americans. By significantly reducing the tax burden on benefits, this legislation reaffirms President Trump’s promise to protect Social Security and helps ensure that seniors can better enjoy the retirement they’ve earned.”

The new law includes a provision that eliminates federal income taxes on Social Security benefits for most beneficiaries, providing relief to individuals and couples. Additionally, it provides an enhanced deduction for taxpayers aged 65 and older, ensuring that retirees can retain a greater portion of their earnings.

 

Social Security Taxation

According to a White House memo issued July 1, 2025, “88% of all seniors who receive Social Security will pay NO TAX on their Social Security benefits, according to an analysis from the Council of Economic Advisers.”

  • A senior who files as a single taxpayer and receives the current average retirement benefit (approx. $24,000) will see deductions that exceed their taxable Social Security income.
  • Married seniors who both receive the average $24,000 Social Security income — a total of $48,000 in annual income — will also see deductions that exceed their taxable Social Security income.

New Standard Senior Deductions

The new Senior Deductions, as noted in the following chart, will either eliminate or significantly reduce the taxes paid on our Social Security earnings. Married seniors will receive a $12,000 deduction, which compensates for the majority of any Social Security taxes they may be required to pay.

Before the passing of this bill, just over half of all Social Security recipients paid taxes on up to 85 percent of their Social Security benefits because their income exceeded the established threshold for taxation. This deduction significantly offsets the taxes paid for many, but not all, due to income limitations.

Deduction Examples

First, consider the case of a senior filing as a single taxpayer receiving the current average retirement benefit of approximately $24,000 (per Social Security Administration data).  The maximum amount of Social Security included in taxable income is 85% of the benefit, which would be $20,400 in this case.

Under the reconciliation bill, in 2025 this senior would be entitled to $23,750 in deductions – the $15,750 standard deduction, the $2,000 current-law additional deduction, and the $6,000 new law senior deduction – meaning that the reconciliation bill would lead to deductions that exceed the senior’s taxable Social Security income.

Second, consider a married couple of seniors both receiving the average $24,000 Social Security income.  The couple will have a total of $48,000 in annual income, of which at most 85% is taxable ($40,800).  Under the bill, this couple would be entitled to deductions that exceed their taxable Social Security income.

Six One Way, Half A Dozen the Other

This deduction is how the administration achieved its goal of exempting Social Security from taxation. Instead of changing the tax laws, they established a new senior deduction that achieved the same thing to a degree. Some will still pay taxes, but most individuals will benefit from this new standard senior deduction.

Income limits apply. Singles with income under $75,000 and couples under $150,000 qualify for the full deduction and it phases out gradually and ends completely for singles earning over $175,000 and couples over $250,000.

This tax break is available from 2025 through 2028 and may be renewed by future legislation.




Helpful Retirement Planning Tools

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Disclaimer: The information provided may not cover all aspects of unique or special circumstances.  Federal regulations, medical procedures, investment, and benefit information are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance, including OPM’s retirement center.

Over time, various dynamic economic factors relied upon as a basis for this article may change. The information contained herein should not be considered investment advice and may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult a financial, medical, or human resource professional where appropriate. Neither the publisher nor the author shall be liable for any loss or other commercial damages, including but not limited to special, incidental, consequential, or other damages.

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Apply for Retirement on OPM’s Online Application Service

Posted on Friday, 27th June 2025 by

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Last week’s article announced the launch of OPM’s retirement application (ORA) service. The process mimics the paper application process. FERS employees must fill out the SF 3107 form, and CSRS employees must fill out the SF 2801 online. Only those with a .gov email address can access the new application portal.

 

 

I tried to log in using my AOL email address, and OPM replied with this notice: “It looks like you logged in with a personal email address. If you’re an HR or Payroll specialist, log back in with your .gov email address. Otherwise, we’re working on adding support for retirees. Check back soon!”

The login screen cautions, “First time here from retire.opm.gov? Your old retire.opm.gov username and password won’t work. Create a Login.gov account with the same email used previously.”

Your online applications are submitted to your agency’s HR department for processing. I suggest downloading and printing out the appropriate form for detailed guidance, including the four pages of instructions included with each form. They will also help you gather the required information and documents when completing your online submission. This will save you time when applying online.

Here are the form links:

Streamlined Service

Starting June 3, 2025, federal employees’ retirement applications must be submitted online through OPM’s new Online Retirement Portal. This system replaces paper-based submissions. For security purposes, this service is only available through your Login.gov account.

You only have to register once for a Login.gov ID, and then you can use it for all federal sites, including OPM’s Services Online and Social Security. You also have the option to log in using your government ID.

The one caveat is that you must use your official agency email address to enter this system. Federal employees must register again using their agency’s email address if you used a non-government email address to join other sites, such as Social Security.




Applying for Retirement

The application requires detailed information about the employee’s service history, retirement system (CSRS or FERS), benefit elections, and survivor annuity elections. When you are ready to retire, you will receive an email with instructions on completing your application using ORA. You will enter your information and complete the entire process online.

FREE Retirement Report and Analysis

Here are the steps required to use this service:

  1. Create or Link to your Login.gov Account:

If you don’t have a Login.gov account, follow this guidance to create one. This is separate from the OPM Services Online account, which lets annuitants (federal retirees or their spouses, ex-spouses, and children) manage their accounts online.

  1. Access the Retirement Application:

Go to the OPM Online Retirement Application portal.

  1. Complete Forms Online:

Fill out the required forms, including the primary retirement application forms (SF 2801 for CSRS or SF 3107 for FERS) and any supplemental forms.

  1. Collect Supporting Documents:

You must provide supporting documents, such as marriage certificates, divorce decrees, or military service records, as needed.

  1. Send the Application:

Once the application is complete, submit it electronically through the portal.

  1. Agency Review and Certification:

Your employing agency will review and certify your application, including completing the SF 3107-1 (FERS) or SF 2801-1 (CSRS), and forward it to OPM. They will contact you if additional information or clarification is needed, such as military service or benefit election questions.

  1. Follow up with your HR Department

After submitting your application, you should receive a confirmation of receipt via the email address you used for the submission. Call HR to confirm receipt if you don’t receive a timely response.

Join other federal workers on the FedWork Network.
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Stay Involved with the Process

Time will tell how efficient the new system is and whether or not it speeds up processing. OPM has provided training and support for agencies to utilize the new system. The key is for your HR department to have the same ability to fast-track and send your application electronically to OPM. They will need the staff to do this, just because it is online now, applications still require detailed reviews before sending them to OPM.

Issues around military service time often arise that the applicant and HR must resolve using the employee’s eOPF and other documentation. You should download your eOPF and review it for inconsistencies before submitting your application, especially when employed by different agencies, working part-time, or having military service to add to your annuity calculation.

Effective July 15, 2025, OPM will no longer accept paper retirement applications. Any paper submissions created on or after June 2, 2025, will be returned to the agency for digital resubmission.

when employees notify their HR office of their intent to retire, they will receive an email with detailed instructions for completing their application using ORA.

Helpful Retirement Planning Tools

 

Disclaimer: The information provided may not cover all aspects of unique or special circumstances.  Federal regulations, medical procedures, investment, and benefit information are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance, including OPM’s retirement center.

Over time, various dynamic economic factors relied upon as a basis for this article may change. This service is not affiliated with OPM or any federal entity. You should consult a financial, medical, or human resource professional where appropriate. Neither the publisher nor the author shall be liable for any loss or other commercial damages, including but not limited to special, incidental, consequential, or other damages.

 

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New Retirement Application Portal Launched

Posted on Friday, 20th June 2025 by

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The U.S. Office of Personnel Management (OPM) launched a new online portal for federal employees on June 3, 2025. This portal is a fully digital federal retirement system that streamlines the retirement application process for employees, HR professionals, and payroll offices.

Getting Started

FREE Retirement Report and Analysis

You must use Login.gov to set up a new account or to log in for existing users. If you aren’t familiar with Login.gov, review the guidance I published when they first required this extra security level for many federal websites.

OPM’s Goals

Users accessing the platform are presented with a streamlined entry point tailored to both agency partners and members of the public. This reinforces OPMʼs broader goal of transforming the retirement process into a faster, paperless, and easier-to-navigate system.

“This is what modern government should look like—responsive, efficient, and user-centered,” said Acting Director Charles Ezell. “With every update to this new portal, weʼre improving the retirement experience for millions of public servants whoʼve dedicated their careers to this country. This launch brings us closer to delivering the fully digital, 21st-century retirement system they deserve.”

End Notes

This is just one of the first steps to enhancing government automation; many more are to come. Other initiatives coincide with this effort, such as the launch of the electronic Official Personnel Folder (eOPF) platform on June 5th.

Automation has come a long way since I started working in government. I’ve been fascinated with computers from an early age, starting with the VIC 20 and Commodore 64 and everything thereafter. My 1982 college degree was in microcomputer technology.

Significant Changes Impacting Federal Employees

When I worked at our Sector Office in Pittsburgh, PA, in the early 1980s, I was the only one with a home computer; there were only IBM Selectric typewriters at work. I would produce staff reports on my Commodore 64 and bring them to work. Our manager occasionally sent me home to work on special computer and spreadsheet projects he submitted to the region—a sea change from today.

Many early automation efforts hit brick walls and faded into the sunset. Today, with AI and all of the computer power, everything is or will soon be automated. Our parents won’t recognize what lies ahead these next few years, and I’ll also be amazed, from robots taking care of basic tasks to self-driving cars, robo-taxis, and everything in between, with few exceptions.

Is this the new golden age, or have we gone too far and fast without evaluating the impact on the billions of people still left in the equation?

Automation has advanced so much that what was impossible just a short time ago is commonplace.

Helpful Retirement Planning Tools

Join other federal workers on the FedWork Network.
Sign up for this Free Service to get started.

Disclaimer: The information provided may not cover all aspects of unique or special circumstances.  Federal regulations, medical procedures, investment, and benefit information are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance, including OPM’s retirement center.

Over time, various dynamic economic factors relied upon as a basis for this article may change. This service is not affiliated with OPM or any federal entity. You should consult a financial, medical, or human resource professional where appropriate. Neither the publisher nor the author shall be liable for any loss or other commercial damages, including but not limited to special, incidental, consequential, or other damages.

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2026 COLA Estimates & Retirement Processing Update

Posted on Thursday, 12th June 2025 by

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This year’s 2.5% COLA for Social Security and the Civil Service Retirement System (CSRS) and 2.0% for Federal Employees Retirement System (FERS) decreased from the 2024 COLA of 3.2% % CSRS and 3% FERS.

The 2023 COLA was the highest in over 40 years at 8.8% for CSRS and 7.7% for FERS employees. Even though costs remain high for many segments of the economy, inflation is moderating as noted in the following charts.

May 2025 CPI Chart

I published the following 2024 CPI inflation chart in last year’s COLA update article; you can see the significant drop in inflation year to year, especially in the energy sector.

May 2024 CPI Chart

According to the Bureau of Labor Statistics, the costs of all items increased by around 2.4% in the current 12-month period ending in May, compared to 3.3% last year. The one area that didn’t show improvement year to year is food; it increased to almost 3 percent, and we all can attest to that fact: food prices at the grocery store and restaurant meals are still through the roof.

Our real estate taxes continued their upward climb again this year. Allegheny County real estate taxes increased 36% in just one year. Gasoline in the Pittsburgh area averages $3.34 a gallon, but at Sam’s Club or Costco, it is $3.15 a gallon, which is still one of the major catalysts driving up the costs of everything we use.

2026 COLA Estimated Increase

The 2026 COLA is calculated over the 12-month period from October 1, 2024, through September 30, 2025. The next three months’ CPI data will determine the amount of the next COLA, and it depends on the reported monthly inflation rates for these months, the last three months of this fiscal year.

Wilbert J Morell III, a retired Navy Engineering Project manager, tracks these statistics monthly and generates a comprehensive report on our COLAs under specific scenarios.

His research concludes that if there aren’t significant changes to the last quarter’s CPI, we can expect the following 2026 COLAs:

  • 2026 Social Security COLA: 2.6%
  • 2026 CSRS COLA: 2.6%
  • 2026 FERS COLA: 2.0%

As of June 11, 2025, the Senior Citizens League (TSCL) projects the Social Security Cost-of-Living Adjustment (COLA) for 2026 to be 2.5%. This is an increase from their previous forecast of 2.4%.

Review all COLAs from 1999 to the present with detail on how they are prorated for FERS employees and annuitants.

Retirement Processing Delays

As of May 2025, OPM has an inventory of over 24,000 claims to process. They received 15,040 claims in May and processed 9,739.

The good news is that OPM’s retirement claims processing times have steadily declined since 2022, from over 90 days to 52 days today. Now that retirement applications are submitted online, the days it takes to process a claim should be reduced further.

Significant Changes Impacting Federal Employees

Common Mistakes That Cause Delays

Any mistakes or omissions in your retirement application often cause delays. Common errors include:

  • Unsigned forms, online forms require an electronic signature (Guidance Provided)
  • Check that all forms are complete before submitting them.
  • Provide the correct contact information, not your work email and phone numbers.
  • Incomplete or incorrect SF 2818 FEGLI (Continuation of Life Insurance)
  • Missing health benefit information
  • Missing or incorrect marriage and spousal consent information
  • Missing or incorrect military service documentation

Preparing for Retirement, Start NOW!

The following list of articles will help anyone planning their exit to take the appropriate actions necessary to submit a timely retirement application:

Summary

The 2026 projected 2.6% COLA is much better than the ZERO COLAs we received in 2010, 2011, and 2016. Yet, the cost-of-living adjustment is based on the previous year’s statistics; we start at a yearly loss. My annuity has almost doubled since I retired 20 years ago. Many private-sector annuities aren’t COLA-adjusted, and private-sector retirees often find themselves hard-pressed to make ends meet 10 or 20 years after retirement.

Regarding retirement planning, it’s best to start long before you walk out the door. I started five years before my target date and attended several agency-sponsored retirement planning seminars that created more questions than answers. That’s why I developed and launched the Federal Employees Retirement Planning Guide in 2004.

One of our site visitors stated, “I spent 3 hours on the web looking for answers to questions concerning federal retirement. After a Google search yielded your address, it took only 20 minutes to find all of my answers! Thank you!!”

If you are contemplating retirement, start researching your benefit options early. There are many decisions to make, and most are irreversible after you leave. One example is life insurance. Several low-cost options are worth carrying into retirement, even if you think the coverage isn’t needed now.

Helpful Retirement Planning Tools

Join other federal workers on the FedWork Network.
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Disclaimer: The information provided may not cover all aspects of unique or special circumstances.  Federal regulations, medical procedures, investment, and benefit information are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance, including OPM’s retirement center.

Over time, various dynamic economic factors relied upon as a basis for this article may change. The information contained herein should not be considered investment advice and may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult a financial, medical, or human resource professional where appropriate. Neither the publisher nor the author shall be liable for any loss or other commercial damages, including but not limited to special, incidental, consequential, or other damages.

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Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

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Electronic Official Personnel Folder Platform Launched

Posted on Thursday, 5th June 2025 by

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OPM announced on June 3rd the availability of their new electronic Official Personnel Folder (eOPF) platform. This new state-of-the-art cloud-based system replaces the legacy Official Personnel Folder (OPF).

When I retired, there wasn’t an eOPF to download. I requested my HR office to send a legacy hard copy file to my office, and was allowed to review it and make copies of documents I wished to keep.

Modernization Initiative

OPM recently completed migrating more than 400 million files and over five million user accounts, a significant milestone in modernizing federal human resources systems. This, along with their recent announcement that all retirement applications will now be submitted online instead of the archaic paper-copy version, is a tribute to this modernization effort.

Unfortunately, this doesn’t apply to those who retired before automation took hold and eOPFs first became available. Retirees under the legacy system who wish to review their records must contact the records center.

eOPF Enhancements

Acting Director Chuck Ezell said. “The new eOPF platform improves accessibility and usability while also setting a new standard for efficiency and innovation in federal human resources management.” The upgrade includes:

  • Files can be viewed directly in the platform without downloading PDFs.
  • A cleaner, more intuitive interface for seamless access to personnel records.
  • Streamlined options for printing and downloading documents.




Records Center Contact

If you are a former Federal employee, you can request a copy of your most recent SF-50, or a copy of your complete Official Personnel Folder, by contacting the:

National Archives and Records Administration
National Personnel Records Center (civilian)
1411 Boulder Blvd, Valmeyer, IL 62295.

Federal law [5 USC 552a(b)] requires that all requests for records and information be submitted in writing. Each request must be hand-signed (in cursive) and dated (within the last year). You must identify the documents or information needed and explain the purpose of your request.

Certain basic information is needed to locate civilian personnel records and to respond to your request, including:

  • Full name
  • Date of birth
  • Social security number
  • Last employing agency (including duty station) and approximate date(s) of the employment (for former Federal employees).
  • Signature

The National Personnel Records Center provides these fax numbers for requests: 618-496-4903 or 4904.

End Notes

OPM continues modernization efforts, and its website has improved to provide retirees more information and services. These are just a few of the helpful additions that were added over the past year or so:

When I retired on December 31, 2004, OPM’s website was in its infancy and not user-friendly. That’s why I published my Retirement Planning website the year I retired. I literally couldn’t find the information I needed to make an informed decision about so many of our benefits.

Fortunately, this has changed dramatically over the past decade, and OPM’s online information continues to improve. My Retirement Planning website complements OPM’s site. It provides an insider’s perspective on federal retirement, with helpful tips and advice on the steps needed to transition from an active employee to a satisfied federal annuitant.

Helpful Retirement Planning Tools

Disclaimer: The information provided may not cover all aspects of unique or special circumstances.  Federal regulations, medical procedures, investment, and benefit information are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance, including OPM’s retirement center.

Over time, various dynamic economic factors relied upon as a basis for this article may change. The information contained herein should not be considered investment advice and may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult a financial, medical, or human resource professional where appropriate. Neither the publisher nor the author shall be liable for any loss or other commercial damages, including but not limited to special, incidental, consequential, or other damages.

 

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Electronic Retirement Application Submissions

Posted on Friday, 30th May 2025 by

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Finally, after decades of inaction on streamlining the retirement application process, the Department of Government Efficiency (DOGE) started the ball rolling. Beginning June 2, 2025, all agencies must submit retirement applications electronically to OPM.

The Presidential Memorandum entitled “Establishing and Implementing the President’s Department of Government Efficiency” included modernizing Federal technology; this initiative is long overdue.

 

Working Behind the Scenes

DOGE has been working closely with the Retirement Services team at OPM. Their goal is to create an entirely digital process that dramatically reduces the time it takes to process retirement applications, providing federal employees a more efficient and improved experience.

Over the past twelve months, the average monthly processing time has ranged from 73 days to a low of 49 days. With this new automated process, these times could be reduced substantially. Another advantage would be expediting surviving spouses’ benefits; it can take over 6 months for a surviving spouse to start collecting their designated survivor annuity!

Outdated Automation

This is a systemic problem throughout the federal sector, from outdated air traffic control systems to the Treasury Department and virtually every other agency. You would think our Treasury Department would have the latest and greatest automation, certainly on par with major banks. Think again.

I requested the Treasury transfer my online savings bonds to our joint trust account on February 20, 2025. They advised me that it could take up to a year to make this transfer, and transferring paper savings bonds to your online account can take almost as long.

The Treasury’s Response

Here is an excerpt from the email they sent concerning my transfer request:

The following transactions require at least 6 weeks of processing time if bonds and/or Treasury Direct accounts are in your name.

  • Cashing paper savings bonds where you are named on the bonds, and send in the bonds with your request.
  • Unlocking your Treasury Direct account or updating your banking information within that account
  • Converting your paper savings bonds into electronic format (in a Treasury Direct account)
  • Requests to search for lost, stolen, or missing savings bonds require at least 4 months to process.
  • Other paper savings bond transactions you are authorized to handle, but not in your name, require at least 6 weeks to process.
  • Other Treasury Direct requests, including trusts, may require 12 months or more to process.




Excessive Delays

I can’t imagine waiting six weeks to unlock your Treasury Direct account when Fidelity can unlock an account the same day.

Most financial institutions process many of these changes immediately or within the week. Their legal departments review trust documents before allowing the branch or brokerage house to open the new account.

Unlike all other financial institutions, Treasury Direct accounts don’t issue monthly or quarterly statements. If you have a Treasury Direct account, they advise you to print out your computer screens and keep them as evidence of ownership! This is archaic to say the least, and if a bank, brokerage service, or credit union didn’t send out statements, they would be fined by the government!

The Department of Government Efficiency team is accessing the Treasury Department system that controls trillions of dollars in federal payments to streamline and improve operational efficiency. Hopefully, delays like this will be resolved.

End Notes

I look forward to comparing retirement processing times using this new electronic application submission system. If processing times improve, we will know in several months. Many of the government’s automation systems are outdated and need modernization. Unfortunately, many contracts to upgrade agency software resulted in extensive delays and cost overruns and were never completed.

Helpful Retirement Planning Tools

Disclaimer: The information provided may not cover all aspects of unique or special circumstances.  Federal regulations, medical procedures, investment, and benefit information are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance, including OPM’s retirement center.

Over time, various dynamic economic factors relied upon as a basis for this article may change. The information contained herein should not be considered investment advice and may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult a financial, medical, or human resource professional where appropriate. Neither the publisher nor the author shall be liable for any loss or other commercial damages, including but not limited to special, incidental, consequential, or other damages.

 

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Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

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