Avoid Retirement Processing Delays (Update)

UPDATED 9/1/2024

OPM, as of May 2024, has an inventory of just over 14,000 claims to process. They received 6,751 claims in May and processed 8,793. There is a backlog of 15,797 applications waiting to be processed as of jULY 2024.

It is now taking an average of 60 days to process retirement applications. Of the many cases processsed each year around 10 percent on average have errors that can significantly delay application processing. The employee must work with their HR office to confirm creditable service and review their application thoroughly before it is sent to OPM.

The Application Preocess

Use our Retirement Planning Guide to help you through the process. It should be noted that OPM can take six months or longer to process a retirement application if information is missing or problems are encountered. Federal employees must have sufficient cash available and be financially prepared when retiring to allow OPM to complete a final adjudication of their claim.

OPM indicates that annuitants will receive an interim payment of approximately 90% of their expected NET monthly payment, less federal income tax withholdings. NET payments equal what is remaining after deducting health care and life insurance premiums from the gross amount. I received an interim payment of 70% and my claim was processed in 90 days when I retired back in 2005. Retirees may receive interim payments for less than they anticipated due to a number of factors.

How to Reduce Processing Delays

To reduce processing delays, submit your application in advance and confirm that your Official Personnel Folder (OPF) is complete. Request a copy of your electronic OPF (eOFP) to keep with your retirement records after you leave federal service. If you submit your paperwork early, your personnel and payroll offices will be able to complete their action before your retirement date.

OPM reported that a number of factors cause reduced interim payments or prevent OPM from initiating interim payments. These factors include:

Court orders that are on file at OPM. Court orders can contribute to as much as a 50% reduction in interim payments. Check out our Divorce Forum for clarifications and informative articles on this subject.
Part time service
Unpaid military deposits
When a redeposit wasn’t paid for refunded service creditable towards disability retirement
Employees entitled to special retirements for LEO, FF, ATC or other special retirement programs
CSRS offset applicants with 90 days of or over the age of 62
Non-deduction service performed after 10/1/1982 creditable under CSRS where the deposit has not been paid in full
Deposits have not been paid for FERS creditable non-deduction service
VA part time direct medical solutions (DMS) physicians, including doctors, scientists, and surgeons
Refunded service creditable towards CSRS non-disability retirement ending on or after 3/1/1991 where the deposit has not been paid
Excess LWOP
Service that is unverified or missing
Where an insurable interest survivor election is made
When no survivor election is made
Receipt of military retired pay

Start Your Application Package Early

There are a number of actions to take long before you retire to expedite retirement application processing. If you work closely with your agency’s retirement coordinator to ensure your application is processed timely and accurate, the chance of delay is dramatically reduced.

Helpful Planning Tools

2020 GS Pay Scales
Retirement Planning For Federal Employees & Annuitant
Receive a FREE Retirement Planning Report
Financial Planning Guide
Budget Work Sheet
Medicare Guide
Social Security Guide
Master Retiree Contact List (Important contact numbers and information)
2020 Leave and Schedule Chart (Use this chart to set target retirement dates.)
Annuity Calculator (FREE Excel chart estimates annuity growth)

Disclaimer: Opinions expressed herein by the author are not an investment or benefit recommendation and are not meant to be relied upon in investment or benefit decisions. The author is not acting in an investment, tax, legal, benefit, or any other advisory capacity. This is not an investment or benefit research report. The author’s opinions expressed herein address only select aspects of various federal benefits and potential investment in securities of the TSP and companies mentioned and cannot be a substitute for comprehensive investment analysis. Any analysis presented herein is illustrative in nature, limited in scope, based on an incomplete set of information, and has limitations to its accuracy.

The author recommends that retirees, potential and existing investors conduct thorough investment and benefit research of their own, including detailed review of OPM guidance for benefit issues and for investments the companies’ SEC filings, and consult a qualified investment adviser. The information upon which this material is based was obtained from sources believed to be reliable, but has not been independently verified. Therefore, the author cannot guarantee its accuracy. Any opinions or estimates constitute the author’s best judgment as of the date of publication, and are subject to change without notice. The author explicitly disclaims any liability that may arise from the use of this material.

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Dennis Damp

Dennis V. Damp is an author, retired federal manager, business owner, career counselor and veteran. Damp is the author of 28 books, a recognized benefits expert, and a retired federal manager with 35 years’ service. Dennis has been a guest on hundreds of radio talk shows, CNN’s YOUR MONEY and the Lou Dobbs Cable TV shows, lectured at universities and colleges, produced Internet web sites and training videos, and has written hundreds of articles for national magazines and newspapers. His books have been featured in the Wall Street Journal, Washington Post, New York Times and U.S. News & World Report.

Dennis joined the Air Force in 1968 and spent over three years on active duty and an additional seven years with the Air National Guard. He was hired by the Department of Defense (DOD) after leaving active duty and transferred to the Federal Aviation Administration (FAA) in 1975. He spent the remainder of his career in various positions with the FAA. His last position was technical operations manager at the Pittsburgh International Airport’s air traffic control tower.