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Outdated Automation

This is a systemic problem throughout the federal sector, from outdated air traffic control systems to the Treasury Department and virtually every other agency.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.

 

Last 5 posts by Dennis Damp

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Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION | Comments (2)


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2 Responses to “Electronic Retirement Application Submissions”

  1. J Rayburn Says:
    May 30th, 2025 at 6:24 pm

    You’re so right on Treasury Direct. My dad passed away this March and I was a TOD (Transfer on Death) beneficiary on his 26 week T-bill that matured this May. I called in and was told it would take six months before I got the money. I will close my own Treasury Direct account as bills expire and buy them through Vanguard.

  2. Dennis Damp Says:
    May 31st, 2025 at 8:57 am

    Yes, just one more example of the inefficiency of the Treasury’s automation system. I should have mentioned in my article that I too buy treasuries now, especially long term notes, in my Fidelity brokerage account. I’m still waiting for them to move my online savings bonds to my trust account!

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