OPM overwhelmed by incoming claims in October, this article looks at FERS retirement process as those ready to retire face potential delays in the federal retirement application timeline.
Federal Retirement Timeline for FERS after OPM Sees Flood of New Annuity Applications from Federal Workers
The Office of Personnel Management (OPM) recent experienced a surge of federal retirement applications in October 2025 impacted the federal retirement timeline for federal employees under the Federal Employees Retirement System (FERS). This also applies to those with a CSRS component, but the majority of federal workforce retiring currently are most likely applying to become a FERS annuitant. Nonetheless, the main aspects of this article apply to the processing time for retirement claims, whether it is a FERS or CSRS annuity.
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Understanding the Federal Retirement Process
The OPM pension process involves several steps, from submitting the retirement application (either through the FERS online retirement application or through the old paper-based retirement process for feds – the method you use will be determined by your agency’s payroll provider) to receiving the first annuity payment (both interim and in full). Understanding the roles of OPM, the individual agencies’ HR office, and the federal employee themselves is essential for effective planning. A single error can delay the process by a significant amount, so meet with a fed-expert retirement planner before submitting to ensure you’re not making a costly mistakes.
Overview of OPM and Its Role When You Retire from Federal Service
The Office of Personnel Management (OPM) oversees the entire retirement process for the federal government’s main pension system. Their retirement services encompass processing retirement paperwork, managing annuity payments, and administering other benefits like the Federal Employee Health Benefits (FEHB) program. OPM processes all retirement forms and makes the payments to retirees.
The Retirement Application Process for FERS
For federal employees under FERS, the pension application process involves submitting comprehensive documentation, including service history and retirement forms. The employee’s payroll office and the agency’s human resources department are key players in verifying the employee’s eligibility for retirement and calculating the final retirement payment amount for the FERS pension.
Key Terms for FERS Retirement Planning
What you should consider, or discuss with your financial planner, before submitting your application is processed:
- Annuity eligibility and retirement date considerations – review the age and years of service requirements, including past service like military time and redeposits. Make sure you’re getting the most out of the benefits you’re eligible to receive.
- Specifics about other income sources in retirement such as Social Security and TSP (Thrift Savings Plan)
- Understanding unused annual leave and the effect of unused sick leave.
- Premium withholdings for health and life insurance (FEHB + FEGLI)
- The minimum retirement age plays a critical role in determining eligibility for the FERS annuity supplement.
- Tax withholding information for both the interim and finalized annuity payments.
The average processing time can vary, influencing when retirees expect to receive their first payment. When it comes to your financial plan, do you have a solid plan in place or do you need to start planning? Explore the Services at PlanWell Financial.
Updated Federal Retirement Timeline: Longer Expected Timeframes for Retirement Applications
Currently, after October 2025, the anticipated timeline for federal retirement processing by OPM provides some insight into what to expect after separation. Specifically:
- A copy of the retirement application package, including the final SF 50, will be sent to the federal employee’s correspondence address approximately 2 to 3 weeks after separation.
- The annual leave lump sum payment for unused hours is expected to be issued within 12 to 14 weeks after separation.
- The OPM will issue the first interim payment of the civil service pension within 6 to 8 weeks after separation.
- The average process time, both annually and by monthly measures, sits at 79 days as of the end of last month – a significant increase compared to other other months. The final pension deposit will be released the first business day after the retirement claim is approved, and then it could take a few more business days before it will arrive in your bank account online.
This information allows those ready to retire to get a better idea of what to expect in the first year of retirement.
Adjustment of Expectations for New Retirees
Given the current backlog and extended processing time at the OPM, it’s essential for new retirees under FERS to adjust their expectations regarding the receipt of federal benefits. The increased retirement timeline means that annuity payments and other entitlements might take longer to materialize. New federal workers ready to retire should prepare for potential delays in the federal retirement process and plan their finances accordingly.
Ready to Retire? Preparing for Retirement as a Federal Employee
To ensure a smooth retirement process, federal employees should begin retirement planning well in advance of their intended retirement date. Gather all necessary documentation, including service history, retirement forms, and TSP information. Understanding the FERS retirement system and OPM processes is essential. Consult with retirement services and federal benefits specialists to make sure you’re not missing anything. An error or costly misstep is not how you want to kick off your life after retiring.
Important Considerations Before Your Retirement Date
Before the retirement date, several important considerations must be addressed by federal employees. Review life insurance (FEGLI) options, understand the impact of premium withholdings, and plan for healthcare coverage. Calculate the estimated annuity payment and factor in federal tax implications. Understanding the retirement benefit package and making informed decisions regarding federal service and retirement planning is crucial.
Resources Available for FERS Retirees
Numerous resources are available to assist FERS retirees in navigating the federal retirement landscape. The OPM retirement services online provides information on annuity payments and federal benefits. Additionally, various organizations offer federal retirement planning workshops and counseling services to help federal workers make informed decisions.
