OPM retirement backlog decreased again in September 2024, returning to lowest level since May. Good news for retirement application processing times.
Back-to-Back Months: OPM Retirement Backlog Continues to Decrease in 2024
Federal Retirement Backlog Drops in August and September
The OPM retirement backlog refers to the accumulation of pending retirement claims from federal employees that are awaiting processing 2014or in process. This size of this backlog affects the timeliness that new retirees receive their full retirement benefits distribution from either FERS or CSRS.
In August 2024, OPM retirement services received 7083 new retirement application packets and processed 7702, leaving the backlog at 15,178 – the lowest it has been at the end of the month of August since 2014.
Last month, 5618 new federal retirement applications were collected while 6302 were successfully processed. As of 9/30/24, the backlog of retirement claims sits at 14,494.
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How Does the OPM Backlog Affect Federal Workers?
Newly retired federal workers’ retirement income is directly impacted by the sizeable backlog as it prolongs the time it takes to process their retirement claims. The average processing time for retirement applications has been a point of contention, with many retirees experiencing delays beyond the current average of 62 days (up from 61 days at the end of August). These delays can cause financial strain and uncertainty for retirees who depend on timely benefits to manage their post-retirement expenses. Although retirees receive interim pension payments, the amount is typically 80%-90% less than what they receive after OPM’s retirement division has approved and processed their retirement package.
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What Causes the OPM Retirement Backlog?
The causes of the OPM retirement claims backlog are multifaceted. One primary factor is the sheer volume of retirement claims submitted by federal employees, which has increased over the years. Additionally, the complexity of the federal retirement system, including the Federal Employees Retirement System (FERS), contributes to longer processing times. Staffing levels at the Office of Personnel Management also play a role, as insufficient personnel can lead to slower processing of claims.
Furthermore, outdated technology and inefficient processes have historically hindered the agency’s ability to manage the claim processing effectively. Many of the processes that in place are still paper-based, meaning paper retirement packages have to be mailed to Iron Mountain, a facility located in a defunct limestone mine in Pennsylvania. Limited resources and manpower contribute significantly to the inventory of pending applications.
What Steps Can Feds Take to Expedite Their Retirement Claims?
Federal employees can take proactive steps to expedite their retirement claims by ensuring their applications are complete and accurate. Preparing an error-free retirement application can significantly reduce processing delays and improve the chances of timely approval. In fact, federal retirees who submitted claims without errors saw an average processing time of around 40 days where applications that had at least one error took more than 100 days on average.
Avoid common pitfalls when submitting your retirement claim to OPM! Our advisors are Chartered Federal Employee Benefits Consultants (ChFEBC℠) and will take the time to understand your individual situation so you can maximize your retirement benefits. Schedule a Free Consultation Now.
What Common Mistakes Should Be Avoided in the Retirement Process?
Common mistakes in the retirement process include incomplete applications, incorrect information, and failure to understand the specific requirements of the federal retirement system. These errors can lead to significant delays in processing and approval. Ensuring accuracy and completeness is essential for a smooth and timely transition into retirement.
How Can Your Agency’s HR Department Assist in the Retirement Process?
HR agencies play a vital role in assisting federal employees with the retirement process, but they can make mistakes when providing guidance on preparing applications, understanding benefits, and navigating the complexities of your federal retirement. HR professionals can help employees identify potential issues and ensure that their applications are complete and accurate, but it never hurts to get a second opinion. At PlanWell, we can provide a free 22 page benefits report to help ensure nothing was missed!
Knowledge is Confidence!
What Challenges Persist in Managing the OPM Retirement Backlog?
How Do Staffing Levels at the Office of Personnel Management Affect Processing?
Staffing levels at the Office of Personnel Management significantly affect the processing of retirement claims. Insufficient personnel can lead to delays in reviewing and approving applications, contributing to the backlog. Increasing staffing levels and providing adequate training are essential for improving processing efficiency and reducing the backlog of pending retirement claims.
How Could Advances in Technology Further Improve Processing Times?
Advances in technology have the potential to further improve processing times by enhancing automation, data management, and communication. Implementing cutting-edge technologies can streamline the retirement process, reduce errors, and increase efficiency. As technology continues to evolve, its integration into the retirement system is expected to play a pivotal role in reducing the backlog and improving the overall experience for federal employees and retirees. Nonetheless, these advances seem to be slow, most likely due to the intricacies and complexities involved with retiring from the government, whether under FERS, CSRS, or CSRS-Offset.
The Annual Surge of Retirement Application Packets
January is definitely the agency’s busy season when it comes to retirement services. For most feds, December 31st is the best time of year to retire. This results in a surge of retirement claims getting submitted at this time, increasing the backlog of federal retirement claims. At the end of December 2023, for instance, the Office Personnel Management received 12,997 new retirement applications. This made the inventory of pending packets grow from 14,292 to 20,822 by the end of January 2024.
Reach Out to Us!
If you have additional federal benefit questions, contact our team of CERTIFIED FINANCIAL PLANNER™ (CFP®) and Chartered Federal Employee Benefits Consultants (ChFEBC℠). At PlanWell, we are federal employee financial advisors with a focus on retirement planning. Learn more about our process designed for the career fed.
Preparing for federal retirement? Check out our scheduled federal retirement workshops. Sign up for our no-cost federal retirement webinars here! Make sure to plan ahead and reserve your seat for our FERS webinar, held every three weeks. Want to have PlanWell host a federal retirement seminar for your agency? Reach out, and we’ll collaborate with HR to arrange an on-site FERS seminar.
Want to fast-track your federal retirement plan? Skip the FERS webinar and start a one-on-one conversation with a ChFEBC today. You can schedule a one-on-one meeting here.
