Updates on OPM backlog of federal employee retirement claims, CSRS and FERS retirement packets at lowest point since 2016 but anticipate surge on January 1.
Understanding the Federal Employee Retirement Claims Backlog at OPM
Federal Employee Retirement Backlog Drops to Lowest Point Since 2016
The Federal Employee Retirement Claims Backlog at the Office of Personnel Management (OPM) has become a significant concern for many federal employees approaching retirement. The federal employee retirement backlog refers to the accumulation of pending retirement claims from federal employees that are awaiting processing by OPM or are 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 October 2024, OPM retirement services received 6872 new retirement application packets and processed 6458, leaving the backlog at 14,908. Last month, 6808 new federal retirement applications were collected while 7872 were successfully processed. As of 11/30/24, the backlog of retirement claims sits at 13,844 – the lowest it has been since the end of June 2016, over 8 years ago.
What is the Current Status of the OPM Retirement Processing Delay?
Monthly Average Processing Time
The average retirement application processing time saw a decent decrease from 62 days in October to 55 days in November Most retirees were adjudicated with a 37 day average as those with errors on their retirement packet cause the overall average time to be significantly higher.
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Full Year To Date Average Processing Time
The annual average of the monthly processing time of benefits decreased from 68 days at the end of October to 58 days at the end of November.
What Causes the Federal Employee Retirement Claims Backlog?
How Does the Retirement System Impact Processing Times?
The complexity of the two federal pension systems, FERS and CSRS, involve calculating benefits based on years of service, salary history, and age. With factors such as health and life insurance, death benefits, military deposits, unused sick leave, and special provisions thrown in, what can appear deceptively simple can quickly become a convoluted process as you exit federal service.
The End of Year Surge as CSRS and FERS Employees Submit Applications for December 31st Retirement Date
Seasonal trends can also impact the backlog of federal employee retirement claims. For instance, many federal employees choose to retire at the end of the calendar year, often around January 1, to maximize their retirement benefits. This surge in retirement claims can overwhelm the OPM, leading to longer processing times. Last year, from December to January, the backlog increased by 46%. Additionally, certain legislative changes, new presidential administrations, or updates to retirement plans can prompt a wave of retirements, further contributing to retirement application processing delays.
How Can Federal Employees Expedite Their Retirement Claims?
What Steps Should Be Taken Before Filing a Claim?
Federal employees can take several steps to expedite their retirement claims. Before filing a claim, it is essential to ensure that all personal and employment information is accurate and up-to-date. This includes verifying service history, retirement coverage, and ensuring that all necessary documents are included in the retirement claim application. Employees should also be aware of their eligibility for retirement and the specific requirements of their retirement plan, whether it is FERS or CSRS, to avoid any delays in processing.
Meet with a Federal Employee Retirement Benefits Expert before you submit your application!
Monthly Pension: Calculating Your FERS Retirement and Benefits
Accurately calculating FERS benefits is crucial for federal employees to ensure a smooth transition into retirement. Employees can use online calculators available on secure websites, such as our free federal employee retirement calculator, to estimate their retirement benefits. These calculators take into account factors such as age, years of service, and salary history to provide an estimate of the basic benefit and social security components of FERS. Understanding these calculations can help employees make informed decisions about their retirement plans and avoid potential delays in receiving their benefits.
What Resources Are Available for Federal Employees?
Federal employees have access to various resources to assist them in the retirement process. We offer a benefits report, a free FERS federal retirement workshop every month, and a newsletter about federal retirement topics. These resources are invaluable for employees looking to navigate the complexities of the federal employee retirement system and expedite their claims.
Are There Upcoming FERS Webinars or Workshops?
Federal employees can stay informed about future changes to the retirement system by participating in FERS webinars or workshops. These events, often organized by the OPM or the Federal Retirement Thrift Investment Board, provide valuable insights into the latest developments in retirement benefits and claims processing. Attending these webinars or workshops can help employees understand potential changes to their retirement plans and prepare for any adjustments that may affect their retirement claims.
Ready to retire from your federal agency? Attend a Free 3-Hour FERS Retirement Online Workshop
What Are the Key Components of the Federal Employee Retirement System?
Unlike the CSRS Retirement benefit, FERS includes the TSP, including matching contributions to your TSP account, and Social Security retirement benefits.
What is the Role of the Thrift Savings Plan (TSP)?
The Thrift Savings Plan (TSP) is a crucial component of the FERS retirement system. It is a defined contribution plan that allows federal employees to save for retirement through tax-deferred contributions. The TSP is similar to a 401(k) plan in the private sector and provides federal employees with the opportunity to grow their retirement savings through investments. Employees can choose from a variety of investment options within the TSP, and the federal government may also provide matching contributions, enhancing the overall retirement benefits for those covered by FERS. Check out our TSP Calculator to estimate your investment income upon retirement.
How Do Social Security Benefits Integrate with FERS?
Social security benefits are an integral part of the FERS retirement system. Federal employees covered by FERS are eligible for social security benefits, which complement the basic benefit plan and TSP. The integration of social security benefits with FERS provides a comprehensive retirement package that ensures financial security for federal retirees. Employees should be aware of how their social security benefits are calculated and how they integrate with other components of their retirement plan to maximize their retirement income.
How Does the Backlog Affect Federal Employee Retirement Benefits?
What Delays Can Be Expected in Annuity Payments?
The backlog in processing federal employee retirement claims can lead to significant delays in annuity payments, although reduced interim pension deposits are disbursed during processing. These delays can affect the financial stability of retirees who rely on their annuity as a primary source of income. TSP and the lump sum from unused annual leave that an employee has accrued can help during the interim period.
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.
