While new retirees are waiting for a final determination of their benefit amounts, they receive partial interim payments, with the difference squared up later. Image: Bernie_Photo/Shutterstock.com
By: FEDweek Staff
The number of retirement applications pending at OPM in May returned to just above the level from before the spike of retirements due to the deferred resignation program, but the average processing time has risen the last two months.
The figure stood at some 38,500 in May, compared with some 34,600 last October before the wave of DRP-inspired applications arrived at the agency. Many employees who accepted those offers took them into retirement, with separation dates generally no later than September 30—although in some cases, they could be as late as the end of the calendar year.
The number rose to above 48,000 in November, then to above 50,000 and above 54,000 the following months, peaking at above 65,000 in February, before falling to above 55,000 in March and just below 50,000 in April. In addition to the DRP effect, there always is a surge in federal retirement applications around the turn of a year for reasons including maximizing payouts of unused annual leave.
The figures represent when applications reach the OPM, not when employees file them. They first pass through agency HR and payroll offices; OPM recently said that on average, the HR step consumes 60 days and the payroll office step another 51 days.
At OPM, the average processing time, for both those filed through the Online Retirement Application portal and in paper form was 87 days as of May, up from 78 days in April and 60 days in March; the fiscal year to date average is 73 days. For applications filed online, the average was 66 days, and for those in paper form, 105 days. In recent months, about two-thirds of applications have been made through that portal, which launched last year.
While new retirees are waiting for a final determination of their benefit amounts, they receive partial interim payments, with the difference squared up later.
For each measure, within the averages are some cases in which the process took much longer—a years-long complaint by recent retirees and attention from Congress, which among other things required OPM to publicly post the monthly numbers.
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See also,
Why You Don’t Want the Six Month Lump Sum Social Security Payment
OPM’s Proposed RIF Rules: What Federal Employees Should Do Now
$1.46M in You TSP? Don’t Worry FERS and Social Security Will Close the Gap!
How Your FERS, Social Security and TSP Payments Get Taxed