The backlog of pending retirement claims in OPM’s inventory hit its lowest point of the year – but the end-of-year surge is looming.
There is typical pattern that repeats when it comes to federal retirement claims that are pending in the Office of Personnel Management’s (OPM) inventory. Because of factors such as annual leave accrual, it is a well-known fact that the end of the year is one of the best times to retire from civilian federal service. This results in a spike of retirement applications during the months of December, January, and February. Along with incoming retiring claims, OPM works throughout the year to process these applications and usually dwindles their to-do pile to its lowest levels around the autumn months.
Thinking about retiring from federal service? Make sure you check out our no-cost webinars first!
2022 has not strayed from the expected pattern. The inventory of pending federal retirement claim applications was 23,849 at the end of November, which is the smallest amount for the current year. At the end of October, the number of backlogged retirement packets was 25,227 – a monthly drop of 5.5%. Halfway through the year, at the end of June, the backlog sat at 30,443. During the first eleven months of 2022, OPM received 97,329 new applications and had completed 100,210.
Processing Time
The per-month average processing time for a claim submission has increase noticeably since the springtime, though – increasing from an 80-day average to a 92-day average. As of November 30th, the 2022 average time for a retirement packet to complete the process was 91 days. This delay between submission and approval is significant because newly retired feds will only receive a fraction of their estimated benefits in this timeframe. Although they’ll eventually get reimbursed for due amount, there is a still a significant gap of time between submitting one’s retirement application and having that packet successfully processed by OPM.
But filling out the retirement claim forms correctly drastically improves a retirement packet’s chances of getting processed quickly. The goal OPM sets for itself regarding processing time is 60 days per claim. For submissions that are error-free and don’t require additional detail, the completion time is usually much quicker. Claims that take more than 60 days to complete have an average processing time of 126 days, but with packets that take less than 60 days to process, that same average is just 40 days. Additional information might be need from either the retiree, their employing agency, or the Social Security Administration.
The three most common errors than can delay a retirement claim submission are:
- Incorrect Service Dates
- Missing Signatures
- Lack of proof for FEHB eligibility (5-year rule)
--
Until Next Time,
You Might Also Enjoy This Podcast
The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Serving Those Who Serve writers and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **
