As highlighted by OPM‘s Director “Kiran Ahuja,” a significant aim of OPM is to modernize the processing of federal employees’ retirement packets. With so many disclaimers and fields covered by federal retirement calculations, it has proven nearly problematic to transition from the present paper-based procedure to a digital one. OPM’s genuine effort to digitize the retirement claim process is paying off. However, there is much to be done.
OPM Retirement Backlog in September
With the above in mind, the OPM retirement backlog fell by over 9% in September 2022. However, the total number remains enormous as the calendar year closes.
Only 8,086 new retirement claims were received by the OPM last month, but they processed 10,681, contributing to a 2,595 reduction in the total backlog. The total is now 26,642, which is still considerable, but it was close to 40,000 in the spring.
While September had one of the most extended average monthly processing times this year, the backlog saw a reduction. OPM processed retirement applications in 92 days, second only to 94 days in January.
Compared to the previous five years, September 2022 was a busier month for the retirement activity. OPM received and processed more retirement claims this September than in any prior year since 2018. However, the backlog in 2021 was more significant than this year.
Despite the decreasing OPM retirement backlog, federal employees who plan to retire soon should expect to wait several months for OPM to process and finalize their retirement paperwork.
The end of a calendar year is typically the busiest time for retiring. Suppose OPM can progress in lowering the backlog during the year’s fourth quarter. In that case, it will offset the regular surge of retirement applications in January and February.
Status of OPM Retirement Backlog Processing – September 2022
After approval, disability determinations are included in the pending number. The average processing time is the number of days from when OPM receives the retirement application until final adjudication.
Cases created in less than 60 days required an average of 38 days to complete, but cases produced in more than 60 days took an average of 125 days to complete.
What to Expect If You Plan to Retire Soon
The Office of Personnel Management (OPM) found three critical reasons for delays, as stated in a report published by the Government Accountability Office in 2019 that looked at claims processing from 2014 to 2017. The report stated that despite efforts, they remained reliant on paper applications and manual processing, which leads to bottlenecks (particularly during peak season) and incomplete applications, as well as a lack of personnel. This category contains up to 40% of all applications.
What can you do based on this information to ensure your retirement transition goes as smoothly as possible?
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- Plan for delays to avoid being taken off guard.
- Keep an emergency fund on hand if you must wait for your claim to be processed. You will receive partial retirement payments while you wait, but not your full annuity benefit.
- Use the online application forms provided by OPM to ensure legibility.
- Make sure to thoroughly check your application before sending it to your HR department. You must remember to sign and initial the application for the Federal Employees Retirement System (SF3107, Section D) or the Civil Service Retirement System (SF2801, Section F).
- The personnel office at your agency that completed your SF 2801-1 or SF 3107-1 (Certified Summary of Federal Service) form should provide a copy with their name and contact details. If you notice any discrepancies or problems, correct them before your divorce.
- Keep copies of your completed application and your service history (SF-50 Notification of Personnel Action) forms. The forms show the beginning and ending dates of federal service appointments, changes in your work schedule, changes in your retirement coverage, military records, and records of civilian and military service credit deposits.
- Inquire with your retirement specialist about how long you should expect to wait for your lump sum annual leave payout. Also, inquire how long it will take for your application to be forwarded to OPM.
- Visit the Thrift Savings Plan (TSP) website to learn about the four critical things you must do with your account after leaving federal work.
Contact Information:
Email: [email protected]
Phone: 9187441333
Bio:
Mark, a lifelong Tulsan graduated from Westminster College, Fulton, Missouri with a Bachelor of Arts in Accounting. Mark served in the United States Army as a Captain in the 486th Civil Affairs BN. Broken Arrow, Oklahoma and retired in 1996. Mark is married to his high school sweetheart Jenny and has four beautiful children. Mark’s passion for his work, which includes over 20 years in the Financial Industry started as an Oklahoma State Bank Examiner. Mark examined banks throughout Oklahoma gaining a vast knowledge and experience on bank investments, small business and family investments. Mark’s experiences include being formally trained by UBS Wealth Management, a global investment firm where he served as a Financial Consultant specializing in Wealth Management for individuals & families. Mark is a licensed Series 24 and 28 General Securities Principal and an Introducing Broker Dealer Financial Operations Principal. Additionally, Mark is a Series 7 and 66 stockbroker and Investment Advisor focusing on market driven investments for individuals, businesses and their families.
Mark specializes in providing financial knowledge, ideas, and solutions for federal employees, individuals, families and businesses. We serve as your advocate, and assist you in the design and implementation of financial strategies while providing the ideas to maximize your security and wealth. Our goal is to give you maximum control of your financial future. We provide the expertise to help you with personal issues such as: practical tax Ideas, risk management, investment solutions, and estate preservation.
Additionally, we’ve counseled hundreds of employees on their transitions from careers in federal government, and private industry to their next life stage, whether that is retirement or a second career. We specialize in devising strategies that roll your TSP, 401(k), pension plan, to a suitable IRA to meet your objectives.
Disclosure:
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