The two major players on your way to retirement are you and your agency. You, because you are the one who wants to retire and is in charge of completing the necessary paperwork. Your agency, which must process your application before submitting it to the OPM for review.
It’s worth mentioning that the procedure at the agency level is not instantaneous, nor is it always timely. It should come as no surprise that the same is valid on the OPM level. A word of advice: keep a stash of cash on hand to get you through this period.
What the agency does
Your agency’s personnel and payroll divisions should process your retirement application within 30 days of its submission. If they’ve hit that target, you’re on your way to being placed on the government’s annuity roll now that you’re retired. That 30-day objective, though, might not be met.
Until the application is forwarded to OPM, you must direct any inquiries regarding the progress of your application to your previous agency’s personnel or payroll office. Most agency payroll offices will let you know when your retirement application has been submitted to OPM. If yours does not, you must follow up with them.
What does OPM do?
When OPM receives your application, you will receive a written confirmation and a retirement claim number preceded by the acronym CSA, which stands for Civil Service Annuitant.
If OPM decides that you fulfill the eligibility conditions for an annuity, it will sanction an interim annuity payment equal to a percentage of your final annuity. OPM does that for two reasons. First, to provide you with some funds while your application is being reviewed. Second, to prevent overpaying you and having to reclaim the difference when your annuity is finally granted.
After OPM has completed processing your application, your regular annuity amount will be established, and the Treasury Department will authorize and pay your first regular annuity payment. (Note: OPM will also give you an Annuity Statement and other information regarding your retirement benefits at the same time. Please keep this statement in a secure location. If you ever apply for a house mortgage or another substantial loan, you’ll be requested to produce a copy to the lender as verification of your annuity entitlement.) Any funds you’re owed as a result of your interim pay status will be applied to your first full payment.
How much time will that take? It’ll depend. The OPM aims to make a final judgment on 90% of applicants within 60 days after receipt. However, it only accomplishes that target approximately 75% of the time, and adjudication can take considerably longer in some cases. Another way to look at it is that the average processing time for applications completed within 60 days is around 40 days. For those who took more than 60 days, it took 110 days — nearly four months — on average.
It’s an old system, with many records still being kept on paper. Then there are the plethora of laws that may come into play. The variances in what is deemed creditable service alone occupy chapters upon chapters in the CSRS and FERS Handbook for Personnel and Payroll Offices. Furthermore, service before x-date may be considered differently from service on or after y-date.
Another reason for delays is incomplete or missing information in the application or accompanying records, which requires back and forth between OPM, you, and your employing agency. That’s one of the main reasons why it’s recommended to start planning for retirement a year ahead of time, rather than just a few months.
You now understand what you, your agency, and OPM must do to get you on the path to retirement and the annuity roll.
Contact Information:
Email: [email protected]
Phone: 6232511574
Bio:
I grew up in Dubuque, Iowa, where I learned the concepts of hard work and the value of a dollar. I spent years in Boy Scouts and achieved the honor of Eagle Scout. I graduated from Iowa State University and moved to Chicago and spent a few years managing restaurants. I then started working in financial services and insurance helping families prepare for the high cost of college for their children. After spending years in the insurance industry, I moved to Arizona and started working with Federal Employees offing education and options on their benefits. I became a Financial Advisor / Fiduciary to further help people properly plan for the future. I enjoy cooking and traveling in my free time.
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