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Thinking about retirement? You’re not alone! Many people are preparing to make the leap, but once you submit your retirement application, what happens next? Here is a simple breakdown of the process and what to expect along the way.

1. Decide When to Retire

Many employees choose to retire at year’s end to maximize their benefits. The two main reasons are:

  • Avoid losing unused annual leave: Most employees can carry over up to 240 hours of leave. Retiring at the end of the year allows you to use any excess leave before it expires.
  • Benefit from a new hourly pay rate: Retiring at the start of the new leave year means that unused leave will be paid out at the new hourly pay rate, which increases the value of your payout.

2. Submitting Your Application

Once you’ve decided to retire and submit your application to your agency, the clock starts ticking. If you’re retiring between February and November, your application will typically move through your agency’s personnel and payroll offices within 30 days or less. However, if you’re retiring at the end of the year, expect a longer wait. The end of the year is when many employees retire.

3. Application Reaches OPM

Once your agency processes your application, it’s sent to the Office of Personnel Management (OPM). At this stage, OPM will send you a written acknowledgment, which includes your retirement claim number. If OPM determines that you meet the age and service requirements, it will authorize interim payments. These payments are typically issued within 10 days after they receive your retirement package.

4. Interim Payments

If everything is in order, expect your first interim payment within 6 to 8 weeks after your retirement date. This is a temporary payment to help bridge the gap until your full annuity is calculated.

5. Regular Annuity Payments

Once OPM has processed your retirement and verified your eligibility, it will calculate your regular annuity amount and start sending payments. If you received interim payments, any owed amounts will be included in your first regular payment. You will also receive an Annuity Statement and additional materials about your retirement benefits.

6. Follow-Up

If you’re looking for updates on your retirement application before it leaves your agency, be sure to contact your personnel and payroll office directly. Once your application has been transferred to the OPM, you can call their Retirement Information Office at 1-888-767-6738 (or TDD: 1-800-878-5707) for further questions.

Retirement is an exciting time, but understanding the process helps set the right expectations. Make sure you’re prepared for each step, and if you have questions, don’t hesitate to reach out!

Sources:

  1. https://www.fedweek.com/experts-view/what-happens-after-you-submit-your-retirement-application/