What You Can Expect While Waiting for Federal Retirement Benefits

If you’re planning on retiring from federal service soon, there are some changes in the process you should know about. The Office of Personnel Management (OPM) has started a major effort to move away from paper retirement applications and old-school systems and make the process more efficient through implementation online.

The Move to an Online Future

For decades, federal retirement applications have been processed at the Retirement Operations Center in Pennsylvania. This underground facility used to be a limestone mine and more than 600 employees work there processing thousands of retirement claims every month. Because this is an in-person paper operation, the process has been slow and sometimes frustrating for retirees waiting on their first payment.

But OPM’s new director, Scott Kupor, has made it clear that he wants to end the days of shipping paper applications. The agency is now trying to roll out a new Online Retirement Application (ORA) system to help modernize the process and reduce delays.

What Does ORA Do?

Instead of filling out and mailing your paper forms like SF 2801 (for CSRS) or SF 3107 (for FERS), most federal employees will now submit their retirement applications electronically through the application. By doing this, the system aims to speed up processing times, reduce paperwork errors, and allow you to fully track your application through the review process. But, some agencies like the U.S. Postal Service, are not yet required to use ORA because they already have a pretty efficient process of their own.

Here’s How the New Application Process Works

1. When you’re ready to retire and start the process, you’ll need to contact your agency’s Human Resources office. They will then grant you access to the ORA system.
2. You then can complete an online application, but ORA usually pulls information directly from your electronic personnel records, just make sure everything is accurate.
3. Your HR specialist will also double-check your service history, salary information, and other key details as a second line of defense.
4. Once HR approves your application, it moves to your agency’s payroll office. You can usually expect this step to take 60 to 90 days, though it can vary.
5. After payroll finishes its review, your application is officially submitted to OPM and you’ll receive a Civil Service Annuity number once OPM begins processing it.

Currently the system supports immediate voluntary retirements, death-in-service cases, and phased retirements but OPM plans to add deferred and disability retirements soon.

What to Expect After Retirement

• FERS employees retiring between Sept. 1–30 will officially become annuitants on Oct. 1, regardless of when the application is submitted to OPM.
• Most retirees receive interim payments of 50–80% of estimated net annuity while OPM finalizes the claim. Payments may be lower for those with court-ordered benefits to former spouses or part-time work history.
• Cases for employees retiring at 62 or later need additional Social Security Administration information. Some straightforward cases may bypass interim payments.
• Only federal income tax is withheld from interim payments. The first payment may have higher withholding, adjusted later.
• FERS Annuity Supplement payments begin after retirement case finalization. Retroactive payments are processed afterward. VERA retirees are eligible only after reaching the minimum retirement age.

Your Case is Finalized, Now What?

Once OPM finishes processing a retirement application, new retirees receive a welcome letter that includes their official claim number. A separate letter will follow containing a one-time passcode which is used to set up an account to access OPM Retirement Services Online. Retirees then have 30 days to connect their account through login.gov. After all the setup, OPM will recalculate and adjust the annuity amount to account for any differences between the interim payments and the finalized figure, as well as deduct any outstanding premiums. Once everything is finalized, monthly annuity payments will be deposited on the first business day of each month for the prior month.

If you have any questions about this change, contact our office today! It is also a good idea to get in contact with your HR department, as they will have more personalized answers regarding your specific situation.