OPM Retirement Services Backlog Grows, Plus Federal Retirement Application Mistakes to Avoid

2025 has not been a typical year when it comes to federal retirement. With reductions in force (RIFs) impacting several agencies, many government employees have taken either an “early out” VERA (voluntary early retirement authority) offer, a discontinued service retirement (DSR), or the deferred resignation buyout, there has been a drastically increased amount of federal retirement applications. This article will examine the retirement backlog at OPM over the past two months, what to expect in upcoming months, and how to ensure your retirement claim packet is processed as quickly as possible. 

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Backlog of Retirement Claims Continues to Grow in June, and More Applications Expected as Buyout Offer Approaches Deadline

For the first time this decade, the amount of federal employees applying for retirement reached over 10,000 in the month of June. 13,430 feds submitted a pension request to the Office of Personnel Management (OPM) last month, similar to the previous month when over 15,000 new claims were received. This trend is expected to continue through at least September, which is when the bulk of those who accepted the deferred resignation offer will have to submit a retirement packet to override their decision to resign. 

Another Surge in Retirement Requests Floods OPM in June 2025

It is atypical for there to be so many FERS and CSRS annuity applications to hit OPM’s retirement services in the middle of the year. Besides the beginning of each year, the amount of incoming requests for given month is rarely above 10,000, and usually closer to the 5,000 range. As a total amount of new retirement packets reached 28,478 over May and June, the backlog of applications to be processed has increased by 22% since the end of last month. 8585 claims were completed in June, not enough to keep pace with the influx of claims. This is significant because the average processing time for approval will increase as the backlog grows, meaning a longer wait time before full annuity payments are received by a given recently retired federal employee. Interim pension deposits, which reduce the actual amount monthly pension by 60 to 70 percent, are received as your claim is in pending status.

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OPM Retirement Services Online Application Stalled as More Applications Expected

As reported last week, the move to digitize the application process was delayed a week after it was announced, along with a deadline to submit paper claims that is no longer relevant. Despite the attempt to move the update the process with a self-service online portal to secure websites, which was made in anticipation of an influx of incoming applications, the paper-based system will be tasked with handling the bloated backlog as more federal workers apply for their retirement benefits. Because a decent portion of the governments civilian workforce accepted the buyout from DOGE that entitled them to keep their paychecks until the end of September, it is expected that many of these federal employees will apply for retirement before this deadline. Some subsequent resignation offers entitled separating feds to keep their salary until the end of December so the direct impact of all this will likely be felt for the entire year, meaning the inventory of pending claims will continue to escalate, in turn negatively affecting processing times. 

Did you know you may not need FEHB for five years before retirement to keep your health plan after retiring? – Check out available waivers for the 5-year rule. 

Retirement Quick Guide for FERS and CSRS Pension Applications: Top Errors for Potential Retirees to Dodge

Applying for retirement through the Office of Personnel Management (OPM) can be a complex process for federal employees. Many retirees encounter common pitfalls that can lead to delays in their OPM retirement applications. Understanding these errors can help applicants navigate the retirement services online more effectively. This is why reviewing your paperwork and benefits with a fiduciary advisor for federal employees is strongly recommended before submitting it to your agency’s HR department. 

Inaccurately Filling Out Claim for Retirement System Benefits 

One frequent mistake potential federal retirees make is failing to complete the necessary forms accurately, which can prolong the average processing time by a significant amount. Incorrectly entering information, even a silly typo, or failing to include required documents can have a detrimental effect on one’s early stages of their retirement plan, possibly causing a ripple effect if they need to access their TSP or IRA money earlier due to delays with OPM’s process. Additionally, applicants often overlook the importance of sharing sensitive information securely, especially when managing their TSP account online. By consulting with a fed-expert retirement planner, and using tools like the Thrift Savings Plan (TSP) calculator, applicants can avoid common errors and streamline their application for a smoother transition to retirement.

Failing to Realize FEGLI and Survivor Benefits Decisions Are Permanent

Many federal retirement applicants fail to realize that decisions regarding the Federal Employees Group Life Insurance (FEGLI) and survivor elections are irrevocable and permanent. Once these choices are made, they cannot be changed later, which can lead to significant financial implications for both the retiree and their beneficiaries, especially their surviving spouse. It is crucial for applicants to carefully consider their options and fully understand the long-term effects of their decisions before finalizing their retirement plans. Keeping reduced FEGLI basic coverage, for instance, comes at no additional cost, but if the benefit is completely dropped, an annuitant cannot reclaim what would’ve been essentially free life insurance.

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