How long this process will take depends on the workload in your agency’s personnel and payroll offices. Image: Hipste Style/Shutterstock.com
By: Reg JonesLast week I said that this is a remarkable year to retire. That’s because the leave year ends on December 31. So, if you retire on that date, you’ll not only be on the annuity role on January 1 but you’ll also get credit for the annual and sick leave you earned during that last pay period. And there’s more. All your annual leave, including any hours in the “use or lose” category, will be paid out at the higher hourly rate that begins on January 1.
Now to the mechanics. When your personnel office receives your retirement application, it will check to see if you meet the age and service requirements to retire. Then it will determine if you’ll be able to continue your Federal Employees Health Benefits (FEHB) and/or Federal Employees’ Group Life Insurance (FEGLI) coverage. Once that’s done, they’ll generate a Certified Summary of Federal Service, which will list all your federal civilian service (and military service, if any). They’ll send you copy, which you’ll need to check for accuracy. If any changes are needed, you’ll need to make them now.
When your paperwork is complete, your personnel office will do the following:
• Certify your FEHB enrollment FEGLI coverage to OPM, if you are eligible to continue that coverage;
• Forward any current designations of beneficiary in your Official Personnel Folder (OPF);
• Process a Standard Form 50 (Notification of Personnel Action) to separate you from the service;
• Complete and certify the personnel office portion of your retirement application; and
• Forward your retirement application and related records to your agency’s payroll office.
Then your payroll office will:
• Authorize your final salary payment after you separate for retirement, authorize any lump-sum payment you are owed for unused annual leave and, if you have been offered a “buyout,” it also will authorize that payment;
• Certify your annual basic pay for life insurance purposes, if you are carrying that coverage into retirement;
• Certify and close out your Individual Retirement Record (IRR), which is the official record of your current service, pay rates, unused sick leave credit for retirement purposes, etc. Note: Because the IRR contains a list of your retirement deductions for your last period of service, it can’t be closed out until your final salary check has been issued; and
• Forward your retirement package to OPM.
FYI: No matter how far in advance you submit your paperwork to retire, it can’t be sent to OPM until all the previous steps have been completed.
Your payroll office will let you know when your file has been sent to OPM. That notice will include the register number, the transmittal and mailing dates, and your payroll office number. You’ll need that information if you need to check on the status of your case after it has been sent to OPM. If your payroll office doesn’t let you know, you’ll have to follow up with them.
How long this process will take depends on the workload in your agency’s personnel and payroll offices. Under-staffing because of COVID has already taken its toll on processing times. And this year, the rush to take advantage of a rare end-of-the-year retirement opportunity will delay it even more.
Next week, I’ll describe what OPM will do when your application lands in their hands.
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