In my last two articles, I spelled out steps you should take before submitting a retirement application and the importance of checking determinations your agency will make. This week we’ll look at what happens once your agency forwards it to the Office of Personnel Management.
First, a word on timing. Your application should make its way through your agency’s personnel and payroll offices within 30 days of the day you filed it. However, for various reasons that 30-day goal may not be met. Until your application is forwarded to OPM, you’ll have to refer any questions about its status to your former agency’s personnel or payroll office.
Most agency payroll offices will notify you when your retirement application has been sent to OPM. If yours doesn’t, you’ll have to follow up with them.
When your application arrives at OPM, you’ll be sent a written acknowledgment and given a retirement claim number, preceded by the letters CSA (Civil Service Annuitant).
If OPM determines that you meet the requirements to receive an annuity, it will authorize an interim annuity payment, which is a percentage of what your final annuity will be. In many cases it will be around 80 percent but that is not a hard and fast rule.
OPM only gives you a percentage for two reasons. First, to provide you with some money while your application is being processed. Second, to avoid overpaying you and having to reclaim the excess when your annuity is finally approved.
After OPM has processed your application, it will determine your regular monthly annuity amount and authorize the Department of the Treasury to send you your first regular annuity payment. Any money you are owed from being in interim pay status will be included in that first payment.
Just be aware, this might not happen for a long time. The average processing time at OPM—remember, that’s in addition to the time the application spent in your own agency—is now about three months. Being an average, that means some are longer, potentially several months or more longer.
OPM will also send you an Annuity Statement. Keep this statement in a safe place. If you ever apply for a home mortgage or some other large loan, you’ll have to provide a copy to the lender as a proof of your entitlement to an annuity.
Over these three articles, I’ve explained what you, your agency and OPM are supposed to do to get you on the road to retirement and then onto the annuity roll. However, suppose you change your mind about retiring at the last minute? Or suppose you want to change a survivor annuity election you just made? I’ll answer those questions next week.
Retiring from a Federal Job – Getting Started
Retiring from a Federal Job: Make Sure Your Agency Gets it Right
Federal Retirement COLA Count Hits 9 Percent
House Republicans Revive Retirement Benefit-Cutting Proposals
TSP Responds to Customer Service Complaints
Beneficiary Designations Still Valid Even if Not in New System, Says TSP
Eligibility for FERS Retirement
Your Retirement: A Slope or a Cliff?
Your Finances after Retiring from the Federal Government
Common Mistakes in Federal Retirement Applications
Thanks to a Pension, Feds Are Doing Better than Most in Retirement Preparedness
FERS Retirement Planning Bundle: 2022 FERS Guide & TSP Handbook