Many choose to retire at the end of the year to case out annual leave at new, higher rates. Image: Burdun Iliya/Shutterstock.com
By: Reg JonesOnce you separate from your agency, it will begin the process of getting your retirement application to OPM. If it meets the processing standards, your application should move through your agency’s personnel and payroll offices in 30 days or less. And that’s what usually happens if you retire between February and November. However, if you retire at the end of the year, it can take longer because that’s when the bulk of employees retire. Visually, it’s like pig trying to work its way through a python.
Why do so many employees retire at the end of the year? For two reasons. First, to avoid losing any annual leave that exceeds the annual carry-over limit, which for most employees is 240 hours. Second, to take advantage of the new hourly pay rate, which will go into effect beginning with the first pay period in the new leave year. That’s because unused annual leave is projected forward as if you were still on the payroll. The more hours you have at the new rate of pay, the larger your payout will be.
When OPM gets your retirement application, it will send you a written acknowledgement, which will include your retirement claim number, preceded by the letters CSA (short for Civil Service Annuitant). If it determines that you meet the age and service requirements to retire, it will authorize interim payments within 10 days after it receives your retirement package. If everything goes as planned, you’ll usually receive your first interim payment within six to eight weeks after you retire.
If there aren’t any issues to be resolved about your retirement application, such as the ones I mentioned last week, OPM will calculate your regular annuity amount and authorize payment. Any money they owe you from when you were receiving interim pay will be included in your first regular annuity payment. OPM will also send you an Annuity Statement and other informational material concerning your retirement benefits.
If you have any questions about the status of your retirement application before it leaves your agency, check with your personnel and payroll office. After it has reached OPM, you can call their Retirement Information Office at 1-888-767-6738 (TDD 1-800-878-5707).
Former head of retirement and insurance policy at the Office of Personnel Management, and longtime FEDweek contributor, Reg Jones is known throughout the federal workforce community as an authority on pay and benefits.
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