One common issue is failing to document eligibility to continue FEHB and/or FEGLI life insurance into retirement. Image: fizkes/Shutterstock.com
By: FEDweek StaffOPM has revised guidance first issued a decade ago on what federal employees can do to make their retirement applications “healthy” and avoid the common types of problems that slow down processing of those applications.
The message comes as OPM continues to be criticized, by individual retirees and by Congress, for the length of time it takes to finalize the calculation of benefits that new retirees are due. During that period—which averages about three months but often is much longer—the retirees receive only a partial benefit; while the difference is made up once the benefit is finalized, that lower payment proves to be a financial hardship for many retirees.
OPM has said repeatedly—to a certain level of skepticism—that much of the problem lies with the materials they receive from individuals and employing agencies that requires back-and-forth to resolve. In the words of its latest guidance, “A “healthy” retirement package is defined as a complete and accurate package that does not have to be developed for missing, inaccurate, or discrepant information.”
Some common problems OPM cites for special attention are:
* regardless of whether the individual is married, a survivor election must be made;
* if a married applicant elects less than the full survivor annuity, spousal consent must be provided and the election on the application must agree with the spousal consent;
* the question about whether a court order potentially affecting the annuity is in effect must be answered, even if there is no such order;
* there can be “no scratch-outs, white-outs, lineouts, or any other type of corrective actions” on the form.
Also common, it said, are failure to document eligibility to continue FEHB and/or FEGLI life insurance into retirement; both require that the person have been enrolled continuously for the prior five years (or from the first opportunity to enroll if that occurred less than five years before).
Further, for those claiming credit for military service, “documents that do not annotate the character of service continues to be one of the top errors encountered in retirement application packages.” OPM must know the character of the discharge because that time is not creditable if it was for anything other than honorable conditions, it said.
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