Congrats! If you are reading this then you are probably close to retirement as a federal employee!
If you are reading this and you are not close to retirement then my guess is that you don’t like your current position 🙂
Either way, this post will walk you through what to expect in the first year of federal retirement.
And believe me, almost everyone is surprised by how many steps are involved in making this major transition.
IMPORTANT: This timeline shows average processing times based on our experience but your experience may be very different depending on the situation.
FERS Federal Employee Retirement Timeline: The First Years of Retirement
Step 1: Submit Application to HR (Personnel Office)
I am going to pick up the story at the point that you submit your retirement application to your HR. You’ll want to check with your HR to see when they want to receive your application but most of the time it will be between 2-6 months before your retirement date.
Once they receive your application, they will verify your service and you will have to verify that your service history is correct.
Step 2: You Retire!!
Congrats, your retirement date is here!
During this time your HR will be transferring your FEGLI (Life Insurance) and FEHB (Health Insurance) from your agency to OPM once you retire.
Your HR then hands your file off to your payroll office who does things like finalize your last paycheck as well process your annual leave lump sum payout. They are also responsible for sending your salary/pay records to OPM.
Once OPM has received all the needed paperwork from your agency then they start their process.
Step 3: Annual Leave Payment
One of the next things to happen is you will receive a cash payment for any unused annual leave you had on the books at retirement. This payout is normally processed within the first few pay periods of retirement but can take longer depending on your payroll office.
Step 4: Your CSA
You will know that OPM has received your entire file once they send your CSA (or Civil Service Claim Number). You’ll need this number in all your communications with OPM as well as to be able to make an account online to be able to track your file’s progress.
When you receive your CSA will vary based on how quickly your agency gets your file to OPM but it is common to receive your CSA between 4-8 weeks after your retirement date.
Step 5: Gain Access to The TSP
Most people don’t know this but once you retire you don’t have immediate access to your TSP funds. You will have to wait for your agency to notify the TSP that you are now a retiree.
This process normally takes about 6 weeks from your retirement date so you will want to have plenty of cash on hand to fill this gap.
Step 6: Interim Payments
Once OPM receives your file and they don’t see any immediate red flags (like anything that would make you ineligible to retire) they normally start sending you what they call interim payments. This is normally 4-12 weeks after your retirement date.
These payments are normally 75% of what they expect your full pension to be. These interim payments are paid to help new retirees have some income while their files are being fully processed.
Note: If you are eligible for the FERS Supplement it will not be included in these interim payments. It will only start once your case has been finalized.
Step 7: Your Case is Finalized
As OPM processes your application you will be assigned a specialist who will be working on your case. If they are missing documents/information then they will reach out during this process to get it resolved.
It often takes 3-6 months for cases to be finalized but can take longer if your file is missing information or if OPM is exceptionally busy.
Once your case is finalized then they will start sending your full pension and FERS supplement (if applicable) as well as back pay you for anything that they owe you from the time they were processing your file (less insurance and taxes).
Most Important: Cash is King
If you haven’t noticed already, it can take a long time for all of your benefits to fully kick in. That is why it is so important to have plenty of cash in savings going into retirement so you don’t have to stress if there are delays/mistakes on your file.
Also Really Important: Paying for Insurance While You Wait
While your application is being finalized you will automatically stay covered under FEHB (health insurance) and FEGLI (life insurance) and the premiums that you missed will be paid when OPM backpays you what they missed.
However, this is not the case for Dental/Vision or Long-term care insurance. If you want to maintain coverage then you will have to reach out to Benefeds or LTCFEDS to pay the premiums directly while your file is being finalized.
Common Questions
Is there anything I can do to speed up OPM’s processing time?
Nope, not really 🙂 I wish there was. The only thing that you have control over is to make sure that your retirement application is 100% correct and complete as application mistakes will certainly slow everything down.
Is the FERS Supplement Included in my “interim payments” before my file is finalized?
No, your FERS Supplement is only paid once your file is finalized.
Really Important: Let’s Talk!
The best thing people can do to be prepared for retirement is to start planning now! Not tomorrow or next week. Now!
If you want to make sure you are on track for a great retirement, you can make an appointment with us here.
