Retirement Applications Surge at OPM

The Office of Personnel Management (OPM) has reported a significant uptick in retirement applications. They noted that they’ve started to see a “first wave” of new applications from employees who had postponed their retirement decisions. This new wave is more than double the typical surge seen annually in January and about four times the usual monthly flow.

As of now, there are approximately 35,000 resignation applications pending in the Online Retirement Application system, with a retirement date set for September. If past trends hold, OPM expects a considerable number of these applications to arrive in the next few weeks. “It’s quite a lot,” commented Scott Kupor, OPM Director, in a recent blog entry.

This figure specifically excludes employees who opted to delay their retirement until the end of the calendar year for various reasons. Certain agencies allow this as employees work towards qualifying for severance benefits. It’s also worth noting that this count doesn’t take into account further retirements due to reductions in force (RIFs) that may be happening soon.

The recent surge can likely be attributed to several turnover incentive programs, including early retirement offers, which have seen a high acceptance rate among retiring employees.

Previously, OPM announced that about 150,000 employees had accepted retirement offers, but they had yet to specify how many were expected to follow through on that acceptance. Some employees have already made the leap into retirement, particularly as the OPM’s figures increased from May to June. This uptick is partly due to newfound freedom to explore other job opportunities without conflicts of interest hindering them.

The estimated two to three-week processing time mentioned in the post refers to how long it usually takes for applications to get from the employer to OPM, where benefits are officially determined. The process involves various government officials and payroll personnel, many of whom have faced furloughs since the beginning of the government shutdown on October 1.

January is customarily a busy time for OPM regarding retirement applications. This is largely because many federal employees aim to maximize their unpaid leave options at the start of the year. On average, OPM typically sees between 6,000 and 8,000 applications monthly, but this January, they received about 13,000 applications, and last January the count was around 16,100.

OPM has faced ongoing criticism for its slow processing of applications. In August, the average time to process was around 70 days, while many applicants faced delays that extended beyond a year in some cases.

Kupor indicated that OPM is working to enhance their efficiency, noting that they aim to provide interim pension payments to most retirees within 30 days of receiving applications. However, it’s still possible for some individuals to experience longer wait times or receive shorter payments than expected.

In an effort to improve the situation, OPM is planning to roll out new online application processes. Kupor expressed hopes that they will also introduce incentive programs for current employees to help manage the busy retirement season while ensuring that retirees receive their payments timely.