Federal Retirements Create Income Delays for Thousands
WASHINGTON DC — A significant increase in federal retirements has put pressure on a system designed to assist long-serving public employees, resulting in many retirees facing months without income after leaving their jobs.
One affected individual is Felicia Jones from Howard County, Maryland.
“It’s scary and nerve-wracking. I can’t believe I’m in this situation right now,” Jones reflected.
Jones retired from her federal position on September 30, 2025, after nearly four decades across various government agencies, including a recent stint at the IRS. She received her last paycheck in early October.
Since then, she says she hasn’t earned anything.
“It’s been over 90 days,” Jones noted. “I haven’t received a penny of my pension or my remaining leave payments. These are benefits I’m entitled to, so I’m completely without income.”
Surge in Federal Retirements
According to new figures from the Office of Personnel Management (OPM), 112,679 federal employees retired between October 2024 and September 2025, marking the second-highest annual total ever recorded.
A significant portion of those retirements—56,911—occurred in the last three months of that timeframe, leading to a massive spike in applications.
Currently, over 50,500 retirement claims are pending at OPM, not including those stuck at federal agency human resources departments.
“That 50,000 number is about where we are now,” OPM Director Scott Cooper said in an interview. “We need to address that.”
No Pay, No Plan
Jones indicated that the delay has pushed her situation to a critical point.
“I still have to make my monthly payments even though I’m not receiving anything,” she explained. “Even if you have a savings cushion, it eventually runs out.”
While financial advice typically suggests that retirees have three to six months’ worth of savings, even that hasn’t been sufficient for Jones.
“If this continues for six months or even a year, I’ll likely deplete my savings,” she expressed worryingly. “Like many others, I could find myself in a really tough spot.”
Jones mentioned she has received little to no information regarding her retirement application status.
“I’ll be honest: I’m completely in the dark,” she admitted.
Attempts to contact her retirement specialist led to vague responses regarding the backlog of applications.
“I basically got told we have a lot of applications and are working through them,” she said. “I have no further details.”
Process Breakdown
Kupor mentioned there can be delays before an application even reaches OPM.
“There are a few reasons: maybe the applicant hasn’t submitted everything needed, the agency’s HR is lagging, or the payroll provider hasn’t processed it,” he noted. “Until all parts are completed, it won’t reach OPM.”
Kupor also indicated that retirees awaiting severance payments are likely still at their previous agency level.
“That indicates it hasn’t even come to us yet,” he said.
According to Jones, discussions with past colleagues reveal her situation is not unique.
“I’ve been in touch with former coworkers,” she said. “Some had their severance packages sent to OPM in November, and they’re also still awaiting responses.”
OPM Acknowledges Steps for Improvement
Kupor remarked that OPM had anticipated the rise in retirements and made adjustments to better support retirees, aiming to prevent prolonged income gaps post-application approval.
With the improved interim pay system, OPM now allows for an advance of 75% of expected retirement benefits.
“Once applications are received, we process 100% of them for interim payments within seven days,” he stated. “This is crucial to closing the gap between the last paycheck and when benefits begin.”
However, these improvements won’t help those whose documentation has yet to reach OPM.
Attempts by 7News to obtain comment from the IRS regarding the delays went unanswered.
Urgent Need for Action
Having served nearly 40 years in federal roles, Jones never anticipated experiencing such a situation.
“I loved my job. Working for the federal government was fulfilling,” she shared. “Our careers have been dedicated to public service.”
Jones felt compelled to speak out regarding what she perceives as a widening crisis.
“This issue extends beyond me; it impacts all retirees,” she stated. “I hope decision-makers will prioritize improving the retirement application process.”
While she empathizes with those managing severance claims, Jones believes immediate change is necessary.
“We need accountability and swift action,” she insisted. “Help is essential. So many are suffering right now; it’s incredibly tough.”
The number of federal retirements shows no signs of slowing, and officials claim improvements are coming. Still, for retirees like Felicia Jones, uncertainty looms as they continue waiting.
