The federal government is facing a significant backlog in retirement claims, the highest since the COVID-19 pandemic. The surge is driven by numerous federal employees participating in the deferred resignation program initiated under the Trump administration. This situation has intensified as many of these workers were compensated through September 30.
Retirement Backlog Surges Amid Deferred Resignees Offboarding
In October, the Office of Personnel Management (OPM) received 20,344 new retirement applications. This marks a substantial increase, with the agency processing 8,751 claims during the same period, up from 7,902 in September. As a result, the total backlog has risen to 34,587 pending claims.
Factors Contributing to the Surge
- The deferred resignation program, influenced by a controversial communication from Elon Musk, has created new delays.
- January and February are typically busy months for processing retirement applications.
- A second wave of claims is anticipated next January as some participants remain on paid leave to meet retirement eligibility.
Past spikes were also noted in May and June due to the rollout of the Voluntary Early Retirement Authority alongside the deferred resignation program. The current backlog levels have not been seen since March 2022 when claims reached 36,000.
Processing Times and OPM’s Response
Since 2022, OPM has implemented technology upgrades and increased staffing during peak periods to manage the backlog effectively. The goal is to reduce the backlog to a steady state of 13,000 claims. However, the backlog has worsened since April, with the average processing time for a retirement application now at 79 days, up from 44 days in February.
OPM Director Scott Kupor acknowledged the challenges and committed to expediting interim pay, which approximates 80% of a retiree’s expected annuity during processing. Kupor stated, “We found ways to streamline the process without sacrificing accountability.” His goal is for retirees to receive their interim pay more quickly, minimizing unnecessary delays.
