Congratulations on reaching the finish line of your federal career! While your official retirement date marks the end of your federal service, it also begins a new chapter in the federal retirement process as your application for retirement is reviewed and finalized. Understanding what to expect during this “interim period” and what steps you can take during this time can help make your transition much smoother.
What Happens After You Retire?
The federal retirement process generally takes about 3–5 months. During this time, your retirement case moves through several stages before your full federal employee retirement benefits begin. Here’s how it typically unfolds:
- Agency and Payroll Processing (30–45 days): Your agency submits your completed retirement package, issues your final paycheck, and pays out any unused annual leave.
- OPM Intake (10–15 days): The Office of Personnel Management (OPM) sets up your case, assigns a claim number (CSA number), and initiates interim payments.
- OPM Processing (10–90 days): OPM carefully reviews your case, calculates your benefits, and prepares your finalized annuity.
- Retirement Finalized: You’ll receive your first regular annuity payment and a personalized retirement booklet.
Interim Payments: Bridging the Gap
To help manage expenses while your case is processed, OPM provides interim payments—typically between 60–80% of your estimated annuity. However, it’s important to understand what’s included and what isn’t:
- Only federal taxes are deducted (not state taxes).
- Premiums for health, dental, vision, or long-term care insurance are not deducted.
- The FERS annuity supplement, even if you’re eligible for it, is not included in interim payments.
Once your annuity is finalized, any missed deductions (such as unpaid premiums) will be reconciled through a back pay adjustment.
Health and Life Insurance During the Interim
If you choose to continue coverage under FEHB/PSHB or FEGLI, rest assured your benefits remain active throughout the interim. However, you’ll need to manage other voluntary benefits—like dental, vision, and long-term care—through BENEFEDS.
This is an important step in maintaining continuity in your coverage while awaiting the finalization of your federal employee retirement benefits.
What You Can Do Before Retiring
Even before your official retirement date, there are proactive steps you can take to avoid unnecessary delays:
- Make sure all required forms are signed—missing signatures are one of the top reasons for slowdowns.
- Download your personnel records if your agency uses an online HR system; your access will end after retirement.
- Finalize any FERS or CSRS service credit payments ahead of time.
- Gather and review supporting documents, like marriage certificates or military service records.
Common Causes of Delay
Even under normal timelines, certain circumstances can lead to longer processing. These include:
- Divorce decrees or other court orders that require additional verification.
- Special retirement rules for Law Enforcement Officers, Firefighters, and similar positions.
- Workers’ Compensation claims—past or ongoing.
- Part-time or intermittent work history.
- Having worked across multiple federal agencies.
- Incomplete or inaccurate documentation.
- Failing to update your address with OPM.
Service Online OPM: Your Retirement Dashboard
Once you receive your claim number, you’ll get access to Services Online OPM—a self-service portal that allows you to:
- Track your case status.
- Update your address and email.
- Manage direct deposit details.
- Review annuity statements once your case is finalized.
Service Online OPM gives you visibility into your retirement application and helps you stay on top of any updates.
Finalizing Your Retirement
Once your case is processed and finalized, OPM will:
- Send an adjustment payment to reconcile differences between interim and final annuity amounts.
- Deduct any unpaid health and life insurance premiums.
- Begin issuing your regular monthly annuity payments.
- Provide you with a retirement booklet detailing your finalized benefits and deductions.
Annuity payments are typically issued on the first business day of the month, covering the previous month. For example, your May retirement payment will be deposited on June 1.
What This Means for You
While navigating the federal retirement process can feel daunting, knowing what to expect during the interim period can relieve stress and help you prepare. Key takeaways:
- You’ll receive partial interim payments while your application is being finalized.
- The FERS annuity supplement is not included in interim payments but will be added once processing is complete.
- Stay proactive by completing all required forms and organizing your documents in advance.
- Use Service Online OPM to monitor your retirement case and manage your profile.
Ready for Support?
Your transition into retirement doesn’t have to be overwhelming. If you have questions or would like expert guidance, consider meeting with a licensed Federal Retirement Consultant at Dugan Brown who can walk you through the details and help ensure you’re maximizing your federal employee retirement benefits.
