What to expect while you’re expecting (your retirement benefit, that is)

Scott Kupor, the new director of the Office of Personnel Management, publishes weekly updates on OPM and the federal workforce in his blog, Secrets of OPM. 

In September, Kupor reported that he went 230 feet underground into the former limestone mine that has processed federal retirement paperwork for decades—the Retirement Operations Center in Boyers, Pa., or ROC for short. He described the facility as a symbol of challenges across government and discussed efforts to modernize key aspects of OPM.

Kupor noted that the Boyers facility, located in rural Butler County about an hour north of Pittsburgh, is unique. Housed in a cavernous, former limestone mine, it employs 600 federal workers who process thousands of retirement claims every month—by hand, on paper, in what feels like a time capsule from the 1970s.

When I visited the facility in 2019, I learned that in 1960 it had 30,000 square feet of storage space with 42 employees mostly focused on file storage. Today, it has 221,000 square feet with more than 500 employees focused on operational retirement processing. An additional 150 employees work at a nearby OPM call center in East Butler, and 300 more work for Retirement Services at OPM headquarters in Washington.

In his September feature, Kupor said, “We’ve already begun tackling the first problem above—the front end of the retirement process. Under the leadership of Joe Gebbia, the Airbnb co-founder recently appointed by President Trump as the first U.S. Chief Design Officer, we hope never to see another piece of retirement application paperwork enter the mine.”

The reason paper retirement forms are disappearing is the rollout of the new Online Retirement Application (ORA) system. The digital application replaces paper forms such as the SF 2801 and SF 3107 for CSRS and FERS retirement. Most agencies are required to use the system, though a few, including the U.S. Postal Service, are not yet required to participate.

The Postal Service has a 90% accuracy rate when submitting completed retirement packages to OPM. They use a streamlined process called the “Blue Book,” which instructs employees to contact the Human Resources Shared Service Center immediately to schedule retirement counseling.

Most federal employees now must submit retirement applications electronically through ORA. This process replaces the older GRB platform used by some agencies. To apply, employees email their HR office to request access to ORA.

The ORA system currently can process:

• Immediate, voluntary retirement applications under CSRS or FERS

• Death-in-service cases

• Phased or composite retirements

OPM expects to add:

• Deferred retirements

• Disability retirements

The system pre-populates applicant data from the electronic Official Personnel Folder and Enterprise Human Resources Integration technology, reducing manual entry. HR specialists invite applicants into ORA using an employee SSN and personal email address. A bulk upload feature allows multiple applications to be initiated at once.

As with any new system, ORA has bugs. Tony Opat, a retirement benefits specialist with the National Active and Retired Federal Employees Association, shared an example from a recent retiree. The retiree was told that ORA was auto-populating incorrect data for service history, Service Computation Date, high-3 salary, and sick leave. HR specialists ensure accurate documentation, including benefits estimate reports, SCD reports, and high-3 salary reports, is submitted with each retirement package.

Employees can monitor applications through ORA. Once an application reaches “In Payroll Review,” it remains there until the payroll provider completes its review. Some payroll offices advise a 60- to 90-day processing window. Once payroll finalizes a retirement, the status changes to “Submitted to OPM.” The retiree’s Civil Service Active number is assigned when OPM processes the retirement.

The IRS Retirement Planning & Support team noted that it is working to process a high volume of retirements as quickly as possible while ensuring retirees receive proper support. Employees are told, “Your retirement package has been initiated and is currently in the processing queue. Your assigned HR specialist will contact you directly if additional documentation is needed or your application is ready to be finalized.”

Key Points for Federal Employees Awaiting Retirement Processing

• Processing timeline: Each retirement case is unique. HR specialists work to process cases as quickly as possible. Employees should contact HR only in emergencies to avoid delays.

• Monitoring applications: Track your application in ORA. After payroll review, some offices advise 60–90 days for processing. Status updates will reflect “Submitted to OPM” once payroll completes the review.

What to Expect After Retirement

• Effective retirement date: FERS employees retiring between Sept. 1–30 will officially become annuitants on Oct. 1, regardless of when the application is submitted to OPM.

• Interim payments: Most retirees receive interim payments of 50–80% of estimated net annuity while OPM finalizes the claim. Payments may be lower for those with court-ordered benefits to former spouses or part-time work history.

• CSRS Offset cases: Cases for employees retiring at 62 or later need additional Social Security Administration information. Some straightforward cases may bypass interim payments.

• Tax withholding: Only federal income tax is withheld from interim payments. The first payment may have higher withholding, adjusted later.

• Health and life insurance: Eligible coverage remains active throughout the transition.

• FERS Annuity Supplement: Payments begin after retirement case finalization. Retroactive payments are processed afterward. VERA retirees are eligible only after reaching the minimum retirement age.

After OPM Finalizes Your Case

• Welcome letter: Retirees receive a letter with a claim number, followed by a letter with a one-time passcode to access OPM Retirement Services Online. They have 30 days to link the account to login.gov.

• Adjustment payment: OPM reconciles interim and finalized annuity amounts, deducting any outstanding premiums. Adjustment information is not currently available on Services Online.

• Monthly annuity payments: Payments are issued the first business day of each month for the prior month.

In a “Deferred Resignation” edition of Secrets of OPM, Kupor wrote: “At OPM we’re here to fix the decades of broken systems that have put us in this position. The Deferred Resignation Program was a necessary step toward a smarter, leaner, more effective government. If that ruffles a few feathers in Washington, so be it. The American people deserve a workforce built for performance, not permanence.”