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Why It Takes 6 Months to Receive Your FERS Pension After Retirement
After dedicating a significant portion of your life to public service, it is only natural to expect a smooth transition into retirement. However, for those who are part of the Federal Employees Retirement System (FERS), there is a waiting period before receiving your pension benefits. This wait can be frustrating, but it is important to understand the reasons behind it.
One of the primary factors causing this delay is the administrative process involved in handling retirement benefits for thousands of federal employees. The amount of paperwork that needs to be processed, reviewed, and verified is vast, requiring substantial time and resources. The Office of Personnel Management (OPM) is responsible for overseeing this process, ensuring that pensions are accurately calculated and paid out.
The first step in the process involves the employee submitting their retirement application to their agency’s human resources department. Once received, the agency must review and certify the application, verifying the employee’s years of service and eligible salary. This step alone can take several weeks, as agencies need to ensure all the information provided is accurate.
Once the application is certified by the agency, it is forwarded to OPM for further processing. At this stage, OPM assesses the application to ensure compliance with all laws and regulations, as well as calculating the precise pension amount. This meticulous review process ensures that retirees receive the accurate benefits they are entitled to.
OPM also conducts a thorough investigation of the retiree’s history, including verifying the length of service, salary, and any applicable military service or previous federal employment. This process can be time-consuming, as OPM liaises with various agencies to gather all the necessary information. Additionally, if there are any discrepancies or missing documents, further delays may occur while the issues are resolved.
Furthermore, the high number of retirement applications received by OPM each year plays a role in the delay. With thousands of federal employees retiring annually, the workload for processing these applications is overwhelming. Despite employing a significant number of staff to review and process the applications, the sheer volume of retirements leads to a backlog, resulting in longer wait times for pension disbursements.
It is worth noting that the waiting period is not without its benefits. The delay allows OPM to resolve any potential issues or disputes without directly impacting the retiree. It also ensures that retirees receive accurate and fair benefit calculations. This meticulous process contributes to the reputation of the FERS pension system and the trust employees have in it.
While waiting for your pension benefits may be frustrating, it is essential to understand the complexities and thoroughness involved in the process. As an employee in the federal sector, your retirement benefits are carefully calculated and verified to ensure you receive the appropriate payment throughout your retirement years. Although it may take up to six months to start receiving your FERS pension, the outcome is a reliable and stable source of income that you have earned over your years of dedicated service.
If I retire 30 Nov and my annual leave is paid in January, do I face use or lose cut offs in January or is it locked on my last day?
I retired on September 30, 2022 and received interim payments from Nov-2022 thru Feb-2023. The interim payment, which was adjusted upward, was substantially less than the calculated amount by my advisor. In Feb-2023, I was made whole, but I have yet to receive a letter, explaining what the amount I received represented. No breakdown whatsoever.
If they take six months do you get back pay ?
I got my FERS pension exactly when it was due. Took them 2 months for mine.
I am a FERS retiree since Age 57. When I turn Age 62 in July 2023, do I need to file for Social Security or does OPM ( Office of Personnel Management) process this turnover automatically with the SSA (Social Security Administration)?
What about federal employee died no wife just ex-wife with minor children
Can I create an IRA in my TSP to roll money over or do I have to do that at Putnam?
Retirement paperwork sounds like it is going to be a nightmare. I am not married. I am not divorced. I have no children. I have no IRS tax burden or penalties. I hope this will help with my paperwork.
I retired at the end of Aug 22. Didn't hear from OPM until mid Dec after ABC sent letter telling me my app was sent to OPM. I didn't receive any of my pension money until end of jan
Retired in January 2022. Took 8 months to get paid. Part of the problem: 1) OPM does not use your local bank branch. They use a headquarters of your bank branch. 2) OPM does not follow your retirement application. a) In my case OPM didn't use the bank account number or routing number as written on my application. b) OPM didn't use the kind of account as written on my application. ie; on my application I selected savings OPM selected checking.
Back and fourth we went as I tried to correct their mistakes. Had they simply followed my application none of this would've happened. Getting ahold of OPM was nearly impossible. When OPM screws this up the system sends it out to your bank or whatever bank they've chosen to send it to, and it comes right back to OPM because it's wrong. The first of the month rolls around, rinse and repeat. There you sit wondering what's going on and they just don't seem to give a damn I suppose because it's not their money or effecting their life or livelihood. Bottom line…..OPM is scary in the beginning. They have control of your money and couldn't give a damn if you get it or not. Once it's straightened out you'll get paid the first of every month without a problem.
Keep on em. Don't let it slide. I've heard of people getting paid in two months, great for them, to over a year to get their first payment. Your first payment will also be any back pay so it could be fairly fat depending on how many months your payment gets backed up.
Never got interim payments. OPM didn't have bank information correct until month 7.
I retired from USPS on 12/30/22. I’m getting my first interim payment on 2/1/23
Save up years or two funds to survive. Really.
I have a friend who is waiting for over a year. He is already dippi g into his TSP.
I retired several years ago and it was 3 months for my pension to be finalized
So in the gap from when you walk out the door and you get your FERS retirement and they let you access your TSP you can get into your Roth if you have one since its post tax correct ?
Retired December 31 2022, received first payment January of 2021. Unlike many I had may paper work done on time and had great contact with my person at OPM.
Give DFAS a call and listen to the voice on the other end, that will answer every question you have.
Submitted November 20 2020, Dec 21 2021 approved, February 1st 2022 official retired. Been on interim pay now for almost 9 months now, been waiting on final paycard, while my agency points fingers at one another. I had a year plus of savings but wearing thin now.
Could anybody let me know who issues tax documents for cashed out A/L? My agency says OPM while OPM says my agency. I moved since retiring and want to make sure I can track down the documentation if I don't get it.
At my location, a formal coworker submitted six months before retirement date. It is now four months after her retirement and still no retirement pay. Should I submit a retirement request for nine months from now even if I don't plan on retiring for a year or so?
My company has an ESOP. That’s a employee stock ownership plan. If you retire at the end of September which is the end of the fiscal year, then you will get your share of retirement money in mid-June of the next year. So about 8 and 1/2 months. If you wait until after the end of September, then you have to wait until the next fiscal year end and THEN wait until June. I WISH it had only taken 6 months ! But fortunately I had enough savings to make it.
Be nice if I ever got paid enough to stash all that cash
UPDATE :Retired from IRS on 1/28/2023! Got my unused annual leave check about 3 wks after retirement date, Started receiving partial pension pymts April 1st and my full pension payment and fers supplement May 1st. Total time to receive full pymnts 3 months. My application had no errors and no complications!
I retired in Sept 2022. After working 33 years and doing everything my Agency wanted and responding to emergency directives, and dealing with several hiring freezes and continual short staffing, Congressional Directives, Reduction in Force, budget issues, seeing regular people get run through the mill for unfounded sexual harassment claims, etc etc etc. I feel they put me through the wringer for oh so long, and then when I retired – yes the silence is deafening. Even before I retired the silence was deafening. The lack of communication really sucks. I was recently adjudicated so it was just shy of 4 months to be totally done – however the lack of communication is nerve wracking one last time. I now sleep Sunday night like a lamb with no anxiety about what broken record recurring issue will hit the fan on Monday morning. My observation in my last years, and a source of my crabbing – was that no matter how many surveys we completed and the zillions of meetings we had whereby we brought up all the operational issues and our suggestions – things never seemed to improve. Now that I'm gone I'm still hearing the same issues – it just never gets better. I cannot in good conscience recommend to younger people or family members, to work for the government. It takes a toll on your soul.
I think OPM is incompetent. In 2018, I retired with a MRA+10 retirement and deferred it to age 62. I would turn 62 in mid 2022. In early 2022, I figured out how to submit; my old agency acted like they didn't know me and wouldn't help. So I got the forms and filled them out. It was a simple retirement, one job, no breaks, no divorce. OPM instructions said to submit "about 60 days" in advance. I checked OPM current processing times which were around 94 days. I decided to submit earlier and mailed it 114 days before turning 62. I was getting worried, it took about a month to receive my CSA #. Then, after OPM had my application for 93 days they sent me a letter a week before age 62 rejecting my application stating they "do not accept deferred or
postponed applications more than 90 days before the annuity commences” and instructed me to resubmit. So, I did that same day. After another month, I received the same CSA # again. After two more months, I received a voicemail that "my case went active" with no explanation of what that meant. A few days later I received my first payment for an odd amount well short of the retirement estimate I had received from my agency in 2018. I called OPM and waited 45 minutes on hold to be told they would be sending me a "Blue Book" that explains everything. After waiting another month, still no Blue Book, I submitted an online help request. A few days later I received an email that I will be receiving a Blue Book that "explains everything". A week later I finally received the Blue Book which did explain everything; it showed that they calculated my annuity with 9 years, 3 months federal service when I had 10 years, 4 months. [It was an application for MRA+10 retirement.] I submitted an online help request to ask for a re-computation. OPM responded by email four days later that I had to send a request for re-computation by mail which I did that day along with evidence of my federal service attached. Another month passed. I called OPM, waited 45 minutes on hold only to be told that they have my request but re-computations take 6 months to a year and that "something must have been missing from my records". So now I'm two months into the new waiting period receiving shorted payments each month. Conclusion: OPM processes defy logic.Their communication is horrible and they won't call you if something is missing. They have no common sense. They rely way too much on communication via US mail. Their online help ticket system doesn't accept attachments. They're averse to using modern technology and don't mind redoing work that could have been done right the first time. And, once they have made a mistake or decided something, if you question it, you'll be sent to the back of the line to start over. Lucky for me, the MRA+10 annuity is not a large or a critical part of my retirement income. I'd feel sorry for someone who depends on the OPM annuity to live then have such nonsense as this happen to them. I suggested that OPM use a process like Social Security; when I turned 62, I applied for Social Security online. I didn't have to prove I was born or had worked in many places. Within minutes of applying, I received an email that they received my application; before the day was up I received another email telling me how much I would be paid (it exactly matched my SSA statement) and when it would start. And it did and it was correct. BTW, I checked out the OPM leadership. The Director is an activist attorney. I obtained her email and sent her a detailed case study of what has happened to me. But, she has ignored me. I hope her activism is focused on paying annuities correctly, and on-time, to federal retirees. But so far, that does not seem to be the case.
Although I am considering within the next 5 to 6 years. The information being provided is a great eye opener. Especially with getting my paperwork drafted and submitted as early possible. I appreciate the comments provided from real world experience. Thank you
That is not stressful, that is unacceptable!
You babble too much and repeat yourself a lot! 1:30 of dumb talk! I know it's just 1:30 but it's still a waste of breath!
I retired 31 October 2022. I’m single and have no complications from divorce decisions for my benefits and an ex. About a year before I wrote OPM to get documentation of my military buyback. I submitted my paperwork the first week July 2022, after carefully filling it out and providing supportive documentation. The Navy’s centralized HR office processed my paperwork in about 3 weeks. It went to DFAS the week after I retired. By week two they sent it it to OPM. My annual leave buyout arrived with my last paycheck around 7 November 2022. My first partial check arrived 7 December. Bear in mind that you are paid retroactively, by which I mean that my first month of retirement was November, and I was paid after the end of that first month of retirement. My second check was issued 30 December, for the month of December. By 11 January 2023, I received my benefits booklet from OPM. They had correctly calculated my high 3, my years of service (including the time I bought back from my stint in the Army) etc. My first full payment wii arrive 1 February 2023. OPM took care of my FEHB payments, except dental and vision so I had to make back payments on those. TSP… you cannot apply to withdraw funds from TSP until 30 days after retirement. The initial withdrawal will take more time, including about 10 days for electronic deposit to be set up (I called them the first week of December). Also, they take 20% for taxes. I think you can take 0%, but you have to make quarterly payments. I’m not sure about this. Side note: while TSP processed it ok, they will only distribute your funds pro rata (from all your investment funds, which is a total drag.) I wanted to withdraw only from the G fund and leave my stock funds alone to recover from the downturn, but nope. I’m probably going to roll over most of my TSP to an IRA with low fees and higher flexibility. Medicare was a whole other thing. I’d say, plan on being pretty engaged in retirement business the first couple months, and have funds to support yourself figured out. I feel my situation went well, prepared in advance, applied early, saved interim cash, no complications with divorce decrees or other debtors, retired before the end of year rush, got lucky with really good federal colleagues who did outstanding processing at the Navy OCHB, DFAS, OPM Etc, Good luck everyone.
Luckily when my husband retired at the end of July 2022 he had already started getting SS in May 2022 because he was over FRA. Plus I worked until December 2022. So we were ok and didn’t have to touch any savings. What we didn’t know is that the COLA was prorated for the amount of months he was retired. First regular pension amount took until November so not too bad.
Retiring as FERS with 28 years next week. Bought 4 years of military service. No divorces. Not feeling good about this
Last check 2 weeks after retirement, AL paid at three weeks, CSA # and interim pay at 7 weeks. Case finalized after 4 months. With one or two exceptions everyone I knew that retired had their case done in 5 months or less. It is up to you to be sure your agency has your correct information (all service, military buy back, etc.) by checking your EoPF file; if you do not know what that is you should (ps – download it all before you walk out the door). OPM is not the problem in most cases it is agency and employee mistakes. Never understood people that after a 30 year career cannot survive if pension is not received 3 weeks out the door. You will have access to TSP, AL payout and interim pay from OPM very soon after retirement. Also do not call OPM until you have your CSA # they can do nothing without it.
I retired on disability in 2005. I will be 62 in June. I will be going from disability to full civil service retirement. I hope l don't have to for months to received it.
Good video,
Nope..excuses excuses…military retirees can retire at the end of the month, and usually the next pay period they get their retirement pay..generally, so it’s possible…the secret that nobody says out loud the reason the pension takes so long…LAZINESS and remember nobody cares about your retirement but you. You’re asking someone who gives zero effs about your retirement to do something for you…
Retired August 31, 2022, Received final pay and leave payout middle of September. Starting receiving interem payment in October. Still awaiting finalized annuity. MRA +10 retirement, wife died in July, military deposited. FEGLI payout for wife came in September.
I retired at the end of Nov 2020, and OPM cleared my application in 66 days. What probably helped is that my agency went over my paperwork with a fine-toothed comb first to make sure everything was correct.
Great info. Thank you! Those of you giving real life examples, thank you!!
I got mine after 4 months. Just save. U worked 30 yrs. Come on!
Just save!!! 30 yrs! Save!!
This is great to know. Not retiring anytime soon (7 years maybe). But with a kid in school, the tuition bills won't stop coming for sure.
How is this even legal? Are they not legally required to pay you when you retire? Sounds like a lawsuit waitng to happen.
I presume you get your “backpay” for all the months you’re delayed? I can’t believe I’m asking this!
I retired on September 6th 2016. You guys must be lucky today? It took me TEN MONTHS to get my first check. Had it not been for my savings and TSP, we would have lost every thing. The goal is to strip you of everything you earned and start over on half the pay with bad credit. LOL….That trick didn't work on us.
Do they pay for FEHB during that interim period?
I do have a court order on file with OPM. Very simple & straightforward. When I do receive partial payments. Will my ex spouse also receive partial payments?
Question…. I want to retire later this year.. I’m 62… can I withdraw from my TSP now and have money to live on during the time I’m waiting for my pension to kick in?