Federal Retirement Claims Backlog Hits Record High Amid Program Delays

Washington, D.C. — The federal government is facing a significant backlog in retirement claims, reaching its highest level since the COVID-19 pandemic. The surge is primarily driven by numerous federal employees participating in the deferred resignation program initiated under the Trump administration.

This situation intensified as many of these workers were compensated through September 30. In October alone, the Office of Personnel Management (OPM) received 20,344 new retirement applications, marking a substantial increase from previous months. During the same period, OPM processed 8,751 claims, up from 7,902 in September, causing the total backlog to rise to 34,587 pending claims.

Past spikes in claims were also noted in May and June, coinciding with 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 due to pandemic-related processing issues.

Since 2022, OPM has implemented technology upgrades and increased staffing during peak periods to manage the backlog effectively. The agency aims to reduce the backlog to a steady state of 13,000 claims. However, the situation has worsened since April, with the average time to process a retirement application now sitting at 79 days. This is a notable increase from an average of 44 days in February.

OPM Director Scott Kupor acknowledged the challenges posed by the backlog and committed to expediting interim pay for retirees. This interim pay 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 in their financial planning.