Frequently Asked Questions Retirement

If it is within 30 days of your first regular annuity payment, you may file a new election in writing. You should send the election to:

U.S. Office of Personnel Management Retirement Operations Center Post Office Box 45 Boyers, PA 16017  

Your first regular monthly payment is the first one paid in an amount other than the estimated amount or the adjustment payment after we have computed your regular annuity amount. If you change your election to anything other than the maximum, you must obtain your spouse's consent or a waiver of the consent requirement. After the 30 day period has passed, you can change your election only under the following circumstances. If it is more than 30 days from the date of your first regular monthly payment, but less than 18 months from the beginning date of your annuity, you may change your decision not to provide a survivor annuity or you can increase the survivor annuity amount. You must request the change in writing at:

U.S. Office of Personnel Management Retirement Operations Center Post Office Box 45 Boyers, PA 16017

You must also pay a one-time payment representing the difference between the old and new election amounts. This one-time payment also includes a percentage of your annual benefit. The percentage is 24.5 percent of your annual benefit if you are changing from no survivor benefit to a full survivor benefit or 12.25 percent if you are changing from no survivor benefit to a partial one. Interest is also charged at the rates shown in this table. Your written election should include your claim number, the amount of your new survivor election, and your spouse's name, social security number, date of birth, and a copy of your marriage certificate

You can use Retirement Services Online at https://www.servicesonline.opm.gov/Default.aspx.  You will need your claim number and Personal Identification Number (PIN) to use the self-service website.   If you forgot your PIN, you can request a new one by mail here: https://www.servicesonline.opm.gov/RequestPassword.aspx.  Alternatively, you can call the Retirement Operations Center at 1-888-767-6738 and request a new PIN.  The phone lines are open from 7:30 am to 7:45 pm (Eastern Standard Time). It is a busy phone number so we encourage you to call early in the morning or after 5:00 pm when the phone lines are less busy.

For more information regarding Federal income taxes, visit the IRS website at www.irs.gov or call the IRS on 1-800-829-1040.

Complete information pertaining to military service can be found in the CSRS/FERS handbook at www.opm.gov/retire/pubs/handbook/C022.pdf.  If you are a current employee, contact your personnel office for information.

We are very much aware of the increasing processing times retirees and potential retirees have been experiencing. Individuals applying for retirement are dedicated Federal employees who have devoted their careers to serving the citizens of this country, and as such, they deserve treatment commensurate with their service. The present situation is the result of the confluence of a number of factors. This includes the attempt to utilize an "off-the-shelf" private sector processing system, which ultimately was not successful. We tried to redesign all aspects of retirement processing simultaneously and anticipated that increased automation was the long-term solution. Accordingly, we assumed lower staffing levels would be required. As staff levels were reduced, the volume and complexity of retirement casework increased. Our paramount goal is to improve the overall claims adjudication process. There is no simple or easy solution that is capable of instantly remedying the problem, but we are doing everything in our power to improve service to our annuitants as rapidly as possible within the constraint of available resources. We have begun several initiatives to not only speed up claims review but to streamline other attendant retirement procedures. We hired 40 legal administrative specialists to assist with the current backlog and future workload. We have also authorized additional overtime across the claims processing groups and will continue to approve overtime thru fiscal year 2011. Overtime is also being offered to former claims examiners to help tackle the backlog. To assist the retiree's immediate financial needs, OPM established an interim pay process to provide new retirees with income while their retirement benefits are adjudicated. Retirees receive their first interim payment in 5-7 business days from the date the agency's electronic file or paper records are received by OPM. OPM uses the information provided by the agencies (at the time the retirement application is submitted) to determine the amount of interim pay. In calculating the amount of the interim payment from the data provided by the agency, OPM:

• Determines the years and months of creditable Federal service
• Uses the retiree's final salary
• Accounts for any survivor election
• Applies a reduction for age if appropriate
• Reduces the amount of interim payment to cover premiums for any insurance elections.

Our goal is to provide the annuitant with as much of their expected NET monthly payment, less Federal income tax withholding. The NET payment amount is the amount of the annuity payment after deducting premiums for health benefits and life insurance from the gross rate. Some retirees receive less than our goal due to a variety of factors. Some of the conditions that could cause the annuitant to receive less than the agency's NET estimate are: a FERS annuity supplement, unpaid service credit deposits, redeposits or military deposits, a court order on file at OPM, or the retiree is entitled to a special computation as a Law Enforcement Officer, Fire Fighter, Air Traffic Controller or other special retirement group. In December, we increased all Department of Defense civilian retiree interim payments by 5%. This will affect 29% of the cases. These cases had been receiving a lower than average amount of interim pay based upon the data received at the time of retirement. Additional system changes are in process to provide a 5% increase for certain retirees of the United States Postal Service. OPM is currently working with agencies to improve timeliness and quality of personnel/payroll information submissions. Indeed, OPM's Strategic Plan speaks to the shared responsibility for retirement processing among employees, agencies and OPM so resolving these issues is at the very center of the radar screen. Incomplete or inaccurate information from agencies can significantly delay processing and ultimately, a retiree's check. Unfortunately, 23 percent of all claims received are missing one or more records and 11 percent are not received during the first 30 days. We are confident that through additional staff, over-time, improvements in interim payments, and collaboration with agencies we will reduce our back-log to more normal levels and fulfill our commitments to the Federal retiree, which has always been one of our highest priorities.  

If your agency undergoes a major reorganization, reduction in force, or transfer of function, and a significant percentage of the employees will be separated, or will be reduced in pay, the head of your agency can ask the U.S. Office of Personnel Management (OPM) to permit early optional retirement for eligible employees. If your agency gets approval to permit early optional retirements, eligible employees will be notified of the opportunity to retire voluntarily. Information about Early Optional Retirement under CSRS is available here.  Information about Early Optional Retirement under FERS is available here.

The basic Civil Service Retirement System (CSRS) annuity cannot exceed 80 percent of your high-3 average salary, excluding your unused sick leave. Generally, you reach the 80 percent limitation when you have 41 years and 11 months of service, not including accumulated sick leave.   Fewer years of service may result in a computation that produces the maximum benefit under special computation formulas such as for law enforcement personnel. Your service beyond the years which provides the maximum benefit will not be used to compute your annuity.  Instead, we will automatically refund the retirement contributions you made during those years.  Interest is paid on this refund payment at the rate of three percent per year, compounded annually.  You can use the refund to purchase additional annuity, as if  the contributions and interest are voluntary contributions. However, if you have federal civilian employment periods when you did not contribute to either the Civil Service Retirement System (CSRS) or the Federal Employees Retirement System (FERS), we automatically apply excess contributions toward any deposit due for these employment periods.

To qualify for payments from the Civil Service Retirement System (CSRS) or the Federal Employees Retirement System (FERS), you must submit a retirement application. They are available on our website, as follows:

• Application for Immediate Retirement (CSRS), Standard Form (SF) 2801 [1.2 MB]
• Application for Immediate Retirement (FERS), Standard Form (SF) 3107 [1.0 MB]

You should submit an application for immediate retirement as shown below.