Properly Preparing for Your Retirement to Avoid Delays

In January 2021, the Office of Personnel Management retirement backlog hit a new high, rising to 37%. It is typical for many employees to retire towards the end of the calendar year to maximize their benefits. However, the backlog didn’t surge due to an overwhelming number of people electing for retirement. Instead, it was the fact that fewer claims were processed in 2020. Only 7,442 claims on average were processed by OPM, which is the lowest it has been in the last six years.

Knowing that there is a significant backlog makes it even more important to make sure that your paperwork and the details of your federal retirement are double-checked and are not missing any critical information. If your information isn’t in order, it could delay your retirement process.

IF RETIREMENT IS CLOSE ON THE HORIZON FOR YOU, HOW DOES THE BACKLOG AFFECT YOUR TIMELINE?

The last thing anyone wants to experience as they embark into retirement is to get kicked out of the process because their paperwork wasn’t perfect. If claims continue to get processed at a slower pace, the backlog issue may be around for a little while longer.

Amongst one of the most overlooked details in a federal employee’s retirement is how divorce can impact the process. Suppose you were married while you were a federal employee, and that relationship ended in divorce. There is a possibility the former spouse was awarded a portion of your annuity or survivor annuity. If you have a divorce decree with a court order, it is critical you have that document. Knowing how to correctly answer the questions asked on the Federal Employees Retirement System and Civil Service Retirement System retirement application can prevent delays.

NOT SURE WHAT INFORMATION YOU NEED TO START THE PROCESS?

Benchmark Financial Group can help you make sure that everything you need is in order. Wondering what documents you need to start the retirement discussion? Here are eight items we recommend:

1. Copy of a recent Leave and Earnings Statement
2. Copy of your Retirement Estimate, FERS Benefits Statement (from Employee Express/MyPay)
3. Copy of your TSP Statement
4. Any other investment statements that you have identified as retirement money (money you would like to include in your retirement plan)
5. Detail of life insurance policies or Long Term care policies you have in force (coverage amounts, face amounts, premiums, etc.)
6. Statement from Social Security (You can get one at www.socialsecurity.gov)
7. Divorce Decree, if there is one, while you are a federal employee
8. Your spouse’s benefits—if you are interested in developing both of your retirement plans

HOW DOES YOUR FINANCIAL SITUATION STACK UP?

Time to take a closer look at your financial situation. Retirement may be closer than you think! Schedule an appointment today with Benchmark Financial Group by filling out the form online or calling David Raetz at 913-534-8256 to discuss your financial needs.