Your OPM Retirement Checklist: Be Prepared for the Big Day

Retirement marks one of life’s most significant transitions, and for federal employees, it comes with unique processes and requirements. Navigating the paperwork and timelines overseen by the Office of Personnel Management (OPM) can feel daunting. This comprehensive checklist will help you prepare for a smooth and stress-free retirement.

Confirm Your Eligibility
• Understand Your Plan: Determine your retirement eligibility under your plan—whether it’s CSRS, FERS, or a special retirement system.
• Meet the Requirements: Verify that you satisfy the age and service requirements for your desired retirement type (e.g., regular, early, or disability retirement).
• Check for Additional Benefits: Assess whether you qualify for extra benefits, such as the FERS Supplement if retiring before age 62.

Review Your Service History
• Ensure Accuracy: Review your service records for accuracy. Errors or missing service time can delay retirement processing or reduce your annuity.
• Obtain Documentation: Request a Certified Summary of Federal Service from your agency to confirm all creditable service.

Finalize Your Financial Plan
• Thrift Savings Plan (TSP): Review your TSP account and decide how it will factor into your retirement income strategy. Consider consulting TSP tools like the Retirement Calculator.
• Outstanding Loans: Address any TSP loans. Unpaid loans must be resolved before separation; otherwise, they’ll be treated as taxable income.
• FEGLI and FEHB: Evaluate your options for maintaining or converting benefits such as FEGLI (life insurance) and FEHB (health insurance). Research how these benefits integrate with Medicare to determine what works best for you.
• Plan for Inflation: Account for potential inflation impacts on your retirement income.

Submit Your Retirement Application
• Work with HR: Collaborate with your agency’s Human Resources office to complete required forms, such as SF-3107 (FERS) or SF-2801 (CSRS).
• Include All Documentation: Attach necessary documents, including marriage certificates for spousal benefits or proof of military service for credit.
• Submit Early: File your application at least 90 days before your planned retirement date to avoid delays in receiving your first annuity payment.

Understand Your Timeline
• Processing Times: OPM’s processing can take 30-90 days, depending on the complexity of your case and how promptly your agency submits your application.
• Financial Contingency Plan: Prepare for potential delays by setting aside an emergency fund to cover expenses during the transition period.

Post-Retirement: Follow Up
• Track Your Application: After submission, OPM will provide a claim number. Use this to monitor your application status.
• Verify Annuity Payments: Review your first annuity statement carefully to ensure the payment amount is correct.
• Address Errors Promptly: If discrepancies arise, contact OPM immediately to resolve them.

Avoid Common Pitfalls
• Beneficiary Oversights: Ensure your beneficiary designations are up to date for TSP, FEGLI, and other accounts.
• Service Breaks: Check that all periods of service, including breaks, are accurately documented.
• Incomplete Forms: Double-check that all forms are filled out completely and signed appropriately.

Special Considerations
• Unique Roles: Employees in law enforcement, firefighting, or air traffic control should be aware of special retirement provisions that may apply to them.
• Disability Retirement: If applying for disability retirement, be prepared to submit additional medical documentation.

Sample Retirement Timeline
There are three main types of OPM retirement: regular, early, and disability. Regular retirement typically allows for the highest annuity amount. Early retirement comes with a reduced annuity, and disability retirement requires additional medical documentation.

1 Year Before Retirement: (applicable to all)
• Verify service history.
• Start discussing your plans with HR.
• Create a preliminary budget for retirement.
6 Months Before Retirement: (applicable to all)
• Request a Certified Summary of Federal Service.
• Decide on TSP withdrawal or rollover options.
• Research Medicare and FEHB integration.
3 Months Before Retirement: (applicable to all, with additional steps for disability)
• Submit your retirement application.
• For Disability Retirement: Gather and submit necessary medical documentation.
• Address any outstanding TSP loans.
• Confirm your final day of work with HR.
1 Month Before Retirement: (applicable to all)
• Follow up with HR on application status.
• Set up a financial contingency fund.
• Prepare emotionally for the transition.

Final Thoughts
Retirement planning can feel overwhelming, but preparation is the key to reducing stress and ensuring a smooth transition. By proactively checking off these steps, you’ll set yourself up for success and enter the next chapter of your life with confidence. Take the time to double-check your paperwork, communicate clearly with HR, and plan for contingencies—future you will be grateful.

Resources
https://www.tsp.gov/calculators
https://www.opm.gov/retirement-center