OPM Getting Better at Clearing Retirement benefits Backlog

OPM’s struggle to keep pace with the retirement benefits applications of the retirees has been a much discussed issue. We updated you last on the same in April. It’s time for another update. In the month of June, the agency received fewer applications and so the agency succeeded in processing more applications than it received for the month.

June’s Data on Processing Retirement Benefits

• Also Read: Four Survivor Benefits That Can Help Federal Employees Protect Their Families’ Financial Security
• Also Read: Why Lifecycle Funds Are Becoming a Go-To Option for TSP Investors Seeking Simplicity and Growth
• Also Read: The Rising Cost of FEHB Premiums: How Federal Employees Are Adjusting to Keep Coverage Affordable

OPM got about 6,000 new retirement benefits claims in the month of June. It is about 18 percent lower than the claims received in the months of May. The number of new applications is also sixth lowest since October of 2014. In June, the agency processed just over 6,400 claims. It shows that the agency processed more claims than it actually received. The number of claims processed in the month of June is around 16 percent less than the claims processed in May. The number of claims processed is also the third lowest amount processed by the agency in the last 21 months.

The Total Backlog

The total backlog of the claims now stands at just over 13,500. It is a bit less than around 14,000 outstanding backlog of May 2016. In the report presented in May, the OPM added the steady state line at exactly 13,000 claims but the agency has clearly failed to reach this line. It has just been able to reach half of the goal.

Getting Better

Despite the hiccups, it is clearly visible that the agency is getting good at handling the claims and it seems that it has finally gotten a handle on the inventory backlog of claims. This inventory was out of control in the month of January. The reason behind the sudden escalation in the inventory was the fact that most federal employees file for a retirement in January only.

The 60 Days Factor

OPM data has also revealed that it processed 75 percent of claims in less than 60 or exactly 60 days in June. It has not changed since the month of May. The agency took an average of 37 days to process the claims that were processed in less than 60 days. The average has also remained unchanged. The retirement benefits claims that took more than 60 days to process were 103 in May and it stands at 115 in June.