The Office of Personnel Management (OPM) is grappling with a growing challenge — a surge in federal retirement claims that has pushed its processing backlog to the highest level since March 2022. Despite ongoing modernization efforts, including the introduction of new online tools and the Online Retirement Application (ORA) system, federal retirees are experiencing extended waiting times for their benefits to be processed.
Retirement Backlog Hits Two-Year High
According to OPM data, the agency received over 20,000 new retirement claims in October 2025, nearly 8,000 more than in September. This spike occurred just after the government shutdown and the conclusion of the Deferred Resignation Program (DRP) on September 30. The backlog now stands at approximately 35,000 pending claims, more than double OPM’s goal of maintaining under 13,000.
The processing speed for claims has also slowed significantly — retirees now wait an average of 79 days for their applications to be reviewed. Experts attribute the delays to a “perfect storm” of factors, including higher-than-usual retirements, understaffed HR departments, and the growing pains of transitioning to the digital ORA system.
Retirement planning expert Thiago Glieger noted that many HR departments are struggling to keep up with the administrative workload. “We had a lot of people leaving, and the DRP created bottlenecks in the system. HR teams simply can’t provide the level of support they used to,” Glieger told Federal News Network.
The Push Toward a Paperless Future
OPM Director Scott Kupor remains optimistic that automation will soon improve efficiency. Kupor stated that a fully automated retirement system could be in place within six months. However, he acknowledged that even with the ORA, there are still manual data-entry requirements that slow the process. “That introduces a huge amount of delay in the system,” Kupor explained, emphasizing the agency’s commitment to going fully paperless “as quickly as possible.”
The ORA system represents a significant shift toward modernization. It allows employees to submit retirement applications digitally and track their progress online. Yet, the hybrid nature of the system — with both digital and manual verification — has created new bottlenecks during its initial rollout.
New Online Tools for Federal Retirees
In an effort to enhance transparency and convenience, OPM has launched two new online tools to support retirees:
- Digital Tax Document Access – Retirees can now securely download their 1099-R tax forms without logging into the main Retirement Services Online portal. This paperless feature is designed to save time and streamline tax season for federal retirees.
- Real-Time Processing Updates – The new portal enables retirees to view current retirement processing times, helping them set realistic expectations for when their benefits will be completed.
These tools are part of OPM’s larger digital transformation strategy, which aims to reduce paperwork, increase self-service options, and improve communication between retirees and federal HR offices.
Challenges Remain as Modernization Expands
While the new tools mark progress, many retirees are still expressing frustration with delays and lack of communication. The OPM’s modernization efforts come at a critical time, as federal agencies experience a wave of retirements and ongoing workforce shortages.
Experts say that the success of the ORA and other tools will depend on how quickly OPM can train HR staff, automate verification processes, and manage the incoming surge in applications.
As the agency continues to refine its systems, retirees are encouraged to check their application status regularly and take advantage of the new online resources. The road to a fully digital retirement process is underway — but as of now, patience remains a necessary virtue for thousands of federal employees awaiting their benefits.
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