Federal employees who don’t want to see their applications delayed should make sure they don’t miss these two crucial aspects of the federal retirement application process.
#1 Deposits and Redeposits
For financial professionals serving federal employees, few areas create more anxiety, or more opportunity, than the retirement application process. A federal retirement claim is a multi‑step, documentation‑heavy, error‑sensitive process that can derail even the most prepared employee if a single detail is missed or an error is overlooked. When a client has prior military service, refunded civilian service, or any period of non‑deduction time, the complexity increases dramatically. And in today’s environment of extended OPM processing delays, the margin for error has never been thinner.
This is where advisors can deliver extraordinary value. Federal employees rarely receive proactive guidance from their agencies, and HR departments are often too overwhelmed to provide the level of clarity clients require – Federal agency HR managers also aren’t allowed to give any personalized recommendations to their employees. When an advisor can step in, untangle the rules, and help clients avoid the mistakes that lead to months of delayed income, you become an indispensable partner in one of the most consequential transitions of their lives.
Fed Options is here to help with the process so nothing falls between the cracks – Schedule a Meeting to learn more.
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Military Service Deposits & Redeposits for Federal Retirement
The first major challenge for many federal employees is understanding whether their past service counts toward their FERS pension, what they must do to make it increase their pension, and whether or not any increase is worth making the necessary deposit or redeposit. Military or federal service deposits and civilian redeposits are among the most misunderstood parts of the federal retirement system, and the consequences of misunderstanding them can be severe.
Military Deposits: Timing and Process
A military service deposit must be paid in full before the employee can retire from federal service. If a deposit is not completed at the time of separation, this will delay the retirement process. And if the deposits stop, the money is refunded and the service simply does not count toward the pension. Advisors who catch this early can save clients from losing years of creditable service and thousands of dollars in lifetime income. In fact, the earlier into a federal career that these deposits are made, the better. This is due to the fact that the deposit amount due starts to gain interest after 3 years of working for the government. By the time a client reaches retirement age, the interest alone can double the cost of the deposit. Advisors who encourage clients to complete their buybacks early in their careers can save them thousands of dollars and eliminate a major administrative hurdle later on.
The process itself is straightforward but tedious. Clients must request their estimated military earnings by submitting an RI 20‑97 form to the appropriate military finance center, attaching their DD214, and waiting for the earnings statement to be returned. Once received, the agency HR office calculates the deposit amount, and informs the employee of their deposit options. Advisors who guide clients through this process early prevent last‑minute scrambles and reduce the risk of errors that can delay retirement.
Making Redeposits for Past Service
Civilian redeposits operate slightly differently. If a client previously left federal service, withdrew their CSRS or FERS retirement contributions, and later returned, they can make a redeposit. For FERS, this will help boost their eligibility and pension amount, but for CSRS this service time may already count towards both their eligibility and pension but still affect the pension benefit with a penalty reduction. So understanding how a redeposit affects the federal employee’s pension and determining if it is “worth it” to make the redeposit are key questions that advisors can help employees understand. Especially, because after submitting their retirement application OPM will give the employee an opportunity to make a redeposit before finalizing their retirement application. And the redeposit must be completed before OPM finalizes the pension. In practice, this means advisors should encourage clients to resolve redeposits well before retirement to avoid becoming trapped in OPM’s adjudication queue. This also helps to avoid more interest being accrued for the redeposit amount owed as well.
Overcoming HR Hurdles and Correcting Service Deposit Errors
Even when clients follow the rules, HR complications can derail the process. Advisors must be prepared to step in when HR cannot.
One of the most common issues is a DD214 that contains the wrong separation code or incorrectly categorizes service such as active duty vs. reservist credits. A single miscoded DD214 can cause HR confusion or incorrectly determine how the service is creditable.
By reviewing service documents, identifying inconsistencies, and helping clients gather the correct paperwork, financial professionals can catch errors that would otherwise delay the retirement application for months. And you do not have to do this alone.
Fed Options was built to support advisors in exactly these situations. With access to the Benefits Command Center, advisors can receive expert guidance and hands‑on support for resolving service deposit issues, and other application mistakes. Fed Options provides the infrastructure to ensure your clients’ applications are clean, accurate, and ready for OPM.
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#2 Preparing Clients for the OPM Waiting Game
Even a flawless retirement application cannot escape the reality of OPM’s current processing environment. DRP and VERA offers have been continuing into 2026. With more than 38,000 pending retirement claims in the backlog as of May 31, federal retirees must be prepared for a slow and sometimes frustrating adjudication process. Advisors play a critical role in setting expectations and preparing clients financially and emotionally for the waiting period.
Note that after the potential retiree submits their application via the new ORA system, on the retirement date, it then goes to their agency’s HR department for review, and from there goes to their payroll provider who certifies their service history and pays out the lump sum payout for unused annual leave. Only after these 3 steps are completed will the retirement claim be sent to OPM for processing. While an error-free application can take as little as 7 business days after reaching this point, even one error can lead to delays that can extend to several months.
Most retirees receive their first interim payment within three to six weeks of separation. These payments are typically 30 to 60 percent of the final pension amount and continue until OPM finalizes the calculation. The final adjudication can take three to five months or longer, depending on the complexity of the case and the volume of applications OPM is processing on a “normal” basis. With the current backlog employees are waiting several more weeks for their interim payment and several more months for their final pension amounts to arrive.
Clients who are not prepared for this timeline may panic when their first interim payment does NOT arrive or when they do not receive immediate confirmation of their claim. Financial Professionals should encourage clients to monitor their mail for their CSA claim number, which typically arrives within a few weeks. If it does not, the client must contact OPM directly. Calling early in the morning, before peak hours, increases the likelihood of reaching a representative.
If OPM remains unresponsive, clients will probably need to escalate the issue. And we have the resources to assist in this.
Advisors Who Prepare Clients for this Process Become Indispensable During Retirement
Federal retirement can often be a complex, multi‑layered process that requires precision, patience, and expertise. Advisors who proactively manage service deposits, help clients resolve HR challenges as timely as possible, and prepare them for OPM delays provide a level of value that few federal employees have ever experienced.
By partnering with Fed Options, you gain access to tools and support systems that streamline the process, reduce administrative burden, and ensure your clients’ retirement applications are as clean and accurate as possible.
And to make your job easier, we’ve included a resource you can share directly with your clients.
Download the OPM Contact Sheet below so your clients always know exactly how to reach OPM Retirement Services when the squeaky wheel needs grease.
DOWNLOAD OPM CONTACT SHEETOther Helpful Links:
Contact information: https://www.opm.gov/support/retirement/contact/
OPM Resource Center: https://www.opm.gov/retirement-center/
OPM Services Online (log-in required): https://www.servicesonline.opm.gov/
Contact Information for HR Officers: https://www.opm.gov/retirement-services/benefits-officers-center/agency-benefits-officers/
