The federal retirement processing backlog continued its descent in May, dropping by more than 11,000 pending claims to reach its lowest point since before the historic surge that began in late 2024. But the good news on inventory comes with a caveat: processing times are getting longer, not shorter.
The Backlog Is Coming Down
Total pending retirement claims fell from 49,888 in April to 38,547 in May, a reduction of more than 11,000 cases in a single month and the most significant monthly improvement since the backlog peaked at 65,237 in February. OPM’s Retirement Services processed 19,433 total claims in May, the highest monthly processing volume of the fiscal year.
The decline reflects both a slowdown in new federal retirement claims coming in and an acceleration in cases being resolved. May saw 11,286 new claims received, the lowest monthly intake since October, suggesting the wave of retirements that defined late 2024 and early 2025 is beginning to moderate.
Processing Times Are Rising
Despite the progress on inventory, the time it takes to process individual claims moved in the wrong direction in May. Digital cases took an average of 66 days, up from 50 days in April. Paper cases took 105 days, up from approximately 100 days the prior month. The overall average across all claim types reached 87 days, the highest single-month average since January.
The Digital Gap Keeps Growing
Of the 11,286 new claims received in May, 8,288 were digital, and 2,998 arrived on paper. Digital applications are processed through systematic data checks that catch errors and missing information before they cause delays, which is why digital cases consistently process faster than paper ones. This month, that advantage was 39 days. A retiree who submitted digitally waited 66 days for processing. A retiree who submitted on paper waited 105 days.
OPM’s Retirement Services is actively working toward a fully digital retirement application process and continues to work with agencies and payroll providers to modernize legacy systems. Until that transition is complete, the choice of how to submit remains one of the most consequential decisions a retiring federal employee can make.
What This Means If You Are Planning to Retire
The backlog is improving, but processing times remain well above historical norms. For federal employees approaching retirement, submitting digitally and making sure your application is complete and error-free before submission remains the single most effective way to avoid a lengthy processing delay.
A Federal Retirement Consultant (FRC®) can help you prepare a thorough retirement application and make sure your transition from paycheck to pension goes as smoothly as possible. Schedule your complimentary benefits review today.
