When we look at the OPM retirement backlog, the number of pending retirement claims has been falling for months, yet the average time required to process each claim has continued to rise.
A new Government Accountability Office report adds important context. The problem isn’t simply that OPM has fewer employees. It’s also which employees have left.
OPM Retirement Services Lost 16% of Its Staff
According to GAO, OPM’s Retirement Services office, the unit responsible for processing federal retirement claims, lost 165 positions, or about 16% of its workforce, between fiscal 2024 and fiscal 2026.
That is happening while OPM is still working through the surge of retirement applications that pushed the OPM retirement backlog to record levels.
Fewer employees are processing claims while the agency continues working through a historically large volume of applications. But the staffing numbers only tell part of the story.
It’s Not Just How Many People Left
The more important issue may be the experience that left with them.
GAO found that employees age 60 and older declined by 49% between December 2024 and March 2026. At the other end of the workforce, 41% of employees under age 30 also separated during that period.
Among the OPM employees who left, 57% had at least 11 years of federal service, while 18% had more than 31 years. For a retirement-processing operation, that matters.
Experienced employees bring institutional knowledge, familiarity with complicated cases, and an understanding of older systems and procedures.
When a significant portion of that experience leaves at the same time as newer employees are also departing, replacing the headcount doesn’t necessarily replace the knowledge.
How This Connects to the Backlog
This helps explain how the OPM retirement backlog can continue shrinking even while processing times remain elevated.
The backlog measures how many claims are waiting to be completed. Processing time measures how long completed claims took to move through the system.
OPM can process more claims than it receives and reduce the backlog while individual applications still take a long time to complete.
A smaller workforce, combined with the loss of experienced employees, can make that process more difficult, particularly when claims require additional research or specialized handling.
What This Means for Your Retirement
This doesn’t change how your FERS pension is calculated, and a processing delay doesn’t mean you’re losing retirement eligibility or benefits. It does affect when you receive your final annuity.
That makes OPM’s processing timeline a cash-flow issue for someone approaching retirement. You may spend longer receiving interim payments before OPM completes your retirement calculation and begins paying your full annuity.
The Takeaway
The OPM retirement backlog is moving in the right direction. But GAO’s findings suggest that the number of claims waiting isn’t the only thing worth watching.
OPM is handling the workload with a smaller workforce, and many experienced employees have left. That doesn’t mean every retirement application will be delayed. It does help explain why a shrinking backlog hasn’t automatically translated into shorter processing times.
If you’re approaching retirement, a Federal Retirement Consultant (FRC®) can help you prepare your paperwork and plan for the possibility that your final retirement processing takes longer than expected.
