As the federal workforce navigates a government shutdown, a massive wave of federal retirement applications triggered by the Deferred Resignation Program (DRP) is putting unprecedented pressure on the Office of Personnel Management (OPM). Approximately 150,000 federal workers accepted the DRP offer earlier this year, with 100,000 exiting on September 30 and the rest by year-end. Of these, up to 60,000 are retirees now awaiting their benefits, a process complicated by both systemic inefficiencies and the ongoing shutdown.
A Surge in Retirement Claims
OPM is racing to manage the application surge. Historically, processing federal retirements has been a slow, paper-based ordeal, handled underground at the Iron Mountain facility in Boyers, Pennsylvania. As of August 2025, OPM reported a backlog of over 24,000 unprocessed claims, with an average processing time of 70 days. The influx of 60,000 new federal retirement applications threatens to exacerbate this bottleneck.
OPM Director Scott Kupor acknowledged the challenge: “There’s no question there’s going to be a surge. We’re doing everything we can to address it.” One major hurdle is that retirement applications cannot be processed until an employee’s final paycheck is issued, a step handled by individual agencies. Kupor called the process “crazy” and vowed to redesign it entirely, signaling a shift toward modernization.
New Technology Amid Chaos
To tackle the influx, OPM rolled out the Online Retirement Application (ORA) system during the workforce downsizing. This platform gives OPM early visibility into incoming claims, currently around 60,000 in the pipeline, unlike the old system, where paperwork arrived unpredictably via postal workers. While some federal employees reported confusion with the transition, Kupor defended the timing, stating, “It’s always the right time to roll out new technology.” The ORA aims to streamline tracking and processing, offering hope for faster resolutions.
Shutdown Complications
The government shutdown adds another layer of complexity. While OPM’s 400 retirement benefits specialists are exempt from furloughs, agency-level HR and payroll staff face uncertainty. The Office of Management and Budget (OMB) guidance allows agencies to classify these workers as “essential” to process DRP off-boarding, including federal retirement applications, but decisions vary by department. If furloughs delay agency submissions, OPM’s ability to process claims swiftly could be hampered.
Kupor remains optimistic, noting that OPM is hiring additional staff to handle the surge. He aims to have interim benefits flowing to retirees by Thanksgiving, provided agencies submit claims promptly. However, with no clear response from OMB or agencies on furlough plans, the timeline remains uncertain.
A Test of Resilience
OPM has long faced criticism for sluggish retirement processing, prompting monthly reports on claims and wait times. The DRP-driven exodus tests the agency’s “mettle,” as Kupor put it, but also underscores its efforts to modernize. The stakes are high for the 60,000 retirees awaiting benefits, many of whom face financial uncertainty as the shutdown looms.
