OPM touts digitization efforts, blames outdated tech for retirement delays
The Office of Personnel Management is addressing what have become growing concerns in Congress over the significant delays in federal retirement processing this year.
In a letter sent Tuesday to a group of House Democrats, OPM Director Scott Kupor touted the benefits of the new online retirement application (ORA) in helping to streamline processing, while at the same time arguing that outdated systems — not staffing levels — are to blame for the current challenges HR employees are facing.
“The main issues with federal HR, we have found, are not low staffing levels, but inefficient and outdated technology and antiquated, cumbersome regulations and processes,” Kupor wrote in the Dec. 30 letter, obtained by Federal News Network. “OPM under the Trump administration has done in a matter of months what the government failed to do for multiple generations: modernize the paper-based federal retirement system.”
Kupor’s comments are a response to a Dec. 22 letter from Democrats on the Oversight and Government Reform Committee, which raised concerns about the significant delays retiring federal employees are currently experiencing. Those delays are largely due to a surge of retirement applications from employees who opted into the deferred resignation program (DRP) earlier this year.
Now two months after thousands of federal employees separated from government on Sept. 30, some retirees have told Federal News Network they are still awaiting any retirement-related payments. Some also expressed frustrations about limited information from their agencies on the status of their applications.
In light of the challenges, a group of Democratic lawmakers last week pressed OPM for more details on retirement processing, and how OPM is helping other agencies manage the high volumes of applications. The Democrats’ letter criticized the DRP-inflicted surge of retirements as a “foreseeable and avoidable administrative failure.”
Kupor, in response, pushed back against the lawmakers’ criticisms that the DRP was not a truly voluntary program for federal employees. He also said OPM is “rapidly fixing” the manual, paper-based processes involved in federal retirement — namely through the launch of the ORA earlier this year. Over the last few months, Kupor said ORA helped expedite the retirement process at agencies where applications had been stalled.
“For example, just recently we were able to fast track 1,500 ORA applications that had been backlogged in the HR department of an executive branch agency to bypass the HR organization and transmit the applications electronically to payroll and then to OPM,” Kupor wrote. “These applications had been sitting for months — and were likely to be sitting for months longer; ORA enabled us to address this challenge.”
This year, OPM has also managed to improve its ability to provide interim annuities to more retirees immediately after their applications reach OPM, according to Kupor.
“This is a massive benefit to our retirees that we designed specifically to address the significant volume of applications we anticipated receiving in the wake of DRP,” Kupor wrote.
Rep. James Walkinshaw (D-Va.), who led the Democrats’ letter to OPM last week, said he appreciated Kupor’s response to their concerns, but added that “the facts remain and are stubborn.”
“First, the Trump administration fired or drove out hundreds of thousands of qualified civil servants. Now they’re facing a historic backlog of retirement applications managed by understaffed HR departments in the midst of a rocky rollout of a new IT system,” Walkinshaw said in a statement to Federal News Network. “I very much hope that Mr. Kupor can succeed in ensuring timely processing of federal retirement applications. But right now, he is failing.”
Due to the Trump administration’s efforts to reduce the federal workforce, HR staffing decreased by about 5%, with agencies losing a cumulative total of about 2,600 employees, according to fiscal 2025 data. That does not include HR employees who took the DRP offer themselves and separated after September.
Despite the reductions, Kupor said federal HR is “hardly understaffed,” and that the main challenge is not with workforce size, but rather with outdated systems. With fully digital retirement applications in the ORA, he said processing times become much faster.
“As of today, ORA applications are being completed in approximately 40 days, compared with 90 days for paper-based applications,” Kupor wrote. “I am fully confident that this 40-day time period will continue to be reduced as we are able to get the payroll providers fully integrated into the new system.”
Kupor said OPM has also been meeting regularly with agency HR offices, payroll providers and the CHCO Council to “provide information about digitalization of the retirement process and offer support on an ongoing basis.”
“Any delays that annuitants are experiencing from HR-related activities should be directed toward these individual agencies,” he added.
Many retiring federal employees have told Federal News Network their applications are stuck in the earlier steps of the retirement process, with progress lagging in their agency HR offices and payroll providers. Some employees who retired in September said their applications have not yet made it to the later part of the process at OPM, where annuity finalization occurs.
Federal retirement experts have also said more issues appear to be occurring in individual agency HR offices, rather than at OPM — but that both entities are seeing delays. At the IRS, for instance, several retirees told Federal News Network they are still awaiting payments, or any information on the status of their retirement applications, and that phone calls to the HR office often go unanswered.
“It’s all dead ends,” one retiring IRS employee, speaking anonymously for fear of retaliation, told Federal News Network. “As a government employee, and after all the service that I gave, this is how we’re getting treated. People are sitting here with nothing because of the decisions they made. We can’t afford it.”
Still, Kupor pointed again to significant progress with the rollout of ORA earlier this year. The government’s major payroll providers — the National Finance Center (NFC), Defense Finance and Accounting Service (DFAS) and Interior Business Center (IBC) — have been onboarded to the new platform. Additionally, all CFO Act agencies, aside from the State Department, are currently using ORA, according to Kupor.
Smaller payroll providers including those at the General Services Administration and Postal Service are in an “interim adoption status,” Kupor said. OPM expects those providers to be fully onboarded to ORA in early 2026.
The largest remaining challenge with retirement processing delays, according to Kupor, is payroll providers who have not managed to fully automate their processes.
“We will be prevented from full automation until they free up the required resources to integrate with ORA,” Kupor wrote. “This integration will enable us to receive employee payroll information electronically, which will vastly accelerate processing times.”
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