Don't Let Paperwork Delay The Retirement Check You Earned

The documentation mistakes that turn a smooth federal retirement into a months-long wait

After working maybe 20 years at a physically and mentally demanding career, the last thing you want is for that first retirement annuity check to arrive smaller than you expect – or earned. Yet it’s a real risk for 6(c) federal employees. That designation, 6(c), refers to a section of the federal employment law that gives law enforcement officers, firefighters and air traffic controllers enhanced retirement benefits to go along with shorter careers.¹

The Reality of the OPM Backlog

If that’s you, here’s an important insight: You can’t count on the government to get your annuity calculated correctly. Or on time. Mistakes happen, paperwork goes missing, and you can fail to get credit for time served. Common errors to avoid often involve unadjudicated issues. These can cause lengthy delays when the Office of Personnel Management (OPM) goes about calculating your annuity. This largely manual paperwork process has a backlog of some 30,000 cases² at the moment. Some feds who retired last September still haven’t started receiving their annuities!

Potential Causes of Delay

• Missing Paperwork: This could result in non-verification of information on your SF-50 form.
• Special Provisions Misclassified: Part of your 6(c) service was not classified correctly or not at all. If not fixed, you could end up with a smaller annuity. Maintain your own records; don’t count on the agencies to have everything.
• Complexity Stemming from Disability: It’s not uncommon for people in 6(c) occupations to experience periods of disability. In these periods, you continue to accumulate annuity credit at the special provisions enhanced level until you reach 62.³
• Divorce Snafus: Keep careful records of divorce agreements, especially if your ex-spouse was not to receive a portion of your annuity. Be prepared to provide OPM with a certified copy of your divorce decree.

Heads up: Don’t Overlook Military Buyback

Many 6(c) feds joined the civilian side of government after a military career. The Military Buy Back option (Military Service Deposit) lets you convert active duty years into years counted towards your FERS retirement annuity.

Why It Matters

A FERS annuity under enhanced provisions simply brings a bigger annuity than if you don’t act. You accrue FERS credit for the years you buy back.

Timing and Costs

It’s called “buy back” because you must pay for the years you convert—roughly 3% of your base military pay⁴ . You can write a check or pay with a payroll deduction.

• Avoid Interest: You’ll pay interest on the buy back if you wait until three years after active duty. Start early.⁵
• The Forms You Need: Use SF-3108 to apply for service credit payments. Use DD-214 to verify eligibility. If you don’t have your DD-214, use SF-180 to obtain it from the National Archives.⁶

How to Get and Stay Organized

Federal retirement is anything but plug-and-play. Small paperwork errors can derail your application or result in a smaller annuity than you’ve earned.

Start Your Career “History Book”

Don’t wait until a week before retirement to gather your materials. Start months or a year in advance to create a history of your career. This should include documents that prove where you worked, for how long, and under what job classification. With everything in one place, you can do a self-review before you submit.

Take Advantage of Expert Resources

You needn’t go it alone. Check out the Armed Forces Benefits Association’s Pre-Retirement File Check. It’s complementary, and helps you identify gaps and develop a roadmap towards completing your retirement application. The government has an across-the-board application backlog challenge. For the best chance to have your own retirement application go through smoothly, remember it’s on you to make sure all the details and corroborating paperwork are in order. Let AFBA help.

Get started today at retirementbenefits.afba.com.