Retirement Wave Hits OPM: Inside August’s Record-Breaking Month

New retirement claims spiked in August, but the OPM retirement backlog is not what you would expect.

The OPM retirement backlog was reduced considerably in August despite a record number of incoming retirement claims for the month.

The total inventory of claims now stands at 24,359, 6.8% lower than at the end of July. The Office of Personnel Management processed 11,195 claims during August, 32% more than in July which is what helped to slash the backlog.

This is also an impressive feat considering that the monthly average processing time was 70 days, 18.6% higher than July’s 59 days.

Claims ReceivedClaims ProcessedInventoryMonthly Average Processing Time in DaysFYTD Average Processing Time in Days
August 20259,41611,19524,3597054

August 2025 was also an anomaly because of how many retirement claims came in during the month. OPM received 9,416 new retirement claims, the highest number for the month of August in over a decade. Since 2012, the next highest month was August 2021 (8,976).

This is most likely due to more federal employees retiring in the middle of the year than usual because of the Trump administration’s efforts to slash the size of the federal workforce.

OPM Director Scott Kupor said recently that he expects the federal workforce to shrink by about 300,000 employees by the end of the year, most of whom have resigned voluntarily via the deferred resignation program, VERAs (voluntary early retirement authority), etc.

History of August Retirement Claims Processing: 2020–2025

The table below shows how August 2025 compares to the past five years. As can be seen, the number of incoming retirement claims this year is 4.9% higher than the next highest year (2021).

Despite the unusually high number of incoming retirement claims, the total backlog is relatively modest given that it was much higher in 2021 and 2022.

Claims ReceivedClaims ProcessedInventory
August 20206,7755,83618,570
August 20218,9767,41228,565
August 20228,0328,01929,237
August 20237,3836,46717,963
August 20247,0837,70215,178
August 20259,41611,19524,359
Bar chart showing the trends in the OPM retirement inventory for the month of August for 2020-2025

Year-over-Year Percentage Change

Year% Change in Claims Received% Change in Claims Processed% Change in Inventory
August 2021 vs 2020+32.5%+27.0%+53.9%
August 2022 vs 2021-10.5%+8.2%+2.4%
August 2023 vs 2022-8.1%-19.4%-38.6%
August 2024 vs 2023-4.1%+19.1%-15.5%
August 2025 vs 2024+32.9%+45.3%+60.5%

Because of the unusual situation with the deferred resignation program and other early retirement options at some agencies, retirement claims are likely to continue to be higher for the remainder of the year. The deferred resignation program paid benefits to federal employees who accepted the offer through September 30, 2025, so the end of the fiscal year could bring about a busy time for retirement processing at OPM in the fall.

OPM Retirement Processing Status: August 2025

The latest retirement processing statistics are included below for reference.

MonthClaims ReceivedClaims ProcessedInventory (Steady state goal is 13,000)Monthly Average Processing Time in DaysFYTD Average Processing Time in Days
Oct-236,9246,09816,6787373
Nov-235,2076,05915,8266669
Dec-235,6627,19614,2926869
Jan-2412,9976,46720,8226668
Feb-248,79410,02519,5914762
Mar-247,94310,71116,8235561
Apr-246,9017,64716,0776161
May-246,7518,79314,0356061
Jun-246,9195,61415,3406461
Jul-246,4515,99415,7976561
Aug-247,0837,70215,1786461
Sep-245,6186,30214,4946362
Oct-246,8726,45814,9086262
Nov-246,8087,87213,8445558
Dec-245,0204,98813,8765758
Jan-2516,1016,70023,2776460
Feb-259,63712,36420,5504455
Mar-257,80311,55916,7945054
Apr-258,3328,95316,1734953
May-2515,0489,73921,4834952
Jun-2513,4308,58526,3284552
Jul-258,2958,48526,1385952
*Aug-259,41611,19524,3597054

Disability determinations are included in the pending number after approval. Average Processing Time in Days represents the number of days starting when OPM receives the retirement application through final adjudication.

*Initial retirement cases produced in less than 60 days, on average took 45 days to complete; whereas cases that were produced in more than 60 days, on average, took 94 days to complete.

About the Author

Ian Smith is one of the co-founders of FedSmith.com. He has over 20 years of combined experience in media and government services, having worked at two government contracting firms and an online news and web development company prior to his current role at FedSmith.