A Head Start

In spite of technological advances, the federal government for now relies primarily on paper files to compute, manage and distribute retiree benefits. But employees can streamline the process by taking a few steps now to ensure their service and beneficiary information is accurate.

Obama administration officials on Monday announced the Office of Personnel Management's plans for an electronic claims processing system have been halted. The current paper-based system can be complex when factoring in sick leave, conversion from the Civil Service Retirement System to the Federal Employees Retirement System, and gathering paperwork transferred between multiple employers, according to observers. This means federal retirees shouldn't expect to start receiving annuity checks immediately.

David Snell, director of retirement benefits services at the National Active and Retired Federal Employees Association, said feds should see their first annuity payments three to four months after they retire, though OPM will provide interim checks that amount to about 80 percent of what retirees are owed. Folks should save a month or two of their salaries to tide them over until final payments start to arrive, Snell added.

But federal workers can take steps to reduce the possibility of incomplete or missing information and resulting mistakes or delays in annuity payments or continuing health benefits.

"You can never be prepared too early," said Ashby Daniels, financial adviser at First Command Financial Services. "The earlier you can catch an error the better."

For example, employees thinking about retirement should verify the information in their official personnel file and check for accuracy the beginning and proposed ending dates of service, effective dates for each pay raise, and periods during which retirement contributions were withheld or funds withdrawn. Those with military service should ensure they have a completed form DD-214, which details active duty and total service dates. Employees also should ensure they have completed designation of beneficiary forms for health and life insurance benefits, as well as the Thrift Savings Plan.

• Federal Employee Group Life Insurance participants should complete form SF-2823.
• Civil Service Retirement System employees should complete form SF-2808.
• Federal Employees Retirement System participants should complete form SF-3102.
• For unpaid compensation, employees should complete form SF-1152.
• Thrift Savings Plan participants should complete form TSP-3.

Employees considering retirement should enroll in a preparation course that details eligibility, service credits, health and life insurance options, and survivor benefits, said Snell, adding the OPM website also offers tools and information for retirees. These courses are beneficial as many as five years prior to expected retirement, he said.

Snell said there are some additional steps employees can take in the time leading up to retirement. He recommended workers determine six months prior to their retirement date whether they have exceeded their earned leave time or have any other financial debts to their agency. Employees should complete their retirement application a few months ahead of time. And while agencies should handle the transfer of personnel documents when employees change positions within government, workers should ensure unused sick leave and annual leave are calculated properly.

"There's no better time to think about retirement than now," Daniels said. "It's super important for all federal employees to get the proper documents in order. That's something I would go out and do tonight because you just never know, and it's best to plan now instead of taking a shot in the dark."

CORRECTION: The original version of this column said employees with military service should complete form DD-214. Employees are not responsible for filling out the form - they should just ensure they have it in their possession.