Delays in annuity payments draw questions from Capitol Hill

New federal retirees rightly expect a smooth transition—from active payroll to retirement and annuity payments. But there are mounting signs of problems, in particular, significant delays in the timely start to these transfers to folks who are winding down their federal career.

Now, a prominent lawmaker is pressing for information and a speedy resolution regarding the problem. Rep. Gerry Connolly (D-Va.), who chairs of the subcommittee on government operations in the House of Representatives, dispatched a letter to Anita Adkins. Adkins is the acting head of the National Finance Center (NFC), the party responsible for efficiently initiating the payments.

Connolly, according to a press release from his office, wants a briefing detailing the source of the reported delays.

“One report found that the NFC normally transmitted service history records within 30 days of an agency request,” Connolly wrote in his letter. “[B]ut it is currently taking anywhere from 60-to-90 days.” 

“That delay has placed undue and unanticipated financial concerns on retiring federal workers who have earned timely administration of these benefits,” he continued.

As of February, OPM reported there were some 4,000 new retirees whose paperwork—and payments—had been delayed. Each year, about 100,000 new retirees leave full-time federal employment, with NFC processing the records needed to initiate their annuities. 

Connolly also noted that these significant delays have become an acknowledged issue among federal employers. “At least three agencies have warned employees of significant delays in retirement processing,” he wrote.

The subcommittee wants the briefing by April 7, according to Connolly’s release.

2021 Digital Almanac

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