Most Government Workers Think They’re Retirement-Ready—Until the Paperwork Tells Them Otherwise

Key Takeaways

• Being emotionally or financially ready for retirement doesn’t mean your paperwork is.

• Even a minor omission on a retirement form can delay your benefits for months or reduce them permanently.

The Assumption of Readiness

If you’re like most public sector employees, you’ve probably been working toward retirement for decades. You’ve calculated your benefits, reviewed your Thrift Savings Plan (TSP), maybe even picked a date. But then, as you start filling out your retirement paperwork, reality sets in.

Many government workers don’t realize that readiness isn’t just about hitting your Minimum Retirement Age (MRA) or crossing the 30-year mark. Readiness is administrative, procedural, and precise. Retirement packages aren’t automatic. They require preparation, accuracy, and often multiple layers of agency coordination.

What the Paperwork Actually Demands

Before you can receive your annuity, health insurance, and other retirement benefits, you’ll need to complete and submit several documents. Each one must be correct, timely, and complete.

Required Forms for FERS Retirees:

• SF 3107: Application for Immediate Retirement

• SF 2809 or electronic FEHB form: Health benefits election form

• TSP-70 or TSP-77: To initiate TSP withdrawals

• W-4P: To set up tax withholdings on your annuity

• Direct Deposit Sign-Up Form (SF 1199A)

These forms require:

• Agency certification of your service history

• Accurate High-3 salary calculations

• Documentation of military service or deposits, if applicable

• Spouse’s notarized consent for less-than-maximum survivor benefits

Even a single error, such as an unchecked box or unsigned page, can result in months-long delays in processing by OPM.

Timelines You Can’t Afford to Ignore

Understanding when to start the retirement process is just as important as understanding how.

6-12 Months Before Retirement:

• Request a retirement estimate from your agency.

• Confirm your service history is accurate and creditable.

• Make any necessary deposits for military or temp time.

• Review and update your beneficiary forms.

• Schedule retirement counseling (optional but helpful).

90 Days Before Retirement:

• Submit your completed SF 3107 to your agency.

• Complete your FEHB, FEGLI, and TSP election forms.

• Set up direct deposit and tax withholding.

30 Days Before Retirement:

• Confirm your agency has forwarded your retirement package to OPM.

• Verify Medicare enrollment if you’re 65 or older.

• Notify your TSP if you plan to withdraw immediately.

Failing to follow this schedule can leave you with delayed or reduced benefits.

Common Mistakes That Delay Retirement

Retirement paperwork is notorious for errors. The Office of Personnel Management (OPM) continues to deal with tens of thousands of applications annually, and missing data is one of the top causes of delays.

Frequent Issues:

• Unpaid Service Deposits: Time served in military or temporary positions may not count until you make a deposit. Without this, your retirement eligibility or annuity amount may change.

• Missing Marriage Certificates: If you elect a survivor annuity, OPM requires a marriage certificate copy.

• Mismatched Service Dates: Your agency’s records and OPM’s must align exactly.

• Beneficiary Form Conflicts: If your FEGLI or TSP beneficiaries haven’t been updated in years, there may be disputes during distribution.

FEHB and Medicare: Coordination Starts Early

Your health coverage doesn’t automatically transfer into retirement. For the Federal Employees Health Benefits (FEHB) program to continue, you must meet the five-year rule: you must have been continuously enrolled in FEHB for the five years leading up to retirement or since your first eligibility.

If you’re also eligible for Medicare at age 65, you need to coordinate Part A and B carefully:

• Part A is usually premium-free and automatically begins at 65.

• Part B requires enrollment and a monthly premium. If you miss the window, you face lifetime penalties.

Planning ahead ensures that your FEHB and Medicare work together to reduce your out-of-pocket costs and avoid coverage gaps.

Survivor Benefits: Elections That Are Hard to Undo

When you retire, you must elect whether to provide a survivor annuity for your spouse. You can choose:

• Full survivor benefit (50% of your annuity)

• Partial survivor benefit (25%)

• No survivor benefit (requires notarized spousal consent)

If you opt out, your spouse may lose access to FEHB after your death. This decision, once finalized, is very difficult to reverse.

Your High-3 and the Importance of Verification

Your annuity is based on your High-3 average salary, the highest average basic pay you earned during any three consecutive years. This doesn’t include bonuses, overtime, or allowances.

Errors in calculating this can lower your annuity permanently. Before retirement:

• Ask for a copy of your Certified Summary of Federal Service.

• Check that your High-3 is based on correct positions and pay periods.

• Confirm your unused sick leave is properly credited toward your service time.

What Happens After You Submit the Paperwork

Once your agency sends your retirement application to OPM, the wait begins. OPM’s processing time in 2025 still averages 60 to 90 days. During this window:

• You may receive interim payments, which are partial annuity payments.

• Once your case is finalized, OPM issues the full annuity and pays any owed back pay.

• You’ll receive a Retirement Services Reference Number (CSA number) to track communications.

Any errors in your application increase this processing time significantly.

The TSP Doesn’t Process Automatically

TSP is a separate entity from your pension. Even after you retire, no money moves unless you take action.

• Submit a TSP-70 (for full withdrawal) or TSP-77 (partial withdrawal) form.

• Choose how you want to receive the funds: monthly payments, lump sum, or annuity.

• Consider tax implications, especially if you withdraw before age 59½ and don’t qualify for an exception.

TSP withdrawals are subject to federal income tax unless rolled over. Roth TSP withdrawals are tax-free if the account is five years old and you are over 59½.

Final Retirement Approval Isn’t a Guarantee

Even after submitting all paperwork, final approval is contingent on OPM verifying:

• Creditable service time

• Properly completed survivor elections

• Correct FEHB and FEGLI elections

• High-3 and sick leave data

In cases where discrepancies arise, OPM will place your application in suspense, pending further documentation. This can delay your full annuity for several more months.

Digital Doesn’t Mean Error-Free

While agencies have moved toward digital submission, errors still occur. Some common digital filing issues in 2025 include:

• PDFs submitted without required digital signatures

• Misfiled forms in agency HR portals

• Incomplete uploads due to browser or system limitations

Before submitting, always:

• Save local copies of your application

• Confirm receipt with your HR office

• Follow up within 2–4 weeks to ensure it was sent to OPM

How a Retirement Counselor or Licensed Agent Can Help

Most employees attempt to go it alone—and many regret it. A counselor or licensed agent listed on this website can help you:

• Review your full retirement timeline

• Verify your service and High-3 data

• Prepare and double-check forms

• Understand your FEHB and Medicare options

• Strategize your TSP withdrawal based on your income needs

The best time to reach out is 6–12 months before your retirement date.

It’s Not Just Paperwork. It’s Your Income.

If you’ve spent your career in public service, your retirement should reward that effort—not penalize you for a missed form or late signature. The system is complex, but it’s manageable with preparation and support.

Work with a licensed professional listed on this website to ensure your paperwork matches your plan—and your retirement starts on time.