OPM Retirement Application: Step-by-Step Guide for FERS Employees

FERS retirement does not start automatically. You file paperwork with your agency, which then forwards a package to OPM. OPM processes it, assigns you a CSA number, and begins annuity payments — but the gap between your last paycheck and your first full annuity check can stretch months. This guide walks through every step, every form, and every timing decision that separates a smooth retirement from a stressful one.

Step 1: Choose your retirement date strategically

Your retirement date is not just a calendar choice — it controls four separate financial levers simultaneously.

The end-of-month rule

FERS annuity payments begin on the first day of the month following your retirement date.² If you retire on June 28, your annuity starts July 1. If you retire on June 1, your annuity still starts July 1. Retiring earlier in the month therefore creates a longer income gap without changing when your first check arrives. This is why "retire at the end of the month" is standard advice — you get paid through a full final paycheck, then annuity begins with minimal gap.

Best FERS retirement dates in 2026

The optimal dates align end-of-month with end-of-pay-period, minimizing the gap between your last salary and first annuity, and allowing you to receive a full final leave accrual. Commonly cited 2026 dates for FERS employees:³

• May 30 (Saturday — end of pay period 11)
• June 27 (Saturday — end of pay period 13)
• October 31 (Saturday — end of pay period 22)
• November 28 (Saturday — end of pay period 24)
• December 31 (Thursday — end of leave year; not end of pay period, but maximizes annual leave payout)

December 31 is a special case. It ends the 2026 leave year (the last day of leave year 2026 is January 10, 2027 — but retiring Dec 31 still captures the full leave year's accrual, including any hours above the 240-hour carryover limit that would otherwise be forfeited). The tradeoff: January 1 annuity start means you pay an extra couple days of Medicare Part B if applicable.

Other date variables

• Annual leave lump sum: you receive a cash payout for all unused annual leave — no 240-hour cap applies at retirement. If you have 480 hours banked, you're paid 480 hours at your final rate. This arrives separately from your annuity, typically 4–6 weeks after separation.
• Sick leave credit: unused sick leave converts to additional FERS service credit (174 hours = 1 additional month), but only in clean-month increments. See the sick leave guide for timing strategy.
• High-3 and step increase timing: your retirement date determines the 36-month window for your high-3 average salary. See the FERS high-3 guide for how to align your date with step increases and promotions.
• FERS supplement eligibility: the supplement begins at your MRA (minimum retirement age, based on birth year). Retiring before MRA under VERA rules defers the supplement to MRA — different calculation.

Step 2: Submit your application to your agency — 60 to 90 days before retirement

You do not send your retirement application directly to OPM. The process has two stages: you file with your agency; your agency certifies the package and forwards it to OPM.

Your agency needs time to complete their portion. Standard guidance is to submit your application 60 to 90 days before your retirement date. Some agencies request 90 days minimum — check with your agency HR or Benefits office early.

Step 3: Complete the FERS retirement application (SF-3107)

The primary FERS retirement form is SF-3107, Application for Immediate Retirement Under FERS.⁴ CSRS employees use SF-2801 instead.

SF-3107 includes several schedules and companion forms:

• SF-3107 (main form): personal information, employment history, retirement date, annuity election, beneficiary designations, survivor annuity election, and TSP/FEHB continuation options.
• SF-3107-1: completed by your agency, not by you. OPM returns it incomplete if this part is missing — the most common processing delay.
• SF-3107-2, Spouse's Consent to Survivor Election: if you are married and elect less than the maximum survivor annuity (50%), your spouse must sign this form with a notary's acknowledgment. No spouse signature = OPM defaults you to the maximum survivor election. Plan for notary time.
• SF-3107, Schedule A: if you have prior military service, list it here and attach your DD-214(s).
• SF-3107, Schedule B: if you receive military retired pay (separate from military service credit buyback).
• SF-3107, Schedule C: if you are receiving or have received workers' compensation (OWCP) benefits.

Step 4: Gather supporting documents

An incomplete package is the single largest cause of OPM processing delays. Compile all of the following before submitting to your agency:

Step 5: Elect your FEHB coverage in retirement

To continue Federal Employees Health Benefits coverage into retirement, you must have been continuously enrolled in FEHB (or covered under a family member's FEHB enrollment) for the 5 years immediately before retirement — or since your first opportunity to enroll, if less than 5 years of service.²

If you meet the 5-year rule, FEHB coverage continues automatically into retirement. You do not need to make a new election — your current enrollment carries over. Premium cost changes: as a retiree, OPM deducts FEHB premiums directly from your annuity rather than from your paycheck. The government share of premiums (typically 72% of the weighted average plan premium) continues in retirement.

Open Season decisions matter. If you want to change your FEHB plan at retirement, you can do so during the annual Federal Benefits Open Season (usually November) that falls in your last year of employment, or at retirement itself if it's a Qualifying Life Event.

Step 6: Elect your FEGLI coverage in retirement

FEGLI (Federal Employees Group Life Insurance) continuation requires that you have been insured for the 5 years immediately before retirement. If you meet this requirement, you may continue Basic, Option A, Option B, and Option C coverage into retirement — but the reduction schedules are different from active coverage. See the FEGLI guide for the full reduction table and whether continuing FEGLI makes financial sense against private insurance.

Step 7: Make your TSP election

Your TSP account does not close when you retire — it stays open. You do not have to withdraw anything immediately. However, after your final paycheck, you can no longer contribute new money to TSP, and the agency match stops.

Your primary decision: leave the money in TSP (lower fees, stable value fund access, creditor protections) versus roll to a traditional IRA (more investment options, Roth conversion flexibility, RMD age choice). Both are valid; the decision depends on your withdrawal timeline, IRMAA exposure, and whether you want investment options beyond TSP's five core funds. See the TSP strategy guide for the full analysis, and the TSP RMD calculator to model your distribution schedule.

Step 8: Understand interim pay

OPM cannot finalize your annuity amount until it has reviewed your complete service history — OPF records, military deposits, part-time history, high-3 calculation, and survivor election actuarial math. This takes time. In the interim, OPM pays you interim pay: approximately 60–80% of your estimated annuity, beginning within 7–8 days of your separation date.¹

Federal income tax is withheld from interim pay. You can submit a W-4P to OPM to adjust your withholding once your CSA number is assigned.

Step 9: Track your application

OPM assigns you a Civil Service Annuity (CSA) number once your file is received and opened. This is your lifelong identifier for all OPM correspondence — save it.

Once you have your CSA number, you can:

• Track application status at OPM Services Online (servicesonline.opm.gov)
• Call OPM Retirement Services at 1-888-767-6738
• Update your address, withholding, and direct deposit through Services Online

If you applied using OPM's Online Retirement Application (ORA), you can track status through the same portal from day one — and the average processing time drops to approximately 34 days vs. 95 days for paper packages.¹ If your agency supports ORA, use it.

Common mistakes that delay OPM processing

Worked example: GS-14 FERS retirement timeline

Consider a GS-14, Step 8 employee in the Washington-Baltimore locality, born 1965 (MRA = 56 years, 11 months), planning to retire with 32 years of service on June 27, 2026.

• Early April 2026 (90 days out): employee confirms retirement date with supervisor; submits SF-3107 to agency HR; includes marriage certificate, SF-3107-2 (notarized, electing 25% survivor), voided check, and copies of all SF-50s from the past 5 years.
• May 2026 (30 days out): agency HR confirms package is complete and has been forwarded to the servicing payroll office for submission to OPM. Employee runs final leave balance to confirm annual leave payout estimate (~380 hours × $52.88/hour = ~$20,100 lump sum, paid separately).
• June 27, 2026: Last day of employment. Final paycheck covers through June 27. Sick leave balance: 182 hours = 1 additional month of service credit (174 hours = 1 month; excess 8 hours dropped).
• July 1, 2026: FERS annuity start date (first of the month after retirement). OPM interim pay of ~$4,900/month begins within 7–8 business days — no FEHB premium deducted yet.
• Estimated annuity: 32 years 1 month × 1.0% × $185,000 (estimated high-3) = $59,623/year = $4,969/month gross, before survivor election reduction of ~7% (25% election) = approximately $4,621/month gross. Tax withheld, Medicare Part B not yet applicable (age 61), FEHB premium deducted once adjudicated.
• ~September 2026 (using ORA digital): OPM finalizes annuity (34-day average for digital). First full annuity payment issued. Retroactive FEHB premiums ($312/month × 2 months = $624) deducted from first 2–3 full checks.
• Annual leave payout: approximately $20,100 arrives within 6 weeks of separation — late July or early August. Taxed as ordinary income; no FICA, no retirement contribution deduction.

How a federal-benefits advisor fits into this process

The OPM application is procedural — forms, documents, timelines. The financial planning decisions that surround it are where a specialist earns their fee:

• Survivor annuity election: 50% or 25% — the choice you make on SF-3107 is largely permanent. Comparing the annuity cost reduction against FEGLI or private term life insurance requires modeling both your spouse's life expectancy and the after-tax impact. See the Survivor Annuity Calculator.
• Retirement date optimization: high-3 timing, sick leave accumulation, annual leave payout, the FERS supplement start, and the 1.1% multiplier threshold are all date-sensitive decisions that interact.
• TSP withdrawal sequencing: once your FERS annuity is fixed, deciding when to draw TSP, how to sequence Roth conversions, and how to manage IRMAA exposure requires multi-year projection.
• FEHB + Medicare coordination: the Part B decision (once you reach 65) can save or cost thousands per year depending on your FEHB plan and health situation. A specialist who has modeled hundreds of FEHB + Medicare combinations knows what the generalist misses.