The backlog of retirement claims filed by federal employees dropped by 22 percent from August to September, the Office of Personnel Management reported.
The office said the number of unprocessed claims stood at 17,719 – 4,523 fewer than had been projected. The faster pace of reducing the backlog occurred as the office reinstated some overtime for staff members working on the project. Retirees receive only a small portion of their benefits until their applications are processed.
All overtime for processing claims had been ended in April because of the sequestration imposed by Congress. A budget review allowed the restoration of some overtime. Also, about 2,600 fewer applications were submitted than expected.
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Federal employees now wait an average of 91 days to start receiving their benefits. That's down from 156 days in early 2012. The office had planned to erase the backlog by July, but the sequestration changed that projection. The target date is now July 2014. The agency continues to process applications for benefits despite the shutdown because funding for it does not come from appropriations.
A surge of retirees from the Postal Service helped create the backlog, which is exacerbated by the Office of Personnel Management's outdated benefits processing system. Attempts to modernize it have proved fruitless.
The agency administers the benefits of 2.5 million retirees. About 100,000 benefits applications submitted each year.
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