The Office of Personnel Management (OPM) is leading in a new era for federal employees by officially transitioning to an entirely digital retirement processing system. Starting June 2, 2025, all new federal retirement applications must be submitted online—marking the end of an outdated, manual system that’s been in place for over six decades.

This long-overdue transformation promises to streamline the retirement experience, significantly reduce processing times, and eliminate the inefficiencies that have long frustrated both applicants and agencies.

For over 65 years, the federal government has relied on a manual, paper-based system to manage retirement applications. The average processing time? A grueling three to five months. In some cases, errors and delays pushed that timeline even further.

But that’s changing.

With the new Online Retirement Application (ORA) system rolling out this summer, retirement cases are expected to be processed in under 30 days. Applicants will now file retirement requests online, and any paper-based applications submitted after June 2 will be rejected and returned for digital resubmission.

This upgrade isn’t just a technical change—it’s a monumental leap in how retirement services are delivered to the nation’s 2.4 million federal employees.

OPM has attempted to modernize its retirement processing for over 20 years, investing more than $100 million across multiple administrations. Each effort, including the last major one in 2011, failed due to several critical challenges:

• Weak Project Management: Failure to understand interdependencies between systems led to major roadblocks.
• Lack of Risk Management: No system for tracking or mitigating project risks.
• No Organizational Change Plan: Employees were not prepared for new responsibilities, leading to confusion and delays.
• Inadequate Cost Estimates: Budgets lacked proper documentation and accuracy.

In 2025, OPM finally turned a corner, successfully processing its first fully digital retirement application in February. By May 2, the agency declared its readiness to process all retirements online—with support from the Department of Government Efficiency (DOGE) and the newly branded RetireEZ initiative.

Here’s what federal employees and agencies can expect from the transition:

• Full Digital Implementation: All new applications must go through ORA, replacing the outdated paper-based system.
• Agencies Using IBC or NFC: Must adopt the ORA system starting June 2, 2025.
• Faster Payouts: Retirement payments are expected to be processed within weeks instead of months.
• Online Resources: Retirement booklets and documentation are now available digitally to reduce delays and printing costs.

This change is being described by DOGE as a “digital breakthrough”—a shift that not only increases efficiency but also aims to enhance the user experience for retiring federal employees.

For years, OPM was unable to consistently achieve its target of processing claims within 60 days. Here’s why the system lagged for so long:

• Manual Paperwork: Retirement files were stored and reviewed manually—some even kept in a mine in Pennsylvania.
• Understaffing: Peak retirement seasons overwhelmed available resources.
• Incomplete Applications: Missing information triggered back-and-forth communication, slowing down approvals.
• Lack of Performance Reviews: OPM failed to assess whether overtime staffing or other solutions were effectively reducing delays.

A key part of the modernization initiative involves using artificial intelligence (AI) to streamline and organize the electronic Official Personnel Folder (eOPF). Early trials show 100% accuracy, although the agency has paused widespread implementation to conduct a privacy impact assessment.

Notably, OPM has no plans to digitize old paper records stored in physical archives—but the new system ensures that no new paper files will be added moving forward.

This shift enables near-instant review and approval of retirement applications in digital environments. For example, with AI-assisted validation, applications can be processed in seconds, minimizing human error and backlogs.

Beyond just digitization, OPM is working to build a modern, automated case-management system. This next-gen platform will eventually replace legacy IT infrastructure, which in the past has been vulnerable to cyberattacks and system outages.

According to Clif Triplett, a senior consultant in federal IT and cybersecurity, the transformation will improve access and transparency for federal employees navigating retirement.

OPM is also planning to hire a new Chief Information Officer (CIO) to oversee this digital reinvention—signaling a commitment to long-term sustainability and technological leadership.

• Deadline: Starting June 2, 2025, all new retirement applications must be filed through the online system.
• Who’s Affected: All federal agencies served by the Interior Business Center (IBC) or National Finance Center (NFC).
• Support: Agencies will receive onboarding and training materials to ensure a smooth transition.
• No Paper: Any handwritten or paper applications post-deadline will be rejected.

The modernization of the federal retirement system has been a long time coming. With persistent efforts over the years, OPM, alongside DOGE, has now realized a major advancement in modernizing federal retirement services.

Federal employees now stand to benefit from a retirement process that is faster, more transparent, and far less stressful. With streamlined digital tools, AI-powered accuracy, and a renewed focus on service delivery, the OPM is setting a new standard for federal retirement administration.

This isn’t just a tech upgrade. It reflects a promise to serve millions of public employees with the speed, dignity, and simplicity their service warrants.

Final Note: If you are a federal employee nearing retirement, now is the time to familiarize yourself with the ORA system and consult your agency’s HR department for training and access. The future of federal retirement is here—and it’s digital.