UPDATE: Current Retirement Processing Timelines Are Now Four to Six Weeks (as of August 6, 2024)

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Recently, some inaccurate information about retirement processing times has resulted in dismay among individuals preparing for retirement. To clarify what individuals can expect as they prepare for retirement, the Division has gathered some information to share.

Retirement Processing Timelines—Six to Eight Weeks (as of July 1, 2024)

Retirement Processing Timelines—Eight to Ten Weeks (as of June 26, 2024)

Retirement processing timeframes are continually improving as the Division works to address factors contributing to longer-than-normal processing times. Currently, the Division of Retirement and Benefits (DRB) is processing retirement applications in eight to ten weeks. This means, retirees can expect their first retirement check to be printed and mailed eight to ten weeks after their retirement effective date. As for retiree health coverage, those benefits are immediately available upon the individual’s retirement effective date to ensure retirees are not faced with a gap in coverage.

Reduced processing timelines are due to the Division aggressively recruiting, hiring, and training technicians over the past six weeks. This effort has allowed DRB’s journey-level processing technicians to focus exclusively on calculation of final retirement benefits. It is anticipated that retirement processing timelines will be back to the standard four to six weeks by August 2024.

Efforts Underway to Reduce Retirement Processing Times

Staffing shortages are affecting offices across the State system, and the Division of Retirement and Benefits is not an exception. On top of that, the Division sees a major uptick in retirement applications yearly during the spring and summer months. As of June 2024, retirement applications are currently three times the normal monthly volume. That said, the Division is making great progress in steadily reducing the retirement processing timelines.

The Division has shifted staff from other duties to assist with July retirement processing. With this help, the Division estimates they can calculate July retirements in a six to eight week timeline and things will be back to normal in August 2024, with processing taking four to six weeks.

The Division has also been aggressively recruiting for technical positions since November 2023. The Division requested and Governor Dunleavy granted both a hiring and retention bonus, as well as overtime for processing technicians, all of which has helped in recruitment as well as keeping current staff. As a result, the Division has filled all but five of its fourteen previously vacant retirement processing positions and there are candidates in the hiring process for the remaining positions.

The initiative with the largest impact on processing timelines and will eliminate this situation from occurring again is the Division’s new Retirement Management System, BEARS. BEARS is estimated to launch in December of this year and will automate processes that are currently being done manually. This process automation will greatly increase the Division’s processing capacity and significantly reduce the time it takes to process each retirement application. This will position the Division to better manage the cyclical uptick of retirements in the spring and summer months without processing delays.