Some federal retirees are on the verge of financial ruin waiting on retirement benefits that have yet to arrive, they say

WASHINGTON — An internal email obtained by WUSA9 shows federal officials warned more than a year ago that large-scale workforce reductions would overwhelm the system responsible for processing retirement benefits—delays that retirees now say are leaving them financially strained and without answers.

In an April 2025 email, a deputy director within the Internal Revenue Service warned that staffing shortages would significantly slow the processing of retirement applications as thousands of employees exited the agency.

“We currently have 5,876 retirement applications,” the deputy director wrote. “If all who elected TDRP 2.0 retire, the number will rise to 11,000 retirements or more. This team will be operating at 50% capacity.”

At that pace, the deputy director warned it would take more than two years to complete the workload—and more than five years if all remaining employees who signed up for the program ultimately retired.

Today, dozens of federal retirees tell WUSA9 those warnings have become reality.


Retirees Still Waiting for Benefits

Dozens of federal retirees say their new lives in retirement have been anything but peaceful. Some say they felt pressured—or were forced—to retire from federal jobs they held for decades. Many are still waiting to receive the retirement benefits they earned.

“It has been very stressful,” said Tajuana Brown, who retired from United States Agency for International Development. “I’m paying what I can at a minimum. I’ve got to keep my lights on. I’ve got to keep a roof over my head.”

Thousands of retirees appear caught in a matrix of delays, where retirement packages have yet to reach their final destination—the Office of Personnel Management (OPM), where initial payments can be approved and disbursed. Instead, many packages remain stuck at employees’ former agencies months after their departure.

Among the dozens of complaints reported to WUSA9, two agencies topped the list: the IRS and USAID.


IRS Retirees Describe Delays and Errors

Becky Ratcliffe enjoyed a 27-year career with the IRS. Like many of her colleagues, she opted to participate in the Deferred Resignation Program (DRP), part of the Trump administration’s effort to shrink the federal workforce. The program allowed employees to leave on administrative leave and formally separate at a later date.

“I worked with people—I can’t even explain the connection that I had,” said Ratcliffe, who worked in IRS management. “You spend more time with them than with your own family.”

Ratcliffe’s final day in the office was May 19, 2025. Under the terms of her DRP agreement, she officially separated at the end of September. Familiar with the federal system, she expected some delay—but not months.

“They didn’t separate me in the employee personnel system for about two weeks,” she said.

Karen Atchison, another IRS retiree, also took the DRP and separated in September. Like Ratcliffe, she said records still show her as an active employee, even though paperwork reflects that she formally separated last year.

Records show 322,049 federal workers left the workforce in 2025, trimming what the Trump administration described as a “bloated” federal workforce. The reductions placed added strain on human resources professionals responsible for processing thousands of retirement applications with fewer staff.

“I have to blame the IRS, and I have to blame the lack of planning,” Ratcliffe said. “We’ll just let it happen and apologize while people are losing things. I’ve heard of people having to file for bankruptcy.”

WUSA9 reached out to the IRS for two weeks requesting an interview or comment but received no official response.


USAID Retirees Face Unique Challenges

USAID retirees told WUSA9 their experience has been especially frustrating following the dismantling of the agency, which came after President Donald Trump alleged that “billions of dollars had been stolen.” The administration provided no evidence to support those claims. Thousands of employees were fired or left the agency.

“It was very chaotic. Of course, it was stressful,” said Rochelle Sales, who worked at USAID for 17 years.

Sales left the agency in 2025, confused by what she described as the politicization of USAID’s humanitarian work. Her last day was June 30, 2025—the final month she received a paycheck.

“I’ve called OPM three times, and each time they tell me, ‘We don’t have you in the system,’” Sales said. “They tell me to contact my HR department. Unfortunately, because they dismantled our HR and our entire agency, we don’t have a contact person.”

Among the retirees was Dawn Freeman, who said she was forced to leave the agency just one month shy of her 20-year anniversary.

“I’m just hoping my packet goes to OPM and I get a case number,” Freeman said.

She is still waiting for her retirement benefits.

“How much does a person have to lose?” Freeman asked. “People are becoming homeless.”

Cynita Minor said she was forced into early retirement from USAID in 2025. According to OPM retirement criteria, she was not eligible for full retirement at the time.

“I have given almost 25 years of federal service, and this is how I am treated,” Minor said.


Officials Acknowledge Delays, Cite Systemic Constraints

Federal officials acknowledge the processing delays. WUSA9 spoke with individuals responsible for—or with direct knowledge of—retirement application processing. They said some cases take longer due to the complexity of a retiree’s work history, compensation, and benefits. They added that additional personnel are needed and that OPM contractors have been hired to assist.

Some retirees have turned to their members of Congress for help. U.S. Senator Angela Alsobrooks’ office said it received 12 inquiries from constituents still waiting on retirement benefits.

“Our Constituent Services Team has been in contact with those individuals, has reached out to the Internal Revenue Service, and is currently working to get answers,” her office said in a statement to WUSA9.

U.S. Senator Todd Young of Indiana also received at least one inquiry.

OPM Director Scott Kupor said efforts are underway to address the delays but emphasized that OPM’s ability to act depends on agencies completing their portion of the process.

“We’re doing everything we can right now to try to accelerate it,” Kupor said. “Until we get the applications—which in most cases require both an HR and payroll component—our ability to start processing is gated by agencies completing the full application.”

Kupor also acknowledged significant delays at the IRS.

“The problems you’re hearing about are real,” he said. “There is a big backlog of cases at the IRS that have not made it to OPM yet.”

According to Kupor, OPM fast-tracked approximately 2,000 backlogged retirement applications and processed them directly. While that helped, thousands of additional applications remain delayed.

The IRS did not respond to multiple requests for comment or an interview.

Kupor cited another contributing factor: the continued use of paper retirement applications rather than OPM’s Online Retirement Application (ORA). About 60% of applications are still submitted on paper.

In a blog post on OPM’s website, Kupor detailed the status of 107,000 ORA applications currently in the system, noting that once applications reach OPM, interim pay is issued quickly.

Still, those efficiencies do little to resolve delays occurring before applications arrive at OPM. Kupor encouraged retirees to put pressure on their former agencies, adding that some former USAID employees may find assistance through the Department of State’s Human Resources office.

Ultimately, both retirees and OPM want the backlog cleared. When asked how long it would take to eliminate the current backlog, Kupor estimated approximately 90 days.