Interest on annuity underpayments


Q. When a federal employee retires, his “interim payment” in lieu of the final determination, is 20-30 percent  less than it appears the final amount will be.  Also, the interim payment includes zero for the annuity supplement.  The supplement, when they finally start paying it, is hundreds of dollars. The above two reductions are deliberate, they go on for months, and they are a significant inconvenience, sometimes hardship, to the retiree. Currently, when the Office of Personnel Management  makes the final determination and “catches up” the underpayments, they do NOT include interest. Should OPM pay interest?  Isn’t there a federal law requiring them to pay interest?

A. I don’t know if they should pay interest.  What I do know is that they can’t. There is no provision in law that would allow them to do that.

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Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to

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