In  contrast, in 2014 through 2017, OPM’s performance measure was the  percentage of applications processed in 60 days. According to  OPM, it hired additional staff in 2017 and 2018 to process applications  throughout the year, but overtime pay was needed to increase staffing  capacity during surge periods. In addition to these three root causes, OPM officials reported that other  factors, such as legislative changes, can also cause processing delays. Industry best practices and IT project management principles stress the  importance of sound planning for system modernization projects. OPM officials said that additional IT modernization work is dependent on  sufficient funding, support from the Office of the Chief Information Officer,  and development of a technical enterprise architecture roadmap. However, they do not preclude OPM from  establishing a basic project management plan that includes objectives,  estimated cost ranges, and proposed time frames for its initial project  phases. Similarly,  without an electronic application system, OPM is less able to  automatically verify information upfront when the application is submitted  and notify applicants of any discrepancies prior to accepting the  application. Limited Assessments of Processing and Staffing Strategies

OPM has implemented various strategies for improving processing  timeliness, as discussed below. However, we also found that OPM does not assess the effectiveness of  its staffing actions, even though OPM officials reported that they are  consistently looking for opportunities to improve OPM’s current  processes. However, OPM does not measure overtime productivity, or productivity in  general, nor are they able to correlate overtime data with applications  processing data or outcomes. Federal internal  control standards also state that management should implement control  activities through policies. Selected Agencies Have Mixed Perspectives on OPM Assistance

OPM provides four main types of assistance to agencies: written  guidance, training, communication through assigned liaisons and email,  and monthly error reports. The Department of  Defense (DOD), the Department of Health and Human Services  (HHS), and the U.S. In  addition, DOD, the National Aeronautics and Space Administration  (NASA), and USPS also stated that the Benefit Administration Letters  were helpful or very helpful. This report  includes information on the type of error found and the volume of  applications with the same error, according to OPM. DOD and USPS reported that the error reports were helpful  for identifying application errors. However, all four selected agencies  reported that aspects of the error reports were not user-friendly. OPM’s fiscal year 2018 budget justification cited partnering with agencies  to help them submit complete and accurate retirement packages for  quicker processing. Although OPM officials have stated that they review two of the four types  of assistance (guidance and training), OPM lacks a robust process for  assessing and documenting its analysis and findings regarding all forms  of the assistance it provides to agencies. With respect to the agency error report, federal internal control standards  state that management should communicate quality information externally  so that external parties can help the entity achieve its objectives, and  periodically evaluate its methods of communication so that it  communicates quality information. However, revising the structure of  the current error reports would not be cost-effective, according to OPM  officials. The current format of the agency error report may limit its usefulness to  agencies in improving their retirement applications and educating staff on  how to address or minimize errors. HHS  also stated that it partnered with its payroll provider to present the payroll  side of retirement processing, including retirement application processing  and disability retirement processing. For example, the agency has  developed a strategic vision for modernizing the current paper-based  application, and employed strategies to address staffing capacity and  minimize the number of incomplete applications. Recommendations for Executive Action

We are making the following six recommendations to OPM:  The Associate Director of OPM’s Retirement Services, working in  coordination with the Chief Information Officer, should develop,  document, and implement a Retirement Services IT modernization plan  for initial project phases that is consistent with key aspects of IT project  management, such as determining objectives, costs, and time frames for  each initial phase. (Recommendation 3)
The Associate Director of OPM’s Retirement Services should develop  and implement policies and procedures for assessing strategies intended  to improve processing times, including collecting and improving data  needed to support those strategies, such as collecting better productivity  data or staffing data and linking them to processing outcomes. (Recommendation 5)
The Associate Director of OPM’s Retirement Services should work with  agencies to determine if there are cost-effective ways to make the  retirement application error report that it sends to agencies more user- friendly. In its comments, reproduced in appendix I,  OPM concurred with 1 recommendation and partially concurred with the  remaining 5 recommendations.
Why GAO Did This Study

According to OPM, it receives more than 100,000 retirement applications each fiscal year. Between 2014 to 2017, OPM did not meet its goal of processing most retirement applications within 60 days. GAO was asked to review potential improvements in federal retirement processing at OPM. This report (1) describes the root causes of retirement application processing delays, as determined by OPM; and (2) examines what strategies, if any, OPM has taken to address those root causes, and how OPM has evaluated the effectiveness of the strategies.
GAO reviewed OPM data and documents, and interviewed OPM officials. GAO also interviewed officials from DOD, HHS, NASA, and USPS about their experiences with processing retirement applications. GAO selected these agencies because they represent a variety of application error rates and relatively high application volume.

What GAO Found

The Office of Personnel Management (OPM), which administers the federal retirement program, identified three root causes for retirement processing delays:
1. the continuing reliance on paper-based applications and manual processing;
2. insufficient staffing capacity, particularly during peak workload season; and
3. incomplete applications.
OPM has taken various actions to address these root causes and thereby reduce delays.
Vision for modernizing retirement processing. OPM's strategic vision consists of five key initiatives for modernizing the application process, including developing an electronic application form and an electronic system to store retirement information. However, OPM was unable to provide estimated time frames or costs for the initiatives. OPM officials said that additional information technology (IT) modernization work is dependent on sufficient funding, among other factors. These factors are important but do not preclude OPM from establishing estimated cost ranges and time frames—practices consistent with industry best practices and IT project management principles.
Actions to increase staffing capacity. OPM's actions have included using overtime pay and hiring additional staff. However, OPM generally does not assess the effectiveness of these actions or whether they reduce delays. For example, OPM does not measure overtime productivity or correlate overtime data with application processing data. Federal internal control standards state that management should review its performance compared to its goals. OPM officials stated that they have limited resources for assessments. However, without assessments, OPM is less able to make informed decisions on how to best use staffing practices to improve processing times.
Actions to reduce missing information in applications. OPM provides assistance to agencies through guidance, training, communication through liaisons and email, and error reports. OPM's monthly error reports to agencies include information on the type of error found and the volume of applications with the same error, according to OPM. The four agencies GAO interviewed—Department of Defense (DOD), Department of Health and Human Services (HHS), National Aeronautics and Space Administration (NASA), and U.S. Postal Service (USPS)—reported that aspects of the error reports were not user-friendly. OPM stated that its assistance is intended to help agencies submit complete and accurate retirement packages for quicker processing. Federal internal control standards state that management should communicate quality information externally and periodically reevaluate its communication methods. OPM officials stated that the error report is intended to capture the overarching errors many agencies face and that revising the error report would not be cost-effective. However, the current format of the error report may limit its usefulness to agencies in improving their retirement applications.

What GAO Recommends

GAO is making 6 recommendations. These recommendations include that OPM should develop a retirement services IT modernization plan for initial project phases; develop and implement policies for assessing staffing strategies intended to improve processing times; and determine if there are cost-effective ways to make the retirement application error report more user-friendly. OPM concurred with 1 recommendation and partially concurred with 5 recommendations. GAO continues to believe all aspects of the recommendations are valid, as discussed in the report. GAO also incorporated technical comments.