Feds hope to develop "electronic retirement system"

The Washington Post's "Federal Diary" blog reports on efforts to develop an electronic retirement system for the federal government.

The Office of Personnel Management has awarded a contract to the firm Accenture to develop a system that will allow speedier calculations of retirement benefits for federal employees.

The current process requires a search to find personnel files and other paperwork, often creating delays. Most retirees, as a result, are put on interim, partial retirement pay while a final annuity is calculated.

Accenture, a consulting and technology services company, will help OPM reorganize its staffing, training and processes for handling retirement claims under a contract that carries a maximum value of $40 million and that will run no longer than four years, an OPM official said. Accenture will be paid as task orders are issued, the official said.

The contract is the second awarded by OPM to upgrade retirement claims processing. On May 3, the agency announced a 10-year, $290 million contract with Hewitt Associates, an outsourcing and consulting firm, to build the new, electronic benefits-delivery and tracking system.

Funding for the retirement project, however, may be in jeopardy. The House Appropriations transportation-treasury subcommittee that oversees OPM has removed funding for the project in fiscal 2007. The administration had asked for $26.7 million next year.