2 Outreach Overview Agenda Retirement Services Strategy Review of Customer ServicesOverview of Retirement Services OnlineExplanation of Outreach EffortsReview of five important things to remember
3 Retirement Services Strategy Strategic Plan can be found at:performance/strategic-plans/retirement- strategic-plan.pdfStrategy to eliminate the backlogs consists of 4 PillarsPeopleProductivity and Process ImprovementPartnering with AgenciesPartial, Progressive Information Technology (IT) Improvements
4 Hired Additional LAS to adjudicate cases PeopleHired Additional LAS to adjudicate casesBrought Back Experienced, Retired LAS to help with the backlogAdded additional staff to “complete” cases before they go to a LASPooled Additional Resources from other areas of OPMPeople Bring “all hands on deck” to add claims production capacity immediately Hire 56 new Legal Administrative Specialists (LAS) Hire 20 new Customer Service Specialists (CSS)Hiring Additional LAS to adjudicate casesBringing Back Experienced, Retired LAS to help with the backlogLess than 10 retirees coming backBoyers has 20+ current employees returning to LAS duties (temp)DC has 20+ current employees that return to LAS duties needs bargainingAdding additional staff to “complete” cases before they go to a LASCase development team-hiring an additional 20 people to do the front-end administrative work needed to complete cases so the cases can go straight to adjudicationPooling Additional Resources from other areas of OPM
5 Productivity and Process Improvement Successfully completed the Lean / Six- Sigma White Belt TrainingCompleted Adjudication Process Time Observation SimulationFERS Processing – 9.0 cases per day processed per LASCSRS Processing – 8.3 cases per day processed per LASII. Productivity and Process Improvement Establish higher production standards and consider production bonuses Expand work hours and effective use of overtime Complete Lean/Six-Sigma review of the claims process Ensure LAS have complete cases and more time to process claimsThis simulation provided baseline data for “complete case” adjudication Future State operations and surge capacity designNumbers are not reflective of steady state conditions
6 Productivity and Process Improvement Support OperationsPre-Assembly Cell # 1Sub-Assembly Cell # 2Final Assembly Cell # 3Interim Pay Cell # 4
7 Productivity and Process Improvement Case Development Cell # 5The single most important Cell to Future State operationsCase Development process improvements define steady state process flow for improved customer service and business excellenceCase Adjudication Cell # 6Case Review Cell # 7
8 Partnering with Agencies Case Development Team: If the development team keeps a steady flow of fully developed cases needing no additional upfront information, the adjudicator could devote more of their day to coding the calculation and processing post development actions, which will greatly improve timeliness and reduce backlogsIII. Partnering with Agencies Improve accuracy and completeness of incoming claims Involve Chief Human Capital Officers Provide more frequent feedback to agencies on claims deficiencies
9 Partnering with Agencies Agency Audits/Outreach: Although RS is currently focused on reducing claims and the backlog we have also worked to increase the frequency of agency audits.Agency Access to Electronic Images / Records-This will allow agencies to have access to imaged records within RS, enabling them to provide a more complete estimate and timelier service to the perspective annuitant.
10 Partnering with Agencies CHCO Council RS Working Group-This allows represented agencies and RS to work together to improve the speed and accuracy of Retirement Processing by:1.Identify ways to decrease the time & cost to review & process retirement claims & to streamline other retirement procedures resulting in the elimination of the current retirement backlog;
11 Partnering with Agencies 2.Discuss ways to leverage resources; identify & share/replicate best practices;3.Increase the accuracy rate of audit results from application received by agencies & educating the workforce on ways to reduce documentation errors that negatively impact the retirement process.
12 Partial, Progressive Information Technology (IT) Improvements Additional automation is vital to our success. Since previous efforts to automate the entire RS process have failed, automation of our process piece-by- piece will be the path to success of the initiative.IV. Partial, Progressive Information Technology (IT) Improvements Pursue long-term data flow strategy Explore short-term strategy to leverage work agencies do now Review and upgrade systems used by LASIn the interim, OPM’s RS and CIO are working with agencies and data providers on implementing an iterative solution that harnesses the agencies work that positions OPM to get out of the paper-pushing business to focus on quality, timeliness, and customer service.
13 Retirement Services Goal Increase monthly claims adjudication capacity by 2000 claims per monthEliminate Claims Backlog within18 MonthsAdjudicate 90 percent of all new claims within 60 days of receipt from the agenciesWe believe that this four pillar strategy will increase monthly claims adjudication capacity byas much as 2,000 claims per month and by as much as 5,000 claims when newstaff members are fully trained. This will eliminate the claims backlog within 18 months andallow RS to adjudicate 90 percent of all new claims within 60 days of receipt from the agencies.
14 Retirement Services Statistics Current Stats can be found atrementProcessingStatus.pdfCurrently we, along with most of the government, are in a hiring freeze.We have completed the first year (calendar year 2012) of our strategic plan, highlights include55% reduction in pending claims workload50% reduction in lump sum workload49% reduction in service credit/redeposit workload17% reduction in COB workloadWe have experienced an unusually large beginning of year surge this year due to the USPS early out offerings.January –March 2013 we received 52,000 retirements as opposed to 35,000 during the same time frame in 2012.Our staff is doing an amazing job working through the surge putting in any overtime hours to get cases completed timely. RS has completed 15,000 cases in each of the last 2 months, as well as 12,500 in January.We have also been working with agencies to improve the quality of retirement application submissions through our monthly Agency Audit.Audit information and processing updates are posted on the 5th of each month to the OPM websiteAverage Processing TimeframesRetirement Claims:CSRS – weeksFERS – weeksInterim Pay – daysSurvivor Claims:CSRS – 4-6 weeksFERS – 8-10 WeeksSurvivor Express/Interim Pay – days6-7 weeksCorrespondence/Mail4-5 weeks
15 Key ImprovementsImprove automated data feeds to reduce the percentage of cases requiring manual interim pay and to include data related to the annuity supplement benefit on FERS retirementsPromote standardization among all HR and payroll providersCreate task teams within HR and Payroll offices to expedite development issues relating to pending retirement claims
16 Key ImprovementsImprove customer service by creating a first call resolution area and reduce the number of calls being misdirected to Operations (Tier 2 RIO)Process all clerical and development work on pending claims prior to being assigned to an adjudicator, keeping a steady supply of “complete cases” going to the adjudicators
17 Key ImprovementsReduce the percentage of cases needing a Full or Cursory review to increase output and reallocate those resources to process pending retirement claimsIdentify staffing outside Claims 1 & 2 that can adjudicate on regular time and overtime.Contact retirees that have retired in the last year to be re-employed and have an immediate impact without training ramp up time
18 Key ImprovementsImplement Rapid Improvement Events (REI’s) from lean 6 sigma continuous improvement initiativeSuccessful completion of Lean / Six-Sigma White Belt TrainingOPM Team has adapted to this learning very well and has shown open willingness to apply CPI concepts on a daily basisCompleted Adjudication Process Time Observation SimulationFERS Processing – 9.0 cases per day processed per LASCSRS Processing – 8.3 cases per day processed per LASThis simulation provided baseline data for “complete case” adjudication Future State operations and surge capacity designNumbers are not reflective of steady state conditionsSupport Operations Future State Design PilotPre-Assembly Cell # 1Sub-Assembly Cell # 2Final Assembly Cell # 3Interim Pay Cell # 4Case Development Cell # 5The single most important Cell to Future State operationsCase Development process improvements define steady state process flow for improved customer service and business excellenceCase Adjudication Cell # 6Case Review Cell # 7
19 Retirement Services Workloads Retirement Claims95,000Survivor Claims80,000Refund and Deposit Claims24,000Phone Calls (RIOs)1,800,000287,000Written Correspondence281,000Address Change Requests276,000Post Retirement Change Requests135,000Retirement File Services900,000These numbers represent Retirement Services workloads$6 Billion paid out a month in retirements and survivor annuities
21 Customer Services Retirement Information Office (Call Center) Customer Walk-in Area located in the Theodore Roosevelt Building in Washington, DCCorrespondence OfficeWritten letterssFaxesRefund/Deposit Office
22 Customer Services Staff- 155 (Hiring an additional 27) Retirement Information Office - 83Correspondence - 45Refund/Deposit – 17Management - 10Contractor Staff (overflow)36 employeesHours of Operation are 7:30am until 8:00pm Eastern Time
23 Customer Services Our strategy Provide multiple channels TelephoneFaxWebsiteOne contact resolutionProactive informative service
24 Customer Services Improvement actions Hired and trained additional staffPurchased and implemented new quality assurance technologyUpdated the call messaging system to provide a longest waiting call messageProvided informational messages through the phone systemEvaluated performance goals
25 Retirement Services Online Visit https://www.servicesonline.opm.gov Get your personalized retirement information and make changes onlineAll you need is a computer, your Claim number, and PasswordTo request a Password, please call us at , us at or use Retirement Services Online to make your request
26 Retirement Services Online Visit https://www.servicesonline.opm.gov What can you do?View annuity statementChange mailing addressSign up for direct deposit of your paymentUpdate addressChange Federal and State Income Tax withholdingView/Print/Request a duplicate Form 1099-R for the current tax year and two previous yearsChange PasswordRequest a new passwordEstablish an allotment to an organizationSet up a checking or savings allotmentWill be adding this year the option to receive your password by and status viewer so that those retiring can see the status of their retirement package. Will also be adding Life Insurance information in the future.
27 Services Online Home Page Draw Users attention to system message.
28 Services Online Customer Log In Claim NumberAPIN/PasswordMake sure you emphasize the 4 things about this page.Payment Schedule02/01/2011Forgot Claim Number or Password
31 Three ways to Access Services Online Main OPM web site:Main Retirement Information and Services web site --- Quick Links section:Direct web address:
32 Retirement Services Outreach Attend NARFE Conferences/Chapter MeetingsFocus groups with retireesPamphlets availableRI Take control of your retirementRI – Life Events and Your Retirement and Insurance Benefits (For Annuitants)
33 Going GreenIn an effort to “go-green” and reduce paper consumption, OPM started two initiativesIn 2009, we began collecting annuitants’ addresses.In 2010, you received an open season notification which included a web site and telephone number to request health plan brochures, make enrollment changes, perform other open season transactions and obtain other health benefits information.Although OPM is not prepared to send all information to annuitants via at this time, we want to begin the process of capturing the addresses to ensure we have as many on record as possible when the time comes to make the change to using as an alternative form of transmitting information to the annuitant.
34 Going GreenUnited States Department of the Treasury implemented “Go Direct” effective March 1, 2013You can find more information about this initiative at:U.S. Treasury Requires Electronic Federal Benefit PaymentsIf you still receive a paper check for your Social Security or other federal benefit payments, you are out of compliance with the law. The Treasury Department requires federal benefit payments to be made electronically.Switch to Electronic Payments Today!You can choose to get your payments by direct deposit to a bank or credit union account or to a Direct Express® Debit MasterCard® card account. Sign up by contacting the U.S. Treasury Electronic Payment Solution Center at (800) You may also sign up for direct deposit online or at your local bank or credit union.If you do not comply, the Treasury Department will contact you directly and may send you a Direct Express® card.Exceptions will be granted in rare circumstances. Find out if you qualify.If you already receive your federal benefit payments electronically, you do not need to take any action.Direct Express CardContact InformationHave not enrolled for a Direct Express® Card yet?To sign up for the Direct Express® card, please contact the enrollment center between the hours of 7:00 AM CST to 7:00 PM CST Monday thru Friday.Card Enrollment Center:Already have a Direct Express® card?For all questions related to the Direct Express® card, cardholders should call:Customer Service:Hearing impaired:International: (Collect)Enroll Now - VisitAn overview, common questions, and more information about the Direct Express Card is available at the Financial Management Service (FMS) website. FMS is a bureau of the U.S. Treasury.
35 Going GreenEveryone getting the following federal benefits by paper check were switched to electronic payments – direct deposit to a bank or credit union account or to the Direct Express® Debit MasterCard® card:Social SecuritySupplemental Security IncomeVeterans AffairsRailroad Retirement BoardOffice of Personnel ManagementDepartment of Labor (Black Lung)
36 Five Important Things to Remember Keep your mailing address and address updated with OPMKeep your designations of beneficiary updated
37 Retirement Operations Center Boyers, PA Houses the files of our retirees and survivorsPiled one on top the other, our 21,000+ filing cabinets, would be more than four times the height of Mount Everest
38 Five Important Things to Remember Report the death of your spouse to OPMReport a marriage after retirement to OPMMake sure your family knows who to contact in the event of your death