Federal employees have heard plenty about OPM retirement processing delays. Now, OPM is replacing more than 100 separate federal HR systems with a governmentwide platform designed to connect with retirement systems. Could that eventually help retirement claims move more efficiently? It is too early to know, but the technology change is significant.
Key Takeaways
- OPM is replacing more than 100 separate federal HR systems with one governmentwide platform.
- The new system is designed to connect with federal retirement systems.
- Better data sharing could reduce some administrative friction in retirement processing.
- It is too early to know whether the change will materially reduce retirement claim processing times.
One System Instead of More Than 100
In June, OPM awarded Oracle a $395.8 million contract to build the government’s first governmentwide human resources platform.
The new Core Human Capital Management, or Core HCM, system is intended to replace more than 100 separate HR systems used across federal agencies. The goal is to create a more consistent way to manage employee records, personnel actions, position information, and other HR data.
OPM has said the fragmented systems currently in use can create inconsistent data and unnecessary administrative work. The new platform is designed to standardize that information and make it easier for different systems to communicate.
And retirement is explicitly part of the plan. OPM says Core HCM will connect with federal payroll, benefits, talent acquisition, performance management, and retirement systems.
What Could That Mean for Retirement?
This does not mean OPM retirement processing will suddenly become faster. The new platform is not replacing OPM Retirement Services, which remains responsible for processing federal retirement claims.
But it could address one part of the problem that occurs before a claim reaches Retirement Services: the quality and movement of an employee’s federal employment data.
A retirement claim depends on information such as service history, personnel actions, salary and other employment records. If that information is maintained more consistently and moves between systems more easily, there could be fewer administrative problems caused by incompatible systems or incomplete information.
Oracle has specifically described the modernization effort as addressing delays in both hiring and retirement processes. How much that ultimately improves OPM retirement processing remains to be seen.
Don’t Expect an Immediate Change
The transition will happen in phases rather than all at once. OPM has targeted 2027 for the broader implementation, although the schedule and timing of individual agency transitions could change.
So this is not a reason to delay a retirement decision or assume your retirement claim will be processed faster. It is, however, a significant change to the infrastructure behind federal HR.
For federal employees who have been frustrated by retirement-processing delays, that makes the rollout worth watching. Better technology cannot solve every problem at Retirement Services, but a governmentwide HR platform that can connect employee data with retirement systems could eventually remove some of the administrative friction.
For now, the important word is could.
Planning to Retire From Federal Service?
Technology may change how your retirement application moves through the system, but the things you can control have not changed. Your FERS pension, TSP, Social Security and FEHB decisions still need to fit together.
A Federal Retirement Consultant (FRC®) can help you review those benefits and understand your options before you retire. Schedule a complimentary benefits review to see where you stand.
