I would like to give all of you a post-initial rollout report on
RetireEZ.

[Overview]{.underline}

As you know, the Retirement Systems Modernization (RSM) Program, now
known as RetireEZ, is OPM's landmark program that is modernizing the
business processes and supporting technology used to administer the
Federal government's retirement plans. These plans provide retirement
benefits to employees in all three branches of government and the U.S.
Postal Service. As administrator of these plans, OPM is responsible for
2.5 million retirees and beneficiaries, approximately 3 million active
Federal employees and tens of thousands of former Federal employees who
will initiate annuity payments in the future.

Prior to RetireEZ, retirees from Federal service could anticipate a
period of interim reduced annuity payments upon commencement of their
retirement. In spite of our best efforts, the decades old paper based
administrative process responsible for this poor customer service was
doomed to deteriorate with the onset of the pending retirement wave.
Under RetireEZ, this practice is ending.

The implementation of RetireEZ is a complex endeavor. It requires the
modernization of HR business processes to leverage innovative technology
solutions across numerous divisions in OPM, other Federal agencies, and
private sector vendors. This program is permanently transforming a
process that impacts the entire Federal government.

[Go Live]{.underline}

On February 25, 2008, OPM, as planned, successfully began the rollout of
RetireEZ. Approximately 26,000 employees in agencies serviced by the
General Services Administration's (GSA) payroll processing center are
now covered under the new system. Among these Wave 1 agencies are OPM,
GSA, the National Archives and Records Administration, and the Railroad
Retirement Board. Subsequent rollouts will cover the remainder of the
Executive Branch, the U.S. Postal Service and the Legislative and
Judicial Branches.

The functionality included in this initial delivery included many of the
frequently applicable calculations used to determine retirement
annuities. A new tool, Your Benefit Resource, or YBR, was made available
to benefit officers in Wave 1 agencies to assist employees in modeling
benefits in anticipation of retirement.

[Performance under RetireEZ]{.underline}

RetireEZ is now processing Wave 1 agency retirements under the new
Defined Benefits Technology Solution (DBTS) incorporated in RetireEZ
that have occurred subsequent to the initial rollout. Daily activity is
tracked and monitored for progress. As a safeguard, all retirements
continue to be calculated under a legacy process, which itself uses
newly automated data files created as part of the modernization process.
Using this approach, we are "fine tuning" the system where required.

I am pleased to report that the majority of cases that processed to date
under RetireEZ matched the legacy calculation. In all cases, including
those involving functionality that is under development, OPM paid full
retirement benefits at the payment commencement date. No longer are
retirees under the new system receiving interim payments and waiting for
months until their actual payment amounts are calculated. This success
is directly attributable to the transformation of millions of paper
records to automated data that underlies the modernization. All Wave 1
new retirees are getting better service because of RetireEZ.

[Benefit Officer Training]{.underline}

As noted above, agency benefit officers are playing an important role in
the rollout of RetireEZ. In carrying out their responsibility to counsel
and assist retirement eligible employees in preparing for this important
event, benefit officers now have the powerful new tool YBR. Prior to the
February launch, OPM held two interactive training sessions for benefit
officers on the use of YBR. Twenty seven agency benefit officers
attended these sessions and were provided daily dedicated subject matter
expert phone support throughout the rollout.

OPM has also created an instructional video to supplement the training
sessions. By accessing
[[http://www.retireez.gov/images/videos/RSM.html]{.underline}](http://www.retireez.gov/images/videos/RSM.html_)
on the OPM website, both current and new benefit officers can refresh
their knowledge of YBR whenever and wherever they want to do so. This
video will also be used by employees when the YBR tool is made available
through direct employee access in subsequent releases. OPM will continue
to provide the eLearning and instructor-led training sessions throughout
the entire rollout period.

[Rollout -- Next Steps]{.underline}

OPM is building on this successful beginning for RetireEZ. We have
identified 150 distinct calculations that will ultimately be handled in
the system. Approximately two thirds of these functions are applicable
to Wave 1, although many are infrequently encountered. Using this
priority basis as a guide, we will periodically migrate remaining
functionality into the DBTS system and YBR when fully tested.

We will also provide direct YBR access to employees, first in Wave 1 on
a selected basis. Access will be determined largely by proximity to
retirement eligibility.

Of course, work continues in support of adding agencies in Wave 2 and
beyond, as well as the continued automation and cleansing of employee
records.

[Cost Estimate]{.underline}

The planning, acquisition and implementation cost for RetireEZ is
expected to be approximately \$106 million. As with any administrative
system, there are annual operating and maintenance costs. An additional
\$254 million will be spent through 2016 for operations and maintenance
costs.

[GAO Recommendations]{.underline}

While the success of the new system is certain, no modernization project
of this size or scope is without challenges. The Government
Accountability Office has completed an assessment of RetireEZ and has
provided us with several recommendations which we will be addressing as
part of our continued implementation efforts. Consistent with the GAO
report, OPM continues to work to:

> • improve our approach to testing and defect management, data quality
> and processes for corrections to data,
>
> • improve our planning with respect to care of the current annuitant
> population in the new environment,
>
> • inform future cost estimation processes with additional rigor and
> analyses, and
>
> • ensure the performance measurement baseline reflects a high
> confidence basis for all work required to achieve program objectives.

As RetireEZ continues to roll out and we populate the system with data
from different sources and in different formats, we expect to encounter
additional challenges. Each will be identified, acted upon and brought
to resolution.

[Summary]{.underline}

RetireEZ is already improving service for Federal employees and its
benefits will expand to future retirees as the rollout continues. That
is the ultimate measure of success.

Linda M. Springer

Director