New Health Insurance Program Stalls as OPM Reexamines Vendors

Retirement Upgrade in Jeopardy

The president's budget request for fiscal 2007 sought $26.7 million to upgrade processing of retirement claims filed by federal employees, but the House Appropriations Committee has decided not to finance the project.

The committee did not have enough money to meet all of the administration's spending priorities, aides said. Rep. James P. Moran Jr. (D-Va.), a committee member, offered and withdrew an amendment on the issue, saying he hoped to work with Republican and Democratic leaders next year to ensure that funding will be available.

The OPM, which processes retirement claims, relies on a paper-based system that often moves slowly because it takes time to gather personnel folders to make calculations. Moran said many recently retired federal employees are waiting three to six months to receive their full annuity. Until then, they receive partial pensions, with payments cut between 15 percent and 35 percent, he said.

The delays may worsen in coming years, as baby boomers depart the government in substantial numbers, and the issue is of concern to area lawmakers. "Zeroing out this funding now not only stalls the project but threatens OPM to go back to square one," said Robert White , a spokesman for Rep. Davis. Davis will "search for ways to address this issue," White said.

Moran said he is encouraged that the committee signaled support for the retirement upgrade in a report on fiscal 2007 appropriations.

Linda M. Springer , the OPM director, said she was not giving up and hopes to win a congressional pledge for some funding before House-Senate negotiators meet in a conference late this year to make final spending decisions. "Our job between now and the conference is to continue to educate members in both houses," she said.

Stephen Barr's e-mail address isbarrs@washpost.com.