Appendix A-8: Retirement and Insurance Service (RIS)

FY 2000 Performance Report
Goal & Performance Indicators Checklist

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OPM STRATEGIC PLAN GOAL I

PROVIDE POLICY DIRECTION AND LEADERSHIP TO RECRUIT AND RETAIN THE FEDERAL WORKFORCE REQUIRED FOR THE 21ST CENTURY.

The FY 2000 Annual Performance Plan contained four goals (RIS Goals 1 through 4) that represented OPM’s benefits design and policy agenda. In retrospect, we find that these goals are activity-based and their performance measures only partially verifiable and valid. Beginning with the FY 2001 Annual Performance Plan, this agenda is represented by a single annual performance goal. This single goal is focused on the outcome we seek — employee benefits that are more flexible and comprehensive — and will be measured by indicators developed under the corporate measurement strategy described in our revised Strategic Plan, dated September 2000.

RIS Goal 1 -- M

A Long-term Care program is implemented for Federal employees and annuitants, providing that authorizing legislation is passed.

This goal is critical to OPM’s Strategic Goal I since it represents a significant enhancement to the Federal employee benefits package, and makes Federal employee benefits more comprehensive and competitive with those offered in the private sector. Comprehensive and competitive benefits are essential in order for the Federal Government to recruit and retain a high quality workforce. Long-term Care Insurance for Federal employees, retirees, and their families is now a certainty. During FY 2000, we worked with the Congress to resolve the differences in the competing versions of the authorizing legislation for this program. This work came to fruition on September 19, 2000 when the President signed the Long-term Care Security Act.

We have already begun the work needed to implement the Long-term Care Insurance Program by October 2002. For instance, we have launched a Website for the Program, and are positioning the resources to develop implementing regulations, solicit and review contract proposals, and develop the educational materials for potential program enrollees. While we do not have data from our surveys of Human Resource Directors and Specialists, the overriding accomplishment is that we now have the authority and resources to implement a Long-term Care Insurance program.

M Long-term care program is implemented within timeframes described in authorizing legislation. [Critical indicator]

The final version of the Long-term Care Security Act (public law 106-265) was passed by both houses of Congress in the summer of 2000, and was signed by the President on September 19, 2000. We have already begun the work needed to implement the Long-term Care Insurance Program by October 2002, as required by the Act.

NX Agency HR Directors are satisfied with OPM’s policy, technical assistance, and guidance materials for implementing a long-term care program, as indicated in the DCSS and/or through informal customer feedback.

Since the Long-term Care Security Act was not signed into law until September 19, 2000, no information regarding the implementation of the program could be obtained from the DCSS.

NX Agency HR Specialists are satisfied with OPM’s efforts in providing technical assistance and guidance materials dealing with long-term care, as indicated in the CSS and/or through informal customer feedback.

The survey of HR Specialists for FY 2000 was postponed until the spring of FY 2001. Therefore, we have no FY 2000 data for this indicator.

RIS Goal 2 -- M

New life insurance products are offered to Federal employees and annuitants.

Public Law 105-311, the Federal Employees Life Insurance Improvement Act (enacted October 30, 1998), authorized OPM to expand current benefit options available from the Life Insurance Program. It also directed us to conduct a study and submit a report to the Congress on the desirability of offering Federal employees certain new group life insurance products. These new products included group universal life insurance, variable group life insurance, and voluntary death and dismemberment insurance. A report was prepared and submitted to Congress in May, 1999. Subsequent to our report to Congress, we discussed the creation of these new products within the Administration. As a result of issues raised during these discussions, OPM did not pursue the addition of new life insurance products.

However, we moved forward with the other options authorized by the Federal Employees Life Insurance Improvement Act. Federal employees now have more life insurance coverage choices as employees may elect 5 times as much coverage for their families, and may elect coverage for foster children. Our efforts to implement these provisions began during FY 1999 as we produced implementing guidance and provided an open enrollment period for Federal employees. All of these activities were implemented within the timeframes described in the Act. We completed the implementation of PL 105-311 in April 2000 when the elections employees made during the open enrollment period became effective.

M New life insurance products are implemented within timeframes described in authorizing legislation. [Critical indicator]

New options under the Federal Employees’ Life Insurance Program were developed and implemented during FY 1999 and all had become effective by April 2000, as required by the Federal Employees Life Insurance Improvement Act, while the Administration decided that other products should not be pursued.

NX Agency HR Directors are satisfied with OPM’s policy leadership and agency involvement dealing with implementing new life insurance products, as indicated in the DCSS and/or informal customer feedback.

No information specific to the implementation of the Federal Employees’ Life Insurance Improvement Act was obtained from the FY 2000 DCSS. However, the following results regarding OPM’s policy leadership in the insurance benefits area are available.

NX Agency HR Specialists are satisfied with OPM’s technical assistance and guidance materials dealing with implementing new life insurance products, as indicated in the CSS and/or informal customer feedback.

The survey of HR Specialists for FY 2000 was postponed until the spring of FY 2001. Therefore, we have no FY 2000 data for this indicator.

RIS Goal 3 -- M

Flexible, responsive, and cost-effective employee benefits policies and packages are developed by a Center for Benefits Design and Delivery.

We met this goal during FY 2000 based on our successful implementation of several benefit options for Federal employees and annuitants that made the Federal employee benefits more flexible, responsive to employee needs, and cost effective. A cornerstone of our work in responding to emerging benefit design and policy needs has been our assertive approach in developing and promoting premium conversion. With this new plan, Executive Branch employees will save money, as premium conversion uses Federal tax rules to let employees deduct their share of health insurance premiums from their taxable income thereby reducing their taxes. This plan is similar to the private sector, which has allowed their employees to deduct health insurance premiums from their taxable incomes for many years. OPM has issued regulations to implement this package effective October 1, 2000. The Center has also contracted with a benefits consultant on this issue as well as on a flexible spending account program.

Another significant benefit design focus has been parity on FEHB mental health issues. We issued a call letter to health benefit carriers for the 2001 FEHBP contracts, which advanced the mental health and substance abuse parity, and the reduction in medical errors initiatives. The call letter instructed the carriers to “eliminate differences in benefit levels and limitations between coverage for mental health and substance abuse and medical, surgical, and hospital services.” Further, the letter directs carriers to report on their current initiatives to improve patient safety and make recommendations on how to provide Federal enrollees with consumer information on this issue

Finally, we responded to the President’s call to address patient safety. We collaborated with the Department of Labor’s Health Benefits Education Campaign, and others, to develop evidence-based, actionable messages that inform consumers of what they should do if they are concerned about the medicines they are taking, or the care and treatment they are receiving from health care professionals. As a result, we helped develop the “Five Steps to Patient Safety” that were widely adopted both in and out of Government. For instance, OPM, the Health Care Financing Administration, the Department of Defense, and organizations including the National Coalition on Health, General Motors, the National Caucus and Center on Black Aged, and the Employer Health Care Alliance will use these steps to educate consumers.

M Respond to emerging benefits design and policy needs. [Critical indicator]

We effectively pursued three major benefit design and policy initiatives that emerged in late FY 1999 or during FY 2000.

First, Premium conversion was implemented effective October 1, 2000.

Second, the foundation was laid for mental health and substance abuse parity within the Federal Employees Health Benefits Program, based on the call letter to carriers for the 2001 contract year.

Third, we collaborated with others to develop the “Five Steps to Patient Safety” that were widely adopted both in and out of Government and published in the FY 2000 Open Season Guide.

Because this measure is subjective in that a third party might not agree that OPM’s actions were responsive to emerging benefits needs, it has been dropped from our FY 2001 and FY 2002 Performance Plans in favor of quantitative indicators developed within our corporate measurement framework.

M Organizations outside of OPM recognize RIS’ leadership in the benefits industry.

An example of the recognition of our leadership is that we are continually asked to actively participate in several benefits related associations, committees and consortiums. For instance, we have participated in National Consortium of Quality Assurance to collect Health Plan Employer Information System data and participated in the Washington Business Group. Because of the subjective nature of this indicator, we have dropped it from our FY 2001 and FY 2002 Performance Plans in favor of quantitative indicators developed within OPM’s corporate measurement framework.

M External studies indicate that Federal employee benefits are competitive with those offered in the private sector.

The Watson Wyatt Data Services’ 2000/2001 Report on Employee Benefits found that the average costs associated with a “typical” benefits package rose 9.6% from 1998 to 1999. Over the same period, the cost of medical benefits increased an average of 10.9%. Watson Wyatt forecasts that the medical benefits cost will increase during 2000 by an average 10.3%. In comparing these findings to the Federal Employees Health Benefits Program, the average premium increased at a comparably lower rate. The average percentage premium increase in the FEHBP rose 10.2% from 1998 to 1999, and 9.3% from 1999 to 2000. From 1991 through 2000, the average annual FEHBP rate increase was 5.3.

M Results of the DCSS indicate that OPM is meeting the agencies’ policy needs in the area of earned employee benefits

In FY 2000, the questions used in the DCSS were adjusted to establish a baseline for our corporate measurement framework. Therefore, the FY 2000 data does not align precisely with the FY 1998 results. Despite this, however, a comparison of the results from both years is an indication of our performance under this measure. The DCSS was not conducted in FY 1999.

RIS Goal 4 --M

Retirement coverage errors are corrected for all people affected, in a way that is easy to understand and can be effectively administered.

This goal is critical to OPM’s Strategic Goal I since it addresses a wide-spread and highly visible human resource policy need. Federal employees need to know that their employee benefits are administered fairly and that the Federal Government, as an employer, has their best interests at heart. A legislative solution to retirement coverage errors — the Federal Erroneous Retirement Coverage Correction Act — was signed into law on September 19, 2000. The legislation sets out time frames for OPM to issue regulations and implement its provisions. We have moved forward aggressively to implement the provisions of the Federal Erroneous Retirement Coverage Correction Act including deploying a Web site that provides guidance and benefit calculators to the agencies and to Federal employees. We are developing regulations for publication in March 2001, as required by the Act. Although we established but a single indicator for this goal, HR Directors satisfaction with OPM’s policy leadership in this area, the overriding accomplishment is that we now have the authority and resources to correct retirement coverage errors for affected employees.

M Increased level of satisfaction among agency HR Directors regarding OPM’s policy leadership in the correction of retirement coverage errors, as measured in the DCSS and/or informal customer feedback.

OPM STRATEGIC PLAN GOAL II

PROTECT AND PROMOTE THE MERIT-BASED CIVIL SERVICE AND THE EMPLOYEE EARNED BENEFIT PROGRAMS THROUGH AN EFFECTIVE OVERSIGHT AND EVALUATION PROGRAM.

RIS Goal 5 -- M

The financial oversight of the employee benefit trust funds is strengthened in that (a) the FY 1999 Trust Fund annual financial statements receive unqualified opinions from an independent auditor, (b) the earned benefit financial sub-systems are integrated with the new general ledger installed in early FY 1999, and (c) financial policies and procedures supporting the earned benefit financial systems are properly documented and comply with applicable requirements and standards.

This is a critical goal in order for OPM to meet Strategic Goal II since it focuses on OPM’s oversight and management of the employee trust funds, and addresses some of the Management Challenges confronting the agency. Success under this goal demonstrates to all stakeholders that OPM is fulfilling its fiduciary responsibilities regarding these trust funds and is a responsible and competent financial manager. The most significant indicators of our success are the unqualified audit opinions received during FY 2000 on the FY 1999 financial statements for the trust fund programs and the fact that no new material weaknesses were identified by the independent auditors. Another indicator is the progress toward resolving identified material weaknesses we reported in our FY 2000 assurance letter under the Federal Managers Financial Integrity Act. As reported in our FY 1999 Performance Report, we implemented a new core financial management system during FY 1999 and linked it to our sub-systems. Based on these results, we met our goal for FY 2000 and are progressing toward our strategic goal.

In our new Strategic Plan, the desired outcome regarding our financial management of the employee benefit trust funds is described in Strategic Goal IV, “The Employee Benefit Trust Funds are Models of Excellence and Integrity in Financial Stewardship.” This outcome is supported by an annual goal that describes one of the main ingredients for achieving it: To bring the trust fund financial management systems into compliance with the Federal Managers Financial Improvement Act.

M The 1999 annual financial statements for the Retirement and Life Insurance programs receive “unqualified opinions” from the independent auditing firm. [Critical indicator]

For the second year in a row, RIS received an unqualified audit opinion on all three trust funds, which reflect more than $500 billion in Federal assets.

M The FY 2000 annual financial statements for all of the three benefit programs, published in FY 2001, receive “unqualified opinions” from the independent auditor firm. [Critical indicator]
The audit opinions for the FY 2000 financial statements for the trust funds and the consolidated statements for OPM received unqualified opinions from our independent auditors.

N Financial policies and procedures are documented as planned.

Several installments of a Financial Management Manual were drafted during FY 1999. Because of delays in completing this project, and concerns about the quality and completeness of the drafted installments, OPM brought in new contractor support during FY 2000. The full manual will be completed in FY 2001.

N The Financial Management Manual is completed and distributed to RIS accounting staff by mid-FY 2000.

See discussion above.

M The OPM FMFIA assurance letter for FY 2000, published in FY 2001, shows that identified material weaknesses in benefits program’s internal and management controls are resolved. [Critical indicator]

Our FY 2000 FMFIA Assurance letter reported significant progress in five important areas involving the trust fund financial systems – three areas of material weaknesses in management controls and two involving nonconformance with financial management requirements. One of the three material weaknesses was reported as completely resolved. We made enough progress in two other material weaknesses that they no longer will be reported externally. This leaves but a single area that we reported as a material weakness in FY 2000 and we expect to resolve this area during FY 2001.

The audit reports for the FY 2000 financial statements of the trust fund programs did not identify any new material weaknesses in internal controls.

OPM STRATEGIC PLAN GOAL III

PROVIDE ADVICE AND ASSISTANCE TO HELP FEDERAL AGENCIES IMPROVE THEIR HUMAN RESOURCES MANAGEMENT PROGRAMS TO EFFECTIVELY OPERATE WITHIN THE ECONOMY, DEMOGRAPHICS, AND ENVIRONMENT OF THE 21ST CENTURY.

OPM provides a wide variety of services to assist Federal agencies with the administration of their Human Resource programs. The FY 2000 Annual Performance Plan contained three goals (RIS Goals 6, 7, and 15), the last of which was based on financing through the Advances and Reimbursements budget account, that pertain to agency services for the employee benefits programs. In developing the FY 2001 and FY 2002 Performance Plans, we determined these three goals were not focused and did not clearly represent our priorities. To correct this, we developed a single goal “More Retiring Federal employees receive benefits counseling and agency benefit officers are provided with improved information and tools for these services” to focus more directly on our current priority and on our long-term objective to provide accurate and consistent benefits counseling and information to all program stakeholders.

RIS Goal 6 -- M

Benefits information is more easily available to both agency benefit officers and employees, and is written in Plain Language.

We were successful during FY 2000 in making benefits information more easily available to benefits officers and employees. Evidence of our success is most clearly seen in our efforts to meet the technical assistance needs of agency benefits counselors through the creation of the Benefits Administration Information on-line mailing list, and the findings described in the study, “Federal Benefits Counseling: Putting the Pieces Together,” described below. The findings of this study are useful since we do not have data from the survey of agency HR specialists, which we postponed until the spring of FY 2001.

M Responsiveness to sudden changes in policy direction is demonstrated.

An example of our ability to respond to sudden changes in the direction of benefits policy is the implementation of the health benefits premium conversion during FY 2000. The potential for offering this benefit to Federal employees had not been a priority when we assembled our FY 2000 Performance Plan. However, once the decision was made in December 1999, we moved quickly to publish regulations and provide guidance to the agencies so that premium conversion became effective on October 1, 2000.

M Technical assistance needs of agency benefit counselors and employees are met. [Critical indicator]

We put the finishing touches on the Benefits Administration Information (BAI) online mailing list. The BAI emails information, primarily Benefits Administration Letters (BAL), to subscribers. While the primary customers for the BAI list are agency benefits officers, anyone, anywhere can subscribe to the list. BAL 00-701 announced the new service and provides easy instructions for subscribing to the list. This service gives agencies a “heads up” when new information is posted to the web. It will also ensure that agencies with limited web access will get quick access to new benefits administration information. In its first week, the BAI online mailing list signed up more than 400 subscribers. We continued using plain language as we review and edit our Civil Service Retirement Systems Facts pamphlets.

M Increase agency HR Specialists’ satisfaction with information sharing, technical assistance, and guidance materials regarding employee benefit programs, as measured by the percentage of favorable ratings (or maintenance at 90% or higher) in the CSS and/or through informal customer feedback. [Critical indicator]

Reported levels of satisfaction with general information sharing and technical assistance as measured in the CSS for HR Specialists working in the Retirement and Insurance benefits area through FY 1999 are shown below. The was no survey in FY 2000. Therefore, we have no FY 2000 data from this survey. However, the study Federal Benefits Counseling: Putting the Pieces Together conducted by our Office of Merit Systems Oversight and Effectiveness, indicates that agency benefit counselors “praised the OPM Website as a user-friendly source of benefits information, and an OPM “best practice.”

There was no survey of HR Specialists in FY 2000. Therefore, we have no FY 2000 data for this indicator.

RIS Goal 7 -- M

Agency personnel are more knowledgeable about the administration of earned benefit programs and are better able to provide benefits counseling and related assistance to Federal employees and retirees.

During FY 2000, we ensured that agency personnel are more knowledgeable about the administration of the benefit programs and are better able to provide benefits counseling and related assistance. Our success is evident in that our recent study of benefits counseling in the agencies indicates that agency benefit counselors rely on our web site as a resource for their work and find it useful. In addition, retiring employees indicate their continuing high levels of satisfaction with the retirement counseling they received in preparation for retirement. Although the percent of retiring employees reporting that they received counseling was below the target we had set, this indicator did reflect marginal improvement and is offset by the evidence discussed above.

M Increase agency HR Specialists’ satisfaction with the availability of benefits information via the OPM Website so that they are better able to provide benefits counseling and related assistance to Federal employees and retirees, as demonstrated by levels of satisfaction in the CSS and/or informal customer feedback. [Critical indicator]

Reported levels of satisfaction by HR Specialists working in the Retirement and Insurance benefits areas as measured in the HR Specialists CSS through FY 1999 are shown below. There was no survey in FY 2000. Therefore, we have no data from this survey. However, information from the study Federal Benefits Counseling: Putting the Pieces Together, shows that 83% of agency benefit counselors use the OPM web site, and those interviewed found it very useful.

The Client Satisfaction Survey of Civil Service Annuitants provided the following:

The Client Satisfaction Survey of Civil Service Annuitants provided the following:

RIS Goal 15 -- M

Agency staff are more knowledgeable about the administration of the earned benefit programs by attending the Annual Benefits Officers Conference, attending pre-conference training, and/or the annual Fall Festival of Training.

This goal mirrors Goal 7, but is focused on our Annual Federal Conference and the Fall Festival of Training. As demonstrated below, both of these events were successful in FY 2000. These are not direct measures of success under this goal and we have addressed this issue by implementing the corporate measurement strategy described in our revised strategic plan and aggregating our annual goals in our FY 2001 and FY 2002 Performance Plans.

M Post-conference feedback and/or the CSS indicate agency personnel find these programs improve their knowledge of the benefit programs. [Critical indicator]

Post-conference and training session feedback: At the FY 2000 Fall Festival of Training, of 432 post-conference evaluations, 379 (88%) rated the workshops overall as “well above average” or “outstanding.”

Results of the post-conference evaluations of the FY 2000 Federal Benefits Conference indicate that 88% of the 500 attendees found the conference to be “very good to excellent.”

RIS Goal 8 -- N

A baseline is established regarding the quality of agency submissions to the retirement system based on OPM reports to agencies that include information about how many of the retirement claims submitted were complete and ready for immediate processing.

This annual goal was dropped from the FY 2001 and FY 2002 Performance Plans since it pertains to internal operating activities rather than an agency-level outcome.

N A baseline level of agency performance will be established during FY 2000, based on quality data collected by the tracking system developed in FY 1999, and communicated to agencies by the end of FY 2000. [Critical indicator]

While we have not established the baseline regarding the quality of agency retirement submissions, we completed development of the system that will generate this data in mid-November 2000. We are now working with the data produced by this system and expect to establish the promised baseline data by April 2001. The system will become the primary source of virtually all workload tracking and performance data for the retirement and survivor claims we process under the Civil Service and Federal Employees Retirement Systems. In addition, the system will provide information on an agency-by-agency basis regarding whether incoming claims are fully documented or require additional development.

NX HR Specialists find this quality information is useful toward improving their internal retirement processes, as demonstrated in satisfaction levels in the CSS and/or informal customer feedback. [Critical indicator]

Since the system that will produce the quality information has not completed, data could not be collected for this measure.

RIS Goal 16 -- D

Agency retirement records are stored with OPM when they are changing their payroll systems.

No assessment has been made regarding this goal since it pertains to an internal operating activity that has little bearing on the performance of the Retirement Program. Therefore, this goal has been dropped from the FY 2001 and FY 2002 Performance Plans.

D Agencies continue to request these services from OPM.

Since no assessment is being made under this goal, no performance information has been collected and the indicator has been dropped.

OPM STRATEGIC PLAN GOAL IV

DELIVER HIGH-QUALITY, COST-EFFECTIVE HUMAN RESOURCES SERVICES TO FEDERAL AGENCIES, EMPLOYEES, ANNUITANTS, AND THE PUBLIC.

RIS Goal 9 -- M

The delivery of services in the FEHB Program is improved by developing and using health care quality measures and communicating quality information to program customers and prospective customers.

This goal is essential toward evaluating the delivery of services to Federal employees and annuitants since the health benefits program is a cornerstone of the Federal employee benefits package and covers most active employees and annuitants – nearly 9 million people.

The delivery of FEHB Program services improved during FY 2000 as evidenced by the increase in the percentage of program customers enrolled in health plans that are either accredited by an independent accrediting association, or rated average to above average by the Consumer Assessment of Health Plans Survey. The independent accrediting associations include the National Committee for Quality Assurance, the Joint Commission on Accreditation of Healthcare Organizations, and the American Accreditation Healthcare Commission/URAC. The FY 2000 result of 90% enrolled in such plans exceeds the 65% target level by nearly half. Furthermore, it means that most program customers are receiving quality health care and that our efforts to communicate health care quality information to them have been effective.

M Partnerships are used to promote the use of Health Care Quality Measures.

We continue to use partnerships with other Federal agencies and organizations in the health care industry to improve the operations of the Health Benefits Program. During Summer 2000, for instance, we participated in the kickoff meeting of the Quality Interagency Coordination Task Force (QUIC) work group on patient safety initiatives, hosted by the Agency for Healthcare Research and Quality. We participate in focus groups and continue to collaborate with the American Accreditation HealthCare Commission and the Internet Healthcare Coalition. Regarding federal partnerships, another recent example is our participation with the Department of Health and Human Services on proposed regulations for the protection and privacy of individuals’ individually identifiable health information. In June, we attended a meeting with the Department of Labor, along with other private and federal agencies, to provide input in the development of a web site, called Quality Briefcase. This meeting was a part of Labor’s health benefits education campaign to inform employers and consumers about quality and safety in employer-provided health plans.

Because this measure is subjective and describes a strategy or action that we will pursue, instead of an outcome, we have dropped it from our FY 2001 and FY 2002 Performance Plans.

M Customer satisfaction with the HB plan reaches 74% for HMOs and 82% for FFSs. [Critical indicator]

This indicator was met since customer satisfaction during FY 2000 remained consistent with FY 1999 and this was the intention when the target levels shown above were set. During FY 1999, the measuring instrument for this indicator was changed to the Consumer Assessment of Health Plans Survey (CAHPS). This survey instrument is the health care industry’s most thoroughly tested and widely accepted tool for obtaining customer feedback regarding health plan performance. The CAHPS-based results were published in our FY 1999 Performance Report and revised target levels for FY 2000, shown above, were published in our FY 2001 Annual Performance Plan. In the later part of FY 2000, the calculation of this indicator was adjusted so health plans are now held to a higher standard when determining overall customer satisfaction. This change had the effect of lowering the FY 1999 and FY 2000 results. The adjusted FY 1999 results and the FY 2000 results are shown below. Revised target levels, based on the new method of calculating overall customer satisfaction are reflected in our FY 2002 Performance Plan.

As discussed in the 1999 Performance Report, an indicator of the extent to which the FEHB is quality driven is reflected in the percentage of participating plans that are accredited or rated by their customers as above average in overall customer satisfaction. This indicator was adopted during FY 1999, for which a target level was first established in the FY 2001 Annual Performance Plan at 65%. During FY 2000, the percent of highly rated or accredited plans in the FEHBP dropped to 55%.

M Percent of customers enrolled in a highly rated or accredited plan -- 65%. [Critical indicator]

This also is a new indicator adopted during FY 1999, for which a target level was first established in the FY 2001 Annual Performance Plan at 65%. This is the most critical measure for the health benefits program since it is an indication of the results of OPM’s strategy to implement quality measures in the program and communicate information about health plan performance to program customers. Given that the goal is to improve the delivery of health benefits program services, the FY 2000 results indicate that most program customers are choosing a health plan that provides them with quality services.

N HB disputed claims processed within 60 calendar days -- 99%.

RIS Goal 10 -- M

Claims for life insurance benefits are at least 99% accurate and paid within 10 days of being fully documented to the Office of Federal Employees Life Insurance.

Having reduced processing times to the target level during FY 2000, we have met the most critical aspect of delivering life insurance benefits – the timeliness with which these benefits are paid. While the accuracy of these payments is also important, we always have maintained accuracy at very high levels.

M More than 99% of claims payments are accurate as a percentage of the numbers paid.

Because this measure pertains to internal operating procedures, and is not indicative of overall program performance, we have dropped it from future performance plans.

M Timeliness of claims payments -- 10.0 days. [Critical indicator]

RIS Goal 11 -- N

The FY 1999 level of customer satisfaction, processing times, and accuracy rates for processing new claims for annuity and survivor benefits is increased or maintained.

The delivery of Retirement Program services to annuitants were covered by three annual goals in the FY 2000 Annual Performance Plan – RIS Goals 11, 12, and 13. These goals have been aggregated into a single goal in the FY 2001 and FY 2002 Plans to focus on the Retirement Program’s highest priorities.

Customer satisfaction remained at or near its historically high levels during FY 2000. Seventy-eight percent of new retirees said they received the first benefit payment either when or before they expected and 91% of new retirees said they are very or generally satisfied with how their claim was handled. However, claims processing times – especially FERS retirement claims – did not meet the target levels we had set for them. FERS claims now represent about 20% of our total claims work and will continue to increase as the CSRS workload declines over the next several years.

Early in FY 2000, we initiated a project to process the oldest FERS claims, while at the same time reducing the overall balance of FERS claims on hand. We were very successful and reduced the balance almost 40% by the end of the year. At the same time, the number of aged (more than 90 days old) cases dropped by over 53%. One outcome of this, however, was that the average processing time more than doubled due to the large number of aged cases processed, meaning that retirees received interim annuity payments for longer than we targeted. To avoid being faced with this situation in the future, we have replaced staff lost by attrition by hiring 20 new FERS benefits specialists and re-positioning CSRS benefit specialists to process FERS claims.

Improving claims processing times will continue to be a priority in our FY 2001 and FY 2002 Performance Plans.

N Customers who received first payment when expected -- 80%. [Critical indicator]

RIS Goal 12 -- N

The FY 1999 level of customer satisfaction with RIS teleservices and the timeliness of written responses to inquiries is increased or maintained.

We continued to improve our telephone services during FY 2000 as overall customer satisfaction with call handling remained at 90% for the second consecutive year. Also, the volume of calls handled by customer service representatives in our Call Centers – while falling just short of our 1.1 million-call target level - increased nearly 7% over last year. This figure does not include the additional 142,397 calls that were handled by our interactive voice response phone systems. We made other improvements in our telephone services that included the addition of Spanish-language services. Since May 2000, three new bilingual Benefits Specialists have handled both written and telephone inquiries from Spanish-speaking customers.

However, we did not meet this goal as we fell short of our performance targets regarding the timeliness of written inquiries. Customer satisfaction decreased this year with the timeliness of our responses to these inquiries. Further, we did not answer priority (congressional) and controlled correspondence (written inquiries that can not be answered in our mail servicing areas) within our timeliness standards. While we do not have the resources to dedicate more staff to answering written inquiries, we are confident that we can improve our performance. First, we will increase staff awareness of our performance by making better use of our performance information systems. In addition, we will reduce the volume of written inquiries by the increasing the use of Internet e-mail.

Another step toward reducing the number of written inquires is the development of the “on-demand” retirement benefit booklet. Currently, many separate responses are used to reply to customer requests for information about their retirement benefits, and other issues. The new booklet will give us the ability to meet most information needs in a single consistent document, and provide complete and up-to-date benefit information on any active retirement case upon request. We launched the on-demand booklet for retirees in early 2001, and will implement a similar booklet for survivor annuitants later in the year.

M Overall satisfaction with call handling -- 90%. [Critical indicator]

Note: The calculation of this measure has been changed in the FY 2001 and 2002 Performance Plans to include calls handled by our self-service telephone system. Performance targets for FY 2001 and 2002 that will appear in these Plans have been adjusted accordingly.

N Percentage of priority correspondence answered on time -- 95%.

RIS Goal 13 -- N

The FY 1999 level of customer satisfaction with the accuracy and timeliness of account maintenance services is improved, and workload balances are reduced, as more of these customer service requests are handled through the telecommunications media.

Customer satisfaction with annuity roll maintenance functions remained strong at 90%, and we reduced our account maintenance workload balances by the end of FY 2000. While we did not meet the target levels for our other indicators, we improved services.

We processed 34% of account maintenance services through self-servicing technology and expanded the range of services available through our interactive Website in May 2000. Annuitants accessing our Website can now change their address, set-up direct deposit of their annuity payments, and establish allotments to selected organizations.

We remain convinced that self-servicing will reap additional benefits in the near future when the system will be able to handle checking and savings allotments, and contributions for the Combined Federal Campaign (CFC). We will continue to look for ways to enable our customers to “self-process,” making it easier for them to get services, and less costly for us.

M Percent of customers satisfied with overall services -- 90%. [Critical indicator]

This indicator was dropped during FY 2000 because it is not a valid indicator of the full range of account maintenance services performed for annuitants.

D Accuracy of address changes -- 100%

This indicator was dropped during FY 2000 because it is not a valid indicator of the full range of account maintenance services performed for annuitants.

N Reduce combined workload balance to 19,320 (Includes post adjudicative workloads in the Retirement Claims and FERS Claims Divisions, Change of Address and Post Retirement Services work in the Retirement Operations Center, and work processed in the Retirement Services and Eligibility Divisions).

RIS Goal 14 -- M

Accelerated information technology solutions for a modernized retirement system are designed, developed, and implemented.

This Goal is critical toward meeting OPM Strategic Goal IV for several reasons. First, the Goal focuses the progress we’re making on the Retirement Systems Modernization (Modernization) project, the implementation of which is listed as one of OPM’s major management challenges. Secondly, Modernization is OPM’s central strategy for meeting the long term customer service and financial management objectives for the Retirement Program. Finally, the risks of not implementing Modernization successfully are enormous, since project failure would likely result in significant increases in the cost of delivering the program’s services over the next five to ten years.

The Modernization project met the goals and objectives envisioned for FY 2000. We selected the business model for the new system and made significant progress on designing the core processes that define the system. We also developed a Performance Measurement Program this past year that will enable us to measure our progress as we modernize. We are now using these measures to support the Agency’s effort to develop agency-level “corporate performance measures.”

In FY 2001, we will complete the detailed design of the modernized retirement system, including an organizational blue print that will address workforce planning, organizational structure, performance management, organizational learning, and a transition strategy. We also will complete a technology blue print, focusing on requirements and updating the technology architecture and develop a transition plan that will support the implementation of Modernization, beginning in FY 2002. Finally, we will continue to prototype some of the tools and technologies that we will use to modernize and provide for some improvement in current processes as we work toward the full modernization. We will develop the first Coverage Determination Application that will calculate accurate retirement system coverage and make it available to one or two agencies on our web site. We also will prototype a data exchange gateway that will allow electronic transmission of interim pay data that is currently forwarded to us today by magnetic tape.

M A new business model for the retirement program is selected and a business process reengineering effort is initiated to form the basis of new technology solutions. [Critical indicator]

Beginning in 1997, we initiated a business process reengineering effort for the Retirement Systems Modernization project through which we developed a concept of operations and identified the legal requirements that our reengineered business processes must meet. In FY 2000, we completed the new business model we will use for modernizing the retirement system. Known as the “to-be” model, this business model provides the basic framework for our blueprint process designs. The “to-be” model described the six core processes that needed to be blueprinted for the modernized system: member administration; employee withholdings; benefits counseling; claim to payment; annuity roll maintenance; and trust fund management.

M Selected modules are delivered within the timeframes established in detailed plans and delivery schedules developed during FY 1999. [Critical indicator]

In FY 2000, we created four of the six core process blueprints called for in the “to-be” model, and began work on the technology blueprint, including the architecture and the requirements. The business process and technology blueprints provide the detailed layout of what functions and processes must be supported in order for the Modernization effort to meet its primary goals and objectives.

Our business plan for the project also called for the development of a performance measures program for both the RSM project and the retirement program as a whole. The final report on the Performance Measurement Program was released on February 25, 2000.

In FY 2001, we will complete the detailed design of the modernized retirement system, including designing the remaining process blueprints, the technology architecture and core process requirements, developing the organizational blueprint, preparing transition plans, and additional prototyping.