FY 2025 Budget Overview

OPM’s mission is to serve as the champion of talent for the Federal Government. To accomplish this, OPM is evolving and responding to urgent workforce policy and operational needs across Government by taking a customer-focused, proactive approach to human capital management. Our products and tools enable agency leaders across Government to make decisions that support hiring and retaining a well-qualified workforce. OPM is also continuing to modernize and digitize services to Federal employees, annuitants, and their eligible family members, while improving the benefits that will position the Federal Government as a model employer including the launch of a new health benefits program for postal employees, annuitants, and their families. Additionally, OPM is identifying and prioritizing AI use-cases that can improve government-wide human resource (HR) processes and internal agency operations. This budget request will allow OPM to continue to improve customer experience and become a digital-first, data-driven agency that can lead the workforce into the future.

OPM embarked on a multi-year transformation journey that initially focused on stabilizing the agency while delivering on Biden-Harris Administration priorities and driving modernization. In FY 2025, OPM’s emphasis will be on delivering the ambitious set of objectives in our Strategic Plan – including customer experience, data leadership, and modernization – and supporting the policy objectives needed to build a strong Federal workforce. OPM’s budget request of $465,800,000 (excluding the Office of the Inspector General’s request) in discretionary resources for FY 2025 reflects OPM’s commitment to serving the Federal workforce and the American public.

Due to the timing of FY 2025 budget formulation and Congressional action on full-year FY 2024 appropriations, this budget builds on resources appropriated under the Continuing Appropriations Act of 2024 for OPM. The Continuing Resolution (CR) most notably provides partial funding to support the Agency’s efforts in implementing the Postal Service Health Benefits (PSHB) Program, mandated by Congress under the Postal Service Reform Act of 2022, beginning on January 1, 2025. In addition, the FY 2024 CR continues the resource investments appropriated in FY 2023, providing partial funding to continue executing Administration priorities, including those identified in Priority 1 of the President’s Management Agenda focused on “strengthening and empowering the Federal workforce.”

For FY 2025, this budget will allow OPM to maintain its progress in processing new retirement applications, support advancements in Federal hiring, and strengthen agency operations. In addition, this budget will incrementally fund investments in OPM’s IT modernization, allowing for the continued development of critical cybersecurity capabilities. Notably, it will finance cybersecurity and network operations infrastructure once the Defense Counterintelligence and Security Agency (DCSA) migrates to their own platform. These resources will help strengthen OPM’s cybersecurity posture to reduce the agency’s cybersecurity risks, as threats continually evolve and become more sophisticated. Further, the funding will build better safeguards around the sensitive data the agency maintains, protecting the information of our customers.

This budget supports implementing OPM’s transformational roadmap – the agency’s FY 2022-2026 Strategic Plan – by building on previous appropriations that reassert OPM’s workforce policymaking leadership responsibility; strengthening OPM’s leadership in Diversity, Equity, Inclusion, and Accessibility (DEIA); continuing incremental investments in OPM’s cybersecurity; implementing OPM’s data strategy and related products and services; and improving OPM’s customer experience. The alignment of this budget to the FY 2022-2026 Strategic Plan is reflected in the Performance Budget by Strategic Goal section of this document.

OPM Budget FY 2023 through FY 2025 – Discretionary Resources

OPM Budget Authority		FY 2023 Enacted	FY 2024 Annualized CR	FY 2025 CBJ
Salaries and Expenses	General	$171,411,000	$199,703,000	$194,527,000
	IT Modernization	$19,373,000	$19,373,000	$10,710,000
	Postal Reform - No Year	$0	$0	$0
	Total	$190,784,000	$219,076,000	$205,237,000
Trust Fund	Annual	$194,924,000	$194,924,000	$260,563,000
	Total	$194,924,000	$194,924,000	$260,563,000
Discretionary Appropriation Total		$385,708,000	$414,000,000	$465,800,000
OIG Discretionary Appropriation	Salaries & Expenses	$6,908,000	$6,908,000	$7,144,000
	Trust Fund Annual	$29,487,000	$29,487,000	$35,556,000
	Total	$36,395,000	$36,395,000	$42,700,000
OPM Total		$422,103,000	$450,395,000	$508,500,000

OPM Strategic Priorities

In FY 2025, OPM will continue to execute against its Strategic Plan to rebuild its capability and capacity, modernize the agency, and drive progress toward key Biden-Harris Administration priorities -- including improving customer experience, making sure every Federal job is a good job, improving policies to treat all Federal employees with dignity and respect, and supporting agencies in finding, developing, and retaining the talent they need to achieve their missions. This budget invests in OPM’s strategic priorities in the following ways:

Goal 1: Position the Federal Government as a model employer

As the nation’s largest employer, the Federal Government should be a model employer that sets an example for other private and public sector organizations in the United States and around the world. OPM will do this by fostering diverse, equitable, inclusive, and accessible workplaces, building the skills of the Federal workforce, attracting skilled talent, and championing the Federal workforce to better support Federal agency performance and mission for the American people. This budget addresses both OMB’s guidance to prioritize equity and the President’s Management Agenda (PMA) Priority 1.

Making the Federal Government a model employer is a multi-year effort, and OPM has built momentum toward this goal. For example, OPM issued a vision for the workforce of the future and a Playbook to support agencies in achieving this future state. OPM also made major progress on the regulatory front by publishing a final rule that prohibits the use of non-Federal salary history in setting pay for Federal employment offers, a final rule to implement the Fair Chance to Compete for Jobs Act, Notices of Proposed Rulemaking for refreshed Pathways regulations, a “Rule of Many” regulation, and a regulation to strengthen civil service protections.

OPM remains committed to continuing the work associated with advancing diversity, equity, inclusion, and accessibility (DEIA) through the Chief Diversity Officers Executive Council. To advance the Federal Government’s DEIA efforts, OPM will publish guidance and develop a resource repository of best practices for agencies on a variety of DEIA topics, including training. For additional information on OPM’s plans to foster diverse, equitable, inclusive, and accessible workplaces in FY 2025, please refer to the objective 1.1 section of the “Performance Budget by Strategic Goal” chapter of this document.

In the area of talent, the Federal Government must also attract the best and the brightest to explore careers in the Federal workforce and remain competitive in the job market. This budget invests in improvements to the Federal Government’s hiring experience (HX) by expanding pooled hiring through the Competitive Service Act. The funding would expand agencies’ use of USAJOBS Agency Talent Portal’s talent pools feature; support pooled hiring actions to drive a Tech Talent surge in AI, AI-enabling roles, cyber, data, and other technology and associated enabling roles; and further promote the robust sharing of certificates and cross-agency coordination on hiring.

The FY 2025 budget builds on OPM’s success helping Bipartisan Infrastructure Law agencies fill 100 percent of their surge hiring positions. OPM intends to leverage its surge hiring partnerships to help agencies hire AI technical talent and will do so by developing comprehensive in-person and online training and curriculum on pooled hiring actions, upgrading its talent acquisition automation tools to source and screen candidates more effectively, and building web enhancements that will enable candidates to be considered for multiple opportunities and for hiring actions to yield multiple offers. OPM will identify additional promising hiring practices that can be scaled to address mission critical skills gaps and deploy new features in talent acquisition systems to improve HR and hiring managers’ experience. OPM will also pilot a Government-wide HR internship program and develop a prototype skills/career exploration tool. For additional information on OPM’s plans to build the skills of the Federal workforce and attract talent in FY 2025, please refer to the objective 1.3 section of the “Performance Budget by Strategic Goal” chapter of this document.

Goal 2: Transform OPM’s organizational capacity and capability to better serve as the leader in Federal human capital management

OPM has been focused on building its internal capabilities and improving employee experience and has demonstrated progress on those focus areas.

The Agency made notable progress by significantly improving the satisfaction scores of its mission support functions. In the most recent Mission Support Satisfaction Survey administered by the General Services Administration (GSA), OPM substantially improved supervisors’ satisfaction in the following areas:

• Contracting - OPM achieved a ranking of 5 of 24 CFO Act agencies, an improvement from 15 in 2021;
• Budget Formulation – OPM substantially improved supervisors’ satisfaction, achieving a ranking of 6 of 24 CFO Act agencies, an improvement from 19 in 2021;
• IT – OPM substantially improved employees’ satisfaction achieving a ranking of 12 of 24 CFO Act agencies, an improvement from 20 in 2021; and
• Human Capital Management – OPM achieved a ranking of 4 of 24 CFO Act agencies for supervisors’ satisfaction, an improvement from 6 of 24 in 2021.

To further drive the Agency’s work related to Goal 2, OPM has embarked on a multi-year journey to modernize IT systems. Reflecting OPM’s commitment to improving technology, the agency deployed OPM’s Enterprise Cloud, implemented critical cloud-based security protections, and deployed the first chatbot to support retirement survivor benefits. In FY 2025, OPM will transition legacy IT systems and applications, including mainframe applications to cloud technology and services, deploy the Postal Service Health Benefit System (which includes eligibility, enrollment, and decision support functionality), and expand the use of chatbots with AI and knowledge base capability to extend customer engagement. For the Trust Fund Modernization Program, OPM is on track for the completion of Release II and will continue to transition legacy IT systems and applications, including mainframe applications, to cloud technology and services in FY 2025.

To continue upskilling and supporting our workforce, the FY 2025 budget will build OPM’s capabilities through the creation of an Executive Candidate Development Program, development of rotational opportunities for early career talent, establishment of an OPM mentoring program, and implementation of a plan to address skills gaps in OPM’s mission critical occupations.

For additional information on OPM’s plans to transform the agency’s organizational capacity and capability in FY 2025, please refer to the Goal 2 section of the “Performance Budget by Strategic Goal” chapter of this document.

Goal 3: Create a human-centered customer experience by putting the needs of OPM's customers at the center of OPM's workforce services, policy, and oversight

Improving the experience of OPM’s customers – including agencies, beneficiaries, annuitants and their families, the Federal workforce at large, and job applicants – and strengthening OPM’s customer service capabilities and culture is foundational to OPM’s mission and its Strategic Plan. OPM will continue its momentum from FY 2023 investments that aid in piloting a fully digital retirement case processing method, delivering routine operations and maintenance for an Online Retirement Application (ORA) as well as a Digital File System (DFS) minimally viable product. Additionally, OPM will continue building on pilot initiatives to improve the annuitant experience like the online retirement guide and chatbot. Retirement Services will use data-driven evaluations of these pilots to inform additional ways to better answer annuitant questions, including using AI to enhance customer experience. These investments directly address the agency’s commitment to prioritize customer experience and support the PMA’s Priority 2, with its focus on High Impact Service Providers.

OPM will also expand and enhance recruitment features available through the USAJOBS Agency Talent Portal to connect agencies with qualified candidates, evaluate the effectiveness of the similar jobs machine-learning feature that identifies jobs relevant to individual jobseekers, rebuild the USAJOBS self-service online Help Centers to improve performance and allow for enhancements and updates that meet users’ needs, and expand Voice of the Customer activities to further personalize the USAJOBS experience to help job applicants find the right opportunity.

More broadly, this budget will support an enterprise cultural shift to make all parts of OPM more customer-focused, with associated improvements in customer experience across the agency. This will include a focus on an enterprise approach to making data-driven, customer experience improvements and continuing to develop customer experience skillsets through training and hiring.

For additional information on OPM’s plans to create a human-centered customer experience in FY 2025, please refer to the Goal 3 section of the “Performance Budget by Strategic Goal” chapter of this document.

Goal 4: Provide innovative and data-driven solutions to enable agencies to meet their missions

To function as the Federal Government’s strategic human capital leader, OPM must increasingly provide agencies with solutions to their most difficult human capital problems, becoming more proactive, innovative, and data-driven. Doing so will require removing unnecessary administrative burdens, accelerating workforce policymaking, and investing in core data capabilities to improve the quality and usability of one of the world’s largest datasets of human capital information.

OPM has already begun to provide such solutions. OPM developed and released its FY 2023-2026 Data Strategy, launched the first Federal Human Capital Data Analytics Community of Practice, and rolled out a new data portal to seamlessly deliver human capital data products and services to agencies, employees, and the public. Data products included in the rollout include the OPM Federal Employee Viewpoint Survey (FEVS), Cyber Workforce, and Hiring Manager Satisfaction dashboards. OPM also launched Attrition and Time-to-Hire (role-based) dashboards and is piloting a DEIA dashboard with agency partners that will be available to all agencies by the end of the fiscal year. In FY 2025, OPM will embed and extend its capabilities, which includes developing an enterprise human capital analytics platform that provides advanced levels of automation including the use of AI and Machine Learning (ML), reduces reporting burden for agencies, and integrates Government-wide human capital, industry, and contextual data. By making this data more accessible in a unified platform, leaders and analysts at Federal agencies will be better positioned to use this data to inform policies and gain deeper insights. Likewise, Federal employees will be able to see their data and be equipped to make career decisions. Furthermore, OPM will deliver high-quality workforce planning data analytics products Government-wide. OPM will conduct research on agencies that are leading in key areas and share leading practices, conduct evaluations of key workforce policies, increase proactive policymaking by analyzing emerging trends, develop clear standards for agency data calls, and enhance data analysis options to streamline reporting processes for agencies. It will also invest in sharing cross-government best practices through road shows and webinars on a range of topics, including new delegations of authority.

For additional information on OPM’s plans to provide innovative and data-driven solutions in FY 2025, please refer to the Goal 4 section of the “Performance Budget by Strategic Goal” chapter of this document.

Implement the Postal Service Reform Act

The Postal Service Reform Act of 2022 (PSRA, Public Law 117-108) requires OPM to establish the Postal Service Health Benefits (PSHB) Program, a new health benefits program for 1.9 million United States Postal Service (USPS) employees, annuitants, and their eligible family members, starting in January 2025, that will operate within, but separate from, the Federal Employee Health Benefits (FEHB) Program. The first enrollment period for the PSHB Program will begin during the Federal Benefits Open Season in November 2024. To meet this requirement, contracts with approved health insurance carriers, core back-end technical systems, intra- and inter-agency data linkages for eligibility determination and enrollment, front-end user interfaces, and customer service infrastructure must be ready to meet the anticipated customer need. OPM is taking an enterprise approach to delivering this ambitious and modernized approach to providing health benefits under extremely tight deadlines. In addition to bringing together program offices across the agency, OPM is working collaboratively with USPS on communicating to employees about the changes and partnering with agencies across Government to provide the necessary data integration to determine eligibility. While OPM originally envisioned a new end-to-end customer support solution, given current resources, OPM is implementing a contingency option heavily leveraging existing USPS and OPM resources while re-prioritizing available Postal funds to supplement. Detailed plans regarding the Postal Service Reform Act implementation are available in a subsequent chapter in this document.

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FY 2025 Technology Modernization

This budget request proposes no-year funding to continue incremental progression with tangible results and benefits to the agency and our customers in the agency’s migration to the cloud, enhance OPM’s cybersecurity posture, and continue to improve the experience of OPM’s customers. OPM is also utilizing its IT Working Capital Fund as authorized by the Modernizing Government Technology Act to help finance future technology modernization. At the beginning of FY 2024, $6.7 million was available within the IT Working Capital Fund. These resources along with the continuation of no-year funding investments will permit OPM to accelerate IT modernization investments.

Safeguarding OPM’s Information Technology

The Office of the Chief Information Officer (OCIO) has focused on reducing risks and improving the customer experience of OPM’s IT systems, applications, and environments through the migration of its systems to cloud services, consolidating and eliminating data centers, and using other agencies’ shared services, consistent with the requirements of OMB Memorandum M-19-19 and Executive Order 13800.

This FY 2025 budget continues to incrementally fund investments to support OPM’s IT modernization by supporting the migration of on-premises information systems to the cloud, continuing a multi-year effort to replace the agency’s systems and applications with cloud-based solutions. As previously noted, DCSA has shared OPM’s cybersecurity, network support, Help Desk, and IT contract expenses to support the legacy background investigation system. By FY 2025, DCSA is on track to migrate the legacy system to its own dedicated network. This migration will eliminate DCSA traffic and shared IT support costs associated with OPM's network. The budget request will finance cybersecurity and network operations infrastructure once the DCSA complete their migration to their own platform.

OPM is committed to maintaining critical cybersecurity operations and protections. This FY 2025 budget supports a comprehensive security operations program that protects OPM’s environment continuously and in real-time. It also allocates resources to an enterprise-wide, centralized cybersecurity office that governs security operations, performs continuous monitoring, and establishes new and refines existing OPM IT security policies. This office issues and implements policies that incorporate emerging technologies, mitigate evolving cyber threats, and facilitate data-driven, risk-based oversight of agency-wide business programs.

Technology Modernization Investments

The FY 2025 budget requests $10,710,000 in no-year authority to continue to address and correct decades of technology debt related to personnel, enterprise infrastructure and operations while also making significant improvements that will pivot OPM into a digital-first agency, provide improved customer experience, and enhance our cyber posture. This is a decrease from prior years as the Trust Funds Financial System Release II graduates to full implementation in FY 2024, and operations and maintenance costs are budgeted within the Trust Fund Limitation allocation.  In FY 2025, OPM will identify and implement Artificial Intelligence (AI) solutions, transition on-premise systems to the cloud, and will modernize the external website and intranet.  OPM will utilize IT Modernization funding to fully transition to cloud technology and services and evaluate and deploy emerging technology.  Specifically, the IT Modernization funding will fund the following strategic areas:

• Retirement Services ($3,500,000): OPM will continue rolling out the RS Online Retirement Application (ORA) and will deploy the Janus Retirement Calculation Service.  Paired with funding from Retirement Services, the IT modernization funding will move these applications to full deployment. The benefits include improving the customer experience and shortening processing times for future retirement applications and addressing delays and the current backlog.
• Milestone: Initial Operational Capability for ORA and the Janus Retirement Calculation Service.
• Mainframe Upgrades to Support Retirement Processing ($3,100,000): Modernizing the Mainframe code is a priority for the agency.  To maximize the security and lifespan of the existing Mainframes, OPM must upgrade and replace individual, end-of-life hardware components.  This strategic investment will defer the need to purchase two new Mainframes at the cost of approximately $22,000,000 in FY 2025 or FY 2026 while OPM transitions applications and systems to the cloud technology and services.
• Milestone: Upgrade and replace individual, end-of-life Mainframe hardware components.
• Contractor Expertise ($2,600,000): In order for OPM to continue to implement new requirements of Executive Order 14110 on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence requires agencies to reduce barriers to the responsible use of AI, including barriers related to information technology infrastructure, data, workforce, budgetary restrictions, and cybersecurity processes.  OCIO will contract for technical expertise to fill gaps in the current workforce while training the current employees in the proper use of AI.
• Milestone: Develop requirements and compete a task order to obtain the necessary technical expertise to properly leverage AI at OPM.
• Milestone:  With the contractor in place, determine and initiate the first pilots that leverage AI to potentially improve both internal OPM processes and government-wide HR functions.
• OPM.gov and Intranet Development and Enhancements ($1,000,000): While OPM acquired Technology Modernization Funds (TMF) funds to deploy the minimally viable product (MVP) for OPM.gov in FY 2023 and FY 2024, additional funding is needed in FY 2025 for continued development and enhancements to both the public-facing website (OPM.gov) and the intranet (MyTheo).
• Milestone: Initial Operational Capability for the public facing OPM.gov website and an intranet website for internal OPM use by early FY 2025.
• Software License Management Tool ($500,000): As OPM modernizes the OPM enterprise, OCIO has seen an increased demand for software licenses.  OPM will procure and implement a software license management tool to enable proactive license governance, allocation, and utilization while strengthening compliance and alignment with changing government standards.  Continuing to operate without the software license management tool could cause potential duplication, over-licensing, or the misallocation of licenses.
• Milestone: Develop governance and staffing model for effective management of an enterprise software management tool.
• Milestone: Procure and implement the software license management tool and oversight processes.

Creating a Digital-First Federal Annuitant Customer Experience

OPM understands the imperative to create a more modern retirement experience for Federal employees who earned these benefits over a career serving the American public. Essential to creating an excellent customer experience is digitizing OPM’s currently largely paper-centric process. OPM’s strategy involves creating a more streamlined Federal annuitant experience starting with a digital application that will make it easier for annuitants to apply and speed up the time they get their annuity. OPM projects that this will also reduce the need for annuitants to spend time following up on progress.

OPM has begun to develop an Online Retirement Application (ORA), a portal that will allow retirees, agencies, and payroll providers to submit retirement applications online. The FY 2025 budget requests incremental funding to continue development of the ORA and to scale up the population of Federal employees who may have access to it. In concert with efforts to receive retirement applications online, OPM has begun to develop the capability to accept and store digital applications in a minimally viable product – the Digital File System – and continues to streamline and refine the retirement application experience.

Once completed, the ORA is expected to improve the quality of retirement applications by catching omissions or errors in applications before they are submitted to OPM, resulting in accelerated processing times. The expansion of the Digital File System, when completed, will result in end-to-end technology for accepting, storing, and managing digital retirement applications. These electronic case management capabilities are foundational to a modern retirement system. These systems will enable OPM’s Retirement Services (RS) to digitally manage cases over the span of the annuitant’s career journey and will provide RS staff workflow capabilities for timely and accurate case processing. These case management capabilities will make relevant information easily available to retirement case processors, which will reduce processing time, reduce reliance on paper files, and improve the accuracy of retirees’ applications. A fully implemented Digital File System expands capabilities for customer self-service, which should relieve demand on Retirement Services call center staff resulting in a better customer experience. It will also eventually reduce the time-consuming, environmentally-taxing manual steps to print and compile case files, further accelerating case processing, reducing errors, and enabling staff to better serve customers.

Overall, OPM envisions a multi-year journey that will transform our retirement benefits operation. This is not a single-year effort, as this undertaking will require consistent and significant resource investments. These transformations, if completed quickly, may additionally defray the future cost associated with replacement of existing mainframe technologies (and capabilities) before their approaching end-of-life. The FY 2025 budget supports only our minimally viable efforts to date.

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FY 2025 Budget Request by Fund

OPM estimates that its total operating budget in FY 2025 will be $1,352,002,717. OPM is funded by a variety of sources that include annual Salaries and Expenses appropriations, discretionary transfers from the Earned Benefit Trust Funds (noted in tables as Trust Fund Annual), multiple mandatory administrative authorities, a revolving fund, and other interagency transactions (Advances and Reimbursements). Additionally, OPM’s Office of the Inspector General receives a separate appropriation and separate transfer authority from the Trust Funds for the responsibilities of the Office of the Inspector General (OIG).

OPM Budget by Fund FY 2023 through FY 2025

OPM Budget Authority		FY 2023 Enacted	FY 2024 Annualized CR	FY 2025 CBJ
Salaries and Expenses	General	$171,411,000	$199,703,000	$194,527,000
	IT Modernization	$19,373,000	$19,373,000	$10,710,000
	Postal Reform - No Year	$0	$0	$0
	Total	$190,784,000	$219,076,000	$205,237,000
Trust Fund Annual Total		$194,924,000	$194,924,000	$260,563,000
Discretionary Appropriation Total		$385,708,000	$414,000,000	$465,800,000
Trust Fund Mandatory Authority	5 U.S.C. § 8348 (a)(1)(B) - Retirement	$76,822,619	$81,575,885	$87,171,771
	5 U.S.C. § 8958(f)(2)(A) & 5 U.S.C. § 8988(f)(2)(A) - Dental & Vision	$9,223,093	$14,788,910	$17,347,684
	5 U.S.C. § 9004(f)(B) - Long-Term Care	$1,559,673	$1,525,429	$1,642,171
	FERCCA (P.L. 106-265) - Retirement	$1,369,294	$1,369,295	$1,490,844
	Total	$88,974,679	$99,259,519	$107,652,470
Mandatory Administrative Authorities Total		$88,974,679	$99,259,519	$107,652,470
Revolving Fund		$618,624,426	$661,914,698	$715,978,127
Advance and Reimbursements		$52,551,021	$54,143,143	$19,872,119
OIG Discretionary Appropriation	Salaries & Expenses - OIG	$6,908,000	$6,908,000	$7,144,000
	Trust Fund Annual - OIG	$29,487,000	$29,487,000	$35,556,000
	Total - OIG	$36,395,000	$36,395,000	$42,700,000
OPM Total		$1,182,253,126	$1,265,712,360	$1,352,002,717

OPM’s discretionary request consists of an appropriation for OPM’s program and leadership activities, and a limitation on transfers from the Earned Benefits Trust Funds under OPM management. OPM’s FY 2025 discretionary request is $465,800,000.

OPM also manages mandatory appropriations that provide for the transfer of resources from the Government’s general fund to the Earned Benefits Trust Funds for Federal employees’ and annuitants’ benefits. The Trust Funds and the associated mandatory appropriations are discussed in more detail in the Earned Benefit Trust Funds section of this budget. Each OPM fund is described below.

Salaries and Expenses

OPM requests $205,237,000 in Salaries and Expenses (S&E) funds for personnel and non-personnel resources, which includes $10,710,000 for IT Modernization efforts. These efforts will be focused on IT transformation in Retirement Services and Healthcare and Insurance, revamping OPM.gov, OPM’s public-facing website, and other incremental legacy IT transformations. The S&E appropriation funds the agency’s various program offices as they implement OPM’s strategic plan and perform OPM’s core statutory roles, including providing direction and oversight to other Federal agencies.

Trust Fund Transfers

For the administration of the civil service retirement and insurance programs, OPM requests $260,563,000 in administrative transfers from the Earned Benefits Trust Funds. For FY 2025, this includes $52,175,000 in resources that OPM will use to administer the Postal Service Health Benefits (PSHB) Program.  The FY 2024 Congressional Budget Justification (CBJ) requested appropriated funding under Salaries and Expenses. However, this budget submission seeks to redistribute those resources to Trust Fund Limitation to align the financing of the PSHB Program with other agency-managed health benefit programs. OPM is responsible for managing the Federal Government’s health benefits under the Federal Employees Health Benefits (FEHB) Program and beginning January 1, 2025, the PSHB Program, within the FEHB, for Postal employees, annuitants, and their eligible family members. OPM also manages the Government’s life insurance benefits via the Federal Employees’ Group Life Insurance (FEGLI) Program. In addition, OPM administers the Civil Service Retirement System (CSRS) and Federal Employees Retirement System (FERS), which are financed by the Civil Service Retirement and Disability Fund (CSRDF). The administrative Trust Fund transfers in part fund the following organizations: Retirement Services (RS), Healthcare and Insurance (HI), Office of the Chief Information Officer (OCIO), and Office of the Chief Financial Officer (OCFO).

These transfers are described as Trust Fund Annual in this request and come from the following Trust Funds subject to Congressional limitation:

• Civil Service Retirement and Disability Fund (CSRDF);
• Federal Employees Health Benefits Fund (FEHBF); and
• Federal Employees’ Group Life Insurance Fund (FEGLI).

Mandatory Administrative Authorities

Several provisions under Title 5 of the United States Code (U.S.C.) and the Federal Erroneous Retirement Coverage Corrections Act (FERCCA) authorize OPM to administer specific retirement program and insurance activities, and to transfer funds for the administrative cost of these activities from the Trust Funds. These authorities provide additional administrative transfers from the Trust Funds. Per 5 U.S.C. §8348 (a)(1)(B), OPM incurs expenses from the Civil Service Retirement and Disability Fund (CSRDF) for the following activities:

• Administering survivor annuities and elections (§8339 and §8341) and other annuity alternatives (§8343a and §8420a);
• Making discretionary allotments and assignments (§8345(h) or §8465(b)) and withholding State income taxes on monthly annuities (§8345(k) or §8469) upon annuitant request;
• Administering Federal tax withholding pursuant to section 3405 of Title 26;
• Administering cost-of-living annuity adjustments (§8340 or §8462), and
• Administering fraud prevention (§8345, §8345a, §8466, and §8466a).

Within the CSRDF, OPM may also incur expenses as deemed appropriate for the administration of FERCCA (P.L. 106-265, Title II, Sept. 19, 2000, 114 Stat. 762). OPM may incur expenses to administer the Federal Long Term Care Insurance Program (FLTCIP) from Federal Employees’ Group Life Insurance (Id. at Title I, §1002(a), codified at 5 U.S.C. §9004(f)(B)). Within the FEHB Program, OPM may defray reasonable expenses to administer the Federal Employees Dental and Vision Insurance Program (FEDVIP) (5 U.S.C. §8958 (f)(2)(A) and §8988 (f)(2)(A)). Resources used to administer the FLTCIP and FEDVIP are reimbursed to the FLTCIP and FEDVIP funds by the participating insurance carriers from the respective Programs’ premium income, which is comprised entirely of enrollee-paid contributions.

When obligations exceed revenue, it is because business lines use unobligated balances from prior years (i.e., carryover).

Revolving Fund Activities

Business Line		FY 2024 Estimate	FY 2025 Estimate	Increase/ Decrease
Suitability Executive Agent	Revenue	$8,665,535	$11,486,228	$2,820,693
	Obligations	$8,536,321	$11,732,689	$386,052
Human Resources Solutions	Revenue	$396,137,283	$430,171,522	$34,034,239
	Obligations	$402,234,942	$433,654,876	$50,416,157
Enterprise Human Resources Integration	Revenue	$26,666,589	$22,176,980	($4,489,609)
	Obligations	$51,568,405	$40,066,689	($699,433)
HR Line of Business	Revenue	$3,150,000	$3,150,000	$0
	Obligations	$3,150,000	$3,150,000	$0
Human Resources Solutions Information Technology Program Management Office	Revenue	$82,915,000	$88,500,000	$5,585,000
	Obligations	$107,015,012	$115,475,705	($2,278,725)
Credit Monitoring	Revenue	$90,055,102	$98,398,169	$8,343,067
	Obligations	$91,846,166	$98,398,169	$6,239,378
Federal Executive Boards	Revenue	$13,500,000	$13,500,000	$0
	Obligations	$13,500,000	$13,500,000	$0
Total Revenue		$607,589,509	$667,382,899	$46,293,390
Total Obligations		$664,350,846	$715,978,127	$54,063,429

OPM estimates $715,978,127 in obligations in its Revolving Fund in FY 2025. OPM’s Revolving Fund was established by the Congress as a means of financing those activities that OPM is required or authorized to perform on a reimbursable basis (such as OPM’s obligation to oversee the Government-wide suitability, fitness, and credentialing programs and assess the suitability of applicants for the service when certain issues arise) and allows OPM to provide personnel management services to other Federal agencies via several well-established programs. Federal agencies pay OPM based on customer transactions, orders, fixed fees, or proportional contribution to cost. Broadly classified into seven groups -- Suitability Executive Agent Programs (SuitEA), Human Resources Solutions (HRS), Enterprise Human Resources Integration (EHRI), HR Line of Business (HRLoB), Human Resources Solutions Information Technology Program Management Office (HRSITPMO) Credit Monitoring Services and Identity Protection Services, and Federal Executive Boards (FEB) -- these activities are performed across several OPM organizations by Federal staff and contractors qualified for the service.

FY 2024 & FY 2025 Comparison of FTE — All Resources

OPM Budget Authority		FY 2024 Annualized CR	FY 2025 CBJ
Salaries and Expenses		904.5	821.1
Trust Fund Annual		760.5	914.7
Trust Fund Mandatory Authority	5 U.S.C. § 8348 (a)(1)(B) - Retirement	445.1	479.6
	5 U.S.C. § 8958(f)(2)(A) & 5 U.S.C. § 8988(f)(2)(A) - Dental & Vision	21.1	19.9
	5 U.S.C. § 9004(f)(B) - Long-Term Care	5.8	4.9
	FERCCA (P.L. 106-265) - Retirement	7.0	7.0
	Total	479.0	447.7
Revolving Fund		855.9	921.3
Advance and Reimbursements		38.0	32.7
OIG Discretionary	Salaries & Expenses - OIG	20.2	22.1
	Trust Fund Annual - OIG	135.0	161.0
	Total - OIG	155.1	183.1
OPM Total		3,193.2	3,352.4

OPM’s FY 2025 budget supports 3352.4 full-time-equivalents (FTEs). Of this total, the discretionary appropriation and Mandatory Trust Fund transfers will fund 2215.3 FTEs (the sum of the Salaries and Expenses, Trust Fund Limitations, and Mandatory Trust Fund Authority totals). These employees deliver OPM’s Government-wide responsibilities relating to human capital management leadership, benefits, and additional mission and mission support activities. An additional 1137.0 FTEs are funded by the Revolving Fund, Advances and Reimbursements, and Office of the Inspector General (OIG).

Adjustments to Discretionary Request

Of the requested $51.8 million increase in OPM discretionary appropriations, $22.8 million (44 percent) will provide for pay adjustments, and other adjustments necessary to maintain current services. Base changes include:

Salaries and Expenses Adjustments

Operational Gap for Current Services, $10,000,000:  An increase of $10 million to fund current IT services. This funding will support an increase to OPM’s Common Services financing to support OPM’s Federal Information Technology Programs within the Office of the Chief Information Officer by funding critical cyber security contracts and services. DCSA will finally migrate the legacy background investigation system to its dedicated network by 2025.  This migration will eliminate DCSA traffic and shared IT support costs associated with OPM’s network. 

Realignment of Postal Service Health Benefits Program, (-$28,175,000): This budget also reflects the realignment of $28.2 million for the Postal Service Health Benefits (PSHB) Program from S&E to Trust Fund Annual based on FY 2025. This adjustment finances the PSHB Program within the FEHB Program from the same funding source, the Employees Health Benefits Fund.

Cost of Living Adjustments, $2,100,000: to provide for increased pay and benefit obligations for OPM personnel. This includes an assumed federal pay adjustment of 2 percent, effective January 2025. The pay raise cost increase also accounts for residual impacts of the 5.2 percent pay increase from January 2024 ($500,000) and three quarters from FY 2025 at 2 percent ($1.6 million).

OPM Hiring Experience, $5,000,000: An increase of $5 million in S&E to invest in OPM Hiring Experience (HX) capacity and expand pooled hiring through the Competitive Service Act within the Workforce Policy and Innovation program.

Trust Fund Transfers Adjustments

Operational Gap for Current Services, $4,000,000:  An increase of $4 million to fund current IT services. This funding will support an increase to OPM’s Common Services financing to support OPM’s Federal Information Technology Programs within the Office of the Chief Information Officer by funding critical cyber security contracts and services. DCSA will finally migrate the legacy background investigation system to its dedicated network by 2025.  This migration will eliminate DCSA traffic and shared IT support costs associated with OPM’s network.  

Realignment of Postal Service Health Benefits Program, $28,175,000: A realignment of $28.2 million for the PSHB Program from S&E to Trust Fund Annual based on FY 2025. This adjustment finances the PSHB Program within the FEHB Program from the same funding source, the Employees Health Benefits Fund.

Postal Service Health Benefits Program, $24,000,000: An increase of $24 million to OPM’s Trust Fund Annual to fund critical infrastructure and operations and maintenance costs in the PSHB Program. These costs include:

• $650,000 for OCFO to support additional financial management and transaction processing support;
• $19.1 million for OCIO to support system licensing costs;
• $808,000 for RS to increase staff support for annuitant calls post open season; and
• $3.4 million for HI to support O&M costs for the Customer Support Center for the PSHB Program.

Retirement Services IT, $3,000,000:  OPM is requesting $3 million of Trust Fund Annual to support continued investment in Retirement Services IT for the Online Retirement Application (ORA) and Digital File System (DFS). The investment for ORA is expected to improve the quality of retirement applications by catching omissions or errors in applications before they are submitted to OPM, resulting in accelerated processing times.

Cost of Living Adjustments, $3,000,000: to provide for increased pay and benefit obligations for OPM personnel. This includes an assumed federal pay adjustment of 2 percent, effective January 2025. The pay raise cost increase also accounts for residual impacts of the 5.2 percent pay increase from January 2024 ($700 thousand) and three quarters from FY 2025 at 2 percent ($2.3 million).

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FY 2025 Budget Request by Object Class

The discretionary appropriation budget object class table shows how OPM intends to use our resources.

OPM’s FY 2025 discretionary budget increased by $51.8 million from the FY 2024 Annualized CR. Salaries and Expenses decreased by $14.3 million from the FY 2024 budget of $219,076,00 and Trust Fund Limitation increased by $66.1 million from the FY 2024 budget of $194,924,000.

Discretionary Appropriation Budget by Object Class

Object Class	FY 2024 Annualized CR	FY 2025 CBJ	Increase/ Decrease
Personnel Compensation	$182,583,431	$195,080,214	$12,496,783
Personnel Benefits	$66,556,089	$70,193,408	$3,637,319
Benefits for Former Personnel	$758,155	$656,694	($101,461)
Travel and Transportation of Person	$1,206,642	$859,492	($347,150)
Transportation of Things	$33,804	$26,760	($7,044)
Communications, Utilities and Rent	$60,902,867	$73,408,788	$12,505,921
Printing and Reproduction	$616,352	$777,795	$161,443
Other Services	$99,849,306	$123,841,404	$23,992,098
Supplies and Materials	$981,784	$617,148	($364,636)
Equipment	$296,192	$338,297	$42,105
Total Object Class	$414,000,000	$465,800,000	$51,800,000
FTE	1,665.1	1,735.8	70.7

Salaries and Expenses Budget by Object Class

Object Class	FY 2024 Annualized CR	FY 2025 CBJ	Increase/ Decrease
Personnel Compensation	$90,001,752	$82,716,168	($7,285,584)
Personnel Benefits	$31,904,246	$28,840,171	($3,064,075)
Benefits for Former Personnel	$200,000	$200,000	$0
Travel and Transportation of Person	$882,053	$454,005	($428,048)
Transportation of Things	$832	$814	($18)
Communications, Utilities and Rent	$37,041,232	$45,043,139	$8,001,907
Printing and Reproduction	$210,977	$192,677	($18,300)
Other Services	$57,898,129	$47,376,810	($10,521,319)
Supplies and Materials	$565,910	$204,191	($361,719)
Equipment	$155,490	$209,025	$53,535
Total Object Class	$219,076,000	$205,237,000	($13,839,000)
FTE	904.5	821.1	(83.4)

The FY 2025 S&E request totals $204,743,078, and the impacts are attributed to the following:

• Personnel Compensation and Benefits decreased by $10.8 million to reflect a pay raise increase offset by the realignment of existing PSHB Program activities from S&E to TFA.
• Communications, utilities, and rent increased by $8 million, resulting from reallocating costs between object class 23 and 25 to support IT Modernization.
• Other Services decreased by $10.5 million, largely resulting from the realignment of financing for the PSHB Program from S&E to TFA.

Trust Fund Limitation – Budget by Object Class

Object Class	FY 2024 Annualized CR	FY 2025 CBJ	Increase/ Decrease
Personnel Compensation	$92,581,679	$112,364,046	$19,782,367
Personnel Benefits	$34,651,843	$41,353,237	$6,701,394
Benefits for Former Personnel	$558,155	$456,694	($101,461)
Travel and Transportation of Person	$324,589	$405,487	$80,898
Transportation of Things	$32,972	$25,946	($7,026)
Communications, Utilities and Rent	$23,861,635	$28,365,649	$4,504,014
Printing and Reproduction	$405,375	$585,118	$179,743
Other Services	$41,951,176	$76,464,594	$34,513,418
Supplies and Materials	$415,874	$412,957	($2,917)
Equipment	$140,702	$129,272	($11,430)
Total Object Class	$194,924,000	$260,563,000	$65,639,000
FTE	760.5	914.7	154.1

The FY 2025 Trust Fund Limitation fund request totals $260,563,000. The $66 million increase in resources impacts all object classes to finance earned benefit program activities across OPM. The most significant changes impacted the following areas:

• Personnel Compensation and Benefits increased by $26.9 million, to finance the proposed pay raise, and the realignment of financing for the PSHB Program from S&E to TFA.
• Communications, Utilities, and Rent increased by $4.5 million, which is attributable to the support of Retirement Services’ open season healthcare annuitant mailings and PSHB Program operational costs.
• Other services increased by $35.9 million to reflect the realignment of existing PSHB Program activities from S&E to TFA, and new PSHB Program requirements for FY 2025 within OCIO, HI, RS, OCFO that support system licensing costs, cloud hosting, cybersecurity, project management tools, and support services contracts.

OPM Budget FY 2024 Annualized CR by Organization and Fund — Discretionary Resources

Organizations	Salaries & Expenses	Trust Fund Annual	Common Services	OPM Total
Centrally Funded Items	$3,815,512	$0	$0	$3,815,512
Congressional, Legislative and Intergovernmental Affairs	$3,358,112	$0	$0	$3,358,112
Equal Employment Opportunity	$0	$0	$1,172,975	$1,172,975
Facilities, Security & Emergency Management	$699,514	$0	$13,205,306	$13,904,847
Federal Prevailing Rate Advisory Committee	$176,000	$0	$0	$176,000
Healthcare & Insurance	$15,718,994	$34,280,848	$0	$49,999,842
Human Capital Data Management and Modernization	$11,643,377	$0	$0	$11,643,377
Merit System Accountability & Compliance	$13,740,050	$0	$953,630	$14,693,680
Office of Communications	$3,477,557	$0	$0	$3,477,557
Office of Diversity, Equity, Inclusion and Accessibility	$5,279,224	$0	$0	$5,279,224
Office of Procurement Operations	$1,786,622	$0	$5,803,359	$7,589,981
Office of Small and Disadvantaged Business Utilization	$0	$0	$523,739	$523,739
Office of the Chief Financial Officer	$11,407,543	$9,144,985	$24,598,604	$45,151,132
Office of the Chief Information Officer	$48,008,148	$11,141,045	$50,907,632	$110,056,825
Office of the Director	$7,099,407	$0	$0	$7,099,407
Office of the Executive Secretariat, Privacy, and Information Management	$1,537,804	$0	$4,914,799	$6,542,603
Office of the General Counsel	$367,544	$0	$8,613,227	$8,980,771
OPM Human Resources	$1,031,726	$0	$12,730,165	$13,761,333
Rent	$11,268,333	$12,441,000	$0	$23,709,333
Retirement Services	$6,076,614	$76,458,752	$0	$85,535,366
Security, Suitability and Credentialing Line of Business (SSCLOB)	$551,000	$0	$0	$551,000
White House Fellows	$1,105,031	$0	$0	$1,105,031
Workforce Policy and Innovation	$41,273,279	$0	$0	$41,273,279
OPM Sub Total	$189,421,418	$143,466,630	$123,423,436	$456,311,484
Appropriated Contribution to Common Services	$29,654,582	$51,457,370	$0	-
Non-Appropriated Contribution to Common Services	-	-	-	($42,311,484)
OPM Grand Total	$219,076,000	$194,924,000	$123,423,436	$414,000,000

OPM Budget FY 2025 CBJ by Organization and Fund — Discretionary Resources

Organizations	Salaries & Expenses	Trust Fund Annual	Common Services	OPM Total
Centrally Funded Items	$4,358,616	$775,340	$0	$5,133,956
Congressional, Legislative and Intergovernmental Affairs	$3,284,938	$230,093	$0	$3,515,031
Equal Employment Opportunity	$0	$0	$1,238,025	$1,238,025
Facilities, Security & Emergency Management	$226,570	$494,344	$13,760,158	$14,481,072
Federal Prevailing Rate Advisory Committee	$179,520	$0	$0	$179,520
Healthcare & Insurance	$0	$55,308,783	$0	$55,308,783
Human Capital Data Management and Modernization	$12,129,979	$0	$0	$12,129,979
Merit System Accountability & Compliance	$14,267,076	$140,130	$1,006,681	$15,413,887
Office of Communications	$3,053,664	$504,986	$0	$3,558,650
Office of Diversity, Equity, Inclusion and Accessibility	$5,454,570	$0	$0	$5,454,570
Office of Procurement Operations	$1,444,505	$414,353	$6,049,349	$7,908,207
Office of Small and Disadvantaged Business Utilization	$0	$0	$557,764	$557,764
Office of the Chief Financial Officer	$3,546,492	$16,423,188	$25,488,349	$45,458,029
Office of the Chief Information Officer	$46,099,540	$32,896,951	$79,209,788	$158,206,279
Office of the Director	$7,386,735	$0	$0	$7,386,735
Office of the Executive Secretariat, Privacy, and Information Management	$1,572,258	$114,466	$5,374,369	$67,061,093
Office of the General Counsel	$0	$380,977	$9,018,654	$9,399,631
OPM Human Resources	$565,227	$657,309	$13,260,986	$14,483,522
Rent	$11,568,319	$14,705,964	$0	$26,274,283
Retirement Services	$0	$86,024,967	$0	$86,024,967
Security, Suitability and Credentialing Line of Business (SSCLOB)	$543,000	$0	$0	$543,000
White House Fellows	$1,137,768	$0	$0	$1,137,768
Workforce Policy and Innovation	$48,258,074	$0	$0	$48,258,074
OPM Sub Total	$165,076,851	$209,071,851	$154,964,123	$529,112,825
Appropriated Contribution to Common Services	$40,160,149	$51,491,149	$0	-
Non-Appropriated Contribution to Common Services	-	-	-	($63,312,825)
OPM Grand Total	$205,237,000	$260,563,000	$154,964,123	$465,80,000

The budgets for several programs in the table above have changed in FY 2023 due to planned organizational consolidations.

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FY 2025 Budget Request by Strategic Goals

OPM’s FY 2022-2026 strategic plan includes four key goals that focus on improving OPM’s ability to deliver on its mission. As required by the Government Performance and Results Modernization Act of 2010 (P.L. 111-352), OPM’s budget request maps to its strategic plan.

The Performance Budget by Strategic Goal section of this document describes each strategic goal and the resources budgeted for each objective in FY 2025. The following table displays OPM’s planned resource allocation for each strategic goal, excluding Revolving Fund program activities.

OPM Budget FY 2025 by Strategic Goal — Discretionary Resources

Strategic Goal	FY 2025 CBJ Dollars	FY 2025 CBJ FTE
1 - Position the Federal Government as a model employer, improving the Government-wide satisfaction index score by 4 points	$25,538,138	103.5
2 - Transform OPM’s organizational capacity and capability to better serve as the leader in Federal human capital management	$121,074,272	122.0
3 - Create a human-centered customer experience by putting the needs of OPM’s customers at the center of OPM’s workforce services, policy, and oversight, increasing OPM’s customer satisfaction index score for targeted services to 4.3 out of 5	$108,259,749	642.1
4 - Provide innovative and data-driven solutions to enable agencies to meet their missions, increasing the percentage of users throughout Government who agree that OPM offered innovative solutions while providing services or guidance by 4 points	$16,479,710	60.6
5 - Additional Mission and Mission Support Activities	$257,760,955	807.6
Strategic Goal Total	$529,112,825	1,735.8
Non-Appropriated Contribution to Common Services	($63,312,825)	-
OPM Total	$465,800,000	1,735.8

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