Lincolnshire, IL-based Hewitt Associates has been selected to deliver defined benefits technology and administration services to the U.S. Office of Personnel Management (OPM), the Federal Government’s principal human resources agency. The 10-year agreement, valued at approximately $290 million, will enable OPM to modernize and improve the administration of its federal retirement system for five million participants.
OPM will use Hewitt’s existing benefits technology platform, Total Benefits Administration (TBA), which Hewitt utilizes to provide benefits administration services to more than 300 companies and 18 million employees. For the first time, OPM will be able to provide active employees and retirees with defined benefit account information, web access, and modeling tools. Hewitt will also provide retirement administration services, including data management, pension benefit calculations, and pension payments.
"With this partnership, OPM is gaining access to solutions that will provide us with a more efficient way to handle the administration of our important benefits programs", said Linda Springer, director of the U.S. Office of Personnel Management. "At the same time, it will provide our employees and retirees with best-in-class tools and Web-based capabilities that make it easier for them to access, manage and control their retirement programs".
The company will serve participants of the Federal Retirement System, including current and former staff members of the executive, legislative and judicial branches, as well as employees and retirees of the U.S. Postal Service.