The Office of Personnel Management released a report Sept. 14, 2011 by its inspector general, providing the status of recommendations OPM has taken to stem the flow of improper payments from the federal government to deceased annuitants and survivors.
OPM chief operating officer Chuck Grimes provided additional perspective on the report in a statement released by OPM, saying:
“The Inspector General reported OPM made $600 million in improper payments to deceased annuitants between fiscal years 2006 and 2010. As of September 30, 2010, $113 million is still undergoing collection efforts by OPM. OPM resolved $487 million of the $600 million reported by the Inspector General. The collection process is an ongoing effort, and our experience has shown that we ultimately collect 90 percent of the amounts resolved with the remaining 10 percent either written off as uncollectible or adjusted because it was later determined that the payment was not improper. Therefore, OPM estimates it has collected over $438 million of the $487 million resolved over the past 5 years. OPM will continue collection efforts on the $113 million until it is completely resolved.”
OPM Director John Berry also commented in a prepared statement that:
“OPM is fully committed to eliminating improper payments to deceased annuitants, and I have been working closely with the Inspector General to achieve this. As the IG’s report notes, we have already implemented 10 of their 14 recommendations. In addition, I have named four senior members of my staff who will work directly with me to resolve the final four. Leading the effort will be Chuck Grimes, our COO, Mark Lambert, our head of Oversight and Compliance, Ken Zawodny, our new head of Retirement Services, and Steve Agostini, our Chief Financial Officer. I plan to stay on top of this weekly to make sure we are making progress on this problem.
“Our team at OPM has worked hard with our IG on this issue over the past few years, as recognized by the IG in his report. Action has been taken on all $600 million in improper payments, including $113 million currently in collection.
“Though we have implemented many positive reforms, I remain deeply committed to keeping this a top priority and to working with our IG to ensure the proper internal controls are in place to protect the taxpayers and our employees and retirees.
“Improper payments in this program are less than two-tenths of one percent. We encourage anyone who is receiving improper payments to contact us immediately. Taking payment for or providing false information regarding a deceased annuitant is a felony, and will be prosecuted where appropriate.”