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The U.S. Office of Personnel Management (OPM)

The Office of Personnel Management

Summary

OPM is the federal government's own HR department -- funded at $382.1 million and 2,171.2 people in FY2026, it runs and pays for the merit-based civil service Congress built after a President was assassinated by a job seeker denied a patronage post.

By Vindex · July 16, 2026

What is this organization?

The U.S. Office of Personnel Management is the federal government's own human-resources department, created by the Civil Service Reform Act of 1978 as executive-branch successor to the U.S. Civil Service Commission, which the Pendleton Act had established in 1883 after a President was assassinated by a job seeker denied a patronage post. sits under the President as a standalone agency led by a Senate-confirmed director, and it writes the hiring, pay, and benefits rules every other federal agency staffs itself under.

What does it do?

administers the health, life, and retirement benefits the federal workforce earns: Healthcare and Insurance covers more than eight million employees, annuitants, and family members across six insurance programs, and Retirement Services adjudicates every Civil Service and Federal Employees Retirement System claim for active employees and over 2 million annuitants and survivors. In June 2026 it processed 12,751 retirement claims against a 33,851-case backlog, averaging 77 days per claim year to date. also sets hiring policy government-wide: its Merit Hiring Plan targets under-80-day time-to-hire, implementing Executive Order 14170.

What does it cost to run — money and people?

Congress enacted $382.1 million in discretionary funding for 's own FY2026 operations -- $167.5 million in Salaries and Expenses plus a $214.6 million trust-fund transfer limitation -- down from $412.1 million in FY2025, funding 2,171.2 full-time staff including its Inspector General. Add the Revolving Fund and other reimbursable work and 's total FY2026 operating budget authority reaches $921.0 million. Against the Census Bureau's 341.8 million U.S. residents as of July 2025, the discretionary appropriation alone is about $1.12 per person.

Annual budget (FY2026 enacted appropriation)
$382.1M
down from $412.1M in FY2025 -- total operating budget authority across all funds is $921.0M
People (FTE, FY2026 enacted, incl. OIG)
2,171.2
FY2027 request would cut this to 2,073.8 -- down 97.4
Cost per U.S. resident (FY2026)
$1.12
$382.1M discretionary appropriation ÷ 341.8M residents (Census, July 2025) — per U.S. resident
Where OPM's FY2026 money comes from
OPM's $920.95 million total FY2026 enacted budget authority, by fund source
Revolving Fund (agency fee-for-service)
392
Discretionary appropriation (S&E + trust transfer)
382.1
Mandatory trust-fund authority
86.7
OIG discretionary appropriation
36
Advances and reimbursements
24.2
Source: OPM FY 2027 Congressional Budget Justification, p.6-7
View data as table
OPM's FY2026 enacted $920.95 million in total budget authority, broken out by the five sources that fund it. Less than half comes from the direct discretionary appropriation used as this entry's headline budget figure -- the rest is the Revolving Fund (other agencies paying OPM for HR services), mandatory trust-fund administrative authorities, and OIG's separate appropriation.
Revolving Fund (agency fee-for-service)392HR services agencies pay OPM to provide
Discretionary appropriation (S&E + trust transfer)382.1the KPI-row figure
Mandatory trust-fund authority86.7retirement/insurance admin costs, from trust funds
OIG discretionary appropriation36separate appropriation for the Inspector General
Advances and reimbursements24.2other agency-funded work

Why is it good for society?

Before 1883, federal jobs were handed out as political spoils; the practice ended only after a disappointed office-seeker assassinated President James Garfield, and Congress answered with the Pendleton Act's competitive, merit-based civil service. now custodies that system and the trust funds behind it: it is the single point keeping a retirement annuity or health-benefits claim processed the same way whether the annuitant worked for 1 federal agency or 400, rather than each running its own patronage-prone personnel shop.

  • 's FY2026 discretionary appropriation ($382.1M) works out to about $1.12 per U.S. resident, but the agency's full operating budget (all funds, including the Revolving Fund other agencies pay it for HR services) is $921.0M.
  • The FY2027 request would cut 's own staffing from 2,171.2 to 2,073.8 , even as its Retirement Services unit carried a 33,851-case pending claim backlog as of June 2026.

Your handles.* If you have a federal retirement claim pending, check status or reach a specialist through OPM Retirement Services' contact page (online inquiry, or 1-888-767-6738). To report fraud, waste, or abuse in 's own retirement and insurance programs, use the OPM Office of Inspector General hotline. To see the merit-based hiring system in action -- or apply for a federal job yourself -- go to USAJOBS, the government's official career portal that runs.

Sources(6) ▾
  • U.S. Office of Personnel Management, FY 2027 Congressional Budget Justification (U.S. Office of Personnel Management) (2026-04-01)'s own FY2027 budget submission to Congress, dated April 2026. Its Executive Summary tables give the most current FY2026 ENACTED budget-authority and totals by fund source (the source for this entry's budget and KPIs and the fund-source chart), and its program-office narrative sections give 's own description of what Healthcare & Insurance and Retirement Services do and whom they serve. One Wayback save-page-now probe for this URL returned HTTP 520 (archive.org's documented escalated-outage state); the sealed copy above is the one-click original-document link. opm.gov · original document
  • U.S. Office of Personnel Management, Mission & History (2026-07-16)'s own official history timeline, confirming the agency's 1978 creation as successor to the Civil Service Commission and the Commission's 1883 origin under the Pendleton Act -- 's own account of its statutory identity. opm.gov · original document
  • National Archives and Records Administration, Pendleton Act (1883) -- Milestone Documents (2022-01-01)The National Archives' own milestone-document page on the Pendleton Act of 1883 -- the source for the counterfactual in 'Why is it good for society': the spoils system, President Garfield's assassination by a denied office-seeker, and Congress's answer of a competitive, merit-based civil service enforced by the ( predecessor) Civil Service Commission. archives.gov · original document
  • U.S. Office of Personnel Management, Retirement Services, CSRS/FERS New Claims Monthly Processing Times (Retirement Processing Status) (2026-07-01) Retirement Services' own live monthly-updated statistics PDF tracking new retirement claims received/processed, fiscal-year-to-date average processing time, and pending inventory (backlog) -- the source for this entry's June-2026 retirement-claims workload figures. This is a live operational dashboard updates monthly; accessed 2026-07-16, reflecting data through June 2026 (the most recent completed month at access time). opm.gov · original document
  • U.S. Office of Personnel Management, Merit Hiring Plan (CHCOC Transmittal, May 29, 2025) (2025-05-29)'s own governmentwide Merit Hiring Plan memo to agency Chief Human Capital Officers, implementing Executive Order 14170 -- the source for the 80-day time-to-hire standard this entry cites as 's headline hiring-policy metric. opm.gov · original document
  • U.S. Census Bureau, U.S. Population Growth Slows Due to Historic Decline in Net International Migration (Vintage 2025 national population estimate) (2026-01-27)The Census Bureau's own Vintage 2025 national population estimate release, giving the U.S. resident population as of July 1, 2025 -- the per-resident denominator for this entry's cost-per-person KPI, per better_metrics.md's sourced-denominator discipline. One Wayback save-page-now probe for this URL returned HTTP 520 during this session; the sealed copy above is the one-click original-document link. census.gov · original document
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