Benefits Backlog Crisis – Unlocking Efficiency: The Key to Quick Federal Benefits

These words echo the story of thousands of American citizens who feel stranded and helpless, waiting for their federal benefits.  They are in dire financial straits due to the ballooning federal benefit case backlog.

Whether it is retirement pensions administered by the Office of Personnel Management (OPM), Supplemental Nutrition Assistance Program (SNAP), veteran’s benefits, or any other federal benefits offered by the government, these programs are vital support systems. They ensure that the citizens of the country can live with dignity, children and families have enough to eat, and veterans receive the care they have earned.

OPM administers the following Earned Benefits Trust Funds
Federal Employees Health Benefits Fund (FEHB) provides health insurance for 8.1M employees, retirees, and eligible family members 
Federal Employees’ Life Insurance Fund (FEGLI) covers 4.3M employees and retirees) 
Civil Service Retirement and Disability Fund (CSRDF) sustains retirement benefits for 2.8M million employees
Postal Service Retiree Health Benefits Fund (PSRHB) with dedicated fund for retiree health care benefits for the Postal Service

Per the FY2022 Congressional Research Service (CRS) report, the Federal Employees Retirement System (FERS) covers 98.4% of civilian federal employees’ retirement – amounting to 2,788,000 while the Civil Service Retirement System (CSRS) covered 1.6% (44,000). The federal retirement process received approximately 89,000 applicants in 2023 – a decrease of 15.73% from its application pool of 103,000 the year before. While OPM’s 2024 backlog is trending at a recording-breaking low, retirees in desperate need of assistance are still waiting over 4 months to receive the benefits[i]. This is a benefit that federal workers have earned by paying into their retirement system after an average length of service of over 26 years – a third of their lifetime.

Data Source: GovExec[ii]; PlanWell[iii]; OPM[iv]

Similarly, one of the most impactful federal benefits, the Supplemental Nutrition Assistance Program (SNAP), has been facing significant backlog issues. Designed to provide food-purchasing assistance to low-income individuals and families, SNAP is supposed to process applications within 30 days, according to federal guidelines. However, the current average processing time is well over 45 days. These delays can exacerbate food insecurity among low-income households, forcing individuals and families to struggle to afford adequate nutrition and increasing their reliance on food banks and other emergency food services.

The various federal departments are inundated with applications, each representing a person in genuine need of support. The sheer volume of cases is staggering, causing delays in review and allocation of services. As a result, individuals and families are left waiting in limbo, unsure of when, or if, help will arrive.

Why are we seeing such significant delays?

Several factors contribute to this problem:

Outdated Technology: Many federal agencies are still using decades-old IT systems that can’t keep up with the current volume and complexity of cases. These outdated systems slow down processing times and make it difficult to handle the demand efficiently. In many cases, minor changes such as a change in marital status require fresh applications to be filed, leading to further delays.

Insufficient Staffing: Budget cuts and staffing shortages mean there aren’t enough employees to process the flood of applications – including reviewing and working with applicants to correct mistakes. Despite their dedication and hard work, federal workers are overwhelmed by the sheer volume of cases.

Complex Administrative Processes: The rules and regulations governing federal benefits are often intricate and require meticulous attention to detail. This complexity adds significant time to the application process as every detail must be verified and documented correctly.

Seasonal Surges: Certain times of the year see a spike in applications, such as the start of the fiscal year or after policy changes. These surges create backlogs that bottleneck processing for longer than anticipated and lags in processing that have downstream delays.

Elevate Government Protection: Next-Gen Case Management Solutions

Modern case management software can alleviate many of these issues by automating and streamlining the application process. These advanced systems can handle large volumes of data, automate routine tasks, and ensure that applications are processed swiftly and accurately. For instance, by automating the verification of documents and data entry, case management software reduces the cognitive load on employees, allowing them to focus on more complex tasks that require human judgment.


Research has shown that implementing case management software can reduce the time spent on non-value-add activities by up to 40%.


This efficiency gain translates to quicker processing times and faster delivery of benefits to those in need. Case management systems have proven effective in reducing backlogs and improving efficiency in processing federal government benefits. For example, the Department of Veterans Affairs implemented the Veterans Benefits Management System (VBMS), which digitized and streamlined disability claims processing, reducing the backlog from over 600,000 cases in 2013 to around 70,000 by 2019.

At NetImpact, we specialize in modernizing social services through agile software solutions. Our case management system, DX360º® Benefits Case Manager is designed to enhance process automation, data integration, and case management, which are crucial for efficiently handling large volumes of applications. By leveraging advanced features like AI-driven decision support, real-time tracking, and comprehensive data analytics, DX360º® Benefits Case Manager can streamline the intake, processing, and management of benefit claims. This software facilitates quicker resolution of cases by automating routine tasks and providing a unified platform for managing information across various departments. For example, in benefits programs like SNAP or VA disability claims, DX360º® Benefits Case Manager could reduce processing times by seamlessly integrating disparate data sources and automating eligibility verification processes. Its ability to offer real-time insights and predictive analytics helps identify and address bottlenecks promptly, ensuring that eligible individuals receive their benefits more quickly and reducing the overall administrative burden on federal agencies. their benefits more quickly and reducing the overall administrative burden on federal agencies. By integrating cutting-edge technology with compassionate service, we help ensure that every application is processed promptly and accurately, providing essential support to those who need it most.

Diana’s story: A survivor barely surviving.
Diana Kimberlin a widow sought to claim the survivor benefits but had to go through four months of exhaustive paperwork, long customer service waits, and processing delays and yet was left without her entitled benefits and no timeline for resolution. This bureaucratic quagmire has snowballed into a personal crisis—unpaid bills, a declining credit score, and emotional distress have transformed her loss into an ongoing battle against financial instability. Diana’s story underscores the urgent need for efficiency in government processes, where delays can profoundly impact citizens’ lives.

DX360º® Benefits Case Manager would greatly help people like Diana Kimberlin who, after her husband’s passing last October, sought to claim the survivor benefits that he diligently paid into through monthly payroll deductions while working for the federal government. These benefits, meant to provide financial security during such a difficult time, have instead become a source of frustration and distress.

Diana’s struggle with the Office of Personnel Management (OPM) highlights a troubling trend. Four months of exhaustive paperwork, long customer service waits, and processing delays have left her without her entitled benefits and no timeline for resolution. This bureaucratic quagmire has snowballed into a personal crisis—unpaid bills, a declining credit score, and emotional distress have transformed her loss into an ongoing battle against financial instability. Diana’s story underscores the urgent need for efficiency in government processes, where delays can profoundly impact citizens’ lives.

The DX360º® Benefits Case Manager delivers comprehensive, automated case management solutions, seamlessly handling everything from intake and qualification to processing and ongoing management of benefits cases. It enhances operational efficiency with its highly extensible capabilities, enabling faster and more accurate processing. Additionally, it empowers users with self-service options via a user-friendly public portal and mobile app, allowing individuals to submit and track their benefits requests easily, thereby improving both accessibility and user satisfaction.

By leveraging advanced case management software, we can transform the way federal benefits are administered, making sure that every citizen receives the support they deserve without unnecessary delays. To learn more about how we can help modernize social services and create a more efficient, responsive, and humane system for all, request a demo today: demo@netimpactstrategies.com

backlog crisis benefits CM
About NetImpact

NetImpact Strategies, Inc. is a digital transformation disruptor specializing in high-performing, secure digital solutions that redefine how technology is applied to deliver mission value.

NetImpact empowers clients with DX360°® services that accelerate mission outcomes for sustainable, lasting value using SaaS COTS products built on ServiceNow and Microsoft. Follow NetImpact on their website or LinkedIn for more.