Musk's push to modernise federal retirement forms sparks debate
Elon Musk, head of the Department of Government Efficiency (DOGE), wants to digitise the retirement documents of American federal employees. Since the 1950s, these documents have been stored in paper form in a former limestone mine. "The limiting factor is the speed at which the mine shaft elevator can move determines how many people can retire from the federal government," said Musk during a meeting with President Donald Trump.
During the meeting in the Oval Office, Elon Musk presented an example of inefficiency in the federal administration's operations. He highlighted the retirement system for federal employees. Currently, their documentation is processed and stored in the former limestone mine in paper form.
According to Musk, the facility appears as if it was transported from the 1950s — it was established in 1955 and hasn't changed much since then, CNBC reports.
Musk argues that the system is inefficient. It allows for the processing of up to 10,000 retirement applications per month. However, the head of DOGE did not clarify whether this system was effective or how quickly it processed documents for former federal employees. Every day in the United States, 10,000-11,000 people retire, although only a small fraction of them are federal employees.
Elon Musk emphasised the absurdity of a situation where the speed of document processing depends on the operational status of a mine lift. He suggested that the workers, rather than carrying paper files in the mine, could be doing more productive work for the country.
The mine in Pennsylvania, located less than an hour's drive from Pittsburgh, stores retirement documentation more than 65 metres underground. The company advertises this location as providing the highest level of security and disaster protection. Currently, over 700 people work there.
Market reaction and prospects
Iron Mountain, the company managing the mine, saw a decrease in share value following Musk's remarks. Its CEO, Bill Meaney, sees an opportunity for growth in this situation. During a Thursday teleconference, he explained that the company's revenues from digitisation services and data centres reach £103 million, while storing physical documentation brings in only £8 million per year.
Wall Street analysts believe the market's reaction to Musk's comments was exaggerated. Eric Luebchow from Wells Fargo noted that Iron Mountain's revenues are not reliant on a single client. Even if the federal government decided to terminate their contract, the company would receive compensation equivalent to 1-2 years of rent.
Bill Meaney emphasised that Iron Mountain collaborates with over 200 federal agencies as a direct supplier or subcontractor. The company also operates hard drive destruction programmes for state administrations. Brendan Lynch from Barclays added that the government has a legal obligation to store documentation, which Iron Mountain currently manages.
