Elon Musk pushes for digital overhaul of federal retirement files
Elon Musk, head of the Department of Government Efficiency (DOGE), wants to digitize 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, noting that their documentation is currently processed and stored in a former limestone mine in paper form.
According to Musk, the facility looks as if it were transported from the 1950s — it was established in 1955 and hasn't changed much since then, CNBC reports.
Musk believes 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 indicate whether the system was efficient or whether it processed documents of former federal employees quickly enough. Each day in the United States, 10,000–11,000 people retire, but only a small fraction of them are federal employees.
Elon Musk emphasized the absurdity of a situation where the speed of document processing relies on the operational status of a mine elevator. He suggested that the workers, instead of transporting 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 213 feet underground. The company advertises this location as offering the highest level of security and disaster protection. Currently, more than 700 people work there.
Market reaction and prospects
Iron Mountain, the company managing the mine, saw a decrease in stock 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 digitization services and data centers reach $130 million, while storing physical documentation brings in only $10 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 dependent on a single client. Even in the event of a contract termination by the federal government, the company would receive compensation equivalent to 1–2 years of rent.
Bill Meaney emphasized that Iron Mountain collaborates with over 200 federal agencies as a direct supplier or subcontractor. The company also runs hard drive destruction programs for state administrations. Brendan Lynch from Barclays added that the government has a legal obligation to store documentation, which Iron Mountain currently manages.
