    [Appendix]
    [Detailed Budget Estimates by Agency]
    [Office of Personnel Management]
    [From the U.S. Government Printing Office, www.gpo.gov]

                         THE BUDGET FOR FISCAL YEAR 1998

    [[Page 975]]

                         OFFICE OF PERSONNEL MANAGEMENT

                                  Federal Funds

    General and special funds:

                              Salaries and Expenses

                       (including transfer of trust funds)

        For necessary expenses to carry out functions of the Office of
    Personnel Management pursuant to Reorganization Plan Numbered 2 of 1978
    and the Civil Service Reform Act of 1978, including services as
    authorized by 5 U.S.C. 3109; medical examinations performed for veterans
    by private physicians on a fee basis; rental of conference rooms in the
    District of Columbia and elsewhere; hire of passenger motor vehicles;
    not to exceed $2,500 for official reception and representation expenses;
    advances for reimbursements to applicable funds of the Office of
    Personnel Management and the Federal Bureau of Investigation for
    expenses incurred under Executive Order 10422 of January 9, 1953, as
    amended; and payment of per diem and/or subsistence allowances to
    employees where Voting Rights Act activities require an employee to
    remain overnight at his or her post of duty; [$87,076,000, of which not
    to exceed $1,000,000 shall be available for the establishment of health
    promotion and disease prevention programs for Federal employees]
    $85,350,000; and in addition [$94,736,000] $91,236,000 for
    administrative expenses, to be transferred from the appropriate trust
    funds of the Office of Personnel Management without regard to other
    statutes, including direct procurement of [printing] printed materials
    [for annuitants], for the retirement and insurance programs[, of which
    $3,500,000 shall be transferred at such times as the Office of Personnel
    Management deems appropriate, and shall remain available until expended
    for the costs of automating the retirement recordkeeping systems,
    together with remaining amounts authorized in previous Acts for the
    recordkeeping systems]: Provided, That the provisions of this
    appropriation shall not affect the authority to use applicable trust
    funds as provided by section 8348(a)(1)(B) of title 5, United States
    Code: Provided further, That, except as may be consistent with 5 U.S.C.
    8902a(f)(1) and (i), no payment may be made from the Employees Health
    Benefits Fund to any physician, hospital, or other provider of health
    care services or supplies who is, at the time such services or supplies
    are provided to an individual covered under chapter 89 of title 5,
    United States Code, excluded, pursuant to section 1128 or 1128A of the
    Social Security Act (42 U.S.C. 1320a-7-1320a-7a), from participation in
    any program under title XVIII of the Social Security Act (42 U.S.C. 1395
    et seq.): Provided further, That no part of this appropriation shall be
    available for salaries and expenses of the Legal Examining Unit of the
    Office of Personnel Management established pursuant to Executive Order
    9358 of July 1, 1943, or any successor unit of like purpose: Provided
    further, That the President's Commission on White House Fellows,
    established by Executive Order 11183 of October 3, 1964, may, during the
    fiscal year ending September 30, [1997] 1998, accept donations of money,
    property, and personal services in connection with the development of a
    publicity brochure to provide information about the White House Fellows,
    except that no such donations shall be accepted for travel or
    reimbursement of travel expenses, or for the salaries of employees of
    such Commission. (Independent Agencies Appropriations Act, 1997.)
        [For an additional amount for the necessary expenses of the Office
    of Personnel Management $210,000, to remain available until expended:
    Provided, That of the amount provided, $210,000 is designated by
    Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i)
    of the Balanced Budget and Emergency Deficit Control Act of 1985, as
    amended.] (Treasury, Postal Service, and General Government
    Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0100-0-1-805      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Employment service..............          36          36          29
    00.02   Executive resources.............           2           2           2
    00.03   Retirement and insurance........         103         107         110
    00.04   Investigations..................           3           3           3
    00.05   Human resources systems.........          12          11          11
    00.06   Merit systems oversight and
              effectiveness.................          14          15          15
    00.07   Administrative services.........          15          13          18
    00.08   Executive and other services....          15          15          15
                                               ---------   ---------  ----------
    00.91     Total direct program..........         200         202         203
    01.01 Reimbursable program..............           8          11          11
                                               ---------   ---------  ----------
    10.00   Total obligations...............         208         213         214
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         208         213         214
    22.30 Unobligated balance expiring......          -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         208         213         214
    23.95 New obligations...................        -208        -213        -214
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................          88          87          85
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).         120         126         129
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         208         213         214
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation          28          33          30
    73.10 New obligations...................         208         213         214
    73.20 Total outlays (gross).............        -202        -216        -214
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation          33          30          30
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          76          76          74
    86.93 Outlays from current balances.....           6          14          11
    86.97 Outlays from new permanent
            authority.......................         120         126         129
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         202         216         214
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -120        -126        -129
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          88          87          85
    90.00 Outlays...........................          82          90          85
    ---------------------------------------------------------------------------

        The Office of Personnel Management (OPM) is responsible for
    personnel management functions which include the following activities:

        Employment service.--The Employment Service Program operates a
    nationwide system of employment information and assists agencies in
    managing the dynamics of their work force--recruitment, hiring, internal
    placement, promotion, and downsizing--through broad policy principles,
    technical assistance, research, automated systems, and examination
    services. These operations are carried out through a network of Service
    Centers throughout the country.

        Program performance.--The Employment Service's performance
    management program consists of six key elements: program goals,
    strategic objectives, program objectives, customer service standards,
    outcomes, and performance measures. The organization provides: (1)
    leadership in the improvement of employment practices and the automation
    of human resources management (HRM) functions; (2) accurate, timely, and
    accessible employment information to job-seekers; (3) high-quality,
    cost-effective staffing policy, assistance, and services; and (4) high-
    quality specialized HRM policy, assistance, and services. By achieving
    these goals, the Employment Service expects

    [[Page 976]]

    to improve HRM practices, increase government-wide cost savings, and
    provide better service to the public.

        The Employment Service provides Federal employment information to
    over seven million people annually. Customer data for 1996 indicate that
    91 percent of these job-seekers found the system easy to use, 79 percent
    got the information they desired, and 79 percent rated the system
    satisfactory or better. The Employment Service also refers job
    candidates to Federal agencies that are seeking to fill vacant
    positions. In 1996, the Employment Service delivered 11,300 certificates
    of eligible candidates to these agencies.

        Executive resources.--This activity provides governmentwide program
    leadership, policy direction and technical assistance on all aspects of
    the Senior Executive Service personnel system and comparable executive
    systems.

        Retirement and insurance.--This activity administers retirement and
    insurance programs for Federal employees and retired Federal employees.
    These programs include the Civil Service Retirement and Disability Fund,
    the Employees Life Insurance Fund, and the Employees and Retired
    Employees Health Benefits Funds.

        Program performance.--In the retirement area, OPM reduced the time
    to make a first interim annuity payment from an average of 8 days in FY
    1995 to 5 days in FY 1996, and by the end of the fiscal year was making
    most payments within 4 days. The time ``to take final action on'' an
    annuity account dropped from 79 days in FY 1995 to 51 days in FY 1996,
    while the incidence of adjudication errors remained at the same 6
    percent achieved in FY 1995.

        OPM expanded telephone services by launching ``Annuitant Express'',
    an interactive 800 service. In FY 1996, more than 284,000 customers used
    the service to change the Federal tax withholding from their monthly
    annuity payments (60 percent of all such changes) and 95 percent
    reported that the system was easy to use. Ninety-three percent reported
    that using the system was easier than using a form to change their tax
    withholding, and 86 percent said that the system was easy to access. In
    FY 1997, OPM made health benefit open season changes available to
    annuitants via Annuitant Express and hopes to add electronic funds
    transfer (EFT) related address changes later in the year.

        FY 1996 surveys of OPM customers revealed that more than 90 percent
    of annuitants were ``generally'' or ``very'' satisfied with OPM's
    processing of their claim and the overall level of service OPM has
    provided since they retired. Also, 90 percent of retirement customers
    were ``generally'' or ``very'' satisfied with the courtesy and clarity
    of the responses they received when calling OPM. However, retirement
    customers also indicated that improvement is needed in the accessibility
    of OPM's telephone system, and in the quality and timeliness of
    responses to their written inquiries.

        In the insurance area, 95 percent of the FEHBP customers agreed that
    their health plan compares favorably for value and selection with the
    private sector, and more than 85 percent rated their overall
    satisfaction with their plan as being excellent, very good, or good.
    Over 90 percent believe that the plan guide and brochures that OPM
    publishes for the FEHBP are clear, factual, and useful.

        Eighty-seven percent the FEHBP's fee-for-service plans are meeting
    their contractual requirements for paying claims on time, with
    comparable figures for the accuracy of those payments. Internally, OPM
    reduced the unprocessed balance of claim disputes by more than two-
    thirds but processing times for these claims remained slightly above the
    target level of 60 days and only 50 percent of customers were satisfied
    with OPM's decision and believed they had received a fair review. OPM
    upheld the carriers' decision 59 percent of the time.

        Ninety-six percent of OPM's life insurance customers who had
    received life insurance benefits were satisfied with the service they
    received and 99 percent said informational materials they received were
    easy to understand, complete, helpful, and accurate.

        Investigations.--This activity focuses on assuring applicant and
    appointee fitness and suitability and oversight of the investigative
    contract company.

        Human resources systems.--This activity includes: (a) developing and
    implementing pay and leave administration policy and evaluating the
    effectiveness of alternative compensation systems; (b) managing employee
    relations; (c) developing classification policies and systems and
    designing flexible alternatives to current systems; (d) promoting and
    providing state-of-the-art data systems for workforce information to
    support and inform policy decision-making, and providing technical
    assistance for streamlining personnel recordkeeping and processing
    procedures; (e) facilitating and supporting Federal work and family
    programs; (f) providing policy guidance and management assistance in
    support of agency human resource development programs; and (g) providing
    leadership and policy guidance for human resources development and
    training.

        Merit systems oversight and effectiveness.--This activity includes:
    (a) direct oversight of human resources management (HRM) in Federal
    agencies through various methods, including on-site evaluations; (b)
    administration of the classification appeals and Fair Labor Standards
    Act (FLSA) programs to ensure that agencies adhere to the statutory
    requirements of both laws; (c) assisting agencies in developing merit-
    based internal HRM accountability systems which support mission
    accomplishment; (d) assessing the effectiveness of government wide HRM
    policies and programs; (e) testing and evaluating innovative Federal HRM
    practices and systems, including demonstration projects under 5 U.S.C.
    Chapter 47; and (f) administering parts of the Voting Rights Act of
    1965.

        Program performance.--The merit systems oversight and effectiveness
    program performance measures are designed to determine the value added,
    outcome-oriented impact that the oversight and effectiveness reviews and
    reports have on clients: the Federal human resources management
    community and Federal employees. In FY 1997, as part of each review or
    study of human resources management at Federal agencies, client feedback
    was solicited on the importance and quality of written reports, and on
    the professionalism, usefulness and overall quality of the evaluation
    effort. Preliminary responses indicate that clients highly value the
    work as shown by a rating of 4 on a scale of 1-5 on the overall quality
    of agency evaluations, and a rating of 4.5 on the quality of the written
    evaluation reports. In addition, Merit System Principles Questionnaires
    were administered as part of agency reviews to measure employee
    preceptions of agency observance of each of the nine merit systems
    principles established by law. Based on preliminary responses, Federal
    employees report that the merit system is alive and well in key areas
    like recruitment, fairness, conduct, efficiency/effectiveness, training,
    and protection of employees from improper political influence and for
    lawful disclosure of information. However, employees believe that more
    work needs to be done to better link performance to pay and retention
    actions as contemplated by the merit principles. The client feedback
    information is shared with Federal agencies and the information is used
    to work with them to continuously improve the quality of their human
    resources management.

        Administrative services.--This activity includes: OPM personnel and
    equal employment opportunity; security, facilities, telecommunications,
    publishing, acquisitions, and information resources management to
    support all OPM programs.

    [[Page 977]]

        Executive and other services.--This activity includes: executive
    direction; policy development; legal advice and representation; public
    affairs; legislative activities; financial management; labor-management
    relations and partnership policy/guidance; and the operating expenses of
    the President's Commission on White House Fellows.

        Reimbursable programs.--The OPM performs reimbursable work at the
    request of other agencies. OPM also provides administrative, information
    resources management, and executive services to other OPM accounts on a
    reimbursable basis.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0100-0-1-805      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          91          94          95
    11.3      Other than full-time permanent           5           5           5
    11.5      Other personnel compensation..           3           3           3
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          99         102         103
    12.1    Civilian personnel benefits.....          20          23          24
    13.0    Benefits for former personnel...           2
    21.0    Travel and transportation of
              persons.......................           2           2           2
    23.1    Rental payments to GSA..........          21          21          20
    23.3    Communications, utilities, and
              miscellaneous charges.........          14          14          14
    24.0    Printing and reproduction.......           3           3           3
    25.1    Advisory and assistance services           5           5           5
    25.2    Other services..................          15          13          13
    26.0    Supplies and materials..........           2           2           2
    31.0    Equipment.......................          16          16          16
    32.0    Land and structures.............           1           1           1
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         200         202         203
    99.0  Reimbursable obligations..........           8          11          11
                                               ---------   ---------  ----------
    99.9    Total obligations...............         208         213         214
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 24-0100-0-1-805      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct:
          Total compensable workyears:

    1001    Full-time equivalent employment.       2,252       2,288       2,208
    1005    Full-time equivalent of overtime
              and holiday hours.............          39          39          39
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......         100         269         169
    ---------------------------------------------------------------------------

                           Office of Inspector General

                              salaries and expenses

                       (including transfer of trust funds)

        For necessary expenses of the Office of Inspector General in
    carrying out the provisions of the Inspector General Act, as amended,
    including services as authorized by 5 U.S.C. 3109, hire of passenger
    motor vehicles, $960,000; and in addition, not to exceed $8,645,000 for
    administrative expenses to audit the Office of Personnel Management's
    retirement and insurance programs, to be transferred from the
    appropriate trust funds of the Office of Personnel Management, as
    determined by the Inspector General: Provided, That the Inspector
    General is authorized to rent conference rooms in the District of
    Columbia and elsewhere. (Independent Agencies Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0400-0-1-805      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations.................          10          10          10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          10          10          10
    23.95 New obligations...................         -10         -10         -10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................           4           1           1
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           6           9           9
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          10          10          10
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           1           1
    73.10 New obligations...................          10          10          10
    73.20 Total outlays (gross).............         -10         -10         -10
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           3           1           1
    86.93 Outlays from current balances.....           1
    86.97 Outlays from new permanent
            authority.......................           6           9           9
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          10          10          10
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -6          -9          -9
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           4           1           1
    90.00 Outlays...........................           4           1           1
    ---------------------------------------------------------------------------

        This appropriation provides agencywide audit, investigative,
    evaluation, inspection, and administrative sanction functions to
    identify management and administrative deficiencies which may create
    conditions for fraud, waste, and mismanagement. The audits function
    provides internal agency audit, insurance audit, and contract audit
    services. Contract audits provide professional advice to agency
    contracting officials on accounting and financial matters regarding the
    negotiation, award, administration, repricing, and settlement of
    contracts. Internal audits review and evaluate all facets of agency
    operations, including financial statements. Evaluation and inspection
    services provide detailed technical evaluations of agency operations.
    Insurance audits review the operations of health and life insurance
    carriers, health care providers, and insurance subscribers. The
    investigative function provides for the detection and investigation of
    improper and illegal activities involving programs, personnel, and
    operations. Administrative sanctions debar from participation in the
    health insurance program those health care providers whose conduct may
    pose a threat to the financial integrity of the program itself or to the
    well-being of insurance program enrollees. These Inspector General
    activities resulted in positive financial impact in excess of $71.8
    million in FY 1996.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0400-0-1-805      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............           6           6           6
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..           6           6           6
    12.1  Civilian personnel benefits.......           1           1           1
    23.1  Rental payments to GSA............           1           1           1
    25.2  Other services....................           1           1           1
    99.5  Below reporting threshold.........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............          10          10          10
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 24-0400-0-1-805      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......          95         103         103

    [[Page 978]]

        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......                       3           3
    ---------------------------------------------------------------------------

          Government Payment for Annuitants, Employees Health Benefits

        For payment of Government contributions with respect to retired
    employees, as authorized by chapter 89 of title 5, United States Code,
    and the Retired Federal Employees Health Benefits Act (74 Stat. 849), as
    amended, such sums as may be necessary. (Independent Agencies
    Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0206-0-1-551      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Government contribution for
            annuitants benefits (1959 law)..       3,824       4,023       4,333
    00.02 Government contribution for
            annuitants benefits (1960 act)..           6           6           5
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              13.0).........................       3,830       4,029       4,338
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................       1,024         941
    22.00 New budget authority (gross)......       3,746       3,087       4,338
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       4,770       4,028       4,338
    23.95 New obligations...................      -3,830      -4,029      -4,338
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....         941
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................       3,746
    40.05 Appropriation (indefinite)........                   3,087       4,338
                                               ---------   ---------  ----------
    43.00   Appropriation (total)...........       3,746       3,087       4,338
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       3,746       3,087       4,338
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation         102         220         234
    73.10 New obligations...................       3,830       4,029       4,338
    73.20 Total outlays (gross).............      -3,712      -4,014      -4,308
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         220         234         264
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority       2,586       2,853       4,074
    86.93 Outlays from current balances.....       1,126       1,161         234
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       3,712       4,014       4,308
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       3,746       3,087       4,338
    90.00 Outlays...........................       3,712       4,014       4,308
    ---------------------------------------------------------------------------

        This appropriation covers: (1) the Government's share of the cost of
    health insurance for 1,815,000 annuitants as defined in sections 8901
    and 8906 of title 5, United States Code; (2) the Government's share of
    the cost of health insurance for about 10,000 annuitants (who were
    retired when the Federal employees health benefits law became
    effective), as defined in the Retired Federal Employees Health Benefits
    Act of 1960; and (3) the Government's contribution for payment of
    administrative expenses incurred by the Office of Personnel Management
    in administration of the act.

        The budget authority for this account recognizes the amounts being
    remitted by the U.S. Postal Service (USPS) to finance a portion of its
    post-1971 annuitants' health benefit costs. As of the end of 1996, this
    group of USPS annuitants totalled 413,000 persons.

           Government Payment for Annuitants, Employee Life Insurance

        For payment of Government contributions with respect to employees
    retiring after December 31, 1989, as required by chapter 87 of title 5,
    United States Code, such sums as may be necessary. (Independent Agencies
    Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0500-0-1-602      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            25.2)...........................          25          29          32
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................           4
    22.00 New budget authority (gross)......          21          29          32
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          25          29          32
    23.95 New obligations...................         -25         -29         -32
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................          21          29          32
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           3           3           3
    73.10 New obligations...................          25          29          32
    73.20 Total outlays (gross).............         -24         -29         -32
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation           3           3           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          21          26          29
    86.93 Outlays from current balances.....           3           3           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          24          29          32
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          21          29          32
    90.00 Outlays...........................          24          29          32
    ---------------------------------------------------------------------------

        This appropriation finances the Government's share of premiums,
    which is one-third the cost, for Basic life insurance for annuitants
    retiring after December 31, 1989.

             Payment to Civil Service Retirement and Disability Fund

        For financing the unfunded liability of new and increased annuity
    benefits becoming effective on or after October 20, 1969, as authorized
    by 5 U.S.C. 8348, and annuities under special Acts to be credited to the
    Civil Service Retirement and Disability Fund, such sums as may be
    necessary: Provided, That annuities authorized by the Act of May 29,
    1944, as amended, and the Act of August 19, 1950, as amended (33 U.S.C.
    771-75), may hereafter be paid out of the Civil Service Retirement and
    Disability Fund. (Independent Agencies Appropriations Act, 1997.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0200-0-1-805      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Payment of annuities under special
            acts............................           1
    00.02 Payment of Government share of
            retirement costs................       7,751       8,052       8,336
    00.03 Transfers for interest on unfunded
            liability and payment of
            military service annuities......      12,207      12,788      12,867
    00.05 Spouse equity payment.............          53          52          52
    00.06 Transfer for payment of FERS
            supplemental liability..........          48
                                               ---------   ---------  ----------

    [[Page 979]]

    10.00   Total obligations...............      20,060      20,892      21,255
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......      20,060      20,892      21,255
    23.95 New obligations...................     -20,060     -20,892     -21,255
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.05   Appropriation (indefinite)......       7,752       8,052       8,336
          Permanent:

    60.05   Appropriation (indefinite)......      12,308      12,840      12,919
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      20,060      20,892      21,255
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................      20,060      20,892      21,255
    73.20 Total outlays (gross).............     -20,060     -20,892     -21,255
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority       7,752       8,052       8,336
    86.97 Outlays from new permanent
            authority.......................      12,308      12,840      12,919
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      20,060      20,892      21,255
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      20,060      20,892      21,255
    90.00 Outlays...........................      20,060      20,892      21,255
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1996 actual  1997 est.   1998 est.
    Enacted/requested:
      Budget Authority..................      20,060      20,892      21,255
      Outlays...........................      20,060      20,892      21,255
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                 -23
      Outlays...........................                                 -23
                                        ------------------------------------
    Total:
      Budget Authority..................      20,060      20,892      21,232
      Outlays...........................      20,060      20,892      21,232
                                        ====================================

        Payment of annuities under special acts.--These annuities are paid
    to persons who were employed on the construction of the Panama Canal or
    their widows and widows of former employees of the Lighthouse Service.

        Payment of Government share of retirement costs.--This payment
    amortizes the current year's costs of the static unfunded liability
    created since October 20, 1969 by any statute which authorizes new or
    liberalized benefits, an extension of retirement coverage, or pay
    increases.

        Transfers for interest on static unfunded liability and payment of
    military service annuities.--This transfer covers interest on the static
    unfunded liability and annuity disbursements attributable to military
    service.

        Payments for spouse equity.--This payment provides survivor
    annuities to eligible former spouses of annuitants who died between
    September 1978 and May 1986 and who did not elect survivor coverage.

        Transfers for payment of FERS supplemental liability.--This transfer
    covers annual amortization payments to finance supplemental (change in
    unfunded) liabilities for FERS.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0200-0-1-805      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    12.1  Civilian personnel benefits.......       7,752       8,052       8,336
    13.0  Benefits for former personnel.....      12,308      12,840      12,919
                                               ---------   ---------  ----------
    99.9    Total obligations...............      20,060      20,892      21,255
    ---------------------------------------------------------------------------

             Payment to Civil Service Retirement and Disability Fund

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0200-2-1-805      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.03 Transfers for interest on unfunded
            liability and payment of
            military service annuities......                                 -23
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              13.0).........................                                 -23
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 -23
    23.95 New obligations...................                                  23
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.05 Appropriation (indefinite)........                                 -23
                                                                             -23
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                                 -23
    73.20 Total outlays (gross).............                                  23
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................                                 -23
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 -23
    90.00 Outlays...........................                                 -23
    ---------------------------------------------------------------------------

        This schedule reflects the legislative proposal to delay for three
    months the 1998 cost-of-living adjustment.

    Intragovernmental funds:

                                 Revolving Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-4571-0-4-805      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Executive resources...............          16          18          20
    00.03 DOD testing.......................           7           8           8
    00.04 Employment service................          10          14          30
    00.05 Investigations....................          58          83          81
    00.06 Human resources systems...........          30          36          36
                                               ---------   ---------  ----------
    10.00   Total obligations...............         121         159         175
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.90 Unobligated balance available,
            start of year: Fund balance.....          38          61          61
    22.00 New budget authority (gross)......         144         159         175
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         182         220         236
    23.95 New obligations...................        -121        -159        -175
    24.90 Unobligated balance available, end
            of year: Fund balance...........          61          61          61
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............         144         159         175
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.90 Unpaid obligations, start of year:
            Obligated balance: Fund balance.         -49         -28         -28
    73.10 New obligations...................         121         159         175
    73.20 Total outlays (gross).............        -100        -159        -175
    74.90 Unpaid obligations, end of year:
            Obligated balance: Fund balance.         -28         -28         -28
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................         111         159         175
    86.98 Outlays from permanent balances...         -11
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         100         159         175
    ----------------------------------------------------------------------------

    [[Page 980]]

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -143        -158        -174
    88.40     Non-Federal sources...........          -1          -1          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -144        -159        -175
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         -43
    ---------------------------------------------------------------------------

        Workforce training.--In July 1995, the Office of Personnel
    Management (OPM) privatized its workforce training program.

        Executive resources.--OPM manages the President's quality awards
    program and conducts residential and non-residential programs for
    Federal executives and managers to improve the effectiveness and
    efficiency of Federal programs.

        DOD testing.--OPM conducts military entrance exams for the
    Department of Defense (DOD).

        Employment service.--OPM delivers employment information, examining
    services, automated staffing, and related human resource management
    services to Federal agencies nationwide.

        Investigations.--Through a contract with an employee owned private
    company, OPM conducts National Agency Check and Inquiry cases and
    background security investigations for Federal agencies on a
    reimbursable basis. To the extent that OPM is required to pay a fee to
    the Federal Bureau of Investigation for name and fingerprint checks,
    agencies are required to reimburse OPM for such fees through the
    revolving fund.

        Human resources systems.--OPM provides training management
    assistance to agencies in support of their human resource development
    programs.

                                 WORKLOAD COUNT

                                         1996 actual  1997 est.   1998 est.
    Participant training days...........      65,721      68,563      68,413
    Test sessions for DOD...............      43,831      44,100      44,100
    Employment inquiries................   7,235,199   7,750,000   8,500,000
    Automated referral lists............      11,300      17,300      20,000
    Background security investigations
    processed...........................      44,974      40,000      40,000
    National and special agency check
    and inquiry cases...................     244,823     225,000     225,000

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   24-4571-0-4-805    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        Workforce training:
    0111  Revenue...........................          22
    0112  Expense...........................         -34             -5
                                            ------------ --------------  ------------  -------------
    0119    Net income or loss, Workforce
              training......................         -12             -5
        Executive resources:
    0121  Revenue...........................          20             18            19             19
    0122  Expense...........................         -18            -16           -18            -19
                                            ------------ --------------  ------------  -------------
    0129    Net income or loss (-),
              Executive resources...........           2              2             1
        Department of Defense Testing
            Program:
    0131  Revenue...........................           8              7             8              8
    0132  Expense...........................          -7             -7            -8             -8
                                            ------------ --------------  ------------  -------------
    0139    Net income or loss (-), DOD
              testing program...............           1
        Employment service:
    0141  Revenue...........................           2             12            20             26
    0142  Expense...........................          -2            -10           -15            -30
                                            ------------ --------------  ------------  -------------
    0149    Net income or loss (-),
              Employment service............                          2             5             -4
        Investigations Program:
    0151  Revenue...........................          90             93            77             77
    0152  Expense...........................         -69            -68           -75            -80
                                            ------------ --------------  ------------  -------------
    0159    Net income or loss,
              Investigations program........          21             25             2             -3
        Human Resources Systems:
    0161  Revenue...........................          45             36            33             34
    0162  Expense...........................         -43            -34           -32            -33
                                            ------------ --------------  ------------  -------------
    0169    Net income or loss (-), Human
              resources systems.............           2              2             1              1
        Other Programs:
    0181  Revenue...........................           2
    0182  Expense...........................          -1
                                            ------------ --------------  ------------  -------------
    0189    Net income or loss (-), Other
              programs......................           1
                                            ------------ --------------  ------------  -------------
    0191  Total revenues....................         189            166           157            164
                                            ------------ --------------  ------------  -------------
    0192  Total expenses....................        -174           -140          -148           -170
                                            ------------ --------------  ------------  -------------
    0199  Net income or loss................          15             26             9             -6
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   24-4571-0-4-805    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         -11             32            33             33
            Investments in US securities:
    1106      Receivables, net..............          92             81            99            103
    1803  Other Federal assets: Property,
            plant and equipment, net........          21             28            12             13
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         102            141           144            149
        LIABILITIES:
    2101  Federal liabilities: Accounts
            payable.........................          13             13            14             18
          Non-Federal liabilities:

    2201    Accounts payable................           4              4             4              5
    2207    Other...........................         112            124           116            122
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         129            141           134            145
        NET POSITION:
    3100  Appropriated capital..............           7              7             7              7
    3300  Cumulative results of operations..         -34             -7             2             -4
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         -27                            9              3
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         102            141           143            148
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-4571-0-4-805      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          35          16          22
    11.3    Other than full-time permanent..           4           5           5
    11.5    Other personnel compensation....           2
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          41          21          27
    12.1  Civilian personnel benefits.......           8           4           5
    13.0  Benefits for former personnel.....           4           3
    21.0  Travel and transportation of
            persons.........................           4           3           3
    23.1  Rental payments to GSA............           5           5           6
    23.3  Communications, utilities, and
            miscellaneous charges...........           3           3           4
    24.0  Printing and reproduction.........                       1           1
    25.2  Other services....................          53         116         119
    26.0  Supplies and materials............           1           1           1
    31.0  Equipment.........................           1           2           7
    99.0  Subtotal, reimbursable obligations         120         159         173
    99.5  Below reporting threshold.........           1                       2
                                               ---------   ---------  ----------
    99.9    Total obligations...............         121         159         175
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 24-4571-0-4-805      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Total compensable workyears:
    2001  Full-time equivalent employment...         943         700         770
    2005  Full-time equivalent of overtime
            and holiday hours...............          28           7           7
    ---------------------------------------------------------------------------

    [[Page 981]]

                                   Trust Funds

                  Civil Service Retirement and Disability Fund

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8135-0-7-602      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............     362,765     389,409     417,789
        Receipts:
    02.01 Employee contributions............       4,211       4,097       4,041
    02.02 Agency contributions..............       7,880       8,186       8,412
    02.03 District of Columbia contributions          80          72          66
    02.04 Postal Service agency
            contributions...................       2,369       2,423       2,474
    02.05 Postal Service supplemental
            contributions...................       3,343       3,493       3,629
    02.06 Federal Financing Bank interest...       1,803       1,968       1,783
    02.07 Employee deposits, redeposits and
            other contributions.............         126         120         115
    02.08 Treasury interest.................      26,727      28,759      30,229
    02.09 General fund payment to the Civil
            Service Retirement and
            Disability fund.................      20,060      20,892      21,255
    02.10 Re-employed annuitants salary
            offset..........................          28          24          21
    02.11 Agency contributions, legislative
            proposal........................                                 621
    02.13 Treasury interest, legislative
            proposal........................                                  40
    02.15 General fund payment to the Civil
            Service Retirement and
            Disability fund, legislative
            proposal not subject to PAYGO...                                 -23
                                               ---------   ---------  ----------
    02.99   Total receipts..................      66,627      70,034      72,663
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...     429,392     459,443     490,452
        Appropriation:
    05.01 Civil service retirement and
            disability fund.................     -39,983     -41,654     -43,649
    05.02 Civil service retirement and
            disability fund, legislative
            proposal, subject to PAYGO......                                 274
    05.03 Civil service retirement and
            disability fund, legislative
            proposal, not subject to PAYGO..
                                               ---------   ---------  ----------
    05.99 Subtotal appropriation............     -39,983     -41,654     -43,375
    07.99 Total balance, end of year........     389,409     417,789     447,077
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8135-0-7-602      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Annuities.........................      39,454      41,134      43,138
    00.02 Refunds and death claims..........         425         417         419
    00.03 Annuities under special acts......           1           1
    00.04 Administration....................          97         104         100
                                               ---------   ---------  ----------
    10.00   Total obligations...............      39,977      41,656      43,657
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................           4          10           8
    22.00 New budget authority (gross)......      39,983      41,654      43,649
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      39,987      41,664      43,657
    23.95 New obligations...................     -39,977     -41,656     -43,657
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....          10           8
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.26   Appropriation (trust fund,
              definite).....................          81          85          81
          Permanent:

    60.27   Appropriation (trust fund,
              indefinite)...................      67,254      69,949      72,579
    60.45   Portion precluded from
              obligation....................     -27,352     -28,380     -29,011
                                               ---------   ---------  ----------
    63.00     Appropriation (total).........      39,902      41,569      43,568
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      39,983      41,654      43,649
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

            Obligated balance:
    72.40     Appropriation.................          37         -37           8
    72.41     U.S. Securities: Par value....       3,351       3,624       3,734
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............       3,388       3,587       3,742
    73.10 New obligations...................      39,977      41,656      43,657
    73.20 Total outlays (gross).............     -39,778     -41,501     -43,500
          Unpaid obligations, end of year:

            Obligated balance:
    74.40     Treasury balance..............         -37           8           8
    74.41     U.S. Securities: Par value....       3,624       3,734       3,891
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................       3,587       3,742       3,899
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          71          85          81
    86.93 Outlays from current balances.....           9           6           8
    86.97 Outlays from new permanent
            authority.......................      36,315      38,027      39,879
    86.98 Outlays from permanent balances...       3,383       3,383       3,532
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      39,778      41,501      43,500
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      39,983      41,654      43,649
    90.00 Outlays...........................      39,778      41,501      43,500
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1996 actual  1997 est.   1998 est.
    Enacted/requested:
      Budget Authority..................      39,983      41,654      43,649
      Outlays...........................      39,778      41,501      43,500
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................                                -274
      Outlays...........................                                -274
                                        ------------------------------------
    Total:
      Budget Authority..................      39,983      41,654      43,375
      Outlays...........................      39,778      41,501      43,226
                                        ====================================

        This fund: (1) pays annuities to retired employees or their
    survivors; (2) makes refunds to separated employees for amounts withheld
    and to beneficiaries of employees who died before retirement or before
    annuities equaled the amount withheld; and (3) pays expenses of the
    Office of Personnel Management and the Merit Systems Protection Board
    for administering the program. The fund covers two Federal civilian
    retirement systems: the Civil Service Retirement System (CSRS) and the
    Federal Employees' Retirement System (FERS).

        CSRS is basically a defined benefit plan, covering Federal employees
    hired prior to 1984. CSRS participants do not participate in the Social
    Security system. FERS is a three-tiered pension program that uses Social
    Security as a base, provides an additional basic benefit, and includes a
    thrift savings plan. FERS covers employees hired after 1983 and formerly
    CSRS-covered employees who elected to join FERS.

        The above schedule reflects the proposal to limit pay increases in
    1998.
                                         1996 actual  1997 est.   1998 est.
    Active employees....................   2,711,000   2,695,000   2,684,000
    Annuitants:
      Employees.........................   1,719,000   1,738,000   1,753,000
      Survivors.........................     614,000     628,000     641,000
                                        ------------------------------------
          Total, annuitants.............   2,333,000   2,366,000   2,394,000
                                        ====================================

                      Status of Funds (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8135-0-7-602      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Unexpended balance, start of year:
    0100  Treasury balance..................          37         -37           8
          U.S. Securities:

    0101    Par value.......................     366,126     393,049     421,537
    0102    Unrealized discounts............          -6          -6          -6
                                               ---------   ---------  ----------
    0199    Total balance, start of year....     366,157     393,006     421,539
        Cash income during the year:
          Governmental receipts:

    0200    Employee contributions, Civil
              Service Retirement and
              Disability Fund...............       4,211       4,097       4,041
    0202    District of Columbia
              contributions.................          80          72          66
    0203    Employee deposits, redeposits,
              and voluntary contributions...         126         120         115
          Intragovernmental transactions:

    0240    Agency contributions, Civil
              Service Retirement and
              Disability Fund...............       7,880       8,186       8,412
    0241    Agency Contributions, Civil
              Service Retirement and
              Disability Fund...............                                 621
    0242    Postal Service agency
              contributions, Civil Service
              Retirement and Disability Fund       2,369       2,423       2,474
    0243    Postal Service supplemental
              contributions, Civil Service
              Retirement and Disability Fund       3,343       3,493       3,629

    [[Page 982]]

    0244    Federal Financing Bank interest,
              Civil Service Retirement and
              Disability Fund...............       1,803       1,968       1,783
    0245    Treasury interest, Civil Service
              Retirement and Disability Fund      26,727      28,759      30,229
    0246    Treasury Interest, Civil Service
              Retirement and Disability Fund                                  40
    0247    General fund payment to the
              Civil Service Retirement and
              Disability Fund...............      20,060      20,892      21,255
    0248    General Fund payment to the
              Civil Service Retirement and
              Disability Fund...............                                 -23
    0250    Re-employed annuitant salary
              offset, Civil Service
              Retirement and Disability Fund          28          24          21
    0297  Income under present law..........      66,627      70,034      72,025
    0298  Income under proposed legislation.                                 638
                                               ---------   ---------  ----------
    0299    Total cash income...............      66,627      70,034      72,663
        Cash outgo during year:
    0501  Payment of claims to retired
            employees.......................     -33,082     -34,377     -35,898
    0502  Payment of alternative annuity
            refunds.........................         -32          -9         -10
    0503  Payment of claims to retired
            employees.......................                                 229
    0504  Payment to widows of former
            employes of the Lighthouse
            Service.........................          -1          -1
    0505  Payment of claims to survivor
            annuitants......................      -6,151      -6,587      -7,065
    0506  Lump sum payments to estates or
            beneficiaries of deceased
            annuitants and employees........        -110        -116        -122
    0507  Refunds to living separated
            employees.......................        -306        -301        -297
    0508  Administration....................         -96        -110        -108
    0509  Payment of claims to survivor
            annuitants......................                                  45
    0597  Outgo under present law (-).......     -39,778     -41,501     -43,500
    0598  Outgo under proposed legislation
            (-).............................                                 274
                                               ---------   ---------  ----------
    0599  Total cash outgo (-)..............     -39,778     -41,501     -43,226
        Unexpended balance, end of year:
    0700  Uninvested balance................         -37           8           8
          U.S. Securities:

    0701    Par value.......................     393,049     421,537     450,974
    0702    Unrealized discounts............          -6          -6          -6
                                               ---------   ---------  ----------
    0799    Total balance, end of year......     393,006     421,539     450,976
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8135-0-7-602      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................          97         104         100
    42.0  Insurance claims and indemnities..      39,455      41,135      43,138
    44.0  Refunds and death claims..........         425         417         419
                                               ---------   ---------  ----------
    99.9    Total obligations...............      39,977      41,656      43,657
    ---------------------------------------------------------------------------

                  Civil Service Retirement and Disability Fund

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8135-2-7-602      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.27 Appropriation (trust fund,
            indefinite).....................                                 647
    60.45 Portion precluded from obligation.                                -647
                                               ---------   ---------  ----------
    63.00   Appropriation (total)...........
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

                  Civil Service Retirement and Disability Fund

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8135-4-7-602      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Annuities.........................                                -274
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              42.0).........................                                -274
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                -274
    23.95 New obligations...................                                 274
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    60.27 Appropriation (trust fund,
            indefinite).....................                                 -10
    60.45 Portion precluded from obligation.                                -264
                                               ---------   ---------  ----------
    63.00   Appropriation (total)...........                                -274
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................                                -274
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                                -274
    73.20 Total outlays (gross).............                                 274
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................                                -274
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                -274
    90.00 Outlays...........................                                -274
    ---------------------------------------------------------------------------

        The above schedules reflect legislative proposals to delay for three
    months the 1998 cost-of-living adjustments and to increase by 1.51
    percent of pay agency contributions to the Civil Service Retirement and
    Disability Fund (CSRDF) on behalf of Civil Service Retirement System
    employees.

                          Employees Life Insurance Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8424-0-8-602      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Gross premium payments:

    00.01   Regular program.................       1,012       1,068         986
    00.02   Optional program................         620         655         607
    00.03   Beneficial program..............           3           3           3
                                               ---------   ---------  ----------
    00.91     Total gross payments..........       1,635       1,726       1,596
    02.01 Administration....................           1           1           1
                                               ---------   ---------  ----------
    10.00   Total reimbursable obligations
              (object class 25.2)...........       1,636       1,727       1,597
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
          Unobligated balance available, start of year:

    21.90   Treasury balance................         603         602         568
            U.S. Securities:
    21.91     Par value.....................      15,839      16,962      18,004
    21.92     Unrealized discounts..........        -215        -254        -200
                                               ---------   ---------  ----------
    21.99     Total unobligated balance,
                start of year...............      16,227      17,310      18,372
    22.00 New budget authority (gross)......       2,719       2,788       2,851
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      18,946      20,098      21,223
    23.95 New obligations...................      -1,636      -1,727      -1,597
          Unobligated balance available, end of year:

    24.90   Treasury balance................         602         568         591
            U.S. Securities:
    24.91     Par value.....................      16,962      18,004      19,235
    24.92     Unrealized discounts..........        -254        -200        -200
                                               ---------   ---------  ----------
    24.99   Total unobligated balance, end
              of year.......................      17,310      18,372      19,626
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...       2,732       2,798       2,839
    68.10   Change in orders on hand from
              Federal sources...............         -13         -10          12
                                               ---------   ---------  ----------

    [[Page 983]]

    68.90     Spending authority from
                offsetting collections
                (total).....................       2,719       2,788       2,851
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       2,719       2,788       2,851
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.90   Obligated balance: Fund balance.        -603        -586        -568
    72.95   Orders on hand from Federal
              sources.......................         735         722         712
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............         132         136         144
    73.10 New obligations...................       1,636       1,727       1,597
    73.20 Total outlays (gross).............      -1,632      -1,719      -1,608
          Unpaid obligations, end of year:

    74.90   Obligated balance: Fund balance.        -586        -568        -591
    74.95   Orders on hand from Federal
              sources.......................         722         712         724
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................         136         144         133
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................       1,632       1,719       1,608
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Agency contributions..........        -369        -392        -398
    88.20     Interest on U.S. securities...      -1,189      -1,210      -1,242
              Non-Federal sources:
    88.40       Regular program.............        -527        -534        -540
    88.40       Optional program............        -646        -661        -659
    88.40       Beneficial Program..........          -1          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -2,732      -2,798      -2,839
    88.95 Change in orders on hand from
            Federal sources.................          13          10         -12
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................      -1,100      -1,079      -1,231
    ---------------------------------------------------------------------------

        This fund finances payments to private insurance companies for
    Federal employees' group life insurance and expenses of the Office of
    Personnel Management in administering the program.

        Budget program.--The status of the basic (regular and optional) life
    insurance program on September 30 is as follows:

                                         1996 actual  1997 est.   1998 est.
    Life insurance in force (in billions
        of dollars):
      On active employees...............         440         442         444
      On retired employees..............          44          48          52
                                        ------------------------------------
          Total.........................         484         490         496
                                        ====================================
    Number of participants (in
        thousands):
      Active employees..................       2,434       2,408       2,382
      Annuitants........................       1,615       1,642       1,669
                                        ------------------------------------
          Total.........................       4,049       4,050       4,051
                                        ====================================

        Financing.--Non-Postal Service employees and all retirees under 65
    pay two-thirds of the premium costs for Basic coverage; agencies pay the
    remaining third. Optional and certain post-retirement Basic coverages
    are paid entirely by enrollees. The status of the reserves at the end of
    the year is as follows:

             Status of Reserves          1996 actual  1997 est.   1998 est.
    Held in reserve (in millions of
        dollars):
      Contingency reserve...............          15          15          15
      Beneficial association program
        reserve.........................           1           1           1
      U.S. Treasury reserve.............      16,962      18,004      19,251
                                        ------------------------------------
          Total reserves................      16,978      18,020      19,267
                                        ====================================

        Excess income from the program over benefit payments and other
    expenses is deposited in the Employees Life Insurance Fund. The
    operations of the insurer for the regular and optional programs are as
    follows:

          Operations of the Insurer      1996 actual  1997 est.   1998 est.
    Contingency reserve (in millions of
        dollars):
      Contingency reserve, start of year           0          15          15
    Income:
      Premiums received.................       1,611       1,731       1,740
      Interest..........................          20          22          24
                                        ------------------------------------
          Total income..................       1,631       1,753       1,764
                                        ====================================
    Outgo:
      Claims paid.......................       1,578       1,713       1,723
      Expenses..........................          38          40          41
                                        ------------------------------------
          Total outgo...................       1,616       1,753       1,764
                                        ====================================
      Contingency reserve, end of year..          15          15          15
                                        ====================================

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   24-8424-0-8-602    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................       2,580          2,719         2,788          2,851
    0102  Expense...........................      -1,598         -1,636        -1,727         -1,597
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............         982          1,083         1,061          1,254
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   24-8424-0-8-602    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....                         17
            Investments in US securities:
    1102      Treasury securities, par......      15,961         16,962        18,065         19,343
    1106      Receivables, net..............         398            467           437            449
    1801  Other Federal assets: Cash and
            other monetary assets...........           1              1             1              1
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................      16,360         17,447        18,503         19,793
        LIABILITIES:
          Non-Federal liabilities:

    2201    Accounts payable................         132            136           144            133
    2206    Pension and other actuarial
              liabilities...................      19,685         20,669        21,702         22,787
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............      19,817         20,805        21,846         22,920
        NET POSITION:
    3300  Cumulative results of operations..      -3,457         -3,358        -3,343         -3,127
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............      -3,457         -3,358        -3,343         -3,127
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position      16,360         17,447        18,503         19,793
    -----------------------------------------------------------------------------------------------

              Employees and Retired Employees Health Benefits Funds

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-9981-0-8-551      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Benefit payments..................      15,922      16,333      17,220
    00.02 Payments from OPM contingency
            reserve.........................         201         220         240
    00.03 Government payment for annuitants
            (1960 act)......................           6           6           5
    00.04 Administration....................          19          20          20
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              25.6).........................      16,148      16,579      17,485
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.91 Unobligated balance available,
            start of year: U.S. Securities:
            Par value.......................       6,309       6,059       5,861
    22.00 New budget authority (gross)......      15,897      16,380      17,429
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      22,206      22,439      23,290
    23.95 New obligations...................     -16,148     -16,579     -17,485
    24.91 Unobligated balance available, end
            of year: U.S. Securities: Par
            value...........................       6,059       5,861       5,805
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...      15,707      16,329      17,357
    68.10   Change in orders on hand from
              Federal sources...............         190          51          72
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................      15,897      16,380      17,429
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      15,897      16,380      17,429
    ----------------------------------------------------------------------------

    [[Page 984]]

        Change in unpaid obligations:
          Unpaid obligations, start of year:

            Obligated balance:
    72.90     Fund balance..................          16        -698          16
              U.S. Securities:
    72.91       Par value...................       1,581       2,124       1,302
    72.92       Unrealized discounts........         -93        -114        -114
    72.95   Orders on hand from Federal
              sources.......................         895       1,085       1,136
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............       2,399       2,397       2,340
    73.10 New obligations...................      16,148      16,579      17,485
    73.20 Total outlays (gross).............     -16,149     -16,635     -17,484
          Unpaid obligations, end of year:

            Obligated balance:
    74.90     Fund balance..................        -698          16          16
              U.S. Securities:
    74.91       Par value...................       2,124       1,302       1,232
    74.92       Unrealized discounts........        -114        -114        -114
    74.95   Orders on hand from Federal
              sources.......................       1,085       1,136       1,208
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................       2,397       2,340       2,342
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................      15,254      15,333      16,252
    86.98 Outlays from permanent balances...         895       1,302       1,232
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      16,149      16,635      17,484
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Federal sources:
    88.00       Agency contributions........      -6,751      -6,908      -7,286
    88.00       Government contributions for
                  annuitants................      -4,400      -4,643      -4,981
    88.20     Interest on U.S. securities...        -467        -514        -511
              Non-Federal sources:
    88.40       Employee salary withholdings      -2,166      -2,264      -2,423
    88.40       Annuity withholdings........      -1,850      -1,929      -2,089
    88.40       Contributions from D.C.
                  Government................         -73         -71         -67
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........     -15,707     -16,329     -17,357
    88.95 Change in orders on hand from
            Federal sources.................        -190         -51         -72
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         443         306         127
    ---------------------------------------------------------------------------

                      Status of Funds (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-9981-0-8-551      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Unexpended balance, start of year:
    0100  Treasury balance..................          16        -698          16
          U.S. Securities:

    0101    Par value.......................       7,890       8,183       7,163
    0102    Unrealized discounts............         -93        -114        -114
                                               ---------   ---------  ----------
    0199    Total balance, start of year....       7,813       7,371       7,065
        Cash income during the year:
          Offsetting collections:

    0280    Contributions from Employing
              Agencies......................       4,297       4,478       4,729
    0281    Contributions from Postal
              Service for Active Employees..       2,454       2,430       2,557
    0282    Contributions from Postal
              Service for Annuitants........         680         622         664
            Offsetting collections:
    0283      Government Payment for
                Annuitant Health Benefits...       3,712       4,014       4,308
    0283      Government Payment for
                Annuitants, Other...........           7           8           8
    0284    Interest Earned.................         467         514         511
    0285    Contributions from DC Government          73          71          67
    0286    Contributions from Active
              Employees.....................       2,166       2,264       2,423
    0287    Contributions from Annuitants...       1,850       1,929       2,089
                                               ---------   ---------  ----------
    0299    Total cash income...............      15,706      16,330      17,356
        Cash outgo during year:
    0501  Benefit Payments..................     -15,930     -16,395     -17,224
    0502  Payments to Carriers from OPM
            Contingency Reserve.............        -201        -220        -240
    0503  Administration....................         -19         -20         -20
                                               ---------   ---------  ----------
    0599  Total cash outgo (-)..............     -16,150     -16,635     -17,484
        Unexpended balance, end of year:
    0700  Uninvested balance................        -698          16          16
          U.S. Securities:

    0701    Par value.......................       8,183       7,163       7,036
    0702    Unrealized discounts............        -114        -114        -114
                                               ---------   ---------  ----------
    0799    Total balance, end of year......       7,371       7,065       6,938
    ---------------------------------------------------------------------------

        This display combines the Federal Employees Health Benefits (FEHB)
    fund and the Retired Employees Health Benefit (REHB) fund.

        The FEHB fund provides for the cost of health benefits for: (1)
    active employees; (2) employees who retired after June 1960, or their
    survivors; (3) those annuitants transferred from the REHB program as
    authorized by Public Law 93-246; and (4) the related expenses of the
    Office of Personnel Management (OPM) in administering the program.

        The REHB fund, created by the Retired Employees Health Benefits Act
    of 1960, provides for: (1) the cost of health benefits for retired
    employees and survivors who enroll in a Government-sponsored uniform
    health benefits plan; (2) the contribution to retired employees and
    survivors who retain or purchase private health insurance; and (3)
    expenses of OPM in administering the program.

        Budget program.--The balance of the EHB fund is available for
    payments without fiscal year limitation. Numbers of participants at the
    end of each fiscal year are as follows:

                                         1996 actual  1997 est.   1998 est.
    Active employees....................   2,344,000   2,344,000   2,344,000
    Annuitants..........................   1,815,000   1,844,000   1,869,000
                                        ------------------------------------
        Total...........................   4,159,000   4,188,000   4,213,000
                                        ====================================

        In determining a biweekly subscription rate to cover program costs,
    one percent is added for administrative expense and three percent is
    added for a contingency reserve held by OPM for each carrier. OPM is
    authorized to transfer unused administrative reserve funds to the
    contingency reserve.

        In accordance with P.L. 103-66, this schedule includes the following
    adjustments: (1) the ``Phantom Big 6'' formula for determining the
    maximum Government contribution toward FEHB premiums was extended
    through the 1996 contract year; (2) in contract years 1997 and 1998, the
    average premium for the indemnity plan in the ``Phantom Big 6'' formula
    will be modified to account for the average premium increase in the
    remaining ``Big 5'' plans minus one percentage point; (3) beginning in
    the 1999 contract year, the maximum government contribution will be 60
    percent of the average of the premiums for the remaining ``Big 5''
    plans; (4) Medicare Part B fee limits have been applied to all FEHB
    annuitants; and (5) the Postal Service will make additional payments of
    $116 million per year for fiscal years 1996, 1997, and 1998 to cover the
    cost of past retiree health benefits.

        The REHB fund is available without fiscal year limitation. The
    amounts contributed by the Government are paid into the fund from annual
    appropriations. The number of participants at the end of each fiscal
    year are as follows:

                                         1996 actual  1997 est.   1998 est.
    Uniform plan........................       2,120       1,500       1,000
    Private plans.......................       7,512       6,000       4,500
                                        ------------------------------------
        Total...........................       9,632       7,500       5,500
                                        ====================================

        Financing.--The funds are financed by: (1) withholdings from active
    employees and annuitants; (2) agency contributions for active employees,
    appropriated to agencies; (3) Government contributions for annuitants
    appropriated to OPM; and (4) contributions made by the United States
    Postal Service in accordance with the provisions of Public Law 101-508
    and Public Law 103-66.

    [[Page 985]]

        Operating results.--Funds made available to carriers but not used to
    pay claims in the current period are carried forward as special reserves
    for use in subsequent periods.

        OPM maintains a contingency reserve, funded by employee and
    Government contributions, that may be used to defray future cost
    increases or provide increased benefits. OPM makes payments to carriers
    from this reserve whenever carrier-held reserves fall below levels
    prescribed by OPM regulations or when carriers can demonstrate good
    cause such as unexpected claims experience or variations from expected
    community rates.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   24-9981-0-8-551    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................      16,178         15,875        16,504         17,543
    0102  Expense...........................     -15,886        -15,804       -16,449        -17,499
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............         292             71            55             44
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   24-9981-0-8-551    1995 actual    1996 actual     1997 est.      1998 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          16           -698            16             16
            Investments in US securities:
    1102      Treasury securities, par......       7,890          8,183         7,163          7,036
    1106      Receivables, net..............         895          1,085         1,137          1,208
    1801  Other Federal assets: Original
            Discount........................         -93           -114          -114           -114
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       8,708          8,456         8,202          8,146
        LIABILITIES:
    2101  Federal liabilities: Accounts
            payable.........................         119             83            85             89
          Non-Federal liabilities:

    2201    Accounts payable................       2,279          2,314         2,256          2,253
    2207    Other...........................           1
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       2,399          2,397         2,341          2,342
        NET POSITION:
    3300  Cumulative results of operations..       6,309          6,059         5,861          5,805
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............       6,309          6,059         5,861          5,805
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       8,708          8,456         8,202          8,147
    -----------------------------------------------------------------------------------------------

                              [GENERAL PROVISIONS]

        [Sec. 421. The first sentence of section 1304(e)(1) of title 5,
    United States Code, is amended by inserting after ``basis'' the
    following ``, including personnel management services performed at the
    request of individual agencies (which would otherwise be the
    responsibility of such agencies), or at the request of nonappropriated
    fund instrumentalities''.]
        [Sec. 422. Paragraph (1) of section 8906(e) of title 5, United
    States Code, is amended--
            (1) by striking the last sentence of that paragraph and
        redesignating the remainder of that paragraph as (1)(A);
            (2) by adding at the end of paragraph (1)(A) (as so designated)
        the following:
                ``(B) During each pay period in which an enrollment
            continues under subparagraph (A)--
                    ``(i) employee and Government contributions required by
                this section shall be paid on a current basis; and
                    ``(ii) if necessary, the head of the employing agency
                shall approve advance payment, recoverable in the same
                manner as under section 5524a(c), of a portion of basic pay
                sufficient to pay current employee contributions.
                ``(C) Each agency shall establish procedures for accepting
            direct payments of employee contributions for the purposes of
            this paragraph.''.] (Independent Agencies Appropriations Act,
            1997.)