[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.)