    [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 1999

    [[Page 10001]]

                         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 No. 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; $85,350,000; and in
    addition $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
    printed materials, for the retirement and insurance programs: 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 through
    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 No. 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 No.
    11183 of October 3, 1964, may, during the fiscal year ending September
    30, [1998] 1999, 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, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0100-0-1-805      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Merit systems oversight and
              effectiveness.................          16          17          17
    00.02   Employment......................          33          31          31
    00.03   Retirement and insurance........         104         106         110
    00.04   Workforce compensation and
              performance...................           6           7           7
    00.05   Investigations..................           3           3           3
    00.06   Workforce relations.............           4           4           4
    00.07   Executive resources.............           3           3           3
    00.08   Administrative services.........          15          13          13
    00.09   Executive and other services....          15          15          15
                                               ---------   ---------  ----------
    00.91     Total direct program..........         199         199         203
    09.01 Reimbursable program..............           8           9           9
                                               ---------   ---------  ----------
    10.00   Total obligations...............         207         208         212
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......                       6
    22.00 New budget authority (gross)......         213         208         212
    22.30 Unobligated balance expiring......          -1          -6
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         212         208         212
    23.95 New obligations...................        -207        -208        -212
    24.40 Unobligated balance available, end
            of year: Uninvested.............           6
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

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

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).         126         123         127
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         213         208         212
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...          33          37          37
    73.10 New obligations...................         207         208         212
    73.20 Total outlays (gross).............        -202        -208        -212
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...          37          37          37
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          69          74          74
    86.93 Outlays from current balances.....           7          11          11
    86.97 Outlays from new permanent
            authority.......................         126         123         127
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         202         208         212
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -126        -123        -127
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          87          85          85
    90.00 Outlays...........................          76          85          85
    ---------------------------------------------------------------------------

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

        Merit systems oversight and effectiveness.--This activity includes:
    (a) direct oversight of human resources management (HRM) in Federal
    agencies through various methods, including onsite 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 and acting as a clearinghouse for best practices;
    (e) testing and evaluating innovative Federal HRM practices and systems,
    including demonstration projects under 5 U.S.C. Chapter 47; (f)
    providing readily accessible primary source data on Federal workforce
    information; and (g) 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
    workforce information reports have on their clients: the Federal human
    resources management community and Federal employees. As a part of each
    review or report on human resources management at Federal agencies,
    client feedback is solicited on the importance and quality of written
    reports, and on the professionalism, usefulness and overall quality of
    the evaluation effort. Regular reviews are conducted of the quality of
    data used in our reviews and reports. Records of at least 97% of employ-

    [[Page 10002]]

    ees per agency that are input into the Central Personnel Data File are
    correct on all core elements. The Merit System Principles Questionnaire
    that OPM uses to collect employee perceptions of agency observance of
    each of the nine merit principles established by law is content valid
    and reliable. Feedback on agency oversight indicates 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 are administered as part of agency oversight
    reviews to measure employee perceptions of agency observance of each of
    the nine merit 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 articulated in the merit
    system principles. The questionnaire information is shared with Federal
    agencies and used to work with them to continuously improve the quality
    of their human resources management.

        Employment service.--The Employment Service provides leadership and
    manages the merit-based employment system for the Federal government. In
    partnership with agencies, the Service provides a high-quality, diverse
    workforce through a mix of policy direction, technical assistance, and
    reimbursable services in the following areas: employment information;
    assessment; merit-based staffing services; veterans' preference;
    workforce diversity; automated human resources management (HRM) systems;
    workforce restructuring and placement, and organizational analysis and
    improvement. These operations are carried out through a network of
    Service Centers throughout the country.

        Program performance.--The Employment Service establishes annual
    performance goals and objectives designed to accomplish long-term goals
    identified in OPM's Strategic Plan. Progress is monitored through a mix
    of outcome and output measures, including results of oversight reviews,
    qualitative feedback on usefulness of policies and information
    processes, customer satisfaction with services, cost-comparison
    analyses, workload accomplishment data, and quality and timeliness
    information, (Some of these measures were introduced in 1998.)

        The Employment Service provided information to over ten million
    people in 1997 through a nationwide system available 24 hours a day, 7
    days a week, by telephone, fax, or personal computer, and touch screen
    kiosks. USAJOBS, the employment information website, averages more than
    25,000 visits daily. Customers satisfaction with all systems increased
    from 78.7% to 82.4% in 1997.

        The Employment Service conducts a recertification and training
    program for all agency Delegated Examining Units to ensure that agencies
    are carrying out their delegated responsibilities in accordance with law
    and regulation, and accomplished all scheduled recertifications. In
    1997, they also made quality and timeliness improvements in two
    important specialized Federal employment programs, the Presidential
    Management Intern (PMI) Program and the Administrative Law Judges (ALJ),
    through increased automation and process reengineering.

        In the area of policy leadership, the Employment Service proposed
    more flexible regulations regarding merit promotion and non-permanent
    employment; eliminating approximately 70 redundant excepted appointment
    authorities; published the VetGuide (and posted it on the Internet) to
    help agencies better comply with Veterans' Preference requirements and
    to provide better information to the public; began publishing annual
    statistical profiles on all minorities, women, and veterans in the
    Federal government to help agencies target their recruitment and career
    development plans; effectively assisted in the governmentwide downsizing
    effort in a way that has minimized the impact on individual employees,
    assisting over 11,000 employees to find new Federal positions in 1996
    (most recent data available).

        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 processing
    times for interim annuity payments from 5 days in 1996 to 4.6 days,
    averaging less than 3 days during the last half of the year, and
    authorizing 30 percent within one day of receiving the retirement
    applications at OPM. The time to take final action on an annuity account
    dropped from 42 days in 1996 to 39 days in 1997, while error rates
    remained constant at 6 percent. Customer satisfaction with claims
    processing remained at prior year levels, with 90 percent of survey
    respondents reporting that they were either ``generally'' or ``very
    satisfied'' with the service they received.

        Annuitant Express, featuring Interactive Voice Response (IVR)
    technology and toll-free telephone service, was expanded to cover a
    wider range of allotments and withholdings. Use of the system increased
    by 60 percent. In a further effort to increase the amount of business it
    conducts by telephone, OPM extended 1-800 service to all of its call
    centers, added more customer service representatives and phone lines in
    its Washington, D.C., Retirement Information Office, and opened a new
    Teleservice Center in Pittsburgh, PA. These improvements resulted in a
    35 percent reduction in caller hold times, and a 22 percent drop in lost
    calls. More importantly, customers' ability to get through to OPM by
    telephone improved by 38 percent, while the number of callers getting
    through on their first attempt increased by 34 percent. Overall,
    customer satisfaction with the courtesy, clarity and timeliness of
    telephone services increased by 8 percent.

        In the health insurance area, OPM reduced processing times for
    disputed claims from 67 days in 1996 to 42 days in 1997. Ninety-two
    percent of all disputed claims were processed within the target of 60
    days, and the balance of unprocessed work reached an historically low
    level.

        Finally, OPM make significant progress in using new technologies to
    interact with its customers. It added state-of-the-art pages to its
    Website containing comprehensive information about plans participating
    in the Federal Employees' Health Benefits Program Contract Year 1998
    Open Season. It also began offering Benefits Center, an interactive CD-
    ROM product that covers a wide variety of retirement, health and life
    insurance topics, including Social Security and Thrift Savings Plan
    benefits.

        Workforce compensation and performance.--This activity includes: (a)
    developing and implementing pay and leave administration policy and
    evaluating the effectiveness of alternative compensation systems; (b)
    developing classification policies and systems and designing flexible
    alternatives to current systems; and (c) developing governmentwide
    policy concerning performance management.

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

        Workforce relations.--This activity includes: (a) developing and
    administering policies, regulations and guidelines on employee
    relations, including adverse and performance-based ac-

    [[Page 10003]]

    tions and violence in the workplace; (b) facilitating and supporting
    Federal work and family programs; (c) providing leadership and policy
    guidance in support of agency human resource development programs and
    training; and (d) providing guidance and assistance to Federal agencies
    on labor-management relations and partnership, including managing the
    activities of the National Partnership Council on behalf of the Council
    Chair.

        Program performance.--OPM's workforce relations performance measures
    are designed to determine the value-added of OPM's policy leadership and
    guidance on employee and labor-management relations issues, work and
    family programs, and human resources development and training. In 1998
    several key measures were developed to evaluate the impact of OPM's
    policy leadership and technical assistance on the human resources
    management community. Prior to conferences, seminars and workshops,
    stakeholders were surveyed to identify principal areas of interest, and
    feedback was used to establish agendas. Following each session, feedback
    was obtained through structured questionnaires to determine strengths
    and weaknesses of each presentation. Programs were revised accordingly.
    At regular intervals, surveys were conducted of readers of published
    materials, both hard-copy and electronic, to ensure excellent customer
    service, timely policy guidance, and to measure the relative effect of
    OPM's guidance and assistance. Additionally, OPM developed an agency-
    wide customer survey that will provide useful information on workforce
    relations programs.

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

        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.

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

        Reimbursable programs.--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      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          91          94          97
    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         105
    12.1    Civilian personnel benefits.....          21          22          23
    21.0    Travel and transportation of
              persons.......................           2           2           2
    23.1    Rental payments to GSA..........          21          21          21
    23.3    Communications, utilities, and
              miscellaneous charges.........          14          13          12
    24.0    Printing and reproduction.......           3           3           3
    25.1    Advisory and assistance services           2           1           5
    25.2    Other services..................          20          14          13
    26.0    Supplies and materials..........           2           2           2
    31.0    Equipment.......................          14          18          16
    32.0    Land and structures.............           1           1           1
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         199         199         203
    99.0  Reimbursable obligations..........           8           9           9
                                               ---------   ---------  ----------
    99.9    Total obligations...............         207         208         212
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 24-0100-0-1-805      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......       2,210       2,099       2,099
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......          92         115         115
    ---------------------------------------------------------------------------

                           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]
    $9,145,000 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, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0400-0-1-805      1997 actual   1998 est.   1999 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...................           1           1           1
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           9           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: Uninvested...           1
    73.10 New obligations...................          10          10          10
    73.20 Total outlays (gross).............         -10         -10         -10
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           1           1           1
    86.97 Outlays from new permanent
            authority.......................           9           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.........          -9          -9          -9
    ----------------------------------------------------------------------------

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

        This appropriation provides agency-wide audit, investigative,
    evaluation, inspection, and administrative sanction functions to
    identify management and administrative deficiencies that 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 inspec-

    [[Page 10004]]

    tion 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 $87
    million in 1997. This request includes an additional $0.5 million above
    the approved 1998 resource level to reduce the insurance audits cycles.
    The impact of the additional funds will be an increased positive
    financial impact for the OPM administered trust funds.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0400-0-1-805      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           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
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..           9           9           9
    99.5  Below reporting threshold.........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total obligations...............          10          10          10
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 24-0400-0-1-805      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......          94         100         105
        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, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0206-0-1-551      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Government contribution for
            annuitants benefits (1959 law)..       3,929       4,143       4,628
    00.02 Government contribution for
            annuitants benefits (1960 act)..           5           4           4
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              13.0).........................       3,934       4,147       4,632
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......         941          94
    22.00 New budget authority (gross)......       3,087       4,053       4,632
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       4,028       4,147       4,632
    23.95 New obligations...................      -3,934      -4,147      -4,632
    24.40 Unobligated balance available, end
            of year: Uninvested.............          94
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.05 Appropriation (indefinite)........       3,087       4,053       4,632
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...         220         182         198
    73.10 New obligations...................       3,934       4,147       4,632
    73.20 Total outlays (gross).............      -3,972      -4,131      -4,480
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...         182         198         350
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority       2,811       3,854       4,282
    86.93 Outlays from current balances.....       1,161         276         198
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       3,972       4,131       4,480
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       3,087       4,053       4,632
    90.00 Outlays...........................       3,972       4,131       4,480
    ---------------------------------------------------------------------------

        This appropriation covers: (1) the Government's share of the cost of
    health insurance for 1,846,000 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 8,000 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 1997, this
    group of USPS annuitants totalled 415,000 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, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0500-0-1-602      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            25.2)...........................          28          32          35
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......                       1
    22.00 New budget authority (gross)......          28          32          35
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          28          33          35
    23.95 New obligations...................         -28         -32         -35
    24.40 Unobligated balance available, end
            of year: Uninvested.............           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................          28          32          35
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Uninvested...           3           3           3
    73.10 New obligations...................          28          32          35
    73.20 Total outlays (gross).............         -28         -32         -35
    74.40 Unpaid obligations, end of year:
            Obligated balance: Uninvested...           3           3           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          25          29          32
    86.93 Outlays from current balances.....           3           3           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          28          32          35
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          28          32          35
    90.00 Outlays...........................          28          32          35
    ---------------------------------------------------------------------------

    [[Page 10005]]

        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, and who are less than 65 years old.

             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.
    771-775), may hereafter be paid out of the Civil Service Retirement and
    Disability Fund. (Independent Agencies Appropriations Act, 1998.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0200-0-1-805      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Payment of Government share of
            retirement costs................       8,085       8,367       8,682
    00.03 Transfers for interest on unfunded
            liability and payment of
            military service annuities......      13,113      12,765      12,746
    00.05 Spouse equity payment.............          56          56          56
                                               ---------   ---------  ----------
    10.00   Total obligations...............      21,254      21,188      21,484
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......      21,254      21,188      21,484
    23.95 New obligations...................     -21,254     -21,188     -21,484
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.05   Appropriation (indefinite)......       8,085       8,367       8,682
          Permanent:

    60.05   Appropriation (indefinite)......      13,169      12,821      12,802
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      21,254      21,188      21,484
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................      21,254      21,188      21,484
    73.20 Total outlays (gross).............     -21,254     -21,188     -21,484
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority       8,085       8,367       8,682
    86.97 Outlays from new permanent
            authority.......................      13,169      12,821      12,802
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      21,254      21,188      21,484
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      21,254      21,188      21,484
    90.00 Outlays...........................      21,254      21,188      21,484
    ---------------------------------------------------------------------------

        Payment of Government share of retirement costs.--This payment
    amortizes increases in 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.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0200-0-1-805      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    12.1  Civilian personnel benefits.......       8,085       8,367       8,682
    13.0  Benefits for former personnel.....      13,169      12,821      12,802
                                               ---------   ---------  ----------
    99.9    Total obligations...............      21,254      21,188      21,484
    ---------------------------------------------------------------------------

    Intragovernmental funds:

                                 Revolving Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-4571-0-4-805      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 DOD testing.......................           8           8           8
    09.02 Employment service................          17          30          31
    09.03 Invesigations.....................          97          81          82
    09.04 Workforce relations...............          35          35          36
    09.05 Executive resources...............          19          21          22
                                               ---------   ---------  ----------
    10.00   Total obligations...............         176         175         179
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          61          52          52
    22.00 New budget authority (gross)......         167         175         179
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         228         227         232
    23.95 New obligations...................        -176        -175        -179
    24.40 Unobligated balance available, end
            of year: Uninvested.............          52          52          52
    ----------------------------------------------------------------------------

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

    68.00   Offsetting collections (cash)...         123         175         179
    68.10   Change in orders on hand from
              Federal sources...............          44
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................         167         175         179
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         167         175         179
    ----------------------------------------------------------------------------

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

    72.40   Obligated balance: Uninvested...         -28         -18         -18
    72.95   Orders on hand from Federal
              sources.......................         184         228         228
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............         156         210         210
    73.10 New obligations...................         176         175         179
    73.20 Total outlays (gross).............        -122        -175        -179
          Unpaid obligations, end of year:

    74.40   Obligated balance: Uninvested...         -18         -18         -18
    74.95   Orders on hand from Federal
              sources.......................         228         228         228
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................         210         210         210
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................         122         175         179
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -122        -174        -178
    88.40     Non-Federal sources...........          -1          -1          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -123        -175        -179
    88.95 Change in orders on hand from
            Federal sources.................         -44
    ----------------------------------------------------------------------------

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

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

        DOD testing.--OPM conducts military entrance exams for the
    Department of Defense (DOD). The Employment Service continued to provide
    testing for the Department of Defense, conducting approximately 13,400
    student test sessions and 30,700 enlistment sessions.

        Employment service.--OPM delivers employment information, examining
    services, automated staffing, and related human resource management
    services to Federal agencies nationwide. Federal agencies contracted
    with the Employment Service to conduct examinations of job applicants.
    In 1997, Employment Service delivered 16,054 certificates of eligible
    candidates to these agencies.

    [[Page 10006]]

        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.

        Workforce relations.--OPM provides training management assistance
    (TMA) to Federal agencies in support of their human resource development
    programs by designing and producing training products through
    partnership with Federal agencies and private sector firms specializing
    in instructional systems.

        Program performance.--The TMA program performance measures are
    designed to determine value added to Federal agencies through human
    resources management assistance utilizing an instructional systems
    design approach. In 1998, several measures were implemented to determine
    the cost-effectiveness of OPM's services to enhance Federal human
    resources. These included workload measures such as the dollar amount of
    new and added funding for TMA projects; business well-being indicators
    such as the percent of income above contractor invoices; and customer
    satisfaction measures to better define the benefits of TMA services.

        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.

                                 WORKLOAD COUNT

                                         1997 actual  1998 est.   1999 est.
    Participant training days...........      73,851      71,597      78,309
    Background security investigations
    processed...........................      53,080      42,500      42,500
    National and special agency check
    and inquiry cases...................     245,813     253,000     253,000

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   24-4571-0-4-805    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        Department of Defense testing
            program:
    0111  Revenue...........................           7              8             8              8
    0112  Expense...........................          -7             -8            -8             -8
                                            ------------ --------------  ------------  -------------
    0119    Net income or loss, Workforce
              training......................
        Employment service:
    0121  Revenue...........................          12             21            28             30
    0122  Expense...........................         -10            -15           -28            -30
                                            ------------ --------------  ------------  -------------
    0129    Net income or loss (-),
              Executive resources...........           2              6
        Investigations:
    0131  Revenue...........................          93            106            84             84
    0132  Expense...........................         -68           -105           -84            -84
                                            ------------ --------------  ------------  -------------
    0139    Net income or loss (-), DOD
              testing program...............          25              1
        Workforce relations:
    0141  Revenue...........................          36             38            35             37
    0142  Expense...........................         -34            -36           -34            -35
                                            ------------ --------------  ------------  -------------
    0149    Net income or loss (-),
              Employment service............           2              2             1              2
        Executive resources:
    0151  Revenue...........................          18             20            20             21
    0152  Expense...........................         -16            -18           -20            -21
                                            ------------ --------------  ------------  -------------
    0159    Net income or loss,
              Investigations program........           2              2
        Workforce training:
    0161  Revenue...........................                         -1
    0162  Expense...........................          -5
                                            ------------ --------------  ------------  -------------
    0169    Net income or loss (-), Human
              resources systems.............          -5             -1
                                            ------------ --------------  ------------  -------------
    0189  Net income or loss (-), Other
            programs........................
                                            ------------ --------------  ------------  -------------
    0191  Total revenues....................         166            192           175            180
                                            ------------ --------------  ------------  -------------
    0192  Total expenses....................        -140           -182          -174           -178
                                            ------------ --------------  ------------  -------------
    0199  Net income or loss................          26             10             1              2
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   24-4571-0-4-805    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          32             34            34             34
            Investments in US securities:
    1106      Receivables, net..............          81            124           111            113
    1803  Other Federal assets: Property,
            plant and equipment, net........          28              8             9              8
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         141            166           154            155
        LIABILITIES:
    2101  Federal liabilities: Accounts
            payable.........................          13             16            13             13
          Non-Federal liabilities:

    2201    Accounts payable................           4              4             4              4
    2207    Other...........................         124            129           129            129
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         141            149           146            146
        NET POSITION:
    3100  Appropriated capital..............           7              7             7              7
    3300  Cumulative results of operations..          -7             10             1              2
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............                         17             8              9
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         141            166           154            155
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-4571-0-4-805      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          14          19          20
    11.3    Other than full-time permanent..           6           6           7
    11.5    Other personnel compensation....           1           1           1
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          21          26          28
    12.1  Civilian personnel benefits.......           4           5           5
    13.0  Benefits for former personnel.....           3
    21.0  Travel and transportation of
            persons.........................           3           4           4
    23.1  Rental payments to GSA............           5           7           7
    23.3  Communications, utilities, and
            miscellaneous charges...........           4          12          12
    24.0  Printing and reproduction.........                       1           1
    25.2  Other services....................         131         113         116
    26.0  Supplies and materials............           2           2           2
    31.0  Equipment.........................           3           5           4
                                               ---------   ---------  ----------
    99.9    Total obligations...............         176         175         179
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 24-4571-0-4-805      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    2001  Total compensable workyears: Full-
            time equivalent employment......         425         688         683
    ---------------------------------------------------------------------------

                                   Trust Funds

                  Civil Service Retirement and Disability Fund

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8135-0-7-602      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............     389,399     417,957     447,271
        Receipts:
    02.01 Employee contributions............       4,168       4,074       4,076
    02.02 Agency contributions..............       8,168       8,678       8,846
    02.03 District of Columbia contributions          74          77          71
    02.04 Postal Service agency
            contributions...................       2,483       2,468       2,521
    02.05 Postal Service supplemental
            contributions...................       3,444       3,600       3,515
    02.06 Federal Financing Bank interest...       1,937       1,783       1,691
    02.07 Employee deposits, redeposits and
            other contributions.............         127         124         121
    02.08 Treasury interest.................      28,547      30,673      31,861
    02.09 General fund payment to the Civil
            Service Retirement and
            Disability fund.................      21,254      21,188      21,484

    [[Page 10007]]

    02.10 Re-employed annuitants salary
            offset..........................          27          26          25
    02.11 Employee contributions,
            supplemental request............                       6         167
    02.12 Agency contributions, supplemental
            request.........................                      -3         -71
    02.13 Postal Service agency
            contributions, supplemental
            request.........................                                 -22
    02.14 Treasury interest, supplemental
            request.........................                                   3
                                               ---------   ---------  ----------
    02.99   Total receipts..................      70,229      72,694      74,288
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...     459,628     490,651     521,559
        Appropriation:
    05.01 Civil service retirement and
            disability fund.................     -41,671     -43,380     -45,270
                                               ---------   ---------  ----------
    05.99 Subtotal appropriation............     -41,671     -43,380     -45,270
    07.99 Total balance, end of year........     417,957     447,271     476,289
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8135-0-7-602      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Annuities.........................      41,156      42,892      44,779
    00.02 Refunds and death claims..........         412         384         380
    00.04 Administration....................         103         104         111
                                               ---------   ---------  ----------
    10.00   Total obligations...............      41,671      43,380      45,270
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested.......          10          10          10
    22.00 New budget authority (gross)......      41,671      43,380      45,270
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      41,681      43,390      45,280
    23.95 New obligations...................     -41,671     -43,380     -45,270
    24.40 Unobligated balance available, end
            of year: Uninvested.............          10          10          10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.26   Appropriation (trust fund,
              definite).....................          85          83          83
          Permanent:

    60.27   Appropriation (trust fund,
              indefinite)...................      70,143      72,622      74,142
    60.45   Portion precluded from
              obligation....................     -28,557     -29,325     -28,955
                                               ---------   ---------  ----------
    63.00     Appropriation (total).........      41,586      43,297      45,187
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      41,671      43,380      45,270
    ----------------------------------------------------------------------------

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

            Obligated balance:
    72.40     Uninvested....................         -37          16           8
    72.41     U.S. Securities: Par value....       3,634       3,529       3,683
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............       3,597       3,545       3,691
    73.10 New obligations...................      41,671      43,380      45,270
    73.20 Total outlays (gross).............     -41,722     -43,234     -45,116
          Unpaid obligations, end of year:

            Obligated balance:
    74.40     Uninvested....................          16           8           8
    74.41     U.S. Securities: Par value....       3,529       3,683       3,837
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................       3,545       3,691       3,845
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority          85          83          83
    86.93 Outlays from current balances.....           6           4           6
    86.97 Outlays from new permanent
            authority.......................      38,043      39,615      41,357
    86.98 Outlays from permanent balances...       3,588       3,532       3,669
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      41,722      43,234      45,116
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      41,671      43,380      45,270
    90.00 Outlays...........................      41,723      43,234      45,116
    ---------------------------------------------------------------------------

        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.

                                         1997 actual  1998 est.   1999 est.
    Active employees....................   2,681,000   2,693,000   2,635,000
    Annuitants:
      Employees.........................   1,731,000   1,746,000   1,761,000
      Survivors.........................     621,000     629,000     637,000
                                        ------------------------------------
          Total, annuitants.............   2,352,000   2,375,000   2,398,000
                                        ====================================

                      Status of Funds (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8135-0-7-602      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Unexpended balance, start of year:
    0100  Treasury balance..................         -37          16           8
          U.S. Securities:

    0101    Par value.......................     393,049     421,502     450,970
    0102    Unrealized discounts............          -6          -6          -6
                                               ---------   ---------  ----------
    0199    Total balance, start of year....     393,006     421,512     450,972
        Cash income during the year:
          Governmental receipts:

    0200    Employee contributions, Civil
              Service Retirement and
              Disability Fund...............       4,168       4,074       4,076
    0202    Employee contributions, Civil
              Service Retirement and
              Disability Fund...............                       6         167
    0202    District of Columbia
              contributions.................          74          77          71
    0203    Employee deposits, redeposits,
              and voluntary contributions...         127         124         121
          Intragovernmental transactions:

    0240    Agency contributions, Civil
              Service Retirement and
              Disability Fund...............       8,168       8,678       8,846
    0241    Agency Contributions, Civil
              Service Retirement and
              Disability Fund...............                      -3         -71
    0242    Postal Service agency
              contributions, Civil Service
              Retirement and Disability Fund       2,483       2,468       2,521
    0242    Postal Service agency
              contributions, Civil Service
              Retirement and Disability Fund                                 -22
    0243    Postal Service supplemental
              contributions, Civil Service
              Retirement and Disability Fund       3,444       3,600       3,515
    0244    Federal Financing Bank interest,
              Civil Service Retirement and
              Disability Fund...............       1,937       1,783       1,691
    0245    Treasury interest, Civil Service
              Retirement and Disability Fund      28,547      30,673      31,861
    0246    Treasury Interest, Civil Service
              Retirement and Disability Fund                                   3
    0247    General fund payment to the
              Civil Service Retirement and
              Disability Fund...............      21,254      21,188      21,484
    0250    Re-employed annuitant salary
              offset, Civil Service
              Retirement and Disability Fund          27          26          25
    0297  Income under present law..........      70,229      72,691      74,211
    0298  Income under proposed legislation
            (Supplemental)..................                       3          77
                                               ---------   ---------  ----------
    0299    Total cash income...............      70,229      72,694      74,288
        Cash outgo during year:
    0501  Payment of claims to retired
            employees.......................     -34,705     -35,916     -37,407
    0502  Payment of alternative annuity
            refunds.........................          -7          -9         -10
    0504  Payment to widows of former
            employes of the Lighthouse
            Service.........................
    0505  Payment of claims to survivor
            annuitants......................      -6,518      -6,818      -7,203
    0506  Lump sum payments to estates or
            beneficiaries of deceased
            annuitants and employees........        -100        -104        -108
    0507  Refunds to living separated
            employees.......................        -289        -280        -272
    0508  Administration....................        -103        -107        -116
                                               ---------   ---------  ----------
    0599  Total cash outgo (-)..............     -41,722     -43,234     -45,116
        Unexpended balance, end of year:
    0700  Uninvested balance................          16           8           8
          U.S. Securities:

    0701    Par value.......................     421,502     450,970     480,140
    0702    Unrealized discounts............          -6          -6          -4
                                               ---------   ---------  ----------
    0799    Total balance, end of year......     421,512     450,972     480,144
    ---------------------------------------------------------------------------

    [[Page 10008]]

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8135-0-7-602      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................         103         104         111
    42.0  Insurance claims and indemnities..      41,156      42,892      44,779
    44.0  Refunds and death claims..........         412         384         380
                                               ---------   ---------  ----------
    99.9    Total obligations...............      41,671      43,380      45,270
    ---------------------------------------------------------------------------

                          Employees Life Insurance Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8424-0-8-602      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Gross premium payments:

    00.01   Regular program.................       1,087       1,015       1,048
    00.02   Optional program................         654         605         626
    00.03   Beneficial program..............           3           3           3
                                               ---------   ---------  ----------
    00.91     Total gross payments..........       1,744       1,623       1,677
    02.01 Administration....................           1           1           1
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              25.2).........................       1,745       1,624       1,678
    ----------------------------------------------------------------------------

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

    21.40   Uninvested......................         602         643         616
            U.S. Securities:
    21.41     Par value.....................      16,962      18,038      19,138
    21.42     Unrealized discounts..........        -254        -280        -250
                                               ---------   ---------  ----------
    21.99     Total unobligated balance,
                start of year...............      17,310      18,401      19,504
    22.00 New budget authority (gross)......       2,836       2,727       2,838
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      20,146      21,128      22,342
    23.95 New obligations...................      -1,745      -1,624      -1,678
          Unobligated balance available, end of year:

    24.40   Uninvested......................         643         616         631
            U.S. Securities:
    24.41     Par value.....................      18,038      19,138      20,283
    24.42     Unrealized discounts..........        -280        -250        -250
                                               ---------   ---------  ----------
    24.99   Total unobligated balance, end
              of year.......................      18,401      19,504      20,664
    ----------------------------------------------------------------------------

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

    68.00   Offsetting collections (cash)...       2,770       2,764       2,818
    68.10   Change in orders on hand from
              Federal sources...............          66         -37          20
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................       2,836       2,727       2,838
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       2,836       2,727       2,838
    ----------------------------------------------------------------------------

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

    72.40   Obligated balance: Uninvested...        -586        -643        -607
    72.95   Orders on hand from Federal
              sources.......................         722         788         751
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............         136         145         144
    73.10 New obligations...................       1,745       1,624       1,678
    73.20 Total outlays (gross).............      -1,735      -1,625      -1,673
          Unpaid obligations, end of year:

    74.40   Obligated balance: Uninvested...        -643        -607        -622
    74.95   Orders on hand from Federal
              sources.......................         788         751         771
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................         145         144         149
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................       1,735       1,625       1,673
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Agency contributions..........        -378        -404        -404
    88.20     Interest on U.S. securities...      -1,162      -1,065      -1,098
              Non-Federal sources:
    88.40       Regular program.............        -547        -550        -554
    88.40       Optional program............        -682        -744        -762
    88.40       Beneficial Program..........          -1          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -2,770      -2,764      -2,818
    88.95 Change in orders on hand from
            Federal sources.................         -66          37         -20
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................      -1,034      -1,139      -1,145
    ---------------------------------------------------------------------------

        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:

                                         1997 actual  1998 est.   1999 est.
    Life insurance in force (in billions
        of dollars):
      On active employees...............         448         452         456
      On retired employees..............          45          48          51
                                        ------------------------------------
          Total.........................         493         500         507
                                        ====================================
    Number of participants (in
        thousands):
      Active employees..................       2,357       2,367       2,316
      Annuitants........................       1,609       1,615       1,618
                                        ------------------------------------
          Total.........................       3,996       3,982       3,934
                                        ====================================

        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          1997 actual  1998 est.   1999 est.
    Held in reserve (in millions of
        dollars):
      Contingency reserve...............          22          22          22
      Beneficial association program
        reserve.........................           1           1           1
      U.S. Treasury reserve.............      18,038      19,138      20,283
                                        ------------------------------------
          Total reserves................      18,061      19,161      20,306
                                        ====================================

        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      1997 actual  1998 est.   1999 est.
    Contingency reserve (in millions of
        dollars):
      Contingency reserve, start of year          15          22          22
    Income:
      Premiums received.................       1,586       1,620       1,676
      Interest..........................          20          20          20
                                        ------------------------------------
          Total income..................       1,606       1,640       1,696
                                        ====================================
    Outgo:
      Claims paid.......................       1,544       1,620       1,674
      Expenses..........................          40          42          44
                                        ------------------------------------
          Total outgo...................       1,584       1,662       1,718
                                        ====================================
      Contingency reserve, end of year..          22          22          22
                                        ====================================

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   24-8424-0-8-602    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................       2,719          2,836         2,727          2,838
    0102  Expense...........................      -1,636         -1,745        -1,624         -1,678
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............       1,083          1,091         1,103          1,160
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   24-8424-0-8-602    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          17
            Investments in US securities:
    1102      Treasury securities, par......      16,962         18,038        19,213         20,358
    1106      Receivables, net..............         467            508           426            446

    [[Page 10009]]

    1801  Other Federal assets: Cash and
            other monetary assets...........           1              1             1              1
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................      17,447         18,547        19,640         20,805
        LIABILITIES:
          Non-Federal liabilities:

    2201    Accounts payable................         136            145           135            140
    2206    Pension and other actuarial
              liabilities...................      20,669         19,786        22,787         23,926
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............      20,805         19,931        22,922         24,066
        NET POSITION:
    3300  Cumulative results of operations..      -3,358         -1,385        -3,282         -3,261
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............      -3,358         -1,385        -3,282         -3,261
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position      17,447         18,546        19,640         20,805
    -----------------------------------------------------------------------------------------------

              Employees and Retired Employees Health Benefits Funds

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-9981-0-8-551      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Benefit payments..................      16,297      16,741      17,801
    00.02 Payments from OPM contingency
            reserve.........................         235         265         295
    00.03 Government payment for annuitants
            (1960 act)......................           5           4           4
    00.04 Administration....................          20          18          18
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              25.6).........................      16,557      17,028      18,118
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.41 Unobligated balance available,
            start of year: U.S. Securities:
            Par value.......................       6,059       5,574       5,565
    22.00 New budget authority (gross)......      16,072      17,019      18,122
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      22,131      22,593      23,687
    23.95 New obligations...................     -16,557     -17,028     -18,118
    24.41 Unobligated balance available, end
            of year: U.S. Securities: Par
            value...........................       5,574       5,565       5,570
    ----------------------------------------------------------------------------

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

    68.00   Offsetting collections (cash)...      15,910      16,955      18,038
    68.10   Change in orders on hand from
              Federal sources...............         162          64          84
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total).....................      16,072      17,019      18,122
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      16,072      17,019      18,122
    ----------------------------------------------------------------------------

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

            Obligated balance:
    72.40     Uninvested....................        -698           3           3
              U.S. Securities:
    72.41       Par value...................       2,124       1,213       1,120
    72.42       Unrealized discounts........        -114         -87         -87
    72.95   Orders on hand from Federal
              sources.......................       1,086       1,248       1,312
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............       2,398       2,377       2,348
    73.10 New obligations...................      16,557      17,028      18,118
    73.20 Total outlays (gross).............     -16,578     -17,056     -18,095
          Unpaid obligations, end of year:

            Obligated balance:
    74.40     Uninvested....................           3           3           3
              U.S. Securities:
    74.41       Par value...................       1,213       1,120       1,060
    74.42       Unrealized discounts........         -87         -87         -87
    74.95   Orders on hand from Federal
              sources.......................       1,248       1,312       1,396
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................       2,377       2,348       2,372
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................      15,365      15,936      17,035
    86.98 Outlays from permanent balances...       1,213       1,120       1,060
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      16,578      17,056      18,095
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Federal sources:
    88.00       Agency contributions........      -6,673      -7,061      -7,568
    88.00       Government contributions for
                  annuitants................      -4,587      -4,793      -5,094
    88.20     Interest on U.S. securities...        -478        -433        -441
              Non-Federal sources:
    88.40       Employee salary withholdings      -2,210      -2,483      -2,605
    88.40       Annuity withholdings........      -1,894      -2,118      -2,267
    88.40       Contributions from D.C.
                  Government................         -68         -67         -63
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........     -15,910     -16,955     -18,038
    88.95 Change in orders on hand from
            Federal sources.................        -162         -64         -84
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         668         101          57
    ---------------------------------------------------------------------------

                      Status of Funds (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-9981-0-8-551      1997 actual   1998 est.   1999 est.
    ----------------------------------------------------------------------------
        Unexpended balance, start of year:
    0100  Treasury balance..................        -698           3           3
          U.S. Securities:

    0101    Par value.......................       8,183       6,787       6,685
    0102    Unrealized discounts............        -114         -87         -87
                                               ---------   ---------  ----------
    0199    Total balance, start of year....       7,371       6,703       6,601
        Cash income during the year:
          Offsetting collections:

    0280    Contributions from Employing
              Agencies......................       4,230       4,534       4,869
    0281    Contributions from Postal
              Service for Active Employees..       2,443       2,527       2,699
    0282    Contributions from Postal
              Service for Annuitants........         607         654         606
            Offsetting collections:
    0283      Government Payment for
                Annuitant Health Benefits...       3,972       4,131       4,480
    0283      Government Payment for
                Annuitants, Other...........           8           8           8
    0284    Interest Earned.................         478         433         441
    0285    Contributions from DC Government          68          67          63
    0286    Contributions from Active
              Employees.....................       2,210       2,483       2,605
    0287    Contributions from Annuitants...       1,894       2,118       2,267
                                               ---------   ---------  ----------
    0299    Total cash income...............      15,910      16,955      18,038
        Cash outgo during year:
    0501  Benefit Payments..................     -16,323     -16,773     -17,782
    0502  Payments to Carriers from OPM
            Contingency Reserve.............        -235        -265        -295
    0503  Administration....................         -20         -18         -18
                                               ---------   ---------  ----------
    0599  Total cash outgo (-)..............     -16,578     -17,056     -18,095
        Unexpended balance, end of year:
    0700  Uninvested balance................           3           3           3
          U.S. Securities:

    0701    Par value.......................       6,787       6,685       6,630
    0702    Unrealized discounts............         -87         -87         -87
                                               ---------   ---------  ----------
    0799    Total balance, end of year......       6,703       6,601       6,546
    ---------------------------------------------------------------------------

        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:

                                         1997 actual  1998 est.   1999 est.
    Active employees....................   2,287,000   2,297,000   2,249,000
    Annuitants..........................   1,846,000   1,859,000   1,872,000
                                        ------------------------------------
        Total...........................   4,133,000   4,156,000   4,121,000
                                        ====================================

        In determining a biweekly subscription rate to cover program costs,
    one percent is added for administrative expense

    [[Page 10010]]

    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 and P.L. 105-33, this schedule
    includes the following adjustments: (1) in contract years 1997 and 1998,
    the average premium for the indemnity plan in the ``Phantom Big 6''
    formula is modified to account for the average premium increase in the
    remaining ``Big 5'' plans minus one percentage point; (2) in the 1999
    contract year, the maximum government contribution is 72 percent of the
    weighted average premium of FEHB Program participants; (3) Medicare Part
    B fee limits are applied to all FEHB annuitants; and (4) the Postal
    Service's payments of $116 million per year for fiscal years 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:

                                         1997 actual  1998 est.   1999 est.
    Uniform plan........................       1,760       1,500       1,200
    Private plans.......................       6,180       5,100       4,200
                                        ------------------------------------
        Total...........................       7,940       6,600       5,400
                                        ====================================

        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.

        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    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................      15,875         16,077
    0102  Expense...........................     -15,804        -16,438
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............          71           -361
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   24-9981-0-8-551    1996 actual    1997 actual     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....        -698              3             3              3
            Investments in US securities:
    1102      Treasury securities, par......       8,183          6,787         6,686          6,629
    1106      Receivables, net..............       1,085          1,248         1,312          1,395
    1801  Other Federal assets: Original
            Discount........................        -114            -87           -87            -87
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       8,456          7,951         7,914          7,940
        LIABILITIES:
    2101  Federal liabilities: Accounts
            payable.........................          83             84            87             92
          Non-Federal liabilities:

    2201    Accounts payable................       2,314          2,294         2,262          2,280
    2207    Other...........................
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       2,397          2,378         2,349          2,372
        NET POSITION:
    3300  Cumulative results of operations..       6,059          5,572         5,563          5,568
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............       6,059          5,572         5,563          5,568
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       8,456          7,950         7,912          7,940
    -----------------------------------------------------------------------------------------------