[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
-----------------------------------------------------------------------------------------------