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


[[Page 1067]]

 
                     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] $91,584,000; 
and in addition [$91,236,000] $95,486,000 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, of which $4,000,000 shall remain available until expended for 
the cost of automating the retirement recordkeeping systems: Provided, 
That the provisions of this appropriation shall not affect the authority 
to use applicable trust funds as provided by [section] sections 
8348(a)(1)(B) and 8909(g) 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, [1999] 2000, 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, 1999, as 
included in Public Law 105-277, section 101(h).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-0100-0-1-805      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.01   Merit systems oversight and 
          effectiveness.................          18          19          24
00.02   Employment service..............          26          29          31
00.03   Retirement and insurance service         105         113         108
00.04   Workforce compensation and 
          performance service...........           6           8           8
00.05   Investigations service..........           3           3           3
00.06   Workforce relations.............           4           4           4
00.07   Executive resources.............           3           3           3
00.08   Administrative services.........          18          15          14
00.09   Executive and other services....          12          12          12
09.01 Reimbursable program..............           8           8           8
                                           ---------   ---------  ----------
10.00   Total new obligations...........         203         214         215
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           6          -3
22.00 New budget authority (gross)......         207         214         215
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         213         211         215
23.95 Total new obligations.............        -203        -214        -215
23.98 Unobligated balance expiring......         -13           3
24.40 Unobligated balance available, end 
        of year.........................          -3
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................          85          85          92
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).         122         129         123
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         207         214         215
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          37          37          37
73.10 Total new obligations.............         203         214         215
73.20 Total outlays (gross).............        -203        -214        -215
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          37          37          37
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          75          74          80
86.93 Outlays from current balances.....           6          11          12
86.97 Outlays from new permanent 
        authority.......................         122         129         123
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         203         214         215
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........        -122        -129        -123
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          85          85          92
90.00 Outlays...........................          81          85          92
---------------------------------------------------------------------------

    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) evaluating human resources management (HRM) in Federal agencies 
through various methods, including on-site reviews; (b) administering 
classification appeals, Fair Labor Standards Act, and Intergovernmental 
Personnel programs to ensure that agencies adhere to the statutory 
requirements; (c) helping agencies develop merit-based HRM 
accountability systems to support mission accomplishment; (d) assessing 
the effectiveness of Governmentwide HRM policies and programs and 
serving as a clearinghouse for best practices; (e) testing and 
evaluating innovative HRM practices and systems, including demonstration 
projects under 5 U.S.C. Chapter 47; (f) providing readily accessible 
data on the Federal workforce; and (g) administering parts of the Voting 
Rights Act of 1965.

    Program performance.--The activity's performance measures are 
designed to assess the value-added outcomes which oversight reviews, 
accountability and demonstration projects, and workforce information 
have on the Federal HRM community and employees. Client feedback is 
solicited on each review, product, and service. For example, clients 
rate the overall value of the oversight work as 4 on a 5-point scale and 
give the reports a score of 4.5. The quality of data that is provided to 
clients is regularly assessed, and is used in reviews, studies, and 
projects. Of each agency's records entered into the Central Personnel 
Data File, at least 97 percent are correct on all core elements. The 
Merit System Principles

[[Page 1068]]

Questionnaire, used to collect employee perceptions of the merit system 
principles, is content valid and reliable.

    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 systems; 
workforce restructuring and placement, and organizational analysis and 
improvement. These operations are carried out through a network of 
Service Centers throughout the country. Special emphasis in 1999 and 
2000 will be given to improving Federal employment opportunities for 
adults with disabilities and Hispanic Americans, and to enhancing the 
Government's ability to recruit, develop, and retain computer security 
professionals.

    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 the usefulness of policies and information 
processes, customer satisfaction with services, cost-comparison 
analyses, workload accomplishment data, and quality and timeliness of 
information. (Some of these measures were introduced in 1998.)

    The Employment Service provided information to over thirteen million 
people in 1998 through a nationwide system available 24 hours a day, 7 
days a week, by telephone, fax, personal computer, and touch screen 
kiosks. USAJOBS, the employment information website, averages more than 
28,000 visits daily. This is a twelve percent increase from the previous 
year and is expected to continue to grow. Customer satisfaction with all 
systems increased from 87.7 percent in 1997 to 90.6 percent in 1998.

    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 
1998, they also continued to make 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 1998, the Employment Service completed a review of all policies 
and programs. In the area of policy leadership, the Employment Service 
eliminated approximately 125 redundant excepted appointment authorities; 
published the VetGuide and VetInfo Guide to help agencies better 
understand and comply with veterans' preference requirements and to 
provide better information to the general public; streamlined provisions 
covering time-limited appointments and student employment; developed 
short informational materials on the legislative changes to veteran 
entitlements; developed a student employment brochure for dissemination 
on college campuses; is in the process of developing more flexible 
provisions for promotion and internal placement programs; and granted 
waivers and other flexibilities to deal with staffing for agency Y2K 
computer positions. All completed materials are available on the OPM 
website.

    In 1998, the Employment Service assisted over 43,000 employees with 
outplacement assistance and selection priority for other Federal jobs. 
Nearly 18,000 of these individuals were placed in other positions within 
the same agency. Another 2,000 were rehired through the Reemployment 
Priority List.

    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. In 2000, the Administration also is 
proposing a new program for long term care insurance for Federal 
employees and retirees, their spouses, parents, and parents-in-law. The 
full cost of premiums for this program would be paid for by 
participants.

    Program performance.--Overall customer satisfaction with the 
delivery of Retirement Program services remained high during 1998 as 90 
percent reported that they are generally or very satisfied with OPM's 
overall service.

    OPM significantly expanded its telephone services to retired 
employees and survivor annuitants by opening a call center in 
Pittsburgh, Pennsylvania in December 1997, providing toll-free access to 
all call centers, and adding more customer service representatives. 
Toll-free access resulted in a 25 percent increase in the volume of 
calls (1,190,359 total calls) received during 1998 compared to 1997. 
Responding to this increased demand, OPM handled 24 percent more calls 
(974,380 total handled) than in 1997 and processed 40 percent more 
payment account adjustments and other customer service requests by 
telephone. Customer satisfaction with the courtesy, clarity and 
timeliness of telephone services remained comparable to the 80 to 90 
percent levels first achieved in 1997.

    In addition, OPM reduced processing times for interim annuity 
payments from 4.6 days in 1997 to 3.1 days in 1998, authorizing 44 
percent within one day of receiving the retirement applications at OPM. 
The time to take final action on an annuity account dropped from 39 days 
in 1997 to 23 days in 1998 for fully documented claims. This improvement 
was accompanied by a marginal decline in payment accuracy, from 94 
percent during 1997 to 93 percent in 1998. The volume of new annuity 
claims was comparable to 1997 as 83,302 CSRS and FERS annuity claims 
were received. A total of 89,490 claims were processed, up 2 percent 
from last year, resulting in a reduction in the year-end balance of 
unprocessed claims of 23 percent.

    A mass mailing campaign to annuitants and survivors during 1998 
advising them of the convenience and desirability of direct deposit was 
very effective. At the start of 1998 the electronic funds transfer 
participation rate among recipients of these benefits was 75 percent. At 
the end of 1998 the rate had risen to 90 percent.

    In the health insurance program, OPM addressed growing concerns 
about the quality of managed health care by implementing the Patients' 
Bill of Rights across the entire Federal Employees Health Benefits 
(FEHB) Program. This included publishing final regulations that prohibit 
health plans from imposing a ``gag rule'' limiting the disclosures 
physicians may make to patients regarding treatment options. The Agency 
will continue to move foward in this important area in 1999.

    To strengthen its leadership role in the health insurance industry, 
OPM continued to build and maintain strong relationships with the 
National Commission for Quality Assurance (NCQA), the Health Care 
Financing Administration, the Department of Health and Human Services, 
and the Foundation for Accountability (FAACT). These partnerships have 
been instrumental in promoting the use of health care quality outcome 
measures by the Federal government and health care purchasers and 
providers throughout the Nation.

     Customer satisfaction remained high in the health benefits program, 
as the most recent customer surveys indicated that 87 percent of 
responding enrollees in fee-for-service plans ex

[[Page 1069]]

pressed satisfaction with their health plan, as did 84 percent of those 
in health maintenance organization plans, and 85 percent in preferred 
provider organizations.

    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.

    Program performance.--The workforce compensation and performance 
program area uses a variety of measures to identify its level of 
success. Overall customer service is measured through OPM's Customer 
Satisfaction Survey. The 1998 survey showed that more than 75 percent of 
human resources directors were satisfied with policy-setting leadership 
on pay and leave administration, and performance management issues, and 
at least 70 percent of human resources specialists were satisfied with 
the level of information sharing and technical assistance provided in 
each program area. The success of workshops and conferences is 
determined through end-of-conference structured questionnaires and 
follow-up surveys. The organization has a major initiative to reduce the 
number of single series classification standards. The goal is to reduce 
the number of standards from more than 400 to 250 by 2000. By March 1, 
2000, OPM will submit a comprehensive report to Congress on the non-
foreign area Cost-of-Living Allowance program.

    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 actions 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 lifelong learning; 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 by OPM's policy leadership and 
guidance on employee and labor-management relations issues, work and 
family programs, and human resources development and lifelong learning. 
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. It has become an Office of Workforce Relations 
(OWR) practice to survey stakeholders to identify principal areas of 
interest to facilitate program content for conferences, seminars and 
workshops. During 1998, this customer feedback was used to establish the 
agenda and structure of OWR presentations. As an integral part of the 
presentation process, participant evaluations were 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 hardcopy 
and electronic, to ensure excellent customer service and timely policy 
guidance, and to measure the relative effect of OPM's guidance and 
assistance.

    OPM administered a customer survey that provided useful information 
regarding customer satisfaction with workforce relations policy 
initiatives and services. Human resources directors evaluated OWR 
program offices on the quality of OPM's policy leadership and the level 
of involvement they felt in the development of those policies. In the 
areas of labor-management relations and partnership, employee relations, 
employee assistance, workforce violence, and work and family programs, 
the directors reported on over 80 percent satisfaction rate with OPM 
leadership and an over 74 percent satisfaction rate with OPM efforts to 
involve them in policy development. Responses also indicated that OPM 
needs to improve its efforts in the areas of physical fitness and human 
resource development policy. During 1999, OPM will be focusing resources 
and extending outreach efforts to improve in these areas. Human resource 
specialists evaluated OWR program offices on the quality of technical 
assistance and information sharing. Specialists reported a similar level 
of satisfaction with OWR 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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          94          98          98
11.3      Other than full-time permanent           5           5           5
11.5      Other personnel compensation..           3           3           3
                                           ---------   ---------  ----------
11.9        Total personnel compensation         102         106         106
12.1    Civilian personnel benefits.....          22          24          24
21.0    Travel and transportation of 
          persons.......................           2           2           2
23.1    Rental payments to GSA..........          17          18          18
23.3    Communications, utilities, and 
          miscellaneous charges.........          13          15          15
24.0    Printing and reproduction.......           3           3           3
25.1    Advisory and assistance services           1           1           1
25.2    Other services..................          14          15          17
26.0    Supplies and materials..........           2           2           2
31.0    Equipment.......................          18          19          18
32.0    Land and structures.............           1           1           1
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..         195         206         207
99.0  Reimbursable obligations..........           8           8           8
                                           ---------   ---------  ----------
99.9    Total new obligations...........         203         214         215
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 24-0100-0-1-805      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......       2,069       2,073       2,090
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......          78         111         111
---------------------------------------------------------------------------

                                

                       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

[[Page 1070]]

motor vehicles, $960,000; and in addition, not to exceed [$9,145,000] 
$9,645,000 for administrative expenses to audit, investigate, and 
provide other oversight of 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, 1999, 
as included in Public Law 105-277, section 101(h).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-0400-0-1-805      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total new obligations.............          10          10          11
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          10          10          11
23.95 Total new obligations.............         -10         -10         -11
----------------------------------------------------------------------------

    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          10
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          10          10          11
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............          10          10          11
73.20 Total outlays (gross).............         -10         -10         -11
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority           1           1           1
86.97 Outlays from new permanent 
        authority.......................           9           9          10
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          10          10          11
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........          -9          -9         -10
----------------------------------------------------------------------------

    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 agency audits review and evaluate all facets of 
agency operations, including financial statements. Evaluation and 
inspection services provide detailed technical evaluations of agency 
operations. Insurance audits review the operations of health and life 
insurance carriers, health care providers, and insurance subscribers. 
The investigative function provides for the detection and investigation 
of improper and illegal activities involving programs, personnel, and 
operations. Administrative sanctions debar from participation in the 
health insurance program those health care providers whose conduct may 
pose a threat to the financial integrity of the program itself or to the 
well-being of insurance program enrollees. These Inspector General 
activities resulted in positive financial impact in excess of $76 
million in 1998. This request includes an additional $0.5 million above 
the approved 1999 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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
11.1  Personnel compensation: Full-time 
        permanent.......................           6           6           6
12.1  Civilian personnel benefits.......           1           1           2
23.1  Rental payments to GSA............           1           1           1
25.2  Other services....................           1           1           1
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..           9           9          10
99.5  Below reporting threshold.........           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          10          10          11
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 24-0400-0-1-805      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......          88         105         110
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......           1           1           1
---------------------------------------------------------------------------

                                

      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, 1999, as included in Public Law 105-277, section 
101(h).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-0206-0-1-551      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Government contribution for 
        annuitants benefits (1959 Act)..       4,111       4,651       5,102
00.02 Government contribution for 
        annuitants benefits (1960 Act)..           4           3           3
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          13.0).........................       4,115       4,654       5,105
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......       4,115       4,654       5,105
23.95 Total new obligations.............      -4,115      -4,654      -5,105
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.05 Appropriation (indefinite)........       4,115       4,654       5,105
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         182         228         388
73.10 Total new obligations.............       4,115       4,654       5,105
73.20 Total outlays (gross).............      -4,069      -4,495      -5,070
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         228         388         424
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority       3,887       4,266       4,682
86.93 Outlays from current balances.....         182         228         388
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       4,069       4,495       5,070
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       4,115       4,654       5,105
90.00 Outlays...........................       4,069       4,495       5,070
---------------------------------------------------------------------------

    This appropriation covers: (1) the Government's share of the cost of 
health insurance for 1,855,000 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 6,600 annuitants (who were 
retired when the Federal employees health benefits law became 
effective), as

[[Page 1071]]

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 1998, this 
group of USPS annuitants totalled 416,000 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, 1999, as included in Public Law 105-277, section 
101(h).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-0500-0-1-602      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        25.2)...........................          30          35          36
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          30          35          36
23.95 Total new obligations.............         -30         -35         -36
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................          30          35          36
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year           3           3           3
73.10 Total new obligations.............          30          35          36
73.20 Total outlays (gross).............         -30         -35         -36
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           3           3           3
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          27          32          33
86.93 Outlays from current balances.....           3           3           3
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          30          35          36
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          30          35          36
90.00 Outlays...........................          30          35          36
---------------------------------------------------------------------------

    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, 1999, as 
included in Public Law 105-277, section 101(h).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-0200-0-1-805      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.02 Payment of Government share of 
        retirement costs................       8,381       8,703       9,121
00.03 Transfers for interest on unfunded 
        liability and payment of 
        military service annuities......      12,917      12,886      12,635
00.05 Spouse equity payment.............          59          56          56
                                           ---------   ---------  ----------
10.00   Total new obligations...........      21,357      21,645      21,812
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......      21,357      21,645      21,812
23.95 Total new obligations.............     -21,357     -21,645     -21,812
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.05   Appropriation (indefinite)......       8,381       8,703       9,121
      Permanent:

60.05   Appropriation (indefinite)......      12,976      12,942      12,691
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................      21,357      21,645      21,812
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............      21,357      21,645      21,812
73.20 Total outlays (gross).............     -21,357     -21,645     -21,812
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority       8,381       8,703       9,121
86.97 Outlays from new permanent 
        authority.......................      12,976      12,942      12,691
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........      21,357      21,645      21,812
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................      21,357      21,645      21,812
90.00 Outlays...........................      21,357      21,645      21,812
---------------------------------------------------------------------------

    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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
12.1  Civilian personnel benefits.......       8,381       8,703       9,121
13.0  Benefits for former personnel.....      12,976      12,942      12,691
                                           ---------   ---------  ----------
99.9    Total new obligations...........      21,357      21,645      21,812
---------------------------------------------------------------------------

                                

Intragovernmental funds:

                             Revolving Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-4571-0-4-805      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 DOD testing.......................           7           8           8
09.02 Employment service................          27          34          36
09.03 Investigations....................         102          88          90
09.04 Workforce relations...............          35          36          37
09.05 Executive resources...............          19          22          23
                                           ---------   ---------  ----------
10.00   Total new obligations...........         190         188         194
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          52          31          31
22.00 New budget authority (gross)......         170         188         194
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         222         219         225
23.95 Total new obligations.............        -190        -188        -194
24.40 Unobligated balance available, end 
        of year.........................          31          31          31
----------------------------------------------------------------------------

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

68.00   Offsetting collections (cash)...         253         188         194
68.10   From Federal sources: Change in 
          receivables and unpaid, 
          unfilled orders...............         -83
                                           ---------   ---------  ----------

[[Page 1072]]


68.90     Spending authority from 
            offsetting collections 
            (total).....................         170         188         194
----------------------------------------------------------------------------

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

72.40   Obligated balance, start of year         -18          29          29
72.95   From Federal sources: 
          Receivables and unpaid, 
          unfilled orders...............         243         160         160
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............         225         189         189
73.10 Total new obligations.............         190         188         194
73.20 Total outlays (gross).............        -226        -188        -194
      Unpaid obligations, end of year:

74.40   Obligated balance, end of year..          29          29          29
74.95   From Federal sources: 
          Receivables and unpaid, 
          unfilled orders...............         160         160         160
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................         189         189         189
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................         170         188         194
86.98 Outlays from permanent balances...          56
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         226         188         194
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............        -252        -187        -193
88.40     Non-Federal sources...........          -1          -1          -1
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -253        -188        -194
88.95 From Federal sources: Change in 
        receivables and unpaid, unfilled 
        orders..........................          83
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................         -27
---------------------------------------------------------------------------

    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 14,787 
student test sessions and 28,164 enlistment sessions.

    Employment service.--OPM delivers employment information, examining 
services, automated staffing, and related human resource management 
services to Federal agencies nationwide. In 1998, 52 Executive Branch, 
four Legislative Branch, two non-apropriated fund, and 14 State and 
municipal agencies contracted with the Employment Service for a wide 
array of products and services.

    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 management 
programs by developing and producing training products, services, human 
resource management systems and other human resource development 
interventions through partnership with Federal agencies and private 
sector firms specializing in instructional systems.

    Program performance.--The TMA program performance measures are 
designed to determine the value added to Federal agencies through human 
resources management assistance utilizing an instructional systems 
design approach. They include 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 conducts residential and non-residential 
programs for Federal executives and managers to improve the 
effectiveness and efficiency of Federal programs, and manages the 
President's quality awards program.

                             WORKLOAD COUNT

                                     1998 actual  1999 est.   2000 est.
Participant training days...........      65,693      69,746      73,413
Background security investigations 
processed...........................      46,026      42,500      42,500
National and special agency check 
and inquiry cases...................     296,925     302,000     302,000

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-4571-0-4-805      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............          19          23          25
11.3    Other than full-time permanent..           6           7           7
11.5    Other personnel compensation....           1           1           1
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          26          31          33
12.1  Civilian personnel benefits.......           5           6           6
21.0  Travel and transportation of 
        persons.........................           1           2           2
23.1  Rental payments to GSA............           7           7           7
23.3  Communications, utilities, and 
        miscellaneous charges...........           4           5           5
24.0  Printing and reproduction.........                       1           1
25.2  Other services....................         142         130         135
26.0  Supplies and materials............           1           2           2
31.0  Equipment.........................           3           4           3
32.0  Land and structures...............           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........         190         188         194
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 24-4571-0-4-805      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
2001  Total compensable workyears: Full-
        time equivalent employment......         536         694         672
---------------------------------------------------------------------------

                                

  

                               Trust Funds

              Civil Service Retirement and Disability Fund

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-8135-0-7-602      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............     417,890     446,962     477,085
    Receipts:
02.01 Employee contributions............       4,087       4,076       4,224
02.02 Agency contributions..............       8,682       8,817       9,163
02.03 District of Columbia contributions          74          71          65
02.04 Postal Service agency 
        contributions...................       2,584       2,694       2,786
02.05 Postal Service supplemental 
        contributions...................       3,525       3,377       3,488
02.06 Federal Financing Bank interest...       1,841       2,539       1,379
02.07 Employee deposits, redeposits and 
        other contributions.............         126         124         122
02.08 Treasury interest.................      29,925      31,649      33,262
02.09 General fund payment to the Civil 
        Service Retirement and 
        Disability fund.................      21,357      21,645      21,812
02.10 Re-employed annuitants salary 
        offset..........................          28          27          28
                                           ---------   ---------  ----------
02.99   Total receipts..................      72,229      75,019      76,329
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...     490,119     521,981     553,414
    Appropriation:
05.01 Civil service retirement and 
        disability fund.................     -43,157     -44,896     -46,874
                                           ---------   ---------  ----------
05.99 Subtotal appropriation............     -43,157     -44,896     -46,874
07.99 Total balance, end of year........     446,962     477,085     506,540
---------------------------------------------------------------------------

[[Page 1073]]



               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-8135-0-7-602      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Annuities.........................      42,668      44,433      46,409
00.02 Refunds and death claims..........         389         365         361
00.04 Administration....................         100         107         102
                                           ---------   ---------  ----------
10.00   Total new obligations...........      43,157      44,905      46,872
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          10           9
22.00 New budget authority (gross)......      43,157      44,896      46,874
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      43,167      44,905      46,874
23.95 Total new obligations.............     -43,157     -44,905     -46,872
24.40 Unobligated balance available, end 
        of year.........................           9
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.26   Appropriation (trust fund, 
          definite).....................          83          78          82
      Permanent:

60.27   Appropriation (trust fund, 
          indefinite)...................      72,229      74,942      75,588
60.45   Portion precluded from 
          obligation....................     -29,155     -30,124     -28,796
                                           ---------   ---------  ----------
63.00     Appropriation (total).........      43,074      44,818      46,792
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................      43,157      44,896      46,874
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year       3,612       3,712       3,837
73.10 Total new obligations.............      43,157      44,905      46,872
73.20 Total outlays (gross).............     -43,058     -44,780     -46,701
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..       3,712       3,837       4,008
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          83          78          82
86.93 Outlays from current balances.....           4           9
86.97 Outlays from new permanent 
        authority.......................      39,359      40,981      42,782
86.98 Outlays from permanent balances...       3,612       3,712       3,837
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........      43,058      44,780      46,701
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................      43,157      44,896      46,874
90.00 Outlays...........................      43,058      44,780      46,701
----------------------------------------------------------------------------

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        U.S. securities: Par value......     421,502     450,674     480,919
92.02 Total investments, end of year: 
        U.S. securities: Par value......     450,674     480,919     510,547
---------------------------------------------------------------------------

    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.

                                     1998 actual  1999 est.   2000 est.
Active employees....................   2,700,000   2,640,000   2,639,000
Annuitants:
  Employees.........................   1,741,000   1,756,000   1,771,000
  Survivors.........................     628,000     636,000     644,000
                                    ------------------------------------
      Total, annuitants.............   2,369,000   2,392,000   2,415,000
                                    ====================================

                  Status of Funds (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-8135-0-7-602      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Unexpended balance, start of year:
0100  Treasury balance..................          16          15           8
      U.S. Securities:

0101    Par value.......................     421,502     450,674     480,919
0102    Unrealized discounts............          -6          -6          -4
                                           ---------   ---------  ----------
0199    Total balance, start of year....     421,512     450,683     480,923
    Cash income during the year:
      Governmental receipts:

0200    Employee contributions, Civil 
          Service Retirement and 
          Disability Fund...............       4,087       4,076       4,224
0202    District of Columbia 
          contributions.................          74          71          65
0203    Employee deposits, redeposits, 
          and voluntary contributions...         127         124         122
      Intragovernmental transactions:

0240    Agency contributions, Civil 
          Service Retirement and 
          Disability Fund...............       8,682       8,817       9,163
0242    Postal Service agency 
          contributions, Civil Service 
          Retirement and Disability Fund       2,584       2,694       2,786
0243    Postal Service supplemental 
          contributions, Civil Service 
          Retirement and Disability Fund       3,525       3,377       3,488
0244    Federal Financing Bank interest, 
          Civil Service Retirement and 
          Disability Fund...............       1,841       2,539       1,379
0245    Treasury interest, Civil Service 
          Retirement and Disability Fund      29,925      31,649      33,262
0247    General fund payment to the 
          Civil Service Retirement and 
          Disability Fund...............      21,357      21,645      21,812
0250    Re-employed annuitant salary 
          offset, Civil Service 
          Retirement and Disability Fund          27          27          28
                                           ---------   ---------  ----------
0299    Total cash income...............      72,229      75,019      76,329
    Cash outgo during year:
0501  Payment of claims to retired 
        employees.......................     -35,816     -37,169     -38,707
0502  Payment of alternative annuity 
        refunds.........................          -9          -5          -5
0505  Payment of claims to survivor 
        annuitants......................      -6,763      -7,132      -7,526
0506  Lump sum payments to estates or 
        beneficiaries of deceased 
        annuitants and employees........        -120        -124        -128
0507  Refunds to living separated 
        employees.......................        -250        -241        -233
0508  Administration....................        -100        -109        -102
                                           ---------   ---------  ----------
0599  Total cash outgo (-)..............     -43,058     -44,780     -46,701
    Unexpended balance, end of year:
0700  Uninvested balance................          15           8           8
      U.S. Securities:

0701    Par value.......................     450,674     480,919     510,547
0702    Unrealized discounts............          -6          -4          -4
                                           ---------   ---------  ----------
0799    Total balance, end of year......     450,683     480,923     510,551
---------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-8135-0-7-602      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
25.2  Other services....................         100         107         102
42.0  Insurance claims and indemnities..      42,668      44,433      46,409
44.0  Refunds and death claims..........         389         365         361
                                           ---------   ---------  ----------
99.9    Total new obligations...........      43,157      44,905      46,872
---------------------------------------------------------------------------

                                

                      Employees Life Insurance Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-8424-0-8-602      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Regular program premiums..........         945         998       1,026
09.02 Optional program premiums.........         601         610         664
09.03 Beneficial program premiums.......           3           3           3
09.04 Administration....................           2           2           2
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 25.2)...................       1,551       1,613       1,695
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................      18,401      19,682      21,124
22.00 New budget authority (gross)......       2,832       3,055       3,160
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      21,233      22,737      24,284
23.95 Total new obligations.............      -1,551      -1,613      -1,695
24.40 Unobligated balance available, end 
        of year.........................      19,682      21,124      22,589
----------------------------------------------------------------------------

[[Page 1074]]



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

68.00   Offsetting collections (cash)...       2,905       2,962       3,155
68.10   From Federal sources: Change in 
          receivables and unpaid, 
          unfilled orders...............         -73          93           5
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................       2,832       3,055       3,160
----------------------------------------------------------------------------

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

72.40   Obligated balance, start of year        -643        -580        -674
72.95   From Federal sources: 
          Receivables and unpaid, 
          unfilled orders...............         788         715         808
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............         145         135         134
73.10 Total new obligations.............       1,551       1,613       1,695
73.20 Total outlays (gross).............      -1,561      -1,615      -1,688
      Unpaid obligations, end of year:

74.40   Obligated balance, end of year..        -580        -674        -672
74.95   From Federal sources: 
          Receivables and unpaid, 
          unfilled orders...............         715         808         813
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................         135         134         141
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................       1,561       1,615       1,688
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Agency contributions..........        -391        -400        -426
88.20     Interest on U.S. securities...      -1,235      -1,279      -1,314
          Non-Federal sources:
88.40       Regular program.............        -561        -552        -586
88.40       Optional program............        -718        -731        -829
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........      -2,905      -2,962      -3,155
88.95 From Federal sources: Change in 
        receivables and unpaid, unfilled 
        orders..........................          73         -93          -5
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................      -1,344      -1,347      -1,467
----------------------------------------------------------------------------

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        U.S. securities: Par value......      18,038      19,377      20,700
92.02 Total investments, end of year: 
        U.S. securities: Par value......      19,377      20,700      22,167
---------------------------------------------------------------------------

    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:

                                     1998 actual  1999 est.   2000 est.
Life insurance in force (in billions 
    of dollars):
  On active employees...............         441         446         451
  On retired employees..............          46          48          50
                                    ------------------------------------
      Total.........................         487         494         501
                                    ====================================
Number of participants (in 
    thousands):
  Active employees..................       2,349       2,335       2,321
  Annuitants........................       1,605       1,609       1,615
                                    ------------------------------------
      Total.........................       3,954       3,944       3,936
                                    ====================================

    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          1998 actual  1999 est.   2000 est.
Held in reserve (in millions of 
    dollars):
  Contingency reserve...............          65          65          65
  Beneficial association program 
    reserve.........................           1           1           1
  U.S. Treasury reserve.............      19,377      20,700      22,167
                                    ------------------------------------
      Total reserves................      19,433      20,766      22,233
                                    ====================================

                                

          Employees and Retired Employees Health Benefits Funds

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-9981-0-8-551      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Benefit payments..................      16,935      17,991      19,976
09.02 Payments from OPM contingency 
        reserve.........................         202         210         220
09.03 Government payment for annuitants 
        (1960 Act)......................           4           3           3
09.04 Administration....................          20          23          23
                                           ---------   ---------  ----------
09.99   Total reimbursable program......      17,161      18,227      20,222
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 25.6)...................      17,161      18,227      20,222
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................       5,574       4,548       4,289
22.00 New budget authority (gross)......      16,135      17,968      20,046
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      21,709      22,516      24,335
23.95 Total new obligations.............     -17,161     -18,227     -20,222
24.40 Unobligated balance available, end 
        of year.........................       4,548       4,289       4,113
----------------------------------------------------------------------------

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

68.00   Offsetting collections (cash)...      16,695      17,920      19,963
68.10   From Federal sources: Change in 
          receivables and unpaid, 
          unfilled orders...............        -560          48          83
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................      16,135      17,968      20,046
----------------------------------------------------------------------------

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

72.40   Obligated balance, start of year       1,128       1,688       1,702
72.95   From Federal sources: 
          Receivables and unpaid, 
          unfilled orders...............       1,248         688         736
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............       2,376       2,376       2,438
73.10 Total new obligations.............      17,161      18,227      20,222
73.20 Total outlays (gross).............     -17,160     -18,165     -20,089
      Unpaid obligations, end of year:

74.40   Obligated balance, end of year..       1,688       1,702       1,752
74.95   From Federal sources: 
          Receivables and unpaid, 
          unfilled orders...............         688         736         819
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................       2,376       2,438       2,571
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................      15,912      17,477      19,353
86.98 Outlays from permanent balances...       1,248         688         736
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........      17,160      18,165      20,089
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
          Federal sources:
88.00       Agency contributions........      -6,876      -7,503      -8,289
88.00       Government contributions for 
              annuitants................      -4,808      -5,116      -5,762
88.20     Interest on U.S. securities...        -462        -408        -376
          Non-Federal sources:
88.40       Employee salary withholdings      -2,383      -2,557      -2,880
88.40       Annuity withholdings........      -2,100      -2,279      -2,599
88.40       Contributions from D.C. 
              Government................         -66         -57         -57
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........     -16,695     -17,920     -19,963
88.95 From Federal sources: Change in 
        receivables and unpaid, unfilled 
        orders..........................         560         -48         -83
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................         466         245         126
----------------------------------------------------------------------------

[[Page 1075]]



    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        U.S. securities: Par value......       6,787       6,265       6,020
92.02 Total investments, end of year: 
        U.S. securities: Par value......       6,265       6,020       5,893
---------------------------------------------------------------------------

                  Status of Funds (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-9981-0-8-551      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Unexpended balance, start of year:
0100  Treasury balance..................           3           6           6
      U.S. Securities:

0101    Par value.......................       6,787       6,265       6,020
0102    Unrealized discounts............         -87         -34         -34
                                           ---------   ---------  ----------
0199    Total balance, start of year....       6,703       6,237       5,992
    Cash income during the year:
      Offsetting collections:

0280    Contributions from Employing 
          Agencies......................       4,324       4,803       5,274
0281    Contributions from Postal 
          Service for Active Employees..       2,552       2,701       3,015
0282    Contributions from Postal 
          Service for Annuitants........         739         621         692
        Offsetting collections:
0283      Government Payment for 
            Annuitant Health Benefits...       4,069       4,495       5,070
0283      Government Payment for 
            Annuitants, Other...........
0284    Interest Earned.................         462         408         376
0285    Contributions from DC Government          66          57          57
0286    Contributions from Active 
          Employees.....................       2,383       2,557       2,880
0287    Contributions from Annuitants...       2,100       2,279       2,599
                                           ---------   ---------  ----------
0299    Total cash income...............      16,695      17,921      19,963
    Cash outgo during year:
0501  Benefit Payments..................     -16,938     -17,933     -19,846
0502  Payments to Carriers from OPM 
        Contingency Reserve.............        -202        -210        -220
0503  Administration....................         -20         -23         -23
                                           ---------   ---------  ----------
0599  Total cash outgo (-)..............     -17,160     -18,166     -20,089
    Unexpended balance, end of year:
0700  Uninvested balance................           6           6           6
      U.S. Securities:

0701    Par value.......................       6,265       6,020       5,893
0702    Unrealized discounts............         -34         -34         -34
                                           ---------   ---------  ----------
0799    Total balance, end of year......       6,237       5,992       5,865
---------------------------------------------------------------------------

    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:

                                     1998 actual  1999 est.   2000 est.
Active employees....................   2,265,000   2,215,000   2,215,000
Annuitants..........................   1,855,000   1,875,000   1,895,000
                                    ------------------------------------
    Total...........................   4,120,000   4,090,000   4,110,000
                                    ====================================

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

    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:

                                     1998 actual  1999 est.   2000 est.
Uniform plan........................       1,500       1,200       1,000
Private plans.......................       5,100       4,200       3,500
                                    ------------------------------------
    Total...........................       6,600       5,400       4,500
                                    ====================================

    Financing.--The funds are financed by: (1) withholdings from active 
employees and annuitants; (2) agency contributions for active employees; 
(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.