[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 2002

 
                     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, [$94,095,000;] $99,036,000, 
of which $3,200,000 shall remain available until expended for the cost 
of the governmentwide human resources data network project; and in 
addition [$101,986,000] $115,928,000 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 [$10,500,000] $21,777,000 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 
sections 8348(a)(1)(B), [and 8909(g)] 8909(g), and 9004(f)(1)(A) and 
(2)(A) of title 5, United States Code: 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 fiscal year [2001] 2002, 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, 
2001, as enacted by section 1(a)(3) of P.L. 106-554.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-0100-0-1-805      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.01   Merit systems oversight and 
          effectiveness.................          21          21          22
00.02   Employment service..............          24          26          27
00.03   Retirement and insurance service         101         125         150
00.04   Workforce compensation and 
          performance service...........           8           8           8
00.05   Investigations service..........           3           3           3
00.06   Workforce relations.............           5           5           5
00.07   Executive resources.............           2           2           2
00.08   Administrative services.........          26          27          30
00.09   Executive and other services....          12          14          14
09.01 Reimbursable program..............           9          24          24
                                           ---------   ---------  ----------
10.00   Total new obligations...........         211         255         285
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           8          14
22.00 New budget authority (gross)......         211         255         285
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          12
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         231         269         285
23.95 Total new obligations.............        -211        -255        -285
23.98 Unobligated balance expiring or 
        withdrawn.......................          -7         -14
24.40 Unobligated balance carried 
        forward, end of year............          14
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          91          94          99
40.76   Reduction pursuant to P.L. 106-
          113...........................          -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............          90          94          99
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...         109         161         186
68.10   Change in uncollected customer 
          payments from Federal sources.          12
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total discretionary).......         121         161         186
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         211         255         285
----------------------------------------------------------------------------

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

72.40   Unpaid obligations, start of 
          year..........................          52          47          47
72.95   Uncollected customer payments 
          from Federal sources, start of 
          year..........................         -59         -71         -71
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................          -7         -24         -24
73.10 Total new obligations.............         211         255         285
73.20 Total outlays (gross).............        -211        -255        -280
73.40 Adjustments in expired accounts 
        (net)...........................           7
73.45 Recoveries of prior year 
        obligations.....................         -12
74.00 Change in uncollected customer 
        payments from Federal sources...         -12                      -5
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.          47          47          47
74.95   Uncollected customer payments 
          from Federal sources, end of 
          year..........................         -71         -71         -71
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year         -24         -24         -24
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         199         243         272
86.93 Outlays from discretionary 
        balances........................          12          12           8
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         211         255         280
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........        -109        -161        -186
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources.         -12
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          90          94          99
90.00 Outlays...........................         102          94          94
---------------------------------------------------------------------------

    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 and special studies; 
(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 
statistics on the Federal workforce; and (g) administering parts of the 
Voting Rights Act of 1965.

[[Page 1080]]

    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. 
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 Questionnaire, 
used to collect employee perceptions of the merit system principles, is 
content valid and reliable. OPM conducts 15 to 16 nationwide agency 
oversight reviews each year to ensure compliance with Federal Civil 
Service merit principles.

    Employment service.--The Employment Service performs core human 
resources employment functions that are essential to attracting, hiring, 
and retaining a high-quality, diverse Federal workforce. These functions 
include providing guidance and assistance on: implementation of laws and 
Presidential directives; recruitment, selection and promotion; delegated 
examining; training; workforce planning and restructuring; Federal 
employment information; and veterans' employment issues. The Service 
performs additional functions that are funded through a mix of direct 
appropriations and reimbursable funds (e.g., USAJOBS, the Presidential 
Management Intern program, the selection and assignment of all Federal 
Administrative Law Judges). In 2001 and 2002, the Service will continue 
to emphasize improving Federal employment opportunities for adults with 
disabilities and Hispanic Americans, and to enhance 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.

    The Employment service provided employment information to over 16.5 
million people in 2000 through a nationwide system available 24 hours a 
day, 7 days aweek, by telephone, fax, internet, and touch screen kiosks. 
USAJOBS averages more than 45,000 visits daily and future growth is 
anticipated.

    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 2000, the Employment Service issued regulations and extensive 
guidance on implementing new laws, such as the Veterans Millennium 
Health Care and Benefits Act (Public Law 106-117), and changes in 
voluntary early retirement authority. It also implemented Presidential 
initiatives, such as increasing the opportunities for persons with 
disabilities to be employed in the Federal workforce, recruiting and 
retaining a high quality diverse workforce, and eliminating redundant 
excepted appointment authorities. In 2000, the Service developed a 
Workforce Planning Model to help agencies construct plans that address 
their future workforce needs. In 2002, the Service will implement a 
fully-functional, on-line workforce planning system to help Federal 
agencies align human resources with accomplishment of agency mission and 
objectives and meet the President's goal to flatten the Federal 
hierarchy.

    Retirement and Insurance.-- This Activity encompasses administration 
of Earned Employee Benefits--the retirement and insurance programs--for 
Federal employees, retired Federal employees, and their families. These 
programs include the Civil Service Retirement System, the Federal 
Employees' Retirement System, the Federal Employees' Group Life 
Insurance Program, and the Federal Employees and Retired Employees 
Health Benefits Programs. The Long-Term Care Security Act (P.L. 106-265) 
authorizes OPM to offer group long term care insurance for Federal 
employees and retirees, their spouses, parents, and parents-in-law. In 
addition, this Activity includes OPM's efforts designed to stay abreast 
of, and respond to, developments in non-Federal fringe benefits 
practices.

    Program performance.--2002 will be a pivotal year for the Retirement 
Systems Modernization (RSM) Project, OPM's central strategy to meet its 
long term customer service, financial management and business goals for 
the Retirement Program. The project is an on-going effort with phased 
implementation plans. In 2002, acquisition and implementation will begin 
for three major components. The Project will begin developing the 
capability to capture data electronically that historically has been 
available only on paper. Also, OPM will begin development of software 
that will be integrated with program-wide data to ensure employees are 
placed in the correct retirement system. Finally, planning will begin 
for development of a full function benefits calculator. This calculator 
will be available for use across all federal agencies and will be 
available for self-service by employees and annuitants to provide 
accurate estimates and projections of expected benefit payments. The RSM 
effort will result in changes to current processes and systems so that 
claims processing, record keeping, benefits counseling, and financial 
management functions are performed more efficiently and effectively.

    Customer satisfaction with the delivery of retirement program 
services to annuitants remains high, as 93 percent of customers reported 
they were generally to very satisfied with OPM's overall retirement 
services. This continues a five-year trend of satisfaction levels in the 
90 percent range.

    OPM continues to improve its telecommunication services. Toll-free 
telephone access is provided to all call centers, interactive features 
are available through the telephone system, and hours of operation have 
been extended until 8:00 PM. In addition, to better serve customers, we 
have enhanced our ability to meet their needs by adding on-line features 
for our Spanish-speaking customers and translating often-used benefits 
material into Spanish. The volume of telephone inquiries handled 
increased by seven percent during 2000 and has nearly doubled since 
1994. Customer satisfaction levels regarding the courtesy, clarity, and 
timeliness of telephone services remain high at 90 percent.

    The volume of new annuity claims remained steady. OPM has received 
and processed an average of 170,000 Civil Service and Federal Employees' 
Retirement Systems annuity and survivor claims annually over the past 
five years. The average processing time in 2000 for interim annuity 
payments was five days, and more than 30 percent of them were within one 
day. The time needed to calculate and begin paying retirees their final 
annuity spiked upward in 2000. However, OPM increased its claims 
processing capacity and efficiency through the use of a new technical 
platform for FERS processing. By 2002 this enhancement is expected to 
reduce claims processing times back to levels near those in existence 
prior to 2000. Customer satisfaction with the timeliness of the first 
annuity payment has remained at or near 80 percent since 1997 and is 
much improved over the 73 percent observed in 1995.

[[Page 1081]]

    OPM also maintained its leadership in the direct deposit program, an 
efficient means of ensuring that customers receive their annuity payment 
each month. Customer satisfaction levels with receipt of annuity checks 
are at 97 percent, continuing another long-standing trend. During 1998, 
OPM implemented a direct mail campaign to inform annuitants and 
survivors of the convenience and desirability of direct deposit. As a 
result, participation rose from 79 percent at the start of 1998 to 
nearly 93 percent today.

    In the health insurance program, the 2001 FEHB Program benefit 
structure provides for parity in the provision of mental health and 
substance abuse benefits with medical benefits. In addition, OPM 
addressed patient safety, collaborating with others in the health care 
industry to develop the ``Five Steps to Patient Safety.'' These 
``Steps'' have been widely adopted both in and out of Government. OPM 
asked participating health plans to report patient safety initiatives 
already adopted by them and to work with participating providers to 
articulate and disseminate information about the safety initiatives they 
have put in practice. Health plans were asked to update provider 
directories, where appropriate, to inform their membership of important 
safety measures. These initiatives include such practices as the use of 
automated entry systems for prescription drugs, referring patients to 
recognized Centers of Excellence, and staffing appropriately for 
Intensive Care Units. Other consumer protections and quality initiatives 
now provided by FEHBP plans include, but are not limited to: 
transitional care for those with chronic or disabling conditions; the 
right to review medical records and to correct inaccurate ones; and 
direct access to women's health care providers.

    To strengthen its leadership role in the health insurance industry, 
OPM continues to build and maintain strong relationships with the 
National Committee for Quality Assurance (NCQA), the Joint Commission on 
Accreditation of Healthcare Organizations (JCAHO), the National Quality 
Forum, the Quality Interagency Coordination (QuIC) Taskforce, the 
Washington Business Group on Health, the Leapfrog Group, the Health Care 
Financing Administration and other components of the Department of 
Health and Human Services. 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. During 2001, OPM also gathered Health Employees Data Information 
Sets (HEDIS) from participating FEHBP Health Maintenance Organizations 
and selected Preferred Provider Organizations.

    The Long-Term Care Security Act of 2000 authorizes OPM to offer 
long-term care insurance to approximately 20 million people by October 
2002. OPM plans to offer a flexible long-term care product, including 
provisions for nursing home care, assisted living, home health care, and 
adult day care. Insurance will be offered to civil service, postal, and 
military personnel, and government retirees and specified relatives, 
including spouses, parents, parents-in-law, and stepparents. OPM 
estimates that 300,000 to 600,000 individuals will enroll during the 
first sign- up period in 2003. Enrollees will pay the full cost of 
insurance premiums at group rates that are expected to be 15 to 20 
percent lower than rates for comparable coverage sold privately on an 
individual basis. Beginning in late 2001, OPM will issue regulations for 
the new program and will oversee an education campaign to explain long-
term care options to employees and retirees. OPM will assure that 
consumer materials and guidance are readily accessible (through 
mailings, the Internet, and toll free advice and assistance phone 
lines), to help individuals make informed choices about purchasing the 
long-term care product(s).

    In late 2000, legislation was enacted to provide relief to employees 
who were placed in the wrong retirement system. The Federal Erroneous 
Retirement Coverage Corrections Act (FERCCA) allows most of these 
employees a choice in retirement plans. In 2001, OPM issued regulations 
and guidance to implement the law, developed a web-based database of 
individuals who may be eligible for relief under FERCCA, developed a 
projection model to allow employees to simulate benefits under the plans 
available to them, and entered into a contract that will make it 
possible for each affected employee to receive one-on-one counseling and 
projections of benefits upon which to base an election decision. This 
counseling activity will continue through 2002, along with the actions 
necessary to effectuate eligible individuals' decisions.

    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, surveys of attendees at conferences, workshops, 
and/or seminars, and feedback from users of our website and email. The 
2000 HR Directors' Customer Satisfaction Survey showed that the 
percentage of human resources directors who were satisfied with policy 
leadership in WCPS program areas were as follows; 87 percent in pay and 
leave administration, 78 percent in performance management, 68 percent 
in position classification and position management, and 62 percent in 
the Federal Wage System. In 2000 the organization staged the second 
Strategic Compensation Conference. On a five-point scale, the average 
overall rating of the Conference was 4.23, an increase from 4.14 for the 
1999 Conference. The overall improvement in perception of outcomes in 
WCPS program areas is demonstrated by the increase in positive responses 
in the National Performance Review survey of more than 20,000 Federal 
employees. Favorable responses increased in one year from 26 percent to 
31 percent on the question ``are you clear about how good performance is 
defined in your organization?'' On the issue ``recognition and rewards 
are based on merit,'' positive responses increased from 30 percent to 34 
percent. 

    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 
govemmentwide policies, issuing guidance, and providing assistance to 
agencies on employee relations issues, including actions based on 
misconduct and unacceptable performance, as well as alternative dispute 
resolution; (b) promoting and supporting Federal work/life and wellness 
programs; (c) providing leadership and policy guidance in support of 
agency human resource development programs and training initiatives; and 
(d) providing guidance, information, and assistance to agencies on 
collective bargaining and labor-management relations to help them 
develop effective labor relations programs.

    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/life 
programs, and human resource development programs. The Office of 
Workforce Relations (OWR) uses a variety of measures to identify its 
level of success. For instance, surveys at regular intervals assess the 
extent to which our customers feel that their needs are met by OWR 
products and services such as printed and electronic materials, 
conferences, seminars, and workshops, as well as by legislative and 
regulatory proposals coming from OWR.

[[Page 1082]]

    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      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          99         106         109
11.3      Other than full-time permanent           5           5           5
11.5      Other personnel compensation..           4           4           4
                                           ---------   ---------  ----------
11.9        Total personnel compensation         108         115         118
12.1    Civilian personnel benefits.....          23          26          27
21.0    Travel and transportation of 
          persons.......................           2           3           3
23.1    Rental payments to GSA..........          17          17          17
23.3    Communications, utilities, and 
          miscellaneous charges.........           9          10          10
24.0    Printing and reproduction.......           2           2           2
25.2    Other services..................          33          50          76
26.0    Supplies and materials..........           3           3           3
31.0    Equipment.......................           5           5           5
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..         202         231         261
99.0  Reimbursable obligations..........           9          24          24
                                           ---------   ---------  ----------
99.9    Total new obligations...........         211         255         285
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 24-0100-0-1-805      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......       1,965       2,063       2,063
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......          80         141         141
---------------------------------------------------------------------------

                                

                       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, [$1,360,000] $1,398,000; and in addition, not to exceed 
[$9,745,000] $10,016,000 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, 2001, 
as enacted by section 1(a)(3) of P.L. 106-554.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-0400-0-1-805      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

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

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          12          11          11
23.95 Total new obligations.............         -11         -11         -11
23.98 Unobligated balance expiring or 
        withdrawn.......................          -1
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................           1           1           1
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............          11          10          10
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          12          11          11
----------------------------------------------------------------------------

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

72.40   Unpaid obligations, start of 
          year..........................
72.95   Uncollected customer payments 
          from Federal sources, start of 
          year..........................          -2          -2
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................          -2          -2
73.10 Total new obligations.............          11          11          11
73.20 Total outlays (gross).............         -12         -11         -11
73.40 Adjustments in expired accounts 
        (net)...........................           3
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.
74.95   Uncollected customer payments 
          from Federal sources, end of 
          year..........................          -2
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year          -2
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          11          11          11
86.93 Outlays from discretionary 
        balances........................           1
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          12          11          11
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -11         -10         -10
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................           1           1           1
90.00 Outlays...........................           3           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. 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 impacts of approximately $105 million, 15 criminal 
convictions, and 2,706 administrative sanctions in 2000.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-0400-0-1-805      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................           6           6           6

[[Page 1083]]

12.1    Civilian personnel benefits.....           2           2           2
23.1    Rental payments to GSA..........           1           1           1
25.2    Other services..................           1           1           1
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..          10          10          10
99.5  Below reporting threshold.........           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          11          11          11
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 24-0400-0-1-805      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: Full-
        time equivalent employment......          98         111         111
    Reimbursable:
2001  Total compensable workyears: Full-
        time equivalent employment......                       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, 2001, as enacted by section 1(a)(3) of P.L. 106-
554.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-0206-0-1-551      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Government contribution for 
        annuitants benefits (1959 Act)..       5,046       5,569       6,100
00.02 Government contribution for 
        annuitants benefits (1960 Act)..           3           3           2
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 13.0)...................       5,049       5,572       6,102
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......       5,049       5,572       6,102
23.95 Total new obligations.............      -5,049      -5,572      -6,102
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.05   Appropriation (indefinite)......       5,049       5,572       6,102
----------------------------------------------------------------------------

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

72.40   Unpaid obligations, start of 
          year..........................         391         437         472
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................         391         437         472
73.10 Total new obligations.............       5,049       5,572       6,102
73.20 Total outlays (gross).............      -5,003      -5,538      -6,077
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.         437         472         496
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year         437         472         496
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................       4,612       5,100       5,606
86.98 Outlays from mandatory balances...         391         437         472
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       5,003       5,538       6,077
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       5,049       5,572       6,102
90.00 Outlays...........................       5,003       5,538       6,077
---------------------------------------------------------------------------

    This appropriation covers: (1) the Government's share of the cost of 
health insurance for 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 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.

                                     2000 actual  2001 est.   2002 est.
Annuitants:
  FEHB..............................   1,864,019   1,882,000   1,899,000
    (USPS non-add)..................     424,813     412,000     406,000
  REHB..............................       4,565       3,800       3,150
                                    ------------------------------------
      Total, annuitants.............   1,868,584   1,885,800   1,902,150
                                    ====================================

                                

       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, 2001, as enacted by section 1(a)(3) of P.L. 106-
554.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-0500-0-1-602      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total new obligations (object 
        class 25.2).....................          27          32          33
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          27          32          33
23.95 Total new obligations.............         -27         -32         -33
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................          27          32          33
----------------------------------------------------------------------------

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

72.40   Unpaid obligations, start of 
          year..........................           3           3           3
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................           3           3           3
73.10 Total new obligations.............          27          32          33
73.20 Total outlays (gross).............         -27         -32         -33
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.           3           3           3
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year           3           3           3
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................          24          29          30
86.98 Outlays from mandatory balances...           3           3           3
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          27          32          33
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          27          32          33
90.00 Outlays...........................          27          32          33
---------------------------------------------------------------------------

    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, 2001, as 
enacted by section 1(a)(3) of P.L. 106-554.)

[[Page 1084]]

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-0200-0-1-805      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.02 Payment of Government share of 
        retirement costs................       9,055       9,102       9,171
00.03 Transfers for interest on unfunded 
        liability and payment of 
        military service annuities......      12,439      12,642      13,236
00.05 Spouse equity payment.............          63          60          58
                                           ---------   ---------  ----------
10.00   Total new obligations...........      21,557      21,804      22,465
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......      21,557      21,804      22,465
23.95 Total new obligations.............     -21,557     -21,804     -22,465
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Mandatory:

        Appropriation (indefinite):
60.05     Appropriation (indefinite)....      12,439      12,642      13,236
60.05     Appropriation (indefinite)....       9,118       9,162       9,229
                                           ---------   ---------  ----------
62.50     Appropriation (total 
            mandatory)..................      21,557      21,804      22,465
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............      21,557      21,804      22,465
73.20 Total outlays (gross).............     -21,557     -21,804     -22,465
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................      21,557      21,804      22,465
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................      21,557      21,804      22,465
90.00 Outlays...........................      21,557      21,804      22,465
---------------------------------------------------------------------------

    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      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
12.1  Civilian personnel benefits.......       9,118       9,162       9,229
13.0  Benefits for former personnel.....      12,439      12,642      13,236
                                           ---------   ---------  ----------
99.9    Total new obligations...........      21,557      21,804      22,465
---------------------------------------------------------------------------

                                

Intragovernmental funds:

                             Revolving Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-4571-0-4-805      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 DOD testing.......................           7           8           8
09.02 Employment service................          32          38          36
09.03 Investigations....................         135         189         187
09.04 Workforce relations...............          32          37          39
09.05 Executive resources...............          22          30          30
                                           ---------   ---------  ----------
10.00   Total new obligations...........         228         302         300
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          20          48          48
22.00 New budget authority (gross)......         256         302         300
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         276         350         348
23.95 Total new obligations.............        -228        -302        -300
24.40 Unobligated balance carried 
        forward, end of year............          48          48          48
----------------------------------------------------------------------------

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

        Discretionary:
68.00     Offsetting collections (cash).         304         302         300
68.10     Change in uncollected customer 
            payments from Federal 
            sources.....................         -48
                                           ---------   ---------  ----------
68.90       Spending authority from 
              offsetting collections 
              (total discretionary).....         256         302         300
----------------------------------------------------------------------------

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

72.40   Unpaid obligations, start of 
          year..........................         193         107         107
72.95   Uncollected customer payments 
          from Federal sources, start of 
          year..........................        -142         -94         -94
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................          51          13          13
73.10 Total new obligations.............         228         302         300
73.20 Total outlays (gross).............        -315        -302        -300
74.00 Change in uncollected customer 
        payments from Federal sources...          48
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.         107         107         107
74.95   Uncollected customer payments 
          from Federal sources, end of 
          year..........................         -94         -94         -94
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year          13          13          13
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         353         302         300
86.93 Outlays from discretionary 
        balances........................         -38
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         315         302         300
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............        -303        -301        -299
88.40     Non-Federal sources...........          -1          -1          -1
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -304        -302        -300
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources.          48
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................          11
---------------------------------------------------------------------------

    DOD testing.--OPM conducts military entrance exams for the 
Department of Defense (DOD) as a cost-effective and reliable provider. 
The Employment Service continued to provide testing for the Department 
of Defense, conducting approximately 15,954 student test sessions and 
23,364 enlistment sessions.

    Employment Service.--OPM delivers employment information, examining 
services, automated staffing, and related human resource management 
services to Federal agencies nationwide. In 2000, we maintained 
contracts for a wide array of human resource products and services with 
the Executive, Legislative, and Judicial branches as well as state and 
municipal agencies.

    Investigations.--Through a contract with a 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.--Through the Training and Management Assistance 
(TMA) program, OPM provides assistance to government agencies in 
managing the development of training and human resources management 
solutions that meet their specific short-term and long-range objectives. 
This

[[Page 1085]]

is accomplished through an expedited contracting process, which is 
managed by an experienced team of HR and contracting professionals.

    Program performance.--The TMA performance indicators are designed to 
measure the financial stability of the program and customer 
satisfaction. The financial indicator measures whether program costs are 
met. The customer satisfaction indicator assures that TMA services are 
meeting the needs and objectives of client agencies.

    Executive resources.--OPM conducts residential and non-residential 
programs for Federal executives and managers to improve the 
effectiveness and efficiency of Federal programs.

                             WORKLOAD COUNT

                                     2000 actual  2001 est.   2002 est.
Participant training days...........      87,890      92,403      93,538
Background security investigations 
processed...........................      56,181      62,000      60,500
National and special agency check 
and inquiry cases...................     415,983     715,000     715,000

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-4571-0-4-805      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............          22          24          24
11.3    Other than full-time permanent..           6           5           5
11.5    Other personnel compensation....           2           2           2
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          30          31          31
12.1  Civilian personnel benefits.......           7           8           8
21.0  Travel and transportation of 
        persons.........................           4           3           3
23.1  Rental payments to GSA............           7           7           7
23.3  Communications, utilities, and 
        miscellaneous charges...........           6           5           5
24.0  Printing and reproduction.........           1           2           1
25.2  Other services....................         168         238         237
26.0  Supplies and materials............           2           4           4
31.0  Equipment.........................           3           4           4
                                           ---------   ---------  ----------
99.9    Total new obligations...........         228         302         300
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 24-4571-0-4-805      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
2001  Total compensable workyears: Full-
        time equivalent employment......         691         668         668
---------------------------------------------------------------------------

                                

  

                               Trust Funds

              Civil Service Retirement and Disability Fund

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-8135-0-7-602      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............     477,477     508,104     539,035
    Receipts:
02.00 Employee contributions............       4,506       4,339       4,074
02.01 District of Columbia contributions          70          68          62
02.02 Employee deposits, redeposits and 
        other contributions.............         131         132         134
02.40 Agency contributions..............       9,611      10,316      10,679
02.41 Postal Service agency 
        contributions...................       2,863       2,980       2,974
02.42 Postal Service supplemental 
        contributions...................       3,582       3,788       3,880
02.43 Federal Financing Bank interest...       1,365       1,372       1,368
02.44 Treasury interest.................      32,243      33,736      35,163
02.45 General fund payment to the Civil 
        Service Retirement and 
        Disability fund.................      21,557      21,804      22,465
02.46 Re-employed annuitants salary 
        offset..........................          39          24          25
                                           ---------   ---------  ----------
02.99   Total receipts and collections..      75,967      78,559      80,824
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...     553,444     586,663     619,859
    Appropriations:
05.00 Civil service retirement and 
        disability fund.................     -45,340     -47,628     -49,831
                                           ---------   ---------  ----------
05.99   Total appropriations............     -45,340     -47,628     -49,831
                                           ---------   ---------  ----------
07.99 Balance, end of year..............     508,104     539,035     570,028
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-8135-0-7-602      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Annuities.........................      44,893      47,169      49,356
00.02 Refunds and death claims..........         346         341         344
00.03 OPM Administration................         103         116         128
00.04 Transfer to MSPB..................           2           2           3
                                           ---------   ---------  ----------
10.00   Total new obligations...........      45,344      47,628      49,831
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......      45,340      47,628      49,831
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           4
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      45,344      47,628      49,831
23.95 Total new obligations.............     -45,344     -47,628     -49,831
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

40.26   Appropriation (trust fund, 
          definite).....................          83          90         103
      Mandatory:

60.27   Appropriation (trust fund, 
          indefinite)...................      75,880      78,469      80,721
60.45   Portion precluded from 
          obligation....................     -30,623     -30,931     -30,993
                                           ---------   ---------  ----------
62.50     Appropriation (total 
            mandatory)..................      45,257      47,538      49,728
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................      45,340      47,628      49,831
----------------------------------------------------------------------------

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

72.40   Unpaid obligations, start of 
          year..........................       3,796       3,942       4,153
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................       3,796       3,942       4,153
73.10 Total new obligations.............      45,344      47,628      49,831
73.20 Total outlays (gross).............     -45,194     -47,417     -49,640
73.45 Recoveries of prior year 
        obligations.....................          -4
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.       3,942       4,153       4,344
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year       3,942       4,153       4,344
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          83          90         103
86.97 Outlays from new mandatory 
        authority.......................      41,315      43,385      45,384
86.98 Outlays from mandatory balances...       3,796       3,942       4,153
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........      45,194      47,417      49,640
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................      45,340      47,628      49,831
90.00 Outlays...........................      45,194      47,417      49,640
----------------------------------------------------------------------------

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        Federal securities: Par value...     481,274     512,037     543,184
92.02 Total investments, end of year: 
        Federal securities: Par value...     512,037     543,184     574,368
---------------------------------------------------------------------------

    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.

                                     2000 actual  2001 est.   2002 est.
Active employees....................   2,763,851   2,754,850   2,703,900
Annuitants:
  Employees.........................   1,743,196   1,758,653   1,775,209

[[Page 1086]]

  Survivors.........................     633,308     639,143     643,923
                                    ------------------------------------
      Total, annuitants.............   2,376,504   2,397,796   2,419,132
                                    ====================================

                  Status of Funds (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-8135-0-7-602      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
    Unexpended balance, start of year:
0100  Treasury balance..................           3          11           8
      U.S. Securities:

0101    Par value.......................     481,274     512,037     543,184
0102    Unrealized discounts............          -4          -3          -4
                                           ---------   ---------  ----------
0199    Total balance, start of year....     481,273     512,046     543,188
    Cash income during the year:
      Current law:

        Receipts:
1200      Employee contributions, Civil 
            Service Retirement and 
            Disability Fund.............       4,506       4,339       4,074
1201      District of Columbia 
            contributions...............          70          68          62
1202      Employee deposits, redeposits, 
            and voluntary contributions.         131         132         134
        Offsetting receipts 
            (intragovernmental):
1240      Agency contributions, Civil 
            Service Retirement and 
            Disability Fund.............       9,611      10,316      10,679
1241      Postal Service agency 
            contributions, Civil Service 
            Retirement and Disability 
            Fund........................       2,863       2,980       2,974
1242      Postal Service supplemental 
            contributions, Civil Service 
            Retirement and Disability 
            Fund........................       3,582       3,788       3,880
1243      Federal Financing Bank 
            interest, Civil Service 
            Retirement and Disability 
            Fund........................       1,365       1,372       1,368
1244      Treasury interest, Civil 
            Service Retirement and 
            Disability Fund.............      32,243      33,736      35,163
1245      General fund payment to the 
            Civil Service Retirement and 
            Disability Fund.............      21,557      21,804      22,465
1246      Re-employed annuitant salary 
            offset, Civil Service 
            Retirement and Disability 
            Fund........................          39          24          25
1299    Income under present law........      75,967      78,559      80,824
    Cash outgo during year:
      Current law:

        Cash outgo during the year (-):
4500      Payment of claims to retired 
            employees...................     -37,541     -39,475     -41,562
4500      Payment of alternative annuity 
            refunds.....................          -6          -4          -2
4500      Payment of claims to survivor 
            annuitants..................      -7,210      -7,480      -7,601
4500      Lump sum payments to estates 
            or beneficiaries of deceased 
            annuitants and employees....        -137        -164        -186
4500      Refunds to living separated 
            employees...................        -195        -176        -158
4500      Administration................        -105        -118        -131
4599    Outgo under current law (-).....     -45,194     -47,417     -49,640
    Unexpended balance, end of year:
8700  Uninvested balance................          11           8           8
      Federal securities:

8701    Par value.......................     512,037     543,184     574,368
8702    Unrealized discounts............          -3          -4          -4
                                           ---------   ---------  ----------
8799    Total balance, end of year......     512,046     543,188     574,372
---------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-8135-0-7-602      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
25.2  Other services....................         105         118         131
42.0  Insurance claims and indemnities..      44,893      47,169      49,356
44.0  Refunds and death claims..........         346         341         344
                                           ---------   ---------  ----------
99.9    Total new obligations...........      45,344      47,628      49,831
---------------------------------------------------------------------------

                                

              Civil Service Retirement and Disability Fund

              (Legislative proposal, not subject to PAYGO)

    The Administration will propose legislation to make permanent the 
higher agency contributions to the retirement fund mandated by the 
Balanced Budget Act of 1997, which under current law is scheduled to 
expire in 2003.

                                

                      Employees Life Insurance Fund

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-8424-0-8-602      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............
    Receipts:
02.80 Employees life insurance fund, 
        offsetting collections..........       3,254       3,312       3,446
    Appropriations:
05.00 Employees life insurance fund.....      -3,254      -3,312      -3,446
                                           ---------   ---------  ----------
05.99   Total appropriations............      -3,254      -3,312      -3,446
                                           ---------   ---------  ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-8424-0-8-602      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Regular program premiums..........       1,129       1,273       1,295
09.02 Optional program premiums.........         753         827         863
09.03 Beneficial program premiums.......           2           2           2
09.04 Administration....................           2           2           2
09.05 Long Term Care Administration.....                       3          20
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 25.2)...................       1,886       2,107       2,182
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........      20,446      21,834      23,079
22.00 New budget authority (gross)......       3,272       3,350       3,458
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      23,718      25,184      26,537
23.95 Total new obligations.............      -1,886      -2,107      -2,182
24.40 Unobligated balance carried 
        forward, end of year............      21,834      23,079      24,355
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           2           2           2
      Mandatory:

69.00   Offsetting collections (cash)...       3,252       3,310       3,444
69.10   Change in uncollected customer 
          payments from Federal sources.          18          38          12
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........       3,270       3,348       3,456
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       3,272       3,350       3,458
----------------------------------------------------------------------------

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

72.40   Unpaid obligations, start of 
          year..........................         409         516         637
72.95   Uncollected customer payments 
          from Federal sources, start of 
          year..........................        -369        -387        -425
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................          40         129         212
73.10 Total new obligations.............       1,886       2,107       2,182
73.20 Total outlays (gross).............      -1,778      -1,986      -2,149
74.00 Change in uncollected customer 
        payments from Federal sources...         -18         -38         -12
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.         516         637         670
74.95   Uncollected customer payments 
          from Federal sources, end of 
          year..........................        -387        -425        -437
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year         129         212         233
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           2           2           2
86.97 Outlays from new mandatory 
        authority.......................       1,776       1,984       2,147
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,778       1,986       2,149
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Agency contributions..........        -398        -429        -446
88.20     Interest on Federal securities      -1,425      -1,422      -1,462
          Non-Federal sources:
88.40       Regular program.............        -618        -647        -676
88.40       Optional program............        -813        -814        -862
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........      -3,254      -3,312      -3,446

[[Page 1087]]

      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources.         -18         -38         -12
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................      -1,476      -1,326      -1,297
----------------------------------------------------------------------------

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        Federal securities: Par value...      20,755      22,372      23,698
92.02 Total investments, end of year: 
        Federal securities: Par value...      22,372      23,698      24,995
---------------------------------------------------------------------------

    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:

                                     2000 actual  2001 est.   2002 est.
Life insurance in force (in billions 
    of dollars):
  On active employees...............         506         516         526
  On retired employees..............          50          52          54
                                    ------------------------------------
      Total.........................         556         568         580
                                    ====================================
Number of participants (in 
    thousands):
  Active employees..................       2,334       2,311       2,288
  Annuitants........................       1,607       1,611       1,614
                                    ------------------------------------
      Total.........................       3,941       3,922       3,902
                                    ====================================

    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          2000 actual  2001 est.   2002 est.
Held in reserve (in millions of 
    dollars):
  Contingency reserve...............          65          65          65
  Beneficial association program 
    reserve.........................           1           1           1
  U.S. Treasury reserve.............      22,372      23,698      24,995
                                    ------------------------------------
      Total reserves................      22,438      23,764      25,061
                                    ====================================

                                

          Employees and Retired Employees Health Benefits Funds

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-9981-0-8-551      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............
    Receipts:
02.80 Employees and retired employees 
        health benefits fund, offsetting 
        collections.....................      19,737      21,911      24,174
    Appropriations:
05.00 Employees and retired employees 
        health benefits fund............     -19,737     -21,911     -24,174
                                           ---------   ---------  ----------
05.99   Total appropriations............     -19,737     -21,911     -24,174
                                           ---------   ---------  ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-9981-0-8-551      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Benefit payments..................      19,543      21,048      22,826
09.02 Payments from OPM contingency 
        reserve.........................          95         230         240
09.03 Government payment for annuitants 
        (1960 Act)......................           3           3           2
09.04 Administration....................          22          23          24
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 25.6)...................      19,662      21,304      23,092
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........       4,142       4,173       4,876
22.00 New budget authority (gross)......      19,691      22,007      24,272
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      23,833      26,180      29,148
23.95 Total new obligations.............     -19,662     -21,304     -23,092
24.40 Unobligated balance carried 
        forward, end of year............       4,173       4,876       6,056
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Discretionary:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).          22          23          24
      Mandatory:

69.00   Offsetting collections (cash)...      19,715      21,888      24,150
69.10   Change in uncollected customer 
          payments from Federal sources.         -46          96          98
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........      19,669      21,984      24,249
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................      19,691      22,007      24,272
----------------------------------------------------------------------------

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

72.40   Unpaid obligations, start of 
          year..........................       2,567       2,655       2,799
72.95   Uncollected customer payments 
          from Federal sources, start of 
          year..........................        -896        -850        -946
                                           ---------   ---------  ----------
72.99     Obligated balance, start of 
            year........................       1,671       1,805       1,853
73.10 Total new obligations.............      19,662      21,304      23,092
73.20 Total outlays (gross).............     -19,575     -21,159     -23,001
74.00 Change in uncollected customer 
        payments from Federal sources...          46         -96         -98
      Unpaid obligations, end of year:

74.40   Unpaid obligations, end of year.       2,655       2,799       2,891
74.95   Uncollected customer payments 
          from Federal sources, end of 
          year..........................        -850        -946      -1,044
                                           ---------   ---------  ----------
74.99     Obligated balance, end of year       1,805       1,853       1,847
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          22          23          24
86.97 Outlays from new mandatory 
        authority.......................      18,656      20,286      22,031
86.98 Outlays from mandatory balances...         896         849         946
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........      19,575      21,159      23,001
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
          Federal sources:
88.00       Agency contributions........      -8,291      -9,379     -10,357
88.00       Government contributions for 
              annuitants................      -5,745      -6,307      -6,913
88.20     Interest on Federal securities        -369        -351        -412
          Non-Federal sources:
88.40       Employee salary withholdings      -2,773      -3,056      -3,355
88.40       Annuity withholdings........      -2,491      -2,761      -3,081
88.40       Contributions from D.C. 
              Government................         -68         -57         -56
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........     -19,737     -21,911     -24,174
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources.          46         -96         -98
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................        -165        -752      -1,173
----------------------------------------------------------------------------

    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        Federal securities: Par value...       5,835       5,989       6,748
92.02 Total investments, end of year: 
        Federal securities: Par value...       5,989       6,748       7,919
---------------------------------------------------------------------------

                  Status of Funds (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-9981-0-8-551      2000 actual   2001 est.   2002 est.
----------------------------------------------------------------------------
    Unexpended balance, start of year:
0100  Treasury balance..................           1          12           5
      U.S. Securities:

0101    Par value.......................       5,835       5,989       6,748
0102    Unrealized discounts............         -23         -24         -23
                                           ---------   ---------  ----------
0199    Total balance, start of year....       5,813       5,978       6,729
    Cash income during the year:
      Current law:

        Offsetting collections:
          Offsetting governmental 
              receipts:
1280        Contributions from Employing 
              Agencies..................       5,114       5,683       6,106
1280        Contributions from Postal 
              Service for Active 
              Employees.................       3,176       3,696       4,252

[[Page 1088]]

1280        Contributions from Postal 
              Service for Annuitants....         742         769         835
1280        Government Payment for 
              Annuitant Health Benefits.       5,003       5,538       6,077
1280        Interest Earned.............         369         352         412
1280        Contributions from DC 
              Government................          68          57          56
1280        Contributions from Active 
              Employees.................       2,773       3,056       3,355
1280        Contributions from 
              Annuitants................       2,491       2,761       3,081
1299    Income under present law........      19,737      21,911      24,174
    Cash outgo during year:
      Current law:

        Cash outgo during the year (-):
4500      Benefit Payments (-)..........     -19,457     -20,906     -22,737
4500      Payments to Carriers from OPM 
            Contingency Reserves (-)....         -95        -230        -240
4500      Administration (-)............         -21         -23         -24
4599    Outgo under current law (-).....     -19,575     -21,159     -23,001
    Unexpended balance, end of year:
8700  Uninvested balance................          12           5           5
      Federal securities:

8701    Par value.......................       5,989       6,748       7,919
8702    Unrealized discounts............         -24         -23         -23
                                           ---------   ---------  ----------
8799    Total balance, end of year......       5,978       6,729       7,903
---------------------------------------------------------------------------

    This display combines the Federal Employees Health Benefits (FEHB) 
fund and the Retired Employees Health Benefits (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 Federal 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 FEHB fund is available for 
payments without fiscal year limitation. Numbers of participants at the 
end of each fiscal year are as follows:

                                     2000 actual  2001 est.   2002 est.
Active employees....................   2,220,000   2,348,000   2,305,000
Annuitants..........................   1,864,000   1,882,000   1,889,000
                                    ------------------------------------
    Total...........................   4,084,000   4,230,000   4,194,000
                                    ====================================

    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:

                                     2000 actual  2001 est.   2002 est.
Uniform plan........................       1,081         900         750
Private plans.......................       3,484       2,900       2,400
                                    ------------------------------------
    Total...........................       4,565       3,800       3,150
                                    ====================================

    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.