    [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 2003

                         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, [$99,636,000] $134,404,000,
    of which [$3,200,000] $24,000,000 shall remain available until expended
    for the cost of the governmentwide human resources data network project,
    and $2,500,000 shall remain available until expended for the cost of
    leading the government-wide initiative to modernize federal payroll
    systems and service delivery; and in addition [$115,928,000]
    $126,591,000 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
    [$21,777,000] $27,640,000 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),
    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
    [2002] 2003, 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, 2002; additional authorizing legislation required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0100-0-1-805      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Merit systems oversight and
              effectiveness.................          22          22          22
    00.02   Employment service..............          28          29          29
    00.03   Retirement and insurance service         127         165         139
    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           3           3
    00.08   Administrative services.........          29          31          61
    00.09   Executive and other services....          14          15          15
    09.01 Reimbursable program..............          24          24          24
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         262         305         309
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          14           7
    22.00 New budget authority (gross)......         262         305         309
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          -6
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         270         312         309
    23.95 Total new obligations.............        -262        -305        -309
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1          -7
    24.40 Unobligated balance carried
            forward, end of year............           7
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          99         105         134
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............         163         200         175
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         262         305         309
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         -24          11          11
    73.10 Total new obligations.............         262         305         309
    73.20 Total outlays (gross).............        -253        -305        -309
    73.40 Adjustments in expired accounts
            (net)...........................          26
    73.45 Recoveries of prior year
            obligations.....................           6
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          -6
    74.40 Obligated balance, end of year....          11          11          11
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         251         292         292
    86.93 Outlays from discretionary
            balances........................           2          13          16
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         253         305         309
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -163        -200        -175
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          99         105         134
    90.00 Outlays...........................          90         105         134
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          94         100         129
    90.00 Outlays...........................          85         100         129
    ---------------------------------------------------------------------------

        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; (g) providing electronic transfer
    of other human resources data throughout the Federal sector; and (h)
    administering parts of the Voting Rights Act of 1965.

        Program performance.--The activity's performance measures are
    designed to assess the value-added outcomes which oversight reviews,
    accountability and demonstration projects, and workforce information
    have on the Federal HRM community and employees. Client feedback is
    solicited on each re

    [[Page 1042]]

    view, product, and service. For example, clients rate the overall value
    of the oversight work as 4.0 or above of 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 Survey, used to collect
    employee perceptions of the merit system principles, is content valid
    and reliable. OPM conducts 15 to 17 nationwide agency oversight reviews
    each year to ensure compliance with Federal Civil Service merit
    principles.

        Employment Service.--The Employment Service performs core human
    resources (HR) leadership functions. These functions include developing,
    implementing, and monitoring employment policies for agencies in the
    areas of workforce planning, recruiting, selecting, promoting,
    reassigning, downsizing and reshaping. The Service monitors and reports
    on governmentwide diversity and veterans efforts, provides technical
    assistance on a variety of staffing issues, and operates the personnel
    program for the Administrative Law Judges. Additionally, the Service
    provides HR best practice information to Federal agencies, offers
    automated staffing solutions, and operates the Federal job information
    system USAJOBS. In 2002 and 2003, the Service will focus on improving
    the Federal hiring process, enhancing the image of the public service,
    conducting occupational studies of homeland security and executive
    succession planning, and expanding 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 20.7
    million people in 2001 through a nationwide system available 24 hours a
    day, 7 days a week, by telephone, fax, and internet. USAJOBS averages
    more than 56,000 visits daily. This is an increase from the previous
    year and is expected to continue to grow.

        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 2001, Employment Service published several regulations such as
    the Career Intern Interim regulations and final regulations for the
    Student Loan Repayment program and continued to assist employees with
    outplacement assistance and selection priority for other jobs. The
    Service also helped advance the President's Strategic Management of
    Human Capital initiative by proposing legislation to streamline the
    hiring process, which was included in the Administration's Managerial
    Flexibility Act of 2001, and providing technical assistance and tools to
    help agencies conduct a workforce analysis and develop a restructuring
    plan.

        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.--The Retirement Systems Modernization (RSM)
    Project is OPM's central strategy to meet its long term customer
    service, financial management and business goals for the Retirement
    Program. To achieve these strategic goals, OPM will move from a paper-
    based record keeping system to program-wide electronic data and
    transactions. The project will be implemented in phases, with full
    results achieved in 2008. Close coordination with another OPM
    initiative, the Human Resources Data Network, will minimize the data
    agencies must send to OPM. OPM is developing universal tools that use
    electronic data, and has already introduced a prototype Benefits
    Calculator and a Benefits Booklet for retiring employees. The
    calculator, used by OPM to process FERS claims, reduced claims
    processing times by 45 percent. The benefits booklet provides
    personalized benefits information, contributing to improved customer
    satisfaction. During FY 2002, OPM will complete two applications that
    will provide immediate benefits. A Retirement Data Exchange Gateway will
    allow OPM and agencies to eliminate obsolete technology and reduce the
    delay some retiring employees experience in receiving their first
    benefit payment. A Coverage Determination Application will improve the
    accuracy of retirement coverage decisions made by agencies. During FY
    2003, OPM will begin to convert member data, currently stored in paper
    form at the Retirement Operations Center and at Federal agencies, to
    electronic media. This will contribute to improved benefits counseling
    and case development by agencies, reduced benefit claims processing time
    and elimination of paper record storage and management. In addition, OPM
    will pilot, with the USPS, a non-HR-DN data capture capability, and will
    develop web-enabled self-service for retirement benefits, i.e., on line
    applications. RSM results in more efficient and effective retirement
    claims processing, record keeping, benefits counseling and financial
    management. Ninety-three percent of customers reported that they were
    generally satisfied to very satisfied with OPM's delivery of retirement
    services. This continues a five-year trend of satisfaction levels in the
    90 percent range. In addition, the American Customer Satisfaction Index
    (ASCI) measured the satisfaction federal retirees and survivor
    annuitants had with the retirement services delivered, and the level of
    satisfaction improved from 73 in 2000, to 78 in 2001.

        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.E.S.T. In addition, to better serve
    customers, OPM has enhanced its 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 8 percent during FY 2001. 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 5
    years. The average processing time for interim annuity payments in 2001
    was reduced from 5 days to 3 days. More than 48% of interim payments
    were authorized within one day. The time needed to calculate and begin
    paying retirees their final annuity was

    [[Page 1043]]

    reduced by more than 30% from an average of 115 days in 2000 to 78 days
    in 2001. OPM increased its claims processing capacity and efficiency
    through the use of enhanced technical platforms. Customer satisfaction
    with the timeliness of the first annuity payment has remained at or near
    80 percent since FY 1997 and is much improved over the 73 percent
    observed in FY 1995.

        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. OPM will expand the direct deposit program to
    our overseas customers by participating in the International Direct
    Deposit Program beginning mid-FY 2002.

        The FEHBP continues to be a hallmark for employer sponsored health
    insurance programs. To maintain this recognition, OPM will ensure that
    customers are enrolled in highly rated health plans that deliver quality
    care in a cost-effective manner. During FY 2003, OPM will continue to
    address 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.
    Participating health plans have already adopted some patient safety
    initiatives and are working with participating providers to articulate
    and disseminate information about the safety initiatives that they have
    put in practice. Health plans have also updated 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.

        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.

        OPM is taking initial steps to standardize and centralize data on
    health plan performance in a data repository. This will enable staff to
    more easily analyze the information, begin benchmarking, and provide
    feedback to plans for quality improvement.

        The Long Term Care Security Act, which was passed in FY 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 uniformed services personnel, government
    retirees and specified relatives, such as spouses, parents, in-laws and
    stepparents. OPM estimates that 300,000 to 600,000 individuals will
    enroll during the first sign-up period in FY 2003. Enrollees will pay
    the full cost of insurance premiums at group rates that are expected to
    be lower than rates for comparable coverage sold privately on an
    individual basis. OPM will draft 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 to help individuals make informed
    choices about purchasing the long-term care product(s) that will be
    available to them.

        In late FY 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. OPM's implementation
    strategy is to provide a consistent high level of customer service to
    everyone who is eligible for relief so that affected individuals can
    make informed decisions. OPM developed a web page at www.opm.gov/
    benefits/correction with information about the Act. To date, about 6,300
    affected individuals have been registered in our database. OPM began the
    review of records to determine eligibility in September 2001 and
    affected individuals will receive counseling beginning January 2002. The
    process of identifying affected individuals and providing counseling
    services is expected to be completed by the end of 2002.

        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 2001 the organization staged the second
    Strategic Compensation Conference. On a five-point scale, the average
    overall rating of the Conference was 4.33, an increase from 4.14 for the
    1999 Conference, and 4.23 for the 2000 Conference. The overall
    improvement in perception of outcomes in WCPS program areas is
    demonstrated by the increase in positive responses in a national 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 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
    governmentwide 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

    [[Page 1044]]

    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.

        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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         106         109         111
    11.3      Other than full-time permanent           5           5           5
    11.5      Other personnel compensation..           4           4           4
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         115         118         120
    12.1    Civilian personnel benefits.....          35          37          38
    21.0    Travel and transportation of
              persons.......................           3           3           3
    23.1    Rental payments to GSA..........          17          17          17
    23.3    Communications, utilities, and
              miscellaneous charges.........          10          10          10
    24.0    Printing and reproduction.......           2           2           2
    25.2    Other services..................          47          85          86
    26.0    Supplies and materials..........           3           3           3
    31.0    Equipment.......................           5           5           5
                                               ---------   ---------  ----------
    99.0      Direct obligations............         237         280         284
    99.0  Reimbursable obligations..........          25          25          25
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         262         305         309
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 24-0100-0-1-805      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......       1,922       2,067       2,028
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......         130         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, [$1,498,000] $1,498,000; and in addition, not to exceed
    [$10,016,000] $11,366,000 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, 2002;
    additional authorizing legislation required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0400-0-1-805      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total new obligations.............          12          12          12
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          12          12          12
    23.95 Total new obligations.............         -12         -12         -12
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

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

        Change in obligated balances:
    72.40 Obligated balance, start of year..          -2          -6
    73.10 Total new obligations.............          12          12          12
    73.20 Total outlays (gross).............         -12         -12         -12
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          -4           6
    74.40 Obligated balance, end of year....          -6
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          12          12          12
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................           1           1           1
    90.00 Outlays...........................           3           1
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        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, contract audit, and
    information systems 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. Information systems
    audits review

    [[Page 1045]]

    both general controls and application controls for the agency's systems
    and programs. 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 $242 million, 22 criminal convictions, and
    4,032 administrative sanctions in 2001.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0400-0-1-805      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           6           6           6
    12.1    Civilian personnel benefits.....           3           3           3
    23.1    Rental payments to GSA..........           1           1           1
    25.2    Other services..................           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............          11          11          11
    99.5  Below reporting threshold.........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          12          12          12
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 24-0400-0-1-805      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......          92         106         106
        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, 2002; additional authorizing legislation required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0206-0-1-551      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Government contribution for
            annuitants benefits (1959 Act)..       5,528       6,127      11,026
    00.02 Government contribution for
            annuitants benefits (1960 Act)..           2           2           2
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 13.0)...................       5,530       6,129      11,028
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       5,530       6,129      11,028
    23.95 Total new obligations.............      -5,530      -6,129     -11,028
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................       5,530       6,129      11,028
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         437         551         596
    73.10 Total new obligations.............       5,530       6,129      11,028
    73.20 Total outlays (gross).............      -5,417      -6,083     -11,624
    74.40 Obligated balance, end of year....         551         596
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................       4,980       5,533      10,418
    86.98 Outlays from mandatory balances...         437         551       1,206
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       5,417       6,083      11,624
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       5,530       6,129      11,028
    90.00 Outlays...........................       5,417       6,083      11,624
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       5,530       6,129       6,613
    90.00 Outlays...........................       5,417       6,083       6,599
    ---------------------------------------------------------------------------

        For 2001 and 2002, 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.

        For 2003, this appropriation covers the annual appropriations
    necessary to provide for the liquidation of the Government's unfunded
    liability as of September 30, 2001, for post-retirement health benefits,
    as part of the ``Accrual Funding of Post-retirement Health Benefits
    Costs for Federal Employees'' subtitle in the President's Managerial
    Flexibility Act.

        The Act would require OPM to determine the current liability of the
    Government for post-retirement costs under FEHB, excluding the Postal
    Service liability for post-June 30, 1971, for the period prior to
    enactment. OPM would then establish an amortization schedule to
    liquidate the liability over 40 years beginning in fiscal year 2003 and
    continuing through 2042. In addition, the Act would require OPM to
    determine the supplemental unfunded liability of the Fund as of the
    close of each fiscal year for fiscal years beginning after September 30,
    2001, and provide for liquidation of such liability over the succeeding
    30 years. This would provide for liquidation of any unfunded liability
    that may accrue after enactment.

                                         2001 actual  2002 est.   2003 est.
    Annuitants:
      FEHB..............................   1,875,912   1,923,000   1,948,000
        (USPS non-add)..................     432,561     418,000     416,000
      REHB..............................       3,598       2,980       2,480
                                        ------------------------------------
          Total, annuitants.............   1,879,510   1,925,980   1,950,480
                                        ====================================

           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, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0500-0-1-602      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total new obligations (object
            class 25.2).....................          32          34          34
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          32          34          34
    23.95 Total new obligations.............         -32         -34         -34
    ----------------------------------------------------------------------------

    [[Page 1046]]

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................          32          34          34
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           3           3           3
    73.10 Total new obligations.............          32          34          34
    73.20 Total outlays (gross).............         -32         -34         -34
    74.40 Obligated balance, end of year....           3           3           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          29          31          31
    86.98 Outlays from mandatory balances...           3           3           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          32          34          34
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          32          34          34
    90.00 Outlays...........................          31          34          34
    ---------------------------------------------------------------------------

        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, 2002;
    additional authorizing legislation required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0200-0-1-805      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Payment of Government share of
            retirement costs................       9,236       9,455      16,340
    00.03 Transfers for interest on unfunded
            liability and payment of
            military service annuities......      12,338      12,619      12,995
    00.05 Spouse equity payment.............          65          65          65
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      21,639      22,139      29,400
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......      21,639      22,139      29,400
    23.95 Total new obligations.............     -21,639     -22,139     -29,400
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

            Appropriation:
    60.00     Appropriation.................      12,338      12,619      19,990
    60.00     Appropriation.................       9,301       9,520       9,410
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................      21,639      22,139      29,400
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............      21,639      22,139      29,400
    73.20 Total outlays (gross).............     -21,639     -22,139     -29,400
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................      21,639      22,139      29,400
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      21,639      22,139      29,400
    90.00 Outlays...........................      21,639      22,139      29,400
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      21,639      22,139      22,405
    90.00 Outlays...........................      21,639      22,139      22,405
    ---------------------------------------------------------------------------

        Payment of Government share of retirement costs.--In 2001 and 2002,
    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. Beginning in 2003, this payment would liquidate the current
    unfunded liability by 2042, as provided by the ``Accrual Funding of
    Pensions and Retirement Pay'' subtitle of the President's Managerial
    Flexibility Act.

        The Act would require OPM to determine, as of September 30, 2001,
    the unfunded liability that is attributable to benefits payable under
    chapter 83 of Title 5 U.S.C., and to determine an appropriate
    amortization schedule, providing for the liquidation of that liability
    by October 1, 2041.

        Transfers for interest on unfunded liability and payment of military
    service annuities.--In 2001 and 2002, this transfer covers interest on
    the static unfunded liability and annuity disbursements attributable to
    military service. In 2003, these transfers would be eliminated and
    replaced by the annual payment to liquidate the unfunded liability as
    discussed above.

        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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    12.1  Civilian personnel benefits.......       9,301       9,520      16,405
    13.0  Benefits for former personnel.....      12,338      12,619      12,995
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      21,639      22,139      29,400
    ---------------------------------------------------------------------------

                         Employees Health Benefits Fund

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-5002-0-2-551      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.00 DC Government contributions.......                                  88
    02.20 Employee contributions............                               3,786
    02.21 Annuitant contributions...........                               3,459
    02.22 Postal Service annuitant
            contributions...................                               1,019
    02.40 General fund payment..............                              11,622
    02.41 Agency contributions..............                              12,387
    02.42 Postal Service agency
            contributions...................                               4,017
    02.43 Interest..........................                                 772
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..                              37,150
        Appropriations:
    05.00 Employees health benefits fund....                             -25,454
                                               ---------   ---------  ----------
    05.99   Total appropriations............                             -25,454
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............                              11,696
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-5002-0-2-551      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Benefit payments..................                              25,181
    00.02 Payments from OPM contingency
            reserve.........................                                 250
    00.03 Administration....................                                  24
                                               ---------   ---------  ----------

    [[Page 1047]]

    10.00   Total new obligations...........                              25,454
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                               4,936
    22.00 New budget authority (gross)......                              25,454
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                              30,390
    23.95 Total new obligations.............                             -25,454
    24.40 Unobligated balance carried
            forward, end of year............                               4,936
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.20   Appropriation (special fund)....                                  24
          Mandatory:

    60.20   Appropriation (special fund)....                              37,126
    60.45   Portion precluded from
              obligation....................                             -11,696
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................                              25,430
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................                              25,454
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                               2,339
    73.10 Total new obligations.............                              25,454
    73.20 Total outlays (gross).............                             -25,351
    74.40 Obligated balance, end of year....                               2,442
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                  24
    86.97 Outlays from new mandatory
            authority.......................                              21,984
    86.98 Outlays from mandatory balances...                               3,343
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                              25,351
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                              25,454
    90.00 Outlays...........................                              25,351
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...                               7,293
    92.02 Total investments, end of year:
            Federal securities: Par value...                              19,091
    ---------------------------------------------------------------------------

        This presentation displays the new Employees Health Benefits Fund.
    In addition to the existing components of the current Employees Health
    Benefits Fund, this new Special Fund incorporates the proposed
    requirement for each agency to fund the accruing actuarial cost of
    Government contributions for post-retirement health benefits for its
    current participating employees. This new presentation is consistent
    with the ``Accrual Funding of Post-retirement Health Benefits Costs for
    Federal Employees'' subtitle in the President's Managerial Flexibility
    Act.

        The additional agency contributions to pre-fund the cost of post-
    retirement health benefits for current employees would come from the
    appropriations or fund used to pay the participant's salary. For 2003,
    these additional agency contributions would be approximately $5.6
    billion. The lines in these schedules labeled ``agency contributions''
    reflect both this additional contribution and the standard agency
    contribution toward the payment of annual premiums. The practice of
    using cash accounting to fund the Postal Service liability attributable
    to civilian service performed after June 30, 1971, under title 5 U.S.C.
    8906(g)(2) would remain unchanged under this proposal.

        For additional information on the Employees Health Benefits Fund,
    please see the presentation of the Employees and Retired Employees
    Health Benefits Funds located at the end of this OPM chapter.

                      Status of Funds (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-5002-0-2-551      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Unexpended balance, start of year:
    0100  Uninvested balance................                                   5
          U.S. Securities:

    0101    Par value.......................                               7,293
    0102    Unrealized discounts............                                 -23
                                               ---------   ---------  ----------
    0199    Total balance, start of year....                               7,275
        Cash income during the year:
          Current law:

            Receipts:
    1200      DC Government contributions,
                Employees health benefits
                fund........................                                  88
            Offsetting receipts
                (proprietary):
    1220      Employee contributions,
                Employees health benefits
                fund........................                               3,786
    1221      Annuitant contributions,
                Employees health benefits
                fund........................                               3,459
    1222      Postal Service agency
                contributions for
                annuitants, Employees health
                benefits fund...............                               1,019
            Offsetting receipts
                (intragovernmental):
    1240      General fund payment,
                Employees health benefits
                fund........................                              11,622
    1241      Agency contributions,
                Employees health benefits
                fund........................                              12,387
    1242      Postal Service agency
                contributions for employees,
                Employees health benefits
                fund........................                               4,017
    1243      Interest, Employees health
                benefits fund...............                                 772
    1299    Income under present law........                              37,150
        Cash outgo during year:
          Current law:

    4500    Employees health benefits fund..                             -25,351
        Unexpended balance, end of year:
    8700  Uninvested balance................                                   5
          Federal securities:

    8701    Par value.......................                              19,091
    8702    Unrealized discounts............                                 -23
                                               ---------   ---------  ----------
    8799    Total balance, end of year......                              19,074
    ---------------------------------------------------------------------------

    Intragovernmental funds:

                                 Revolving Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-4571-0-4-805      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 DOD testing.......................           7           8           8
    09.02 Employment service................          35          40          41
    09.03 Investigations....................         229         262         234
    09.04 Workforce relations...............          35          39          39
    09.05 Executive resources...............          30          32          34
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         336         381         356
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          48          33          33
    22.00 New budget authority (gross)......         320         381         356
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         368         414         389
    23.95 Total new obligations.............        -336        -381        -356
    24.40 Unobligated balance carried
            forward, end of year............          33          33          33
    ----------------------------------------------------------------------------

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

            Discretionary:
    68.00     Offsetting collections (cash).         353         381         356
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........         -33
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....         320         381         356
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          13           1           1
    73.10 Total new obligations.............         336         381         356
    73.20 Total outlays (gross).............        -380        -381        -356
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          33
    74.40 Obligated balance, end of year....           1           1           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         320         381         356
    86.93 Outlays from discretionary
            balances........................          60
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         380         381         356
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -353        -381        -356

    [[Page 1048]]

          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          33
    ----------------------------------------------------------------------------

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

        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 in FY 2001, conducting approximately 14,509 student test
    sessions and 24,112 enlistment sessions.

        Employment service.--OPM delivers employment information, examining
    services, automated staffing, and related human resource management
    services to Federal agencies nationwide. In 2001, we maintained
    contracts for a wide array of human resource products and services with
    the Executive, Legislative, and Judicial branches.

        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 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 if 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

                                         2001 actual  2002 est.   2003 est.
    Participant training days...........      95,377     100,568     103,980
    Background security investigations
    processed...........................      74,096      86,000      74,250
    National and special agency check
    and inquiry cases...................     745,944   1,500,000   1,115,000

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-4571-0-4-805      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          21          22          23
    11.3    Other than full-time permanent..           5           5           5
    11.5    Other personnel compensation....           2           2           2
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          28          29          30
    12.1  Civilian personnel benefits.......          10          11          13
    21.0  Travel and transportation of
            persons.........................           2           3           3
    23.1  Rental payments to GSA............           7           7           7
    23.3  Communications, utilities, and
            miscellaneous charges...........           5           5           5
    24.0  Printing and reproduction.........           1           1           1
    25.2  Other services....................         272         308         275
    26.0  Supplies and materials............           4           7          10
    31.0  Equipment.........................           7          10          12
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         336         381         356
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 24-4571-0-4-805      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    2001  Total compensable workyears: Full-
            time equivalent employment......         652         669         669
    ---------------------------------------------------------------------------

                                   Trust Funds

                  Civil Service Retirement and Disability Fund

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8135-0-7-602      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............     508,104     538,520     568,608
        Receipts:
    02.00 Employee contributions............       4,157       4,041       3,998
    02.01 District of Columbia contributions          66          62          50
    02.02 Employee deposits, redeposits and
            other contributions.............         436         456         476
    02.40 Agency contributions..............      10,072      10,612      14,233
    02.41 Postal Service agency
            contributions...................       2,845       2,938       3,031
    02.42 Postal Service supplemental
            contributions...................       3,755       3,842       3,901
    02.43 Federal Financing Bank interest...       1,342       1,338       1,338
    02.44 Treasury interest.................      33,611      34,712      37,041
    02.45 General fund payment to the Civil
            Service Retirement and
            Disability fund.................      21,639      22,139      29,400
    02.46 Re-employed annuitants salary
            offset..........................          26          27          27
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..      77,949      80,167      93,495
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...     586,053     618,687     662,103
        Appropriations:
          Appropriations:

    05.00   Civil service retirement and
              disability fund...............     -47,533     -50,079     -52,849
    05.00   Proposed legislation, subject to
              PAYGO.........................                                  -3
                                               ---------   ---------  ----------
    05.99   Total appropriations............     -47,533     -50,079     -52,852
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............     538,520     568,608     609,251
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8135-0-7-602      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Annuities.........................      47,101      49,637      52,406
    00.02 Refunds and death claims..........         322         311         309
    00.03 OPM Administration................         108         128         131
    00.04 Transfer to MSPB..................           2           3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      47,533      50,079      52,849
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......      47,533      50,079      52,849
    23.95 Total new obligations.............     -47,533     -50,079     -52,849
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.26   Appropriation (trust fund)......          86         103         108
          Mandatory:

    60.26   Appropriation (trust fund)......      77,863      80,064      82,211
    60.45   Portion precluded from
              obligation....................     -30,416     -30,088     -29,470
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................      47,447      49,976      52,741
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      47,533      50,079      52,849
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       3,943       4,119       4,356
    73.10 Total new obligations.............      47,533      50,079      52,849
    73.20 Total outlays (gross).............     -47,356     -49,840     -52,619
    74.40 Obligated balance, end of year....       4,119       4,356       4,586
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          86         103         108
    86.97 Outlays from new mandatory
            authority.......................      43,328      45,383      47,926
    86.98 Outlays from mandatory balances...       3,942       4,356       4,586
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      47,356      49,840      52,619
    ----------------------------------------------------------------------------

    [[Page 1049]]

        Net budget authority and outlays:
    89.00 Budget authority..................      47,533      50,079      52,849
    90.00 Outlays...........................      47,356      49,840      52,619
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...     512,038     542,611     572,962
    92.02 Total investments, end of year:
            Federal securities: Par value...     542,611     572,962     613,833
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2001 actual  2002 est.   2003 est.
    Enacted/requested:
      Budget Authority..................      47,533      50,079      52,849
      Outlays...........................      47,356      49,842      52,620
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................                                   3
      Outlays...........................                                   3
                                        ------------------------------------
    Total:
      Budget Authority..................      47,533      50,079      52,852
      Outlays...........................      47,356      49,842      52,623
                                        ====================================

        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.

        For CSRS employees in 2003, as provided by the ``Accrual Funding of
    Pensions and Retirement Pay'' subtitle of the President's Managerial
    Flexibility Act, agencies would contribute the full accruing cost of
    pension benefits.

                                         2001 actual  2002 est.   2003 est.
    Active employees....................   2,655,450   2,654,477   2,653,597
    Annuitants:
      Employees.........................   1,745,637   1,770,761   1,807,542
      Survivors.........................     634,116     640,420     647,180
                                        ------------------------------------
          Total, annuitants.............   2,379,753   2,411,181   2,454,722
                                        ====================================

                      Status of Funds (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8135-0-7-602      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Unexpended balance, start of year:
    0100  Treasury balance..................          11          31           8
          U.S. Securities:

    0101    Par value.......................     512,041     542,611     572,962
    0102    Unrealized discounts............          -3          -3          -4
                                               ---------   ---------  ----------
    0199    Total balance, start of year....     512,047     542,639     572,964
        Cash income during the year:
          Current law:

            Receipts:
    1200      Employee contributions, Civil
                Service Retirement and
                Disability Fund.............       4,157       4,041       3,998
    1201      District of Columbia
                contributions...............          66          62          50
    1202      Employee deposits, redeposits,
                and voluntary contributions.         436         456         476
            Offsetting receipts
                (intragovernmental):
    1240      Agency contributions, Civil
                Service Retirement and
                Disability Fund.............      10,072      10,612      14,233
    1241      Postal Service agency
                contributions, Civil Service
                Retirement and Disability
                Fund........................       2,845       2,938       3,031
    1242      Postal Service supplemental
                contributions, Civil Service
                Retirement and Disability
                Fund........................       3,755       3,842       3,901
    1243      Federal Financing Bank
                interest, Civil Service
                Retirement and Disability
                Fund........................       1,342       1,338       1,338
    1244      Treasury interest, Civil
                Service Retirement and
                Disability Fund.............      33,611      34,712      37,041
    1245      General fund payment to the
                Civil Service Retirement and
                Disability Fund.............      21,639      22,139      29,400
    1246      Re-employed annuitant salary
                offset, Civil Service
                Retirement and Disability
                Fund........................          26          27          27
    1299    Income under present law........      77,949      80,167      93,495
        Cash outgo during year:
          Current law:

            Cash outgo during the year (-):
    4500      Payment of claims to retired
                employees...................     -39,397     -41,538     -43,963
    4500      Payment of alternative annuity
                refunds.....................          -6          -4          -4
    4500      Payment of claims to survivor
                annuitants..................      -7,533      -7,859      -8,209
    4500      Lump sum payments to estates
                or beneficiaries of deceased
                annuitants and employees....        -145        -154        -164
    4500      Refunds to living separated
                employees...................        -170        -156        -145
    4500      Administration................        -107        -131        -134
    4599    Outgo under current law (-).....     -47,356     -49,840     -52,619
          Proposed legislation:

    5500    Proposed legislation, subject to
              PAYGO.........................                                  -3
                                               ---------   ---------  ----------
    6599    Total cash outgo (-)............     -47,356     -49,840     -52,622
        Unexpended balance, end of year:
    8700  Uninvested balance................          31           8           8
          Federal securities:

    8701    Par value.......................     542,611     572,962     613,833
    8702    Unrealized discounts............          -3          -4          -4
                                               ---------   ---------  ----------
    8799    Total balance, end of year......     542,639     572,964     613,837
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8135-0-7-602      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................         110         131         134
    42.0  Insurance claims and indemnities..      47,101      49,637      52,406
    44.0  Refunds and death claims..........         322         311         309
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      47,533      50,079      52,849
    ---------------------------------------------------------------------------

                  Civil Service Retirement and Disability Fund

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8135-4-7-602      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Annuities.........................                                   3
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 42.0)...................                                   3
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                   3
    23.95 Total new obligations.............                                  -3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......                                   3
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                   3
    73.20 Total outlays (gross).............                                  -3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                                   3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                   3
    90.00 Outlays...........................                                   3
    ---------------------------------------------------------------------------

        The Administration has proposed legislation to simplify the
    computation of annuities under the Civil Service Retirement System for
    individuals with part-time service. The change would eliminate an
    unintended adverse effect on employees who perform part-time service at
    the end of their careers, and provide agencies increased flexibility to
    recruit and retain personnel.

    [[Page 1050]]

                          Employees Life Insurance Fund

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8424-0-8-602      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.80 Employees life insurance fund,
            offsetting collections..........       3,384       3,407       3,486
        Appropriations:
    05.00 Employees life insurance fund.....      -3,384      -3,407      -3,486
                                               ---------   ---------  ----------
    05.99   Total appropriations............      -3,384      -3,407      -3,486
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8424-0-8-602      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Regular program premiums..........       1,276       1,401       1,426
    09.02 Optional program premiums.........         837         939       1,028
    09.03 Beneficial program premiums.......           1           2           2
    09.04 Administration....................           2           2           2
    09.05 Long Term Care Administration.....           2          20           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.2)...................       2,118       2,364       2,459
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........      21,852      23,133      24,210
    22.00 New budget authority (gross)......       3,400       3,441       3,483
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      25,252      26,574      27,693
    23.95 Total new obligations.............      -2,118      -2,364      -2,459
    24.40 Unobligated balance carried
            forward, end of year............      23,133      24,210      25,234
    ----------------------------------------------------------------------------

        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)...       3,382       3,405       3,484
    69.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          16          34          -3
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........       3,398       3,439       3,481
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       3,400       3,441       3,483
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         111         132         196
    73.10 Total new obligations.............       2,118       2,364       2,459
    73.20 Total outlays (gross).............      -2,081      -2,266      -2,433
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -16         -34           3
    74.40 Obligated balance, end of year....         132         196         225
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           2           2           2
    86.97 Outlays from new mandatory
            authority.......................       2,079       2,264       2,431
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       2,081       2,266       2,433
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Agency contributions..........        -409        -443        -459
    88.20     Interest on Federal securities      -1,426      -1,430      -1,410
              Non-Federal sources:
    88.40       Regular program.............        -638        -673        -698
    88.40       Optional program............        -911        -861        -919
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -3,384      -3,407      -3,486
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -16         -34           3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................      -1,303      -1,141      -1,053
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...      22,372      23,690      26,236
    92.02 Total investments, end of year:
            Federal securities: Par value...      23,690      26,236      27,292
    ---------------------------------------------------------------------------

        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:

                                         2001 actual  2002 est.   2003 est.
    Life insurance in force (in billions
        of dollars):
      On active employees...............         528         538         548
      On retired employees..............          53          55          57
                                        ------------------------------------
          Total.........................         581         593         605
                                        ====================================
    Number of participants (in
        thousands):
      Active employees..................       2,305       2,282       2,262
      Annuitants........................       1,600       1,605       1,610
                                        ------------------------------------
          Total.........................       3,905       3,887       3,872
                                        ====================================

        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          2001 actual  2002 est.   2003 est.
    Held in reserve (in millions of
        dollars):
      Contingency reserve...............          65          65          65
      Beneficial association program
        reserve.........................           1           1           1
      U.S. Treasury reserve.............      23,690      26,236      27,292
                                        ------------------------------------
          Total reserves................      23,756      26,302      27,358
                                        ====================================

              Employees and Retired Employees Health Benefits Funds

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-9981-0-8-551      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.80 Employees and retired employees
            health benefits fund, offsetting
            collections.....................      21,454      23,900           2
        Appropriations:
    05.00 Employees and retired employees
            health benefits fund............     -21,454     -23,900          -2
                                               ---------   ---------  ----------
    05.99   Total appropriations............     -21,454     -23,900          -2
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-9981-0-8-551      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Benefit payments..................      20,999      23,250
    09.02 Payments from OPM contingency
            reserve.........................         118         240
    09.03 Government payment for annuitants
            (1960 Act)......................           2           2           2
    09.04 Administration....................          23          24
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.6)...................      21,143      23,516           2
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       4,086       4,445
    22.00 New budget authority (gross)......      21,502      24,007           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      25,588      28,452           2
    23.95 Total new obligations.............     -21,143     -23,516          -2
    24.40 Unobligated balance carried
            forward, end of year............       4,445       4,936
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

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

    69.00   Offsetting collections (cash)...      21,431      23,876           2
    69.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          48         107
                                               ---------   ---------  ----------

    [[Page 1051]]

    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........      21,479      23,983           2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      21,502      24,007           2
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,893       2,209
    73.10 Total new obligations.............      21,143      23,516           2
    73.20 Total outlays (gross).............     -20,779     -23,279          -2
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -48        -107
    74.40 Obligated balance, end of year....       2,209       2,339
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          23          24
    86.97 Outlays from new mandatory
            authority.......................      19,907      22,358           2
    86.98 Outlays from mandatory balances...         849         897
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      20,779      23,279           2
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Federal sources:
    88.00       Agency contributions........      -8,886     -10,051
    88.00       Government contributions for
                  annuitants................      -6,346      -7,027          -2
    88.20     Interest on Federal securities        -367        -319
              Non-Federal sources:
    88.40       Employee salary withholdings      -3,002      -3,364
    88.40       Annuity withholdings........      -2,786      -3,057
    88.40       Contributions from D.C.
                  Government................         -67         -82
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........     -21,454     -23,900          -2
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -48        -107
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................        -676        -621
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...       5,990       6,652
    92.02 Total investments, end of year:
            Federal securities: Par value...       6,652       7,293
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    90.00 Outlays...........................        -676        -621        -775
    ---------------------------------------------------------------------------

                      Status of Funds (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-9981-0-8-551      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Unexpended balance, start of year:
    0100  Treasury balance..................          12          16
          U.S. Securities:

    0101    Par value.......................       5,989       6,652
    0102    Unrealized discounts............         -24         -14
                                               ---------   ---------  ----------
    0199    Total balance, start of year....       5,979       6,654
        Cash income during the year:
          Current law:

            Offsetting collections:
              Offsetting governmental
                  receipts:
    1280        Contributions from Employing
                  Agencies..................       5,556       6,302
    1280        Contributions from Postal
                  Service for Active
                  Employees.................       3,331       3,750
    1280        Contributions from Postal
                  Service for Annuitants....         929         943
    1280        Government Payment for
                  Annuitant Health Benefits.       5,417       6,083           2
    1280        Interest Earned.............         367         319
    1280        Contributions from DC
                  Government................          67          82
    1280        Contributions from Active
                  Employees.................       3,002       3,364
    1280        Contributions from
                  Annuitants................       2,786       3,057
    1299    Income under present law........      21,454      23,900           2
        Cash outgo during year:
          Current law:

            Cash outgo during the year (-):
    4500      Benefit Payments (-)..........     -20,638     -23,015          -2
    4500      Payments to Carriers from OPM
                Contingency Reserves (-)....        -118        -240
    4500      Administration (-)............         -23         -24
    4599    Outgo under current law (-).....     -20,779     -23,279          -2
        Unexpended balance, end of year:
    8700  Uninvested balance................          16           5
          Federal securities:

    8701    Par value.......................       6,651       7,293
    8702    Unrealized discounts............         -14         -23
                                               ---------   ---------  ----------
    8799    Total balance, end of year......       6,654       7,275
    ---------------------------------------------------------------------------

        For 2001 and 2002, this display combines the Federal Employees
    Health Benefits (FEHB) fund and the Retired Employees Health Benefits
    (REHB) fund.

        For 2003, this display presents only the REHB fund. The FEHB fund
    estimates have moved to Employees Health Benefits Fund presentation
    located at an earlier point in this OPM chapter.

        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:

                                         2001 actual  2002 est.   2003 est.
    Active employees....................   2,198,895   2,198,000   2,197,000
    Annuitants..........................   1,875,912   1,923,000   1,948,000
                                        ------------------------------------
        Total...........................   4,074,807   4,121,000   4,145,000
                                        ====================================

        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:

                                         2001 actual  2002 est.   2003 est.
    Uniform plan........................         911         750         630
    Private plans.......................       2,687       2,230       1,850
                                        ------------------------------------
        Total...........................       3,598       2,980       2,480
                                        ====================================

        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.