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