    [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 2004

    [[Page 971]]

                         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, $118,748,000, of which
    $2,000,000 shall remain available until expended for the cost of the
    enterprise human resources integration project, $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 $2,500,000 shall remain available through September 30, 2005 to
    coordinate and conduct program evaluation and performance measurement;
    and in addition $135,914,000 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 $36,700,000 shall remain available until expended for
    the cost of automating the retirement recordkeeping systems: Provided,
    That the provisions of this appropriation shall not affect the authority
    to use applicable trust funds as provided by sections 8348(a)(1)(B) and
    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
    2004, 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.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0100-0-1-805      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 HR program development............          33          48          31
    00.02 Agency merit systems
            accountability and human capital          30          39          41
    00.03 HR products and services..........         114         142         143
    00.04 Management services...............          46          54          62
    00.05 Executive services................          10          10          10
    09.01 Reimbursable program..............           3          24          24
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         236         317         311
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           7           7
    22.00 New budget authority (gross)......         263         317         311
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         270         324         311
    23.95 Total new obligations.............        -236        -317        -311
    23.98 Unobligated balance expiring or
            withdrawn.......................         -27          -7
    24.40 Unobligated balance carried
            forward, end of year............           7
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          99         129         119
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............         164         188         192
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         263         317         311
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          18          22          23
    73.10 Total new obligations.............         236         317         311
    73.20 Total outlays (gross).............        -231        -316        -311
    74.40 Obligated balance, end of year....          22          23          22
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         231         300         296
    86.93 Outlays from discretionary
            balances........................                      16          15
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         231         316         311
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -164        -188        -192
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          99         129         119
    90.00 Outlays...........................          68         128         119
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................           5           5           6
    99.01 Outlays...........................           5           5           6
    ---------------------------------------------------------------------------

        The Office of Personnel Management (OPM) has responded to President
    George W. Bush's charge to assume greater responsibility for the
    strategic management of human capital government-wide by crafting a new
    Strategic Plan.

        This plan holds OPM accountable for Federal agencies adopting human
    resources management systems that use effective merit-based human
    capital strategies that, in turn, improve their ability to build and
    maintain successful, high performance organizations, with a rewarding
    work environment, that help agencies to accomplish their missions and
    goals.

        To better meet these responsibilities, OPM is undertaking in FY 2003
    a major restructuring that will align its efforts to the goals in the
    Strategic Plan. This restructuring will eliminate stovepipes and
    significantly reduce the number of offices, resulting in a delayered
    agency better able to serve its customers. FY 2004 will be the first
    full year OPM will be operating in its new structure. Concurrently, with
    the adoption of the new goals of the Strategic Plan and restructuring,
    OPM will develop a more robust performance evaluation program in FY 2003
    to be deployed in FY 2004.

        The functions and objectives of the restructured OPM are:

        Human Resources Program Development (HRPD).--This new organization
    will develop policies and programs in an integrated manner. HRPD will:
    (1) Develop policies that support agencies efforts to develop and
    maintain the capacity of their workforce to continue to meet and improve
    their strategic performance targets; (2) Support the establishment of
    the Department of Homeland Security (DHS) by developing policies and
    regulations consistent with the DHS bill; (3) Provide the Federal
    Government with a modern compensation system that is performance-
    oriented, market-sensitive, and assists Federal agencies in meeting
    their strategic goals; and (4) Increase the effectiveness and efficiency
    of the Federal hiring process and make Federal employment attractive to

    [[Page 972]]

    high-quality applicants of diverse backgrounds. This function also
    includes two of 24 Government-wide e-Government projects: the e-Payroll
    project, which reduces the number of payroll providers from 22 to 4
    resulting in planned savings of at least $1.2 billion over the next 10
    years, and the Enterprise Human Resources Integration project, which
    will develop and establish a repository for electronic employee records
    to enable electronic transfer of data between agencies.

        Program performance.--OPM will continue to survey the Senior
    Executive Service (SES), Human Resources Directors, Human Resources
    Specialists, and the general workforce to assess and address the impact
    of policies affecting recruitment, performance, retention, human
    resource development programs, and their satisfaction with them. The
    2001 HR Directors' Customer Satisfaction Survey showed that the
    percentage of Human Resources Directors who were satisfied with OPM's
    policy leadership were as follows; 91 percent in pay and leave
    administration, 80 percent in performance management, 82 percent in
    position classification and position management, and 74 percent in the
    Federal Wage System. OPM will deploy in FY 2004 a new evaluation
    strategy that will assess the value and impact of OPM programs. This
    strategy will measure effectiveness of OPM programs in how they help
    agencies strategically improve their human capital practices in support
    of their missions. Deployment will result in the establishment of
    baselines and improvement targets for FY 2004 accomplishments.

        Agency Merit Systems Accountability and Human Capital Programs.--OPM
    established this organization to create agency-focused teams to explore,
    promote and help agencies adopt the best human capital practices that
    generate results and meet agencies' unique needs. This organization
    will: (1) Ensure that agencies implement flexible and customized human
    capital practices that will attract and retain a diverse, high quality,
    well motivated workforce that is able to tackle the complex issues of
    today and tomorrow; (2) Provide advice to agencies and promote best
    practices on solutions, actions and strategies to meet both their
    immediate and long term human capital management needs; (3) Monitor and
    assess Federal agencies' effectiveness in implementing merit-based human
    capital strategies that support their missions; (4) Work with agencies
    and constituent groups to improve the Senior Executive Service hiring
    process and address other leadership issues; and (5) Provide advice and
    assistance in establishing the Department of Homeland Security and
    ensure that human capital needs for the homeland security community are
    met. In FY 2002 and FY 2003, OPM took a lead role in establishing the
    human resource systems of the Department. For the remainder of FY 2003
    and throughout FY 2004, OPM will lead in establishing the human capital
    practices that will help give the 170,000 employees the skills, tools
    and motivation to achieve the new Department's mission, goals and
    objectives.

        Program performance.--OPM will develop an index that will allow an
    assessment of merit systems and human capital practices across Federal
    agencies as well as how those human capital practices help agencies
    better fulfill their missions, thereby establishing a link between human
    capital strategies and the results Americans expect from the Federal
    Government. In addition, OPM will track Government-wide data and trends
    through centralized data sources such as the Central Personnel Data File
    (CPDF), the Government-wide Survey (GWS) and other appropriate metrics
    to assess human capital progress and help agencies improve. In support
    of the President's Management Agenda, the GWS provides a managerially
    useful indicator of the views of responding Federal employees, who work
    in 27 member agencies of the President's Management Council, about
    agency human capital management practices. The 2002 GWS provided
    baseline data that can be used to measure and help understand changes in
    survey results over time.

        HR Products and Services.--Under this new organization, OPM has
    consolidated functions and activities that: (1) Provide cost-effective,
    relevant and useful human capital products and services to agencies; (2)
    Make the transition from active employment to retirement seamless and
    expeditious, facilitating retirement income security for Federal
    employees; and (3) Give Federal employees, annuitants and their families
    choices of quality and fiscally responsible carriers for addressing
    their specific insurance needs.

        Products and services include security and suitability personnel
    investigations, support to the department of Justice for the Voting
    Rights program, automated employment information needed to recruit and
    hire the federal workforce, and administration of earned employee
    benefits--the retirement and insurance programs--for federal employees,
    retirees, and their families.

        Program performance.--OPM establishes annual performance goals and
    objectives designed to achieve long-term strategic goals. Customer
    service is measured through OPM's Customer Satisfaction Survey, surveys
    of attendees at conferences, workshops, and/or seminars, and feedback
    from users of the OPM website and email. Progress is monitored through
    program performance indicators and output measures.

        The Retirement Systems Modernization (RSM) project is OPM's central
    strategy for meeting its long term retirement program customer service,
    financial management, business process, and workforce performance goals.
    OPM is moving from a paper-based record keeping system to program-wide
    electronic data and transactions. The on-going project is being
    implemented in phases, reaching full capability in 2010.

        During FY 2003, RSM will begin a large-scale data effort to convert
    masses of hardcopy paper records for current employees to electronic
    data that will be available to program administrators via the Internet,
    and will automatically populate OPM's retirement benefits calculator and
    coverage determination tools. Additionally, OPM will begin providing
    web-enabled member self-service to facilitate electronic filing of
    benefits applications. Outcomes include faster, cheaper and more
    accurate claims processing, increased customer satisfaction and a
    significant decrease in the amount of space needed to house paper
    records, reducing storage costs.

        In FY 2004, OPM will begin receiving recurring employee data from
    agencies through the Enterprise Human Resource (HR) Integration project,
    an OPM-led e-Government initiative, which will minimize the HR data that
    agencies must send to OPM. Other planned work packages will improve
    retirement benefits counseling, make claims processing real-time for a
    significant number of retiring federal employees, and reduce the manual
    data entry required for claims processing.

        On average, OPM processes 170,000 Civil Service and Federal
    Employees' Retirement System (CSRS and FERS) annuity and survivor claims
    annually. Since FY 2000, the processing time for interim annuity
    payments has been reduced from five days to two days, and, in FY 2002,
    more than 56 percent of interim payments were authorized within one day.
    As OPM leveraged technology investments to increase its claims
    processing capacity and efficiency, FERS claims processing times dropped
    from 185 days in FY 2000 to 70 days in FY 2002, while customer
    satisfaction about the timeliness of the first annuity payment has
    remained at or near 80 percent since FY 1997.

        OPM's continuing focus is to develop a comprehensive and competitive
    benefits package for the Federal workforce that offers choices
    comparable to the private sector, and which

    [[Page 973]]

    supports our human capital efforts to recruit and retain an effective
    workforce. To mitigate the effects of rising health insurance premiums,
    OPM implemented premium conversion in FY 2001, which allows Federal
    employees to deduct their share of health insurance premiums from their
    taxable income, thereby reducing their taxes and making health coverage
    more affordable. In addition, OPM is implementing a Flexible Spending
    Account (FSA) program. These accounts allow employees to set aside a
    part of their salary by pre-tax withholdings and use the pretax dollars
    to pay for some medical, dental, vision and dependent-care expenses.
    FSAs are scheduled to be available to Federal employees beginning July
    1, 2003.

        The Administration will work with stakeholders to better coordinate
    the Medicare and Federal Employees Health Benefits programs and look to
    the practices of the private sector to ensure high quality, cost-
    conscious choices for retirees. These important programs jointly finance
    health insurance for about 2.1 million Federal retirees and their
    dependents.

        Management Services.--Includes: OPM human resources, equal
    employment opportunity, security, facilities, telecommunications,
    publishing, acquisitions, information resources management, and
    financial management to support all of OPM's goals. As mentioned
    previously, this organization will include the new evaluation function
    that will facilitate the deployment of a new evaluation strategy in FY
    2004. It is being developed and piloted during FY 2003 to assess the use
    and impact of OPM programs and create an index that will allow an
    assessment of merit systems and human capital practices across Federal
    agencies. This organization will also coordinate strategic planning and
    program performance reporting across the agency.

        Executive Services.--Includes: executive direction, legal advice and
    representation, public affairs, legislative activities, and the
    operating expenses of the President's Commission on White House Fellows.

        Reimbursable Programs.--OPM provides administrative, information
    resources management, and executive services to other OPM accounts on a
    reimbursable basis. OPM also performs a small amount of reimbursable
    work under the Economy Act at the request of other agencies.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0100-0-1-805      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         109         111         117
    11.3      Other than full-time permanent           5           5           7
    11.5      Other personnel compensation..           4           4           4
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         118         120         128
    12.1    Civilian personnel benefits.....          27          28          30
    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          11          10
    24.0    Printing and reproduction.......           2           2           2
    25.2    Other services..................          48         104          89
    26.0    Supplies and materials..........           3           3           3
    31.0    Equipment.......................           5           5           5
                                               ---------   ---------  ----------
    99.0      Direct obligations............         233         293         287
    99.0  Reimbursable obligations..........           3          24          24
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         236         317         311
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 24-0100-0-1-805      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       1,908       2,032       2,087
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         141         141         141
    ---------------------------------------------------------------------------

                         Human Capital Performance Fund

                  (Legislative proposal, not subject to PAYGO)

        For the Human Capital Performance Fund established under section 639
    of this Act, $500,000,000: Provided, That such amounts as are determined
    by the Director of the Office of Personnel Management may be transferred
    to Federal agencies to carry out the purposes of this Fund.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0700-2-1-805      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Human capital performance fund....                                 500
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 11.1)...................                                 500
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 500
    23.95 Total new obligations.............                                -500
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                 500
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                 500
    73.20 Total outlays (gross).............                                -500
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                 500
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 500
    90.00 Outlays...........................                                 500
    ---------------------------------------------------------------------------

        The Human Capital Performance Fund is designed to create
    performance-driven pay systems for employees and reinforce the value of
    employee performance management systems. The Administration proposes
    providing additional pay over and above any annual, across-the-board pay
    raise to certain civilian employees based on individual or
    organizational performance and/or other critical agency human capital
    needs. Ninety percent of funds appropriated would be distributed to
    agencies on a pro rata basis, upon OPM approval of an agency's plan. The
    remainder, and any amount withheld from agencies due to inadequate
    plans, would be allocated at the discretion of OPM.

        The current GS system would remain unchanged; individual employees
    would remain at their existing GS levels and on schedule for all routine
    pay raises such as a within-grade increase. Any pay increase received
    from the Fund would be treated as increases to base pay for retirement
    and other purposes and would stay with an employee throughout his/her
    career.

        The Administration plans to transmit a detailed legislative proposal
    to Congress in the near future.

                           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; and in addition, not to exceed $14,427,000
    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

    [[Page 974]]

    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.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0400-0-1-805      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........          11          12          16
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          11          12          16
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          11          12          16
    23.95 Total new obligations.............         -11         -12         -16
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           1           1           1
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............          10          11          15
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          11          12          16
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          -5          -3
    73.10 Total new obligations.............          11          12          16
    73.20 Total outlays (gross).............         -11         -12         -16
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................                       3
    74.40 Obligated balance, end of year....          -3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          11          12          16
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -10         -11         -15
    ----------------------------------------------------------------------------

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

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................           1           1           1
    99.01 Outlays...........................           1           1           1
    ---------------------------------------------------------------------------

        This appropriation provides agency-wide audit, investigative,
    evaluation, inspection, and administrative sanction functions to
    identify management and administrative deficiencies that may create
    conditions for fraud, waste, and mismanagement. The audits function
    provides internal agency audit, insurance audit, 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 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 $116 million, 24 criminal
    convictions, and 3,827 administrative sanctions in 2002.

        Additional resources in 2004 will finance more audit staff, special
    agent criminal investigators, associated analytical staff, and improved
    information systems. OPM expects to reduce the audit cycle from 5 years
    to 3.6 years for community-related carriers. Recoveries are expected to
    increase by $16 million annually as a result.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0400-0-1-805      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           6           7           9
    12.1    Civilian personnel benefits.....           2           2           4
    23.1    Rental payments to GSA..........           1           1           1
    25.2    Other services..................           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............          10          11          15
    99.5  Below reporting threshold.........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          11          12          16
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 24-0400-0-1-805      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          89         102         125
        Reimbursable:
    2001  Total compensable workyears:
            Civilian 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.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0206-0-1-551      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Government contribution for
            annuitants benefits (1959 Act)..       6,069       6,754       7,454
    00.02 Government contribution for
            annuitants benefits (1960 Act)..           2           2           2
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 13.0)...................       6,071       6,756       7,456
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       6,071       6,756       7,456
    23.95 Total new obligations.............      -6,071      -6,756      -7,456
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................       6,071       6,756       7,456
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         550         606         654
    73.10 Total new obligations.............       6,071       6,756       7,456
    73.20 Total outlays (gross).............      -6,015      -6,707      -7,414
    74.40 Obligated balance, end of year....         606         654         695
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................       5,465       6,101       6,760
    86.98 Outlays from mandatory balances...         550         606         654
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       6,015       6,707       7,414
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       6,071       6,756       7,456

    [[Page 975]]

    90.00 Outlays...........................       6,016       6,707       7,414
    ---------------------------------------------------------------------------

        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.

                                         2002 actual  2003 est.   2004 est.
    Annuitants:
      FEHB..............................   1,857,014   1,871,000   1,910,000
        (USPS non-add)..................     427,000     427,000     426,000
      REHB..............................       2,877       2,388       1,982
                                        ------------------------------------
          Total, annuitants.............   1,859,891   1,873,388   1,911,982
                                        ====================================

           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.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0500-0-1-602      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........          33          34          35
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.2)...................          33          34          35
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          33          34          35
    23.95 Total new obligations.............         -33         -34         -35
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................          34          34          35
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           3           4           4
    73.10 Total new obligations.............          33          34          35
    73.20 Total outlays (gross).............         -33         -34         -35
    74.40 Obligated balance, end of year....           4           4           4
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          31          31          32
    86.98 Outlays from mandatory balances...           3           3           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          33          34          35
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          33          34          35
    90.00 Outlays...........................          33          34          35
    ---------------------------------------------------------------------------

        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.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0200-0-1-805      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Payment of Government share of
            retirement costs................       9,615       9,715       9,915
    00.03 Transfers for interest on unfunded
            liability and payment of
            military service annuities......      12,426      12,700      12,800
    00.05 Spouse equity payment.............          67          69          72
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      22,108      22,484      22,787
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......      22,108      22,484      22,787
    23.95 Total new obligations.............     -22,108     -22,484     -22,787
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

            Appropriation:
    60.00     Appropriation.................      12,426      12,700      12,800
    60.00     Appropriation.................       9,682       9,784       9,987
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................      22,108      22,484      22,787
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............      22,108      22,484      22,787
    73.20 Total outlays (gross).............     -22,108     -22,484     -22,787
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................      22,108      22,484      22,787
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      22,108      22,484      22,787
    90.00 Outlays...........................      22,108      22,484      22,787
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2002 actual  2003 est.   2004 est.
    Enacted/requested:
      Budget Authority..................      22,108      22,484      22,787
      Outlays...........................      22,108      22,484      22,787
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                   2,059       2,085
      Outlays...........................                   2,059       2,085
                                        ------------------------------------
    Total:
      Budget Authority..................      22,108      24,543      24,872
      Outlays...........................      22,108      24,543      24,872
                                        ====================================

        Payment of Government share of retirement costs.--This payment
    amortizes increases in the static unfunded liability created since
    October 20, 1969 by any statute which authorizes new or liberalized
    benefits, an extension of retirement coverage, or pay increases.

        Transfers for interest on static unfunded liability and payment of
    military service annuities.--This transfer covers interest on the static
    unfunded liability and annuity disbursements attributable to military
    service.

        Payments for spouse equity.--This payment provides survivor
    annuities to eligible former spouses of annuitants who died between
    September 1978 and May 1986 and who did not elect survivor coverage.

    [[Page 976]]

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0200-0-1-805      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    12.1  Civilian personnel benefits.......       9,682       9,784       9,987
    13.0  Benefits for former personnel.....      12,426      12,700      12,800
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      22,108      22,484      22,787
    ---------------------------------------------------------------------------

             Payment to Civil Service Retirement and Disability Fund

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0200-2-1-805      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.03 Transfers for interest on unfunded
            liability and payment of
            military service annuities......                   2,059       2,085
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 13.0)...................                   2,059       2,085
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                   2,059       2,085
    23.95 Total new obligations.............                  -2,059      -2,085
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................                   2,059       2,085
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                   2,059       2,085
    73.20 Total outlays (gross).............                  -2,059      -2,085
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                   2,059       2,085
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                   2,059       2,085
    90.00 Outlays...........................                   2,059       2,085
    ---------------------------------------------------------------------------

        The budget includes a legislative proposal that corrects for an
    anticipated USPS overfunding of Civil Service Retirement System (CSRS)
    retirement benefits. This anticipated overfunding is due to a number of
    factors, including higher than expected past pension investment yields
    and overly prescriptive and inflexible statutory language. While the
    legislative proposal would reduce USPS payments to the Retirement Fund,
    it ensures that USPS meets its pension obligations so that no employee
    or retiree would lose any benefits. The proposal is consistent with the
    structure and financing of the Federal Employees' Retirement System as
    well as the Administration's legislative proposal to fully fund the CSRS
    liabilities for non-USPS employees and retirees.

    Intragovernmental funds:

                                 Revolving Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-4571-0-4-805      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Government services...............          86          86          90
    09.02 Investigations....................         447         629         678
    09.03 Training and development..........          33          35          35
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         566         750         803
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         161         110         110
    22.00 New budget authority (gross)......         516         750         803
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         677         860         913
    23.95 Total new obligations.............        -566        -750        -803
    24.40 Unobligated balance carried
            forward, end of year............         110         110         110
    ----------------------------------------------------------------------------

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

            Discretionary:
    68.00     Offsetting collections (cash).         563         750         803
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........         -47
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....         516         750         803
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..        -126          26          26
    73.10 Total new obligations.............         566         750         803
    73.20 Total outlays (gross).............        -460        -750        -803
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          47
    74.40 Obligated balance, end of year....          26          26          26
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         460         750         803
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -563        -750        -803
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          47
    ----------------------------------------------------------------------------

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

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................           3           3           3
    99.01 Outlays...........................           3           3           3
    ---------------------------------------------------------------------------

        OPM's Revolving Fund supports the President's Management Agenda by
    fully or partially funding three e-Government projects: e-Clearance; e-
    Training; and Recruitment One-Stop. The Revolving Fund also provides
    financing on a reimbursable basis for several products and services to
    Federal agencies.

        Government Services.--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. Much
    of the Training Management Assistance (TMA) workload supports
    development of training programs for anti-terrorism, emergency
    preparedness, and intelligence activities at the U.S. Customs Service,
    Department of Defense (DOD), U.S. Air Force, Federal Aviation
    Administration, Federal Emergency Management Agency, and the Immigration
    and Naturalization Service. About 250 programs are managed annually.

        OPM delivers employment information, testing and recruiting
    services, automated staffing, and related human resource management
    services to Federal agencies nationwide. Nationwide testing involves
    work planning, scheduling, and administration of written examinations
    upon request from agencies including the DOD and the Department of
    Homeland Security.

        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. When OPM is
    required to pay a fee to the Federal Bureau of Investigation (FBI) for
    name and fingerprint checks, agencies are required to reimburse OPM for
    such fees through the Revolving Fund.

        In FY 2002, a significant part of OPM's business came from the DOD,
    for which OPM helped reduce a backlog of reinvestigations for civilian
    and military personnel. When it was necessary, OPM sent teams of OPM
    employees and con

    [[Page 977]]

    tractor staff to assist with special hiring needs, for the
    Transportation Security Administration (TSA) and the Federal Aviation
    Administration (FAA). OPM provided these agencies with onsite assistance
    to complete investigative forms and used portable live-scan equipment to
    digitize and transmit fingerprints to the FBI for quicker applicant
    screening. OPM will continue to work closely with its contractor to
    provide useful, cost-effective products and services in support of
    Homeland Security.

        Training and Development.--OPM conducts residential and
    nonresidential programs for Federal executives and managers to improve
    the effectiveness and efficiency of Federal programs.

                                 WORKLOAD COUNT

                                         2002 actual  2003 est.   2004 est.
    Participant training days...........      95,802      95,051      94,560
    Background security investigations
    processed...........................      92,634      73,000      70,000
    National and special agency check
    and inquiry cases closed............     526,672     270,000     270,000
    Special agreement checks closed.....   1,184,585     700,000     700,000

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-4571-0-4-805      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          22          23          23
    11.3    Other than full-time permanent..           5           5           5
    11.5    Other personnel compensation....           2           2           2
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          29          30          30
    12.1  Civilian personnel benefits.......           8          10          10
    21.0  Travel and transportation of
            persons.........................           3           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....................         496         672         725
    26.0  Supplies and materials............           7          10          10
    31.0  Equipment.........................          10          12          12
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         566         750         803
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 24-4571-0-4-805      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         626         669         669
    ---------------------------------------------------------------------------

                                   Trust Funds

                  Civil Service Retirement and Disability Fund

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8135-0-7-602      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............     538,520     569,487     598,151
        Receipts:
    02.00 Employee contributions............       3,998       3,930       3,858
    02.01 District of Columbia contributions          61          52          46
    02.02 Employee deposits, redeposits and
            other contributions.............         477         494         520
    02.40 Agency contributions..............      10,731       9,975      10,739
          Offsetting receipts (intragovernmental):

    02.41   Postal Service agency
              contributions.................       2,888       2,985       3,080
    02.41   Postal Service agency
              contributions, legislative
              proposal subject to PAYGO.....                     551       1,049
          Offsetting receipts (intragovernmental):

    02.42   Postal Service supplemental
              contributions.................       3,875       4,041       4,141
    02.42   Postal Service supplemental
              contributions, legislative
              proposal subject to PAYGO.....                  -4,041      -3,707
    02.43 Federal Financing Bank interest...       1,337         403
          Offsetting receipts (intragovernmental):

    02.44   Treasury interest...............      34,565      36,863      38,768
    02.44   Treasury interest, legislative
              proposal not subject to PAYGO.                      24         -50
          Offsetting receipts (intragovernmental):

    02.45   General fund payment to the
              Civil Service Retirement and
              Disability fund...............      22,108      22,484      22,787
    02.45   General fund payment,
              legislative proposal not
              subject to PAYGO..............                   2,059       2,085
    02.46 Re-employed annuitants salary
            offset..........................          29          29          30
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..      80,069      79,849      83,346
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...     618,589     649,336     681,497
        Appropriations:
          Appropriations:

    05.00   Civil service retirement and
              disability fund...............     -49,102     -51,185     -52,845
    05.00   Proposed legislation, subject to
              PAYGO.........................                                  -3
                                               ---------   ---------  ----------
    05.99   Total appropriations............     -49,102     -51,185     -52,848
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............     569,487     598,151     628,649
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8135-0-7-602      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Annuities.........................      48,668      50,756      52,416
    00.02 Refunds and death claims..........         300         290         284
    00.03 OPM administration................         131         136         145
    00.04 Transfer to MSPB..................           3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      49,102      51,185      52,845
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......      49,102      51,185      52,845
    23.95 Total new obligations.............     -49,102     -51,185     -52,845
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.26   Appropriation (trust fund)......         103         108         122
          Mandatory:

    60.26   Appropriation (trust fund)......      79,966      81,079      83,644
    60.45   Portion precluded from
              obligation....................     -30,967     -30,002     -30,921
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................      48,999      51,077      52,723
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      49,102      51,185      52,845
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       4,119       4,251       4,445
    73.10 Total new obligations.............      49,102      51,185      52,845
    73.20 Total outlays (gross).............     -48,970     -50,991     -52,599
    74.40 Obligated balance, end of year....       4,251       4,445       4,691
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         103         108         122
    86.97 Outlays from new mandatory
            authority.......................      44,748      46,632      48,094
    86.98 Outlays from mandatory balances...       4,119       4,251       4,383
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      48,970      50,991      52,599
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      49,102      51,185      52,845
    90.00 Outlays...........................      48,970      50,991      52,599
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...     542,637     573,713     602,591
    92.02 Total investments, end of year:
            Federal securities: Par value...     573,713     602,591     633,339
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................           5           5           5
    99.01 Outlays...........................           5           5           5
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2002 actual  2003 est.   2004 est.
    Enacted/requested:
      Budget Authority..................      49,102      51,185      52,845
      Outlays...........................      48,970      50,991      52,599
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................                                   3
      Outlays...........................                                   3
                                        ------------------------------------
    Total:
      Budget Authority..................      49,102      51,185      52,848
      Outlays...........................      48,970      50,991      52,602
                                        ====================================

    [[Page 978]]

        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 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.

                                         2002 actual  2003 est.   2004 est.
    Active employees....................   2,601,563   2,596,763   2,596,763
    Annuitants:
      Employees.........................   1,748,920   1,768,337   1,812,286
      Survivors.........................     634,130     631,640     633,640
                                        ------------------------------------
          Total, annuitants.............   2,383,050   2,399,977   2,445,926
                                        ====================================

                      Status of Funds (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8135-0-7-602      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Unexpended balance, start of year:
    0100  Treasury balance..................          31          26           8
          Federal securities:

    0101    Par value.......................     542,608     573,713     602,591
    0102    Unrealized discounts............          -3          -2          -4
                                               ---------   ---------  ----------
    0199    Total balance, start of year....     542,639     573,738     602,596
        Cash income during the year:
          Current law:

            Receipts:
    1200      Employee contributions, Civil
                Service Retirement and
                Disability Fund.............       3,998       3,930       3,858
    1201      District of Columbia
                contributions...............          61          52          46
    1202      Employee deposits, redeposits,
                and voluntary contributions.         477         494         520
            Offsetting receipts
                (intragovernmental):
    1240      Agency contributions, Civil
                Service Retirement and
                Disability Fund.............      10,731       9,975      10,739
    1241      Postal Service agency
                contributions, Civil Service
                Retirement and Disability
                Fund........................       2,888       2,985       3,080
    1242      Postal Service supplemental
                contributions, Civil Service
                Retirement and Disability
                Fund........................       3,875       4,041       4,141
    1243      Federal Financing Bank
                interest, Civil Service
                Retirement and Disability
                Fund........................       1,337         403
    1244      Treasury interest, Civil
                Service Retirement and
                Disability Fund.............      34,565      36,863      38,768
    1245      General fund payment to the
                Civil Service Retirement and
                Disability Fund.............      22,108      22,484      22,787
    1246      Re-employed annuitant salary
                offset, Civil Service
                Retirement and Disability
                Fund........................          29          29          30
                                               ---------   ---------  ----------
    1299      Income under present law......      80,069      81,256      83,969
          Proposed legislation:

            Offsetting receipts
                (intragovernmental):
    2241      Postal Service agency
                contributions, legislative
                proposal subject to PAYGO...                     551       1,049
    2242      Postal Service supplemental
                contribitions, legislative
                proposal subject to PAYGO...                  -4,041      -3,707
    2244      Treasury interest, legislative
                proposal not subject to
                PAYGO.......................                      24         -50
    2245      General fund payment,
                legislative proposal not
                subject to PAYGO............                   2,059       2,085
                                               ---------   ---------  ----------
    2299      Income under proposed
                legislation.................                  -1,407        -623
                                               ---------   ---------  ----------
    3299    Total cash income...............      80,069      79,849      83,346
        Cash outgo during year:
          Current law:

            Cash outgo during the year (-):
    4500      Payment of claims to retired
                employees...................     -40,758     -42,475     -43,667
    4500      Payment of alternative annuity
                refunds.....................          -6          -4          -4
    4500      Payment of claims to survivor
                annuitants..................      -7,790      -8,086      -8,497
    4500      Lump sum payments to estates
                or beneficiaries of deceased
                annuitants and employees....        -150        -163        -169
    4500      Refunds to living separated
                employees...................        -135        -127        -114
    4500      Administration................        -131        -136        -148
                                               ---------   ---------  ----------
    4599      Outgo under current law (-)...     -48,970     -50,991     -52,599
          Proposed legislation:

    5500    Proposed legislation, subject to
              PAYGO.........................                                  -3
                                               ---------   ---------  ----------
    6599    Total cash outgo (-)............     -48,970     -50,991     -52,602
        Unexpended balance, end of year:
    8700  Uninvested balance................          26           8           8
          Federal securities:

    8701    Par value.......................     573,713     602,591     633,339
    8702    Unrealized discounts............          -2          -4          -4
                                               ---------   ---------  ----------
    8799    Total balance, end of year......     573,738     602,596     633,340
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8135-0-7-602      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................         134         136         145
    42.0  Insurance claims and indemnities..      48,668      50,759      52,416
    44.0  Refunds and death claims..........         300         290         284
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      49,102      51,185      52,845
    ---------------------------------------------------------------------------

                  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      2002 actual   2003 est.   2004 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 will propose 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.

        In addition, the budget includes a legislative proposal, a portion
    of which scores PAYGO, that corrects for an anticipated USPS over-
    funding of Civil Service Retirement System (CSRS) retirement benefits.
    This anticipated over-funding is due to a number of factors, including
    higher than expected past pension investment yields and overly
    prescriptive and inflexible statutory language. While the legislative
    proposal would reduce USPS payments to the Retirement Fund, it ensures
    that USPS meets its pension obligations so that no employee or retiree
    would lose any benefits. The proposal is consistent with the structure
    and financing of the Federal Employees' Retirement System as well as the
    Administra

    [[Page 979]]

    tion's legislative proposal to fully fund the CSRS liabilities for non-
    USPS employees and retirees.

                          Employees Life Insurance Fund

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8424-0-8-602      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.80 Employees life insurance fund,
            offsetting collections..........       3,501       3,570       3,678
        Appropriations:
    05.00 Employees life insurance fund.....      -3,501      -3,570      -3,678
                                               ---------   ---------  ----------
    05.99   Total appropriations............      -3,501      -3,570      -3,678
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8424-0-8-602      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Regular program premiums..........       1,157       1,268       1,288
    09.02 Optional program premiums.........         841         922       1,002
    09.03 Beneficial program premiums.......           2           2           2
    09.04 Administration....................           2           2           2
    09.05 Long term care administration.....           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.2)...................       2,003       2,195       2,295
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........      23,134      24,603      25,992
    22.00 New budget authority (gross)......       3,472       3,584       3,688
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      26,606      28,187      29,680
    23.95 Total new obligations.............      -2,003      -2,195      -2,295
    24.40 Unobligated balance carried
            forward, end of year............      24,603      25,992      27,385
    ----------------------------------------------------------------------------

        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)...       3,499       3,568       3,676
    69.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -29          14          10
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........       3,470       3,582       3,686
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       3,472       3,584       3,688
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         131         202         213
    73.10 Total new obligations.............       2,003       2,195       2,295
    73.20 Total outlays (gross).............      -1,961      -2,170      -2,254
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          29         -14         -10
    74.40 Obligated balance, end of year....         202         213         244
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           2           2           2
    86.97 Outlays from new mandatory
            authority.......................       1,959       2,168       2,252
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,961       2,170       2,254
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Agency contributions..........        -420        -461        -482
    88.20     Interest on Federal securities      -1,366      -1,325      -1,331
              Non-Federal sources:
    88.40       Regular program.............        -666        -702        -740
    88.40       Optional program............      -1,049      -1,082      -1,125
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -3,501      -3,570      -3,678
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          29         -14         -10
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................      -1,540      -1,400      -1,424
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...      23,690      24,603      25,992
    92.02 Total investments, end of year:
            Federal securities: Par value...      24,603      25,992      27,385
    ---------------------------------------------------------------------------

        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:

                                         2002 actual  2003 est.   2004 est.
    Life insurance in force (in billions
        of dollars):
      On active employees...............         550         560         570
      On retired employees..............          54          56          58
                                        ------------------------------------
          Total.........................         604         616         628
                                        ====================================
    Number of participants (in
        thousands):
      Active employees..................       2,399       2,380       2,372
      Annuitants........................       1,585       1,590       1,595
                                        ------------------------------------
          Total.........................       3,984       3,970       3,967
                                        ====================================

        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          2002 actual  2003 est.   2004 est.
    Held in reserve (in millions of
        dollars):
      Contingency reserve...............         100         100         100
      Beneficial association program
        reserve.........................           1           1           1
      U.S. Treasury reserve.............      25,350      24,471      25,779
                                        ------------------------------------
          Total reserves................      25,451      24,572      25,880
                                        ====================================

              Employees and Retired Employees Health Benefits Funds

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-9981-0-8-551      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.80 Employees and retired employees
            health benefits fund, offsetting
            collections.....................      23,610      26,820      29,468
        Appropriations:
    05.00 Employees and retired employees
            health benefits fund............     -23,610     -26,820     -29,468
                                               ---------   ---------  ----------
    05.99   Total appropriations............     -23,610     -26,820     -29,468
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-9981-0-8-551      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Benefit payments..................      22,667      26,185      28,581
    09.02 Payments from OPM contingency
            reserve.........................         125         250         250
    09.03 Government payment for annuitants
            (1960 Act)......................           2           2           2
    09.04 Administration....................          24          24          27
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.6)...................      22,820      26,461      28,859
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       4,418       5,341       5,827
    22.00 New budget authority (gross)......      23,742      26,947      29,582
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      28,161      32,288      35,409
    23.95 Total new obligations.............     -22,820     -26,461     -28,859
    24.40 Unobligated balance carried
            forward, end of year............       5,341       5,827       6,551
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          24          24          27

    [[Page 980]]

          Mandatory:

    69.00   Offsetting collections (cash)...      23,586      26,796      29,441
    69.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         133         127         114
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........      23,719      26,923      29,556
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      23,742      26,947      29,583
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       2,235       2,215       2,368
    73.10 Total new obligations.............      22,820      26,461      28,859
    73.20 Total outlays (gross).............     -22,707     -26,181     -28,726
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................        -133        -127        -114
    74.40 Obligated balance, end of year....       2,215       2,368       2,388
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          24          24          27
    86.97 Outlays from new mandatory
            authority.......................      21,786      25,127      27,542
    86.98 Outlays from mandatory balances...         897       1,030       1,157
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      22,707      26,181      28,726
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Federal sources:
    88.00       Agency contributions........      -9,896     -11,364     -12,327
    88.00       Government contributions for
                  annuitants................      -7,009      -7,871      -8,711
    88.20     Interest on Federal securities        -210        -302        -379
              Non-Federal sources:
    88.40       Employee salary withholdings      -3,371      -3,811      -4,178
    88.40       Annuity withholdings........      -3,059      -3,392      -3,785
    88.40       Contributions from D.C.
                  Government................         -65         -80         -88
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........     -23,610     -26,820     -29,468
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................        -133        -127        -114
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          -1
    90.00 Outlays...........................        -903        -639        -742
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...       6,651       7,554       8,202
    92.02 Total investments, end of year:
            Federal securities: Par value...       7,554       8,202       8,944
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................           1           1           1
    99.01 Outlays...........................           1           1           1
    ---------------------------------------------------------------------------

                      Status of Funds (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-9981-0-8-551      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Unexpended balance, start of year:
    0100  Treasury balance..................          16          11           5
          Federal securities:

    0101    Par value.......................       6,651       7,554       8,202
    0102    Unrealized discounts............         -14         -10         -11
                                               ---------   ---------  ----------
    0199    Total balance, start of year....       6,653       7,556       8,195
        Cash income during the year:
          Current law:

            Offsetting collections:
              Offsetting governmental
                  receipts:
    1280        Contributions from Employing
                  Agencies..................       6,234       7,207       7,811
    1280        Contributions from Postal
                  Service for Active
                  Employees.................       3,662       4,157       4,516
    1280        Contributions from Postal
                  Service for Annuitants....         993       1,164       1,296
    1280        Government Payment for
                  Annuitant Health Benefits.       6,016       6,707       7,415
    1280        Interest Earned.............         210         302         379
    1280        Contributions from DC
                  Government................          65          80          88
    1280        Contributions from Active
                  Employees.................       3,371       3,811       4,178
    1280        Contributions from
                  Annuitants................       3,059       3,391       3,786
                                               ---------   ---------  ----------
    1299      Income under present law......      23,610      26,820      29,468
        Cash outgo during year:
          Current law:

            Cash outgo during the year (-):
    4500      Benefit Payments (-)..........     -22,557     -25,907     -28,449
    4500      Payments to Carriers from OPM
                Contingency Reserves (-)....        -125        -250        -250
    4500      Administration (-)............         -25         -24         -27
                                               ---------   ---------  ----------
    4599      Outgo under current law (-)...     -22,707     -26,181     -28,726
        Unexpended balance, end of year:
    8700  Uninvested balance................          11           5           5
          Federal securities:

    8701    Par value.......................       7,554       8,202       8,944
    8702    Unrealized discounts............         -10         -11         -12
                                               ---------   ---------  ----------
    8799    Total balance, end of year......       7,556       8,195       8,939
    ---------------------------------------------------------------------------

        This display combines the Federal Employees Health Benefits (FEHB)
    fund and the Retired Employees Health Benefits (REHB) fund.

        The FEHB fund provides for the cost of health benefits for: (1)
    active employees; (2) employees who retired after June 1960, or their
    survivors; (3) those annuitants transferred from the REHB program as
    authorized by Public Law 93-246; and (4) the related expenses of the
    Office of Personnel Management (OPM) in administering the program.

        The REHB fund, created by the Retired Federal Employees Health
    Benefits Act of 1960, provides for: (1) the cost of health benefits for
    retired employees and survivors who enroll in a Government-sponsored
    uniform health benefits plan; (2) the contribution to retired employees
    and survivors who retain or purchase private health insurance; and (3)
    expenses of OPM in administering the program.

        Budget program.--The balance of the FEHB fund is available for
    payments without fiscal year limitation. Numbers of participants at the
    end of each fiscal year are as follows:

                                         2002 actual  2003 est.   2004 est.
    Active employees....................   2,189,131   2,186,000   2,182,000
    Annuitants..........................   1,857,014   1,871,000   1,910,000
                                        ------------------------------------
        Total...........................   4,046,145   4,057,000   4,092,000
                                        ====================================

        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:

                                         2002 actual  2003 est.   2004 est.
    Uniform plan........................         747         620         515
    Private plans.......................       2,130       1,768       1,467
                                        ------------------------------------
        Total...........................       2,877       2,388       1,982
                                        ====================================

        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

    [[Page 981]]

    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.