[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
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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
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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
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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
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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
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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
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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
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Government Payment for Annuitants, Employees Health Benefits
For payment of Government contributions with respect to retired
employees, as authorized by chapter 89 of title 5, United States Code,
and the Retired Federal Employees Health Benefits Act (74 Stat. 849), as
amended, such sums as may be necessary.
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
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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)
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Identification code 24-9981-0-8-551 2002 actual 2003 est. 2004 est.
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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..............
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Program and Financing (in millions of dollars)
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Identification code 24-9981-0-8-551 2002 actual 2003 est. 2004 est.
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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
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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
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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
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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
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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
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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
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Net budget authority and outlays:
89.00 Budget authority.................. -1
90.00 Outlays........................... -903 -639 -742
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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
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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
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Status of Funds (in millions of dollars)
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Identification code 24-9981-0-8-551 2002 actual 2003 est. 2004 est.
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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
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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.