[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 2005

[[Page 1057]]

 
                     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, [$119,498,000] 
$131,291,000, of which $2,000,000 shall remain available until expended 
for the cost of the [enterprise human resources integration] Enterprise 
Human Resources Integration project[, and $2,500,000]; $6,615,000 shall 
remain available until expended for the cost of leading the government-
wide initiative to modernize the Federal payroll systems and service 
delivery [and $2,500,000]; $800,000 shall remain available until 
expended for the cost of the e-Human Resources Information System 
project; $2,000,000 shall remain available until expended for the cost 
of the e-Clearance project; and $5,000,000 shall remain available 
through September 30, [2005] 2006 to coordinate and conduct program 
evaluation and performance measurement; and in addition [$135,914,000] 
$128,462,000 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] $27,640,000 shall remain available until expended for the 
cost of automating the retirement recordkeeping systems: Provided, That 
the provisions of this appropriation shall not affect the authority to 
use applicable trust funds as provided by sections 8348(a)(1)(B), 
[8909(g),] and 9004(f)(1)(A) and (2)(A) of title 5, United States Code: 
Provided further, That no part of this appropriation shall be available 
for salaries and expenses of the Legal Examining Unit of the Office of 
Personnel Management established pursuant to Executive Order No. 9358 of 
July 1, 1943, or any successor unit of like purpose: Provided further, 
That the President's Commission on White House Fellows, established by 
Executive Order No. 11183 of October 3, 1964, may, during fiscal year 
[2004] 2005, accept donations of money, property, and personal services 
[in connection with the development of a publicity brochure]: Provided 
further, That such donations, including those from prior years, may be 
used for the development of publicity materials 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. (Division F, H.R. 2673, 
Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-0100-0-1-805      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Strategic HR policy...............          12          57          36
00.02 Human capital leadership and merit 
        system accountability...........          23          30          31
00.03 HR products and services..........         117         129         117
00.04 Management services...............          70          74          86
00.05 Executive services................          14          15          15
09.00 Reimbursable program..............           3          34          34
                                           ---------   ---------  ----------
10.00   Total new obligations...........         239         339         319
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          11          26
22.00 New budget authority (gross)......         254         313         319
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         265         339         319
23.95 Total new obligations.............        -239        -339        -319
24.40 Unobligated balance carried 
        forward, end of year............          26
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         129         119         131
40.35   Appropriation permanently 
          reduced.......................          -1          -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         128         118         131
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...         114         195         188
68.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................          12
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total discretionary).......         126         195         188
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         254         313         319
    Change in obligated balances:
72.40 Obligated balance, start of year..          10          34          60
73.10 Total new obligations.............         239         339         319
73.20 Total outlays (gross).............        -232        -313        -317
73.40 Adjustments in expired accounts 
        (net)...........................          22
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................         -12
74.10 Change in uncollected customer 
        payments from Federal sources 
        (expired).......................           7
74.40 Obligated balance, end of year....          34          60          60
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         175         298         302
86.93 Outlays from discretionary 
        balances........................          57          15          15
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         232         313         317
    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........        -138        -195        -188
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................         -12
88.96   Portion of offsetting 
          collections (cash) credited to 
          expired accounts..............          24
    Net budget authority and outlays:
89.00 Budget authority..................         128         118         131
90.00 Outlays...........................          94         118         129
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    It is OPM's mission to have a highly qualified and diverse Federal 
workforce, one based on merit system principles that America needs to 
guarantee freedom, promote prosperity, and ensure the security of this 
great Nation. The 2005 budget will allow OPM to help deliver on 
President Bush's promise to improve the Federal Government and provide 
the highest possible quality of service to the American taxpayers.

    OPM responded to President Bush's call to make homeland security and 
the defeat of terrorism the Nation's top priority. OPM directed 
resources toward initiatives that had an immediate impact on the 
Government's ability to protect and defend our Nation and respond to 
emergencies, including the design and implementation of emergency hiring 
flexibilities and building the new Department of Homeland Security 
(DHS), which involved pulling together 170,000 employees from 22 
different agencies.

    Additionally, President Bush has identified the Strategic Management 
of (the Federal Government's) Human Capital as one of his 
Administration's top priorities and directed that OPM be responsible for 
making it happen. OPM is committed to the President's Management Agenda 
(PMA) and has made Federal agency performance in implementing the 
Strategic Management of Human Capital a measure of OPM's own success.

[[Page 1058]]

    To ensure that OPM was organized to carry out its new roles and 
responsibilities, the agency successfully implemented a major overhaul 
and restructuring, aligning resources to Strategic Plan goals and 
reorganized 12 ``stovepiped'' components into four central divisions to 
form a more results-oriented structure to deliver results and value to 
the community of Federal agencies and the American people. 2004 is the 
first full year that OPM is operating in its new structure. The newly 
restructured OPM is providing more efficient service and better 
coordinated responses to the human capital needs of Federal agencies.

    Building on this success, the 2005 budget will allow OPM to advance 
the agenda of supporting Federal employees and their work to protect 
National Security and implementing long-term human capital strategies 
that deliver results for the American people. Through its leadership in 
the Governmentwide effort to transform Human Capital Management, OPM is 
creating an environment in which agencies are held accountable for 
managing their workforce.

    The functions and objectives of the restructured OPM are:

    1. Strategic Human Resources Policy (SHRP)--strives to: (1) Ensure 
agencies use OPM policy and guidance to develop and maintain the 
capacity of their workforce to continue to meet and improve their 
strategic performance targets; (2) Implement new Human Resource systems; 
(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 high-quality applicants of diverse 
backgrounds. In 2003, OPM helped set up the Department of Homeland 
Security and implemented other aspects of the Homeland Security and 
Chief Human Capital Officers Acts, all of which had an immediate impact 
on the Government's capacity for homeland security and the war on 
terrorism. Also, OPM's Recruitment One-Stop initiative, through which 
agencies can advertise job vacancies and job seekers can apply for these 
vacancies, expanded the capabilities of the USAJOBS Federal Employment 
Information System and became a single application point to streamline 
the Federal employment application process. During 2004, the Enterprise 
Human Resources Integration project will provide a model and supporting 
tools for workforce planning, analysis and forecasting to improve human 
capital management. In 2005, OPM will continue to lead the design, 
development, and implementation of innovative, flexible, merit-based 
human resource policies and strategies that will aid Federal agencies in 
adopting human resource management systems that improve their ability to 
build successful high performance organizations.

    Program Performance.--As part of a larger effort to improve the 
hiring process, OPM will develop new and improved data collection 
methods to solicit input from new hires, employees, managers, and human 
capital staff in areas ranging from Federal hiring and pay/benefit 
systems to leadership, accountability, and workforce planning. 
Additionally, OPM will continue to implement changes to the Federal 
Employees Health Benefits Program (FEHBP) to maximize resources and 
obtain the flexibilities that produce the most cost beneficial benefits 
package.

    2. Human Capital Leadership and Merit System Accountability 
(HCLMSA)--leads the transformation of Human Capital Management by 
providing technical support to Federal agencies so they can better 
accomplish their missions through effective human capital programs and 
practices that integrate technology and by measuring their results. OPM 
helped agencies use new hiring flexibilities provided by the Homeland 
Security Act, such as direct-hire authority, category rating, academic 
degree training authority, and voluntary early retirement authority. In 
addition, OPM assisted agencies in their human capital management, which 
resulted in more agencies showing an improved status in PMA--Strategic 
Management of Human Capital (SMHC). OPM will continue to conduct 
periodic evaluations of agency human resource operations to assess 
compliance with merit system principles, law and regulations, including 
efficiency and effectiveness. OPM will hold agencies accountable for 
their efforts to diversify their workforce and uphold veterans' 
preference. In addition, OPM will promote and manage innovative 
departmental and agency demonstration projects as well as consult with 
stakeholder groups to support the strategic management and 
transformation of human capital. OPM will also conduct feedback and 
action planning with focus groups and management to address 
opportunities identified through surveys. In 2005, OPM will continue to 
work with all agencies to help them implement further the PMA-SMHC and 
move their human capital scorecards toward ``Green.'' OPM will also work 
with agencies to address human capital competency gaps and knowledge 
transfer management, and to establish and implement agency 
accountability systems for human resources management that assess agency 
adherence to merit system principles and supporting requirements. 
Furthermore, OPM will ensure that agencies implement investigative 
policies and standards to ensure that Federal employees meet certain 
necessary suitability standards.

    Program Performance.--OPM will develop an enhanced Federal Human 
Capital Survey (FHCS) to measure human capital accountability across 
Government. The FHCS will provide broad governmentwide indicators of the 
status of federal human capital that would benefit lawmakers, managers, 
employees, and citizens. OPM administered the FHCS in 2002 to over 
200,000 employees. In 2005, OPM will improve upon the function and 
applicability of the FHCS to realize the full potential of the tool as a 
measure of Human Capital Transformation Accountability. Also, OPM will 
continue to train HR personnel to improve their counseling with 
employees and annuitants on federal benefit programs.

    3. Human Resources Products and Services (HRPS)--is committed to: 
(1) Provide direct human capital products and services that are cost-
effective, relevant and useful to agencies; (2) Facilitate retirement 
income security for Federal employees by making the transition from 
active employment to retirement seamless and expeditious; (3) Allow 
Federal employees, annuitants and their families to choose from among 
quality and fiscally responsible carriers to address their specific 
insurance needs.

    During 2004, OPM will continue to reengineer the retirement systems. 
OPM will implement the full electronic exchange of information for 
imaging and convert existing employee retirement files to electronic 
format. By reengineering processes and updating technology, OPM will be 
able to deliver retirement services in a more timely, cost-efficient way 
while also expanding the number of services. Additionally, OPM will add 
functionality to a retirement benefits calculator and estimator tool 
that will process over 90% of the FERS workload and improve CSRS 
benefits calculation. OPM also will continue to provide Federal retirees 
and their dependents with health insurance benefits, and will upgrade 
telephone systems and supplement in-house staff capacity through 
contractor assistance to provide customer service to retirees. OPM will 
continue to provide a range of reimbursable products and services 
including recruitment, assessment, selection, and staffing to help 
agencies meet their human capital needs. OPM will ensure the fitness and 
suitability of applicants for, and appointees to, positions in the 
Federal service, including conducting background investigations for 
Federal agencies.

[[Page 1059]]

OPM will continue to negotiate and contract with private insurance 
companies to offer a flexible range of health insurance benefits, and 
will provide technical oversight, execution and maintenance of the newly 
offered Flexible Spending Accounts program.

    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.

    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 to an electronic record keeping system. 
During 2003, the RSM project continued to work on implementation 
segments, electronic data planning and foundation elements. Two critical 
factors have influenced the course of this project: the need to evaluate 
and leverage recent advancements from e-Gov projects, and the need to 
thoroughly assess alternatives to implementing RSM.

    In 2005, RSM will continue to capture and convert retirement-related 
paper and electronic data at the agencies as well as paper files at the 
Retirement Operations Center facility. RSM will begin to establish 
electronic portals to receive recurring feeds of agency data, as well as 
to move to production-level use of the Coverage Determination 
Application.

    OPM processes 170,000 Civil Service and Federal Employees' 
Retirement System (CSRS and FERS) annuity and survivor claims annually. 
Since 2000, the processing time for interim annuity payments has been 
reduced from five days to an average of three days and in 2003, nearly 
71 percent of interim payments were authorized within one to five days. 
As OPM leveraged technology investments to increase its claims 
processing capacity and efficiency, FERS claims processing times dropped 
from 185 days in 2000 to 82 days in 2003. OPM projects FERS claims 
processing times will be 76 days in 2005.

    By constructing benefit choices that are comprehensive and 
competitive for Federal employees, OPM seeks to enable agencies to be 
competitive employers to recruit and retain talent needed to meet their 
missions. For 2004, OPM negotiated health insurance premiums in the 
Federal Employees Health Benefits Program (FEHBP) that were held below 
the national average increase and Federal employees will have 205 health 
plan choices. Beginning in 2004, Federal employees can review health 
insurance carriers' initiatives and programs for patient safety in 
addition to the decision-support tools and a plan-comparison feature 
available on the FEHBP website. Flexible Spending Accounts (FSAs) became 
available to Federal employees beginning July 1, 2003. The FSA program 
allows deductions from pretax salary of employees, which can be used to 
pay for eligible medical expenses and dependent-care expenses not 
covered under the Federal Employees Health Benefits Program. The program 
has nearly 120,000 Federal accounts with a third party administrator. To 
make sure that the FSA program remains competitive, OPM allows over-the-
counter drugs and medicines, in accordance with IRS guidelines, to be 
covered under the program and has increased the FSA allowance for 
medical expenses to $4,000 per year.

    The Federal Long Term Care Insurance Program (FLTCIP) authorized 
under the Long-Term Care Security Act of 2000, has about 200,000 
enrollees. The program features customized plans in the areas of 
coverage, benefits and waiting periods or participants have the choice 
of four pre-packaged plans. The program has been expanded to include new 
groups eligible to apply for this insurance, some District of Columbia 
government employees, entitled Federal deferred annuitants and certain 
eligible reservists.

    The Administration will work with stakeholders to better coordinate 
the Medicare and Federal Employees Health Benefits programs and look to 
the practice of the private sector to ensure high quality, cost-
conscious choices for retirees. These important programs jointly finance 
health insurance for about 2 million Federal retirees and their 
dependents.

    4. Management Services--Includes: OPM human resources, equal 
employment opportunity, security, facilities, telecommunications, 
publishing, acquisitions, information resources management, strategic 
planning and financial management to support all of OPM's goals. In 
2005, this organization will continue to develop and enhance the 
evaluation function formed in 2004 to assess the use and impact of OPM 
programs in a unified and coordinated manner.

    5. 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.

    6. 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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........         106         117         117
11.3      Other than full-time permanent           5           7           7
11.5      Other personnel compensation..           4           4           4
                                           ---------   ---------  ----------
11.9        Total personnel compensation         115         128         128
12.1    Civilian personnel benefits.....          26          30          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.........           6          10          10
24.0    Printing and reproduction.......           2           2           2
25.2    Other services..................          62         107          87
26.0    Supplies and materials..........           2           3           3
31.0    Equipment.......................           3           5           5
                                           ---------   ---------  ----------
99.0      Direct obligations............         236         305         285
99.0  Reimbursable obligations..........           3          34          34
                                           ---------   ---------  ----------
99.9    Total new obligations...........         239         339         319
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 24-0100-0-1-805      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................       1,848       1,958       1,982
    Reimbursable:
2001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         141         141         141
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                     Human Capital Performance Fund

                      (including transfer of funds)

    For a human capital performance fund, [$1,000,000: Provided, That 
such amount shall not be available for obligation or transfer until 
enactment of legislation that establishes a human capital performance 
fund within the Office of Personnel Management:] as authorized by 5 
U.S.C. 5408, $300,000,000: Provided [further], That such amounts as 
determined by the Director of the Office of Personnel Management may be 
transferred to Federal agencies to carry out the purposes of this fund 
as authorized[: Provided further, That no funds shall be available for 
obligation or transfer to any Federal agency until the Director has 
notified the relevant subcommittees of jurisdiction of the Committees on 
Appropriations of the approval

[[Page 1060]]

of a performance pay plan for that agency, and the prior approval of 
such subcommittees has been attained] by 5 U.S.C. 5403. (Division F, 
H.R. 2673, Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-0700-0-1-805      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Human capital performance fund....                       1         300
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 11.1)...................                       1         300
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                       1         300
23.95 Total new obligations.............                      -1        -300
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................                       1         300
    Change in obligated balances:
73.10 Total new obligations.............                       1         300
73.20 Total outlays (gross).............                      -1        -300
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                       1         300
    Net budget authority and outlays:
89.00 Budget authority..................                       1         300
90.00 Outlays...........................                       1         300
---------------------------------------------------------------------------

    The Human Capital Performance Fund is designed to create 
performance-driven pay systems for employees and reinforce the value of 
employee performance management systems. It will provide 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 are to 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, will be allocated 
at the discretion of OPM.

                                

                       Office of Inspector General

                          salaries and expenses

                   (including transfer of trust funds)

    For necessary expenses of the Office of Inspector General in 
carrying out the provisions of the Inspector General Act, as amended, 
including services as authorized by 5 U.S.C. 3109, hire of passenger 
motor vehicles, [$1,498,000] $1,627,000, and in addition, not to exceed 
[$14,427,000] $16,461,000 for administrative expenses to audit, 
investigate, and provide other oversight of the Office of Personnel 
Management's retirement and insurance programs, to be transferred from 
the appropriate trust funds of the Office of Personnel Management, as 
determined by the Inspector General: Provided, That the Inspector 
General is authorized to rent conference rooms in the District of 
Columbia and elsewhere. (Division F, H.R. 2673, Consolidated 
Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-0400-0-1-805      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct program activity...........           1           1           2
09.00 Reimbursable program..............          11          15          16
                                           ---------   ---------  ----------
10.00   Total new obligations...........          12          16          18
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          12          16          18
23.95 Total new obligations.............         -12         -16         -18
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................           2           1           2
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...           9          15          16
68.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................           1
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total discretionary).......          10          15          16
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          12          16          18
    Change in obligated balances:
73.10 Total new obligations.............          12          16          18
73.20 Total outlays (gross).............         -10         -16         -18
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................          -1
74.10 Change in uncollected customer 
        payments from Federal sources 
        (expired).......................           1
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          10          16          18
    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........          -9         -15         -16
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................          -1
    Net budget authority and outlays:
89.00 Budget authority..................           2           1           2
90.00 Outlays...........................           1           1           2
---------------------------------------------------------------------------

    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, abuse, 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.

    These Inspector General activities resulted in positive financial 
impacts of approximately $40 million, 13 criminal convictions, and 3405 
administrative sanctions in 2003.

    Additional resources in 2004 will finance more audit staff, special 
agent criminal investigators, and improved information systems. OPM 
expects to reduce the audit cycle to 2.9 years for FEHBP carriers. Total 
recoveries are expected to increase by $14 million annually.

    In 2005, OPM will add audits of pharmacy benefit managers and expand 
the scope of audits for the largest community-rated health plans 
(comprehensive medical plans commonly referred to as health maintenance 
organizations) participating in FEHBP.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-0400-0-1-805      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................           1           1           1
12.1    Civilian personnel benefits.....                                   1
                                           ---------   ---------  ----------
99.0      Direct obligations............           1           1           2
99.0  Reimbursable obligations..........          10          14          15
99.5  Below reporting threshold.........           1           1           1
                                           ---------   ---------  ----------

[[Page 1061]]


99.9    Total new obligations...........          12          16          18
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 24-0400-0-1-805      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................          17          17          18
    Reimbursable:
2001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................          83         106         122
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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. (Division F, H.R. 2673, 
Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-0206-0-1-551      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Government contribution for 
        annuitants benefits (1959 Act)..       6,672       7,356       8,044
00.02 Government contribution for 
        annuitants benefits (1960 Act)..           2           2           2
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 13.0)...................       6,674       7,358       8,046
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......       6,674       7,358       8,046
23.95 Total new obligations.............      -6,674      -7,358      -8,046
    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................       6,674       7,358       8,046
    Change in obligated balances:
72.40 Obligated balance, start of year..         605         675         730
73.10 Total new obligations.............       6,674       7,358       8,046
73.20 Total outlays (gross).............      -6,604      -7,303      -8,011
74.40 Obligated balance, end of year....         675         730         765
    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................       5,999       6,628       7,281
86.98 Outlays from mandatory balances...         605         675         730
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       6,604       7,303       8,011
    Net budget authority and outlays:
89.00 Budget authority..................       6,674       7,358       8,046
90.00 Outlays...........................       6,604       7,303       8,011
---------------------------------------------------------------------------

    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.

                                     2003 actual  2004 est.   2005 est.
Annuitants:
    FEHB............................   1,836,789   1,863,000   1,890,000
      (USPS non-add)................     430,153     430,000     429,000
    REHB............................       2,362       1,960       1,627
                                    ------------------------------------
        Total, annuitants...........   1,839,151   1,864,960   1,891,627
                                    ====================================

                                

       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. (Division F, H.R. 
2673, Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-0500-0-1-602      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct program activity...........          34          35          35
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 25.2)...................          34          35          35
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          34          35          35
23.95 Total new obligations.............         -34         -35         -35
    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................          34          35          35
    Change in obligated balances:
72.40 Obligated balance, start of year..           4           4           4
73.10 Total new obligations.............          34          35          35
73.20 Total outlays (gross).............         -34         -35         -35
74.40 Obligated balance, end of year....           4           4           4
    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................          30          31          31
86.98 Outlays from mandatory balances...           4           4           4
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          34          35          35
    Net budget authority and outlays:
89.00 Budget authority..................          34          35          35
90.00 Outlays...........................          34          35          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. (Division F, H.R. 2673, Consolidated Appropriations 
Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-0200-0-1-805      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.02 Payment of Government share of 
        retirement costs................       9,933       9,800       9,700
00.03 Transfers for interest on unfunded 
        liability and payment of 
        military service annuities......      11,876      16,100      16,600
00.05 Spouse equity payment.............          69          70          72
                                           ---------   ---------  ----------
10.00   Total new obligations...........      21,878      25,970      26,372
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......      21,878      25,970      26,372
23.95 Total new obligations.............     -21,878     -25,970     -26,372
    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................      11,876      16,100      16,600
60.00   Appropriation...................      10,002       9,870       9,772
                                           ---------   ---------  ----------
62.50     Appropriation (total 
            mandatory)..................      21,878      25,970      26,372
    Change in obligated balances:
73.10 Total new obligations.............      21,878      25,970      26,372
73.20 Total outlays (gross).............     -21,878     -25,970     -26,372
    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................      21,878      25,970      26,372
    Net budget authority and outlays:
89.00 Budget authority..................      21,878      25,970      26,372

[[Page 1062]]

90.00 Outlays...........................      21,878      25,970      26,372
---------------------------------------------------------------------------

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

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

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

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-0200-0-1-805      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
12.1  Civilian personnel benefits.......      10,002       9,870       9,772
13.0  Benefits for former personnel.....      11,876      16,100      16,600
                                           ---------   ---------  ----------
99.9    Total new obligations...........      21,878      25,970      26,372
---------------------------------------------------------------------------

                                

Intragovernmental funds:

                             Revolving Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-4571-0-4-805      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Talent services...................          96         130         136
09.02 Investigation services............         391         641         849
09.03 Leadership capacity services......          39          41          41
                                           ---------   ---------  ----------
10.00   Total new obligations...........         526         812       1,026
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          81         170         170
22.00 New budget authority (gross)......         610         812       1,026
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           5
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         696         982       1,196
23.95 Total new obligations.............        -526        -812      -1,026
24.40 Unobligated balance carried 
        forward, end of year............         170         170         170
    New budget authority (gross), detail:
      Spending authority from offsetting 
          collections:

        Discretionary:
68.00     Offsetting collections (cash).         428         812       1,026
68.10     Change in uncollected customer 
            payments from Federal 
            sources (unexpired).........         182
                                           ---------   ---------  ----------
68.90       Spending authority from 
              offsetting collections 
              (total discretionary).....         610         812       1,026
    Change in obligated balances:
72.40 Obligated balance, start of year..          55         -61         -61
73.10 Total new obligations.............         526         812       1,026
73.20 Total outlays (gross).............        -455        -812      -1,026
73.45 Recoveries of prior year 
        obligations.....................          -5
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................        -182
74.40 Obligated balance, end of year....         -61         -61         -61
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         455         812       1,026
    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........        -428        -812      -1,026
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................        -182
    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................          27
---------------------------------------------------------------------------

    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.

    Talent 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 contracts with private companies, OPM 
conducts National Agency Check and Inquiry cases and background 
security/suitability investigations for Federal agencies on a 
reimbursable basis through the Revolving Fund. When OPM is required to 
pay fees for national, State, or other records provided, agencies are 
also required to reimburse OPM for such fees through the Revolving Fund.

    The Defense Authorization Act of 2004 provided OPM the option to 
accept a transfer of functions and personnel from the Department of 
Defense, Defense Security Service (DSS). The Director of OPM has 
statutory discretion to accept or decline full transfer of functions and 
personnel from DSS. No decision has been made at this time for a full 
transfer of functions in either 2004 or 2005. The figures that appear in 
the Budget Appendix are illustrative only if such a transfer occurs and 
are subject to change.

    In 2004, OPM will partner with DSS to provide certain investigative 
services as an initial step toward building an integrated program. OPM 
agreed to accept for automated processing through the Revolving Fund 
over 350,000 new DSS requests for investigative services. In addition, 
OPM plans to enter into a reimbursable agreement with DSS to cover all 
costs associated with the use of OPM's automated processing 
infrastructure for field investigations and any training required for 
DSS staff.

    OPM may accept a full transfer of activities and employees from DSS. 
OPM may provide a full range of services to DSS--including all 
accounting functions such as billings and collections--through a cross 
servicing agreement. All reimbursable investigative work and related 
functions such as billings, collections, and associated preparation and 
instruction on use of OPM systems will be completed by the OPM Federal 
staff or through contracts with private companies for investigative 
services, and will be carried out through the Revolving Fund.

    This language appears concurrently in the DOD chapter of the Budget 
Appendix. In addition, the schedules/tables in the Appendix include a 
footnote qualifying the budget, workload and FTE estimates.

[[Page 1063]]

    Leadership Capacity Services.--OPM conducts residential and 
nonresidential programs for Federal executives and managers to improve 
the effectiveness and efficiency of Federal programs.

                             WORKLOAD COUNT

                                     2003 actual  2004 est.   2005 est.
Participant training days...........      86,354      83,186      84,850
Background security investigations 
processed...........................     101,022     273,655     273,655
National and special agency check 
and inquiry cases closed............     419,230   1,021,212   1,021,212
Special agreement checks closed.....     548,856     271,838     271,838

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-4571-0-4-805      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............          25         112         173
11.3    Other than full-time permanent..           5           5           6
11.5    Other personnel compensation....           2           7          13
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          32         124         192
12.1  Civilian personnel benefits.......           8           9          41
21.0  Travel and transportation of 
        persons.........................           4           8          12
23.1  Rental payments to GSA............           7          10          14
23.3  Communications, utilities, and 
        miscellaneous charges...........          11          16          19
24.0  Printing and reproduction.........           2           2           3
25.2  Other services....................         451         626         723
26.0  Supplies and materials............           3           7          11
31.0  Equipment.........................           8          10          11
                                           ---------   ---------  ----------
99.9    Total new obligations...........         526         812       1,026
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 24-4571-0-4-805      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Reimbursable:
2001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         669       1,701       2,601
---------------------------------------------------------------------------
    Resource levels, workload, and personnel estimates for FY 2004 and 
FY 2005 in this account reflect a transfer of DOD's Defense Security 
Service activities beginning in 2004 and completed in 2005 and are 
subject to change. No decision has been made at this time for any 
transfer of functions and employees.

                                

  

                               Trust Funds

              Civil Service Retirement and Disability Fund

                Unavailable Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-8135-0-7-602      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............     569,480     597,334     626,887
    Receipts:
02.00 Employee contributions, Civil 
        service retirement and 
        disability......................       4,004       4,087       3,990
02.01 District of Columbia 
        contributions, Civil service 
        retirement and..................          53          46          42
02.02 Employee deposits, redeposits and 
        other contributions, Civil ser..         518         543         569
02.40 Agency contributions, Civil 
        service retirement and 
        disability fu...................      11,288      11,566      12,769
02.41 Postal Service agency 
        contributions, Civil service 
        retirement an...................       3,331       4,101       4,187
02.42 Postal Service supplemental 
        contributions, Civil service 
        retirem.........................                     263         263
02.43 FFB, TVA, and USPS interest, Civil 
        service retirement and disabi...       1,932
02.44 Treasury interest, Civil service 
        retirement and disability fund..      35,329      36,035      37,926
02.45 General fund payment to the civil 
        service retirement and disabil..      21,878      25,970      26,372
02.46 Re-employed annuitants salary 
        offset, Civil service retirement 
        a...............................          33          34          36
                                           ---------   ---------  ----------
02.99   Total receipts and collections..      78,366      82,645      86,154
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...     647,846     679,979     713,041
    Appropriations:
05.00 Civil service retirement and 
        disability fund.................         -87        -124        -116
05.01 Civil service retirement and 
        disability fund.................     -78,278     -82,521     -86,038
05.02 Civil service retirement and 
        disability fund.................      27,853      29,553      30,944
                                           ---------   ---------  ----------
05.99   Total appropriations............     -50,512     -53,092     -55,210
                                           ---------   ---------  ----------
07.99 Balance, end of year..............     597,334     626,887     657,831
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-8135-0-7-602      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Annuities.........................      50,102      52,664      54,792
00.02 Refunds and death claims..........         291         276         275
00.03 Administration--operations........         113         146         139
00.04 Transfer to MSPB..................           3           3
00.05 Administration--OIG...............           3           3           4
                                           ---------   ---------  ----------
10.00   Total new obligations...........      50,512      53,092      55,210
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......      50,512      53,092      55,210
23.95 Total new obligations.............     -50,512     -53,092     -55,210
    New budget authority (gross), detail:
      Discretionary:

40.26   Appropriation (trust fund)......          87         124         116
      Mandatory:

60.26   Appropriation (trust fund)......      78,278      82,521      86,038
60.45   Portion precluded from balances.     -27,853     -29,553     -30,944
                                           ---------   ---------  ----------
62.50     Appropriation (total 
            mandatory)..................      50,425      52,968      55,094
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................      50,512      53,092      55,210
    Change in obligated balances:
72.40 Obligated balance, start of year..       4,258       4,402       4,664
73.10 Total new obligations.............      50,512      53,092      55,210
73.20 Total outlays (gross).............     -50,368     -52,830     -55,033
74.40 Obligated balance, end of year....       4,402       4,664       4,841
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          87         124         116
86.97 Outlays from new mandatory 
        authority.......................      46,023      48,304      50,253
86.98 Outlays from mandatory balances...       4,258       4,402       4,664
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........      50,368      52,830      55,033
    Net budget authority and outlays:
89.00 Budget authority..................      50,512      53,092      55,210
90.00 Outlays...........................      50,368      52,830      55,033
    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        Federal securities: Par value...     573,713     601,709     631,547
92.02 Total investments, end of year: 
        Federal securities: Par value...     601,709     631,547     662,668
---------------------------------------------------------------------------

    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.

    The Budget proposes that the United States Patent and Trademark 
Office (PTO) will fund the full cost for retirement pay for PTO's 
employees covered under the Civil Service Retirement System.

                                     2003 actual  2004 est.   2005 est.
Active employees....................   2,661,997   2,660,000   2,660,000
Annuitants:
  Employees.........................   1,757,673   1,790,235   1,823,261
  Survivors.........................     632,004     633,549     634,675
                                    ------------------------------------
      Total, annuitants.............   2,389,677   2,423,784   2,457,936
                                    ====================================

                                                            

[[Page 1064]]



                  Status of Funds (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-8135-0-7-602      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Unexpended balance, start of year:
0100  Treasury balance..................          26          28           8
      U.S. Securities:

0101    Par value.......................     573,713     601,709     631,547
0102    Unrealized discounts............          -2          -2          -4
                                           ---------   ---------  ----------
0199    Total balance, start of year....     573,738     601,736     631,551
    Cash income during the year:
      Current law:

        Receipts:
1200      Employee contributions, Civil 
            Service Retirement and 
            Disability Fund.............       4,004       4,087       3,990
1201      District of Columbia 
            contributions...............          53          46          42
1202      Employee deposits, redeposits, 
            and voluntary contributions.         518         543         569
        Offsetting receipts 
            (intragovernmental):
1240      Agency contributions, Civil 
            Service Retirement and 
            Disability Fund.............      11,288      11,566      12,769
1241      Postal Service agency 
            contributions, Civil Service 
            Retirement and Disability 
            Fund........................       3,331       4,101       4,187
1242      Postal Service supplemental 
            contributions, Civil Service 
            Retirement and Disability 
            Fund........................                     263         263
1243      Federal Financing Bank 
            interest, Civil Service 
            Retirement and Disability 
            Fund........................       1,932
1244      Treasury interest, Civil 
            Service Retirement and 
            Disability Fund.............      35,329      36,035      37,926
1245      General fund payment to the 
            Civil Service Retirement and 
            Disability Fund.............      21,878      25,970      26,372
1246      Re-employed annuitant salary 
            offset, Civil Service 
            Retirement and Disability 
            Fund........................          33          34          36
1299    Income under present law........      78,366      82,645      86,154
    Cash outgo during year:
      Current law:

4500    Payment of claims to retired 
          employees.....................     -42,018     -44,102     -45,853
4500    Payment of alternative annuity 
          refunds.......................          -4          -4          -4
4500    Payment of claims to survivor 
          annuitants....................      -7,951      -8,296      -8,759
4500    Lump sum payments to estates or 
          beneficiaries of deceased 
          annuitants and employees......        -153        -163        -171
4500    Refunds to living separated 
          employees.....................        -123        -113        -104
4500    Administration--Operations......        -116        -149        -139
4500    Administration--OIG.............          -3          -3          -4
4599    Outgo under current law (-).....     -50,368     -52,830     -55,033
    Unexpended balance, end of year:
8700  Uninvested balance................          28           8           8
      Federal securities:

8701    Par value.......................     601,709     631,547     662,668
8702    Unrealized discounts............          -2          -4          -4
                                           ---------   ---------  ----------
8799    Total balance, end of year......     601,736     631,551     662,672
---------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-8135-0-7-602      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
25.2  Other services....................         119         152         143
42.0  Insurance claims and indemnities..      50,102      52,664      54,792
44.0  Refunds and death claims..........         291         276         275
                                           ---------   ---------  ----------
99.9    Total new obligations...........      50,512      53,092      55,210
---------------------------------------------------------------------------

                                

                      Employees Life Insurance Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-8424-0-8-602      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Regular program premiums..........       1,186       1,217       1,274
09.02 Optional program premiums.........         831         847         885
09.03 Beneficial program premiums.......           3           2           2
09.04 Administration....................           1           2           2
09.05 Long term care administration.....           1           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 25.2)...................       2,022       2,069       2,164
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........      24,595      26,039      27,674
22.00 New budget authority (gross)......       3,466       3,703       3,724
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      28,061      29,742      31,398
23.95 Total new obligations.............      -2,022      -2,069      -2,164
24.40 Unobligated balance carried 
        forward, end of year............      26,039      27,674      29,235
    New budget authority (gross), detail:
      Discretionary:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           1           2           2
      Mandatory:

69.00   Offsetting collections (cash)...       3,498       3,702       3,721
69.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................         -33          -1           1
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........       3,465       3,701       3,722
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       3,466       3,703       3,724
    Change in obligated balances:
72.40 Obligated balance, start of year..         210         243         258
73.10 Total new obligations.............       2,022       2,069       2,164
73.20 Total outlays (gross).............      -2,022      -2,053      -2,151
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................          33           1          -1
74.40 Obligated balance, end of year....         243         258         270
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           1           2           2
86.93 Outlays from discretionary 
        balances........................         210
86.97 Outlays from new mandatory 
        authority.......................       1,811       2,051       2,149
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       2,022       2,053       2,151
    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Agency contributions..........        -428        -481        -508
88.20     Interest on Federal securities      -1,355      -1,417      -1,317
88.40     Regular program...............        -696        -739        -784
88.40     Optional program..............      -1,020      -1,067      -1,114
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........      -3,499      -3,704      -3,723
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................          33           1          -1
    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................      -1,477      -1,651      -1,572
    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        Federal securities: Par value...      25,350      26,778      27,749
92.02 Total investments, end of year: 
        Federal securities: Par value...      26,778      27,749      29,322
---------------------------------------------------------------------------

    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.

    The Budget proposes that the United States Patent and Trademark 
Office (PTO) will fund the accruing costs associated with post-
retirement life insurance benefits for PTO's employees.

    Budget program.--The status of the basic (regular and optional) life 
insurance program on September 30 is as follows:

                                     2003 actual  2004 est.   2005 est.
Life insurance in force (in billions 
    of dollars):
  On active employees...............       523.8       523.5       523.5
  On retired employees..............        56.6        58.2        59.7
                                    ------------------------------------
      Total.........................       580.4       581.7       583.2
                                    ====================================
Number of participants (in 
    thousands):
  Active employees..................       2,443       2,442       2,442
  Annuitants........................       1,583       1,630       1,679
                                    ------------------------------------
      Total.........................       4,026       4,072       4,121
                                    ====================================

    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          2003 actual  2004 est.   2005 est.
Held in reserve (in millions of 
    dollars):
  Contingency reserve...............         100         100         100

[[Page 1065]]

  Beneficial association program 
    reserve.........................           1           1           1
  U.S. Treasury reserve.............      26,778      27,765      29,349
                                    ------------------------------------
      Total reserves................      26,879      27,866      29,450
                                    ====================================

                                

          Employees and Retired Employees Health Benefits Funds

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-9981-0-8-551      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Benefit payments..................      25,078      28,569      30,926
09.02 Payments from OPM contingency 
        reserve.........................         176         250         250
09.03 Government payment for annuitants 
        (1960 Act)......................           2           2           2
09.04 Administration--operations........          14          15          15
09.05 Administration--OIG...............           8          11          13
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 25.6)...................      25,278      28,847      31,206
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........       5,267       6,554       7,538
22.00 New budget authority (gross)......      26,566      29,830      32,229
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      31,833      36,384      39,767
23.95 Total new obligations.............     -25,278     -28,847     -31,206
24.40 Unobligated balance carried 
        forward, end of year............       6,554       7,538       8,561
    New budget authority (gross), detail:
      Discretionary:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).          22          26          28
      Mandatory:

69.00   Offsetting collections (cash)...      26,424      29,670      32,096
69.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................         120         134         105
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........      26,544      29,804      32,201
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................      26,566      29,830      32,229
    Change in obligated balances:
72.40 Obligated balance, start of year..       2,289       2,484       2,536
73.10 Total new obligations.............      25,278      28,847      31,206
73.20 Total outlays (gross).............     -24,964     -28,661     -31,102
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................        -120        -134        -105
74.40 Obligated balance, end of year....       2,484       2,536       2,535
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          14          26          28
86.97 Outlays from new mandatory 
        authority.......................      23,920      27,485      29,791
86.98 Outlays from mandatory balances...       1,030       1,150       1,283
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........      24,964      28,661      31,102
    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Agency contributions..........      -7,205      -8,186      -8,745
88.00     Postal Service for Active 
            Employees...................      -3,992      -4,466      -4,768
88.00     Postal Service for Annuitants.      -1,140      -1,338      -1,467
88.00     Government contributions for 
            annuitants..................      -6,604      -7,303      -8,011
88.20     Interest on Federal securities        -270        -272        -335
88.40     Contributions from D.C. 
            Government..................         -64         -82         -89
88.40     Employee salary withholdings..      -3,822      -4,303      -4,683
88.40     Annuity withholdings..........      -3,349      -3,746      -4,026
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........     -26,446     -29,696     -32,124
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................        -120        -134        -105
    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................      -1,482      -1,035      -1,022
    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        Federal securities: Par value...       7,554       9,037      10,081
92.02 Total investments, end of year: 
        Federal securities: Par value...       9,037      10,081      11,103
---------------------------------------------------------------------------

    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:

                                     2003 actual  2004 est.   2005 est.
Active employees....................   2,215,000   2,214,000   2,213,000
Annuitants..........................   1,837,000   1,863,000   1,890,000
                                    ------------------------------------
    Total...........................   4,052,000   4,077,000   4,103,000
                                    ====================================

    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:

                                     2003 actual  2004 est.   2005 est.
Uniform plan........................         639         530         440
Private plans.......................       1,723       1,430       1,187
                                    ------------------------------------
    Total...........................       2,362       1,960       1,627
                                    ====================================

    Financing.--The funds are financed by: (1) withholdings from active 
employees and annuitants; (2) agency contributions for active employees; 
(3) Government contributions for annuitants appropriated to OPM; and (4) 
contributions made by the United States Postal Service in accordance 
with the provisions of Public Law 101-508 and Public Law 103-66.

    Operating results.--Funds made available to carriers but not used to 
pay claims in the current period are carried forward as special reserves 
for use in subsequent periods.

    OPM maintains a contingency reserve, funded by employee and 
Government contributions, that may be used to defray future cost 
increases or provide increased benefits. OPM makes payments to carriers 
from this reserve whenever carrier-held reserves fall below levels 
prescribed by OPM regulations or when carriers can demonstrate good 
cause such as unexpected claims experience or variations from expected 
community rates.

    The budget proposes that the United States Patent and Trademark 
Office (PTO) will fund the accruing costs associated with post-
retirement health benefits for PTO's employees.

                  Status of Funds (in millions of dollars)

----------------------------------------------------------------------------
Identification code 24-9981-0-8-551      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Unexpended balance, start of year:
0100  Treasury balance..................          11          12           5
      U.S. Securities:

0101    Par value.......................       7,554       9,037      10,081
0102    Unrealized discounts............         -10         -10         -11
                                           ---------   ---------  ----------
0199    Total balance, start of year....       7,556       9,038      10,074
    Cash income during the year:
      Current law:

        Offsetting collections:
1280      Contributions from Employing 
            Agencies....................       7,205       8,186       8,745
1280      Contributions from Postal 
            Service for Active Employees       3,992       4,466       4,768
1280      Contributions from Postal 
            Service for Annuitants......       1,140       1,338       1,467

[[Page 1066]]

1280      Government Payment for 
            Annuitant Health Benefits...       6,604       7,303       8,011
1280      Interest Earned...............         270         272         335
1280      Contributions from DC 
            Government..................          64          82          89
1280      Contributions from Active 
            Employees...................       3,822       4,303       4,683
1280      Contributions from Annuitants.       3,349       3,746       4,026
1299    Income under present law........      26,446      29,696      32,124
    Cash outgo during year:
      Current law:

4500    Benefit Payments (-)............     -24,773     -28,384     -30,824
4500    Payments to Carriers from OPM 
          Contingency Reserves (-)......        -176        -250        -250
4500    Administration--Operations (-)..         -12         -15         -15
4500    Administration--OIG.............          -2         -11         -13
4599    Outgo under current law (-).....     -24,964     -28,661     -31,102
    Unexpended balance, end of year:
8700  Uninvested balance................          12           5           5
      Federal securities:

8701    Par value.......................       9,037      10,081      11,103
8702    Unrealized discounts............         -10         -11         -12
                                           ---------   ---------  ----------
8799    Total balance, end of year......       9,038      10,074      11,096
---------------------------------------------------------------------------
