    [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 2006

    [[Page 1087]]

                         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, [$125,500,000, of which
    $12,000,000 shall remain available until September 30, 2007; and in
    addition $128,462,000 for administrative expenses,] $124,521,000, of
    which $6,983,000 shall remain available until expended for the
    Enterprise Human Resources Integration project; $1,450,000 shall remain
    available until expended for the Human Resources Line of Business
    project; $500,000 shall remain available until expended for the E-
    Training project; and $1,412,000 shall remain available until expended
    until September 30, 2007 for the E-Payroll project; and in addition
    $100,017,000 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
    $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), and
    [9004(f)(1)(A) and (2)(A)] 9004(f)(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
    [2005] 2006, accept donations of money, property, and personal services:
    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. (Transportation, Treasury,
    Independent Agencies, and General Government Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0100-0-1-805      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Strategic HR policy...............          19          24          24
    00.02 Human capital leadership and merit
            system accountability...........          28          34          34
    00.03 HR products and services..........           4           5           5
    00.04 Management services...............          44          31          37
    00.05 Executive services................          13          15          15
    00.06 e-Government Projects.............          23          16          10
    09.00 Reimbursable program..............         123         127         100
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         254         252         225
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          26          55          55
    22.00 New budget authority (gross)......         298         252         225
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         325         307         280
    23.95 Total new obligations.............        -254        -252        -225
    23.98 Unobligated balance expiring or
            withdrawn.......................         -16
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          55          55          55
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         119         126         125
    40.35   Appropriation permanently
              reduced.......................          -1          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         118         125         125
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         123         127         100
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          57
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         180         127         100
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         298         252         225
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          34           4           5
    73.10 Total new obligations.............         254         252         225
    73.20 Total outlays (gross).............        -269        -251        -224
    73.40 Adjustments in expired accounts
            (net)...........................          28
    73.45 Recoveries of prior year
            obligations.....................          -1
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -57
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          14
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           4           5           6
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         173         236         208
    86.93 Outlays from discretionary
            balances........................          96          15          16
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         269         251         224
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -169        -127        -100
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -57
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          46
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         118         125         125
    90.00 Outlays...........................         100         124         124
    ---------------------------------------------------------------------------

        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 2006 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.

        The 2006 Budget will allow OPM to implement long-term human capital
    strategies that deliver results for the American people. Through its
    leadership in the Government-wide effort to transform Human Capital
    Management, OPM is creating an environment in which agencies are held
    accountable for managing their workforce. OPM is committed to
    implementing policies that will decrease the hiring time of new Federal
    employees, and change how their job performance is evaluated and how
    they are paid. Many of these policies will be driven by the lessons
    learned in setting up the new human resources management system of the
    Department of Homeland Security and of other agencies with contemporary
    and efficient personnel systems.

    [[Page 1088]]

        The functions and objectives of the OPM Divisions are:

        1. Strategic human resources policy (SHRP)--strives to: 1) Ensure
    agencies use OPM policy and guidance to improve their Human Capital
    Management; 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) Streamline the Federal hiring
    process and make Federal employment attractive to high-quality
    applicants of diverse backgrounds.

        In 2006, OPM will continue to work with the Department of Defense to
    complete the implementation of their new human resource system. Also,
    OPM will continue to be an active partner in maximizing human resource
    flexibilities and pay-for-performance within a Government-wide
    framework.

        In an effort to promote the Government's ability to attract and
    retain qualified employees, OPM will modernize the Administrative
    Careers with America Program, and continue to develop and implement the
    Senior Presidential Management Fellows and Federal Candidate Development
    programs.

        OPM will assess the results of its strategic human resources policy
    activities by again administering the Federal Human Capital Survey and
    Federal Benefits Survey in 2006. OPM will also continue to track and
    report on the extent to which agencies use innovations such as hiring
    flexibilities, telework, and student loan repayments. The result of
    these is to provide broad, Government-wide indicators on the status of
    Federal human capital that will benefit lawmakers, managers, and
    employees, and enable OPM to develop the appropriate human resource
    policies. In addition, OPM will continue to lead the design, development
    and implementation of 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.--During FY 2004, OPM developed policies to
    support agencies' leadership succession planning efforts, specifically
    for a Government-wide SES Federal Candidate Development Program and the
    Presidential Management Fellows Program. The agency also issued interim
    regulations to establish pay-for-performance for the SES Program and
    specify the criteria that performance management systems covering senior
    executives or senior professionals must meet. In addition, OPM worked
    jointly with the Department of Homeland Security to issue proposed
    regulations to establish a new human resource management system within
    DHS. Similar to its work with DHS, OPM began partnering with DOD to
    implement provisions of the National Defense Authorizations Act of 2004,
    as high level staff from both agencies began working with unions
    representing the various DOD employee groups and other stakeholders in
    the developmental stage of the new personnel system. Finally, OPM
    developed a policy structure to offer High-Deductible Health Plans with
    Health Savings Accounts under the Federal Employees Health Benefit
    Program.

        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.

        In 2006, OPM will continue to engage Federal agencies in
    implementing Human Capital Standards for Success with the overarching
    purpose of ensuring that agencies transform their human capital
    management practices. OPM's success will be measured by the number of
    agencies that meet the Human Capital Standards for Success that were
    jointly developed with the Office of Management and Budget and the
    Government Accountability Office. OPM will react to the results of the
    retirement readiness study that will be completed in 2005 to ensure that
    Federal employees are at the appropriate stage of retirement planning at
    various milestones of their careers. In addition, OPM will continue its
    auditing, reviewing, and oversight functions to ensure that agencies
    comply with the merit system principles, veterans' preference,
    whistleblower protection and other rights and privileges.

        Program performance.--In 2004, eight of the twenty-six agencies
    reporting under the President's Management Agenda Scorecard met the
    Human Capital Standards for Success, up from zero in 2003. An additional
    fifteen agencies have made significant progress toward achieving these
    standards. This means that agencies employing over 1.3 million employees
    are making significant progress toward meeting these standards. We
    expect continued improvement in 2005 and 2006.

        3. Human resources products and services (HRPS)--will: 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.

        OPM continues to investigate options for modernizing its retirement
    systems, such as licensing technology. In 2006, OPM will continue the
    project to convert the millions of paper retirement records stored in
    Boyers, PA to electronic data and will continue to expand the claims
    processing capabilities of the Federal Annuity Claims Expert System. OPM
    will also introduce new dental and vision benefits for employees and
    annuitants on an enrollee-pay-all basis. Through the Federal Employees
    Health Benefits Program, OPM will continue to negotiate and contract
    with private insurance companies that offer a broad range of health
    insurance benefits, including High Deductible Health Plans and Consumer
    Driven Health Plan options.

        Program performance.--In 2004, OPM met its target for the percentage
    of post-retirement changes handled by self-servicing options, increased
    the number of Retirement Program telephone calls handled and increased
    the call handling rate, even as call volume increased 13 percent. OPM
    also exceeded the target for processing times for CSRS survivor claims
    by one day, the third straight year of improvement for this indicator.
    OPM continues to work to improve processing times for other annuity
    claims. To position the agency to improve processing times in FY 2005
    and FY 2006, OPM has begun initiatives to reduce the number of aged
    claims and a group of newly hired staff have been trained and are
    actively processing claims.

        In 2005, the Federal Employees Health Benefits Program (FEHBP) is
    offering 44 more health plan options than in 2004. Customers can make
    informed health insurance decisions by several means: OPM-sponsored
    health plan brochures and website postings; health plan customer
    satisfaction survey results; web-based comparison/decision tools; and
    the Health Plan Employer and Data Information Set (HEDIS). OPM's effort
    to increase the quality of health plan services proved successful in
    2004 as current enrollment statistics show that 98 percent of FEHBP
    customers were enrolled in plans rated as ``accredited'' regarding their
    methods and success in achieving the best possible results for plan
    members. For 2005, health benefit premium rates are rising by an
    estimated average of 7.9 percent. In 2005 and 2006, OPM will continue
    tough negotiations with health carriers to contain premium hikes and
    maintain benefit levels. OPM will continue to improve and expand tools
    so customers can make informed health insurance decisions.

    [[Page 1089]]

        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 technology management, risk
    management, strategic planning and financial management to support all
    of OPM's goals. In 2006, OPM will continue to support agency-wide
    performance reporting and independent evaluation of policies and
    programs.

        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.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0100-0-1-805      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          62          62          62
    11.3      Other than full-time permanent           3           3           3
    11.5      Other personnel compensation..           4           4           4
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          69          69          69
    12.1    Civilian personnel benefits.....          15          15          15
    21.0    Travel and transportation of
              persons.......................           3           3           3
    23.1    Rental payments to GSA..........           6           6           6
    23.3    Communications, utilities, and
              miscellaneous charges.........           3           3           3
    24.0    Printing and reproduction.......           1           1           1
    25.2    Other services..................          26          20          20
    26.0    Supplies and materials..........           2           2           2
    31.0    Equipment.......................           6           6           6
                                               ---------   ---------  ----------
    99.0      Direct obligations............         131         125         125
    99.0  Reimbursable obligations..........         123         127         100
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         254         252         225
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 24-0100-0-1-805      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         882         972         972
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       1,044       1,151       1,151
    ---------------------------------------------------------------------------

                         Human Capital Performance Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0700-0-1-805      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           1
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           1
    ----------------------------------------------------------------------------

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

                           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, [$1,627,000] $1,614,000, and in addition, not to exceed
    [$16,461,000] $16,329,000 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. (Transportation, Treasury, Independent Agencies,
    and General Government Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0400-0-1-805      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........           1           2           2
    09.00 Reimbursable program..............          12          16          16
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          13          18          18
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          16          18          18
    23.95 Total new obligations.............         -13         -18         -18
    23.98 Unobligated balance expiring or
            withdrawn.......................          -3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           1           2           2
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............          15          16          16
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          16          18          18
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                      -3          -3
    73.10 Total new obligations.............          13          18          18
    73.20 Total outlays (gross).............         -12         -18         -18
    73.40 Adjustments in expired accounts
            (net)...........................          -4
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          -3          -3          -3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          12          18          18
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -15         -16         -16
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           1           2           2
    90.00 Outlays...........................          -5           2           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

    [[Page 1090]]

    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 $95 million, 25 criminal convictions, and 3,797
    administrative sanctions in 2004.

        In 2005, OPM added audits of pharmacy benefit managers and expanded
    the scope of audits for the largest community-rated health plans
    (comprehensive medical plans commonly referred to as health maintenance
    organizations) participating in FEHBP. In 2006, additional criminal
    investigation field locations will be established so that resources can
    be located where personnel benefits are received.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0400-0-1-805      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           1           2           2
    12.1    Civilian personnel benefits.....                       1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............           1           3           3
    99.0  Reimbursable obligations..........          12          15          15
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          13          18          18
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 24-0400-0-1-805      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          15          18          18
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          93         122         122
    ---------------------------------------------------------------------------

          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. (Transportation, Treasury,
    Independent Agencies, and General Government Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0206-0-1-551      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Government contribution for
            annuitants benefits (1959 Act)..       7,324       7,829       8,400
    00.02 Government contribution for
            annuitants benefits (1960 Act)..           2           2           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 13.0)...................       7,326       7,831       8,401
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       7,326       7,831       8,401
    23.95 Total new obligations.............      -7,326      -7,831      -8,401
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................       7,326       7,831       8,401
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         675         760         790
    73.10 Total new obligations.............       7,326       7,831       8,401
    73.20 Total outlays (gross).............      -7,242      -7,801      -8,371
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         760         790         820
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................       6,567       7,041       7,582
    86.98 Outlays from mandatory balances...         675         760         789
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       7,242       7,801       8,371
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       7,326       7,831       8,401
    90.00 Outlays...........................       7,242       7,801       8,371
    ---------------------------------------------------------------------------

        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.

                                         2004 actual  2005 est.   2006 est.
    Annuitants:
        FEHB............................   1,834,639   1,846,000   1,872,000
          (USPS non-add)................     443,510     452,000     465,000
        REHB............................       1,883       1,695       1,356
                                        ------------------------------------
            Total, annuitants...........   1,836,522   1,847,695   1,873,356
                                        ====================================

           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. (Transportation,
    Treasury, Independent Agencies, and General Government Appropriations
    Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0500-0-1-602      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........          35          36          36
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.2)...................          35          36          36
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          35          36          36
    23.95 Total new obligations.............         -35         -36         -36
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................          35          36          36
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           4           4           4
    73.10 Total new obligations.............          35          36          36
    73.20 Total outlays (gross).............         -35         -36         -36
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           4           4           4
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          31          32          32
    86.98 Outlays from mandatory balances...           4           4           4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          35          36          36
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          35          36          36
    90.00 Outlays...........................          35          36          36
    ---------------------------------------------------------------------------

        This appropriation finances the Government's share of premiums,
    which is one-third the cost, for Basic life insurance

    [[Page 1091]]

    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. (Transportation, Treasury, Independent Agencies, and
    General Government Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0200-0-1-805      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Payment of Government share of
            retirement costs................      10,206      10,200      10,000
    00.03 Transfers for interest on unfunded
            liability and payment of
            military service annuities......      15,645      15,900      16,500
    00.05 Spouse equity payment.............          70          72          72
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      25,921      26,172      26,572
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......      25,921      26,172      26,572
    23.95 Total new obligations.............     -25,921     -26,172     -26,572
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................      15,645      15,900      16,500
    60.00   Appropriation...................      10,276      10,272      10,072
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................      25,921      26,172      26,572
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............      25,921      26,172      26,572
    73.20 Total outlays (gross).............     -25,921     -26,172     -26,572
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................      25,921      26,172      26,572
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      25,921      26,172      26,572
    90.00 Outlays...........................      25,921      26,172      26,572
    ---------------------------------------------------------------------------

        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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    12.1  Civilian personnel benefits.......      10,276      10,272      10,072
    13.0  Benefits for former personnel.....      15,645      15,900      16,500
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      25,921      26,172      26,572
    ---------------------------------------------------------------------------

             Postal Service Contribution for Retiree Health Benefits

                  (Legislative proposal, not subject to PAYGO)

                    Unavailable Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-5391-0-2-551      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Receipts:
    02.40 Postal Service contributions for
            benefits accruing to current
            workers, retiree health benefits                               2,951
    02.41 Earning on investments, Postal
            Service contribution for retiree
            health benefits.................                                  26
    02.42 Postal Service contributions for
            benefits paid for current
            retirees, retiree health
            benefits........................                               1,951
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..                               4,928
        Appropriations:
    05.01 Postal Service contribution for
            retiree health benefits.........                              -4,928
    05.02 Postal Service contribution for
            retiree health benefits.........                               3,107
                                               ---------   ---------  ----------
    05.99   Total appropriations............                              -1,821
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............                               3,107
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-5391-2-2-551      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Employer share for Postal retiree
            health insurance premiums.......                               1,821
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.6)...................                               1,821
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                               1,821
    23.95 Total new obligations.............                              -1,821
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.20   Appropriation (special fund)....                               4,928
    60.45   Portion precluded from
              obligation....................                              -3,107
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................                               1,821
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                               1,821
    73.20 Total outlays (gross).............                              -1,821
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                               1,821
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                               1,821
    90.00 Outlays...........................                               1,821
    ---------------------------------------------------------------------------

        The Budget proposes to use the pension savings provided to the
    Postal Service by the Postal Civil Service Retirement System Funding
    Reform Act of 2003 (P.L. 108-18) that would otherwise be held in escrow
    in 2006 and beyond, to put the Postal Service on a path that fully funds
    its substantial retiree (annuitant) health benefits liabilities.

        This new account would receive from the Postal Service: 1) payments
    for the accruing actuarial costs of Postal Service contributions for
    post-retirement health benefits for its current employees; and 2)
    amortization payments necessary to provide for the liquidation of the
    Postal Service's unfunded liability as of September 31, 2005, for post-
    retirement health benefits (including both principle and interest). For
    the first 10 years, the amount of the payment made by the Postal Service
    would be capped at the size of the pension savings that would otherwise
    be held in escrow plus the amount the Postal Service is currently paying
    for its annuitant health benefit premiums. After 10 years, the Office of
    Personnel Management would re-calculate the unfunded liability and
    establish a new amortization schedule that would liquidate any remaining
    unfunded liability over a period of 30 years.

         As a result of this new health benefits financing system, the
    Postal Service would cease to pay annual premium costs

    [[Page 1092]]

    for its post-1971 current annuitants directly to the Employees and
    Retired Employees Health Benefits Fund. Instead, these premium payments
    would be paid from amounts that the Postal Service remits to this new
    fund. Payments for a proportion of the premium costs of Postal Service
    annuitants' pre-1971 service would continue to be paid by the General
    Fund of the Treasury through the Government Payment for Annuitants,
    Employees Health Benefits account.

    Intragovernmental funds:

                                 Revolving Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-4571-0-4-805      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Talent services...................         148         152         125
    09.02 Investigation services............         290         786         864
    09.03 Leadership capacity services......          45          44         108
    09.04 Enterprise Human Resources
            Integration.....................                      31          28
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         483       1,013       1,125
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         165         242         242
    22.00 New budget authority (gross)......         556       1,004       1,125
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           4
    22.22 Unobligated balance transferred
            from other accounts.............                       9
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         725       1,255       1,367
    23.95 Total new obligations.............        -483      -1,013      -1,125
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         242         242         242
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    42.00   Transferred from other accounts.                      25
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         479         979       1,125
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          77
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         556         979       1,125
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         556       1,004       1,125
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         -56        -171        -165
    73.10 Total new obligations.............         483       1,013       1,125
    73.20 Total outlays (gross).............        -517      -1,007      -1,132
    73.45 Recoveries of prior year
            obligations.....................          -4
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -77
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..        -171        -165        -172
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         461       1,002       1,125
    86.93 Outlays from discretionary
            balances........................          56           5           7
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         517       1,007       1,132
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -479        -979      -1,125
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -77
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                      25
    90.00 Outlays...........................          38          28           7
    ---------------------------------------------------------------------------

        OPM's Revolving Fund supports the President's Management Agenda by
    fully or partially funding four E-Government projects: E-Clearance; E-
    Training; Enterprise Human Resources Integration; and Recruitment One-
    Stop. The Revolving Fund also provides financing on a reimbursable basis
    for several other 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 a network of expert OPM consultants,
    assessment and recruitment tools and systems, and an expedited
    contracting process, which is managed by an experienced team of HR and
    contracting professionals.

        OPM's assistance crosses all departments and most agencies however,
    much of the Training and Management Assistance, testing and assessment
    work has been provided specifically to various components of the
    Departments of Homeland Security and Defense, and the Federal Aviation
    Administration.

        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.

        In early 2005, OPM will accept a transfer of Personnel Security
    Investigation functions and personnel from the Department of Defense,
    Defense Security Service (DSS). The transfer to OPM's Center for
    Investigative Services will bring together a division that will conduct
    the vast majority of background investigations for the entire Federal
    government. The transfer is intended to reduce the current government-
    wide backlog in background investigations and decrease the time required
    for these investigations.

        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

                                         2004 actual  2005 est.   2006 est.
    Participant training days...........      95,559      93,929      98,143
    Background security investigations
    processed...........................     172,267     180,000     200,000
    National and special agency check
    and inquiry cases closed............     534,570     535,000     540,000
    Special agreement checks closed.....     334,408     335,000     335,000

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-4571-0-4-805      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          36         134         191
    11.3    Other than full-time permanent..           4           3           7
    11.5    Other personnel compensation....           1           3           3
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          41         140         201
    12.1  Civilian personnel benefits.......          11          32          46
    21.0  Travel and transportation of
            persons.........................           4          12          12
    23.1  Rental payments to GSA............          10          13          13
    23.3  Communications, utilities, and
            miscellaneous charges...........          14          18          18
    24.0  Printing and reproduction.........           6           2           2
    25.2  Other services....................         381         775         811
    26.0  Supplies and materials............           5          10          11
    31.0  Equipment.........................          11          11          11
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         483       1,013       1,125
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 24-4571-0-4-805      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         718       1,834       2,734
    ---------------------------------------------------------------------------

    [[Page 1093]]

                                   Trust Funds

                  Civil Service Retirement and Disability Fund

                    Unavailable Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8135-0-7-602      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............     597,334     627,273     658,864
        Receipts:
    02.00 Employee contributions............       3,963       3,986       3,942
    02.01 District of Columbia contributions          51          45          43
    02.02 Employee deposits, redeposits and
            other contributions.............         519         527         535
    02.40 Agency contributions..............      12,083      12,765      13,690
    02.41 Postal Service agency
            contributions...................       3,959       4,174       4,267
    02.42 Postal Service supplemental
            contributions...................         240         240         240
    02.43 FFB, TVA, and USPS interest.......                     405         651
    02.44 Treasury interest.................      35,642      39,190      39,887
    02.45 General fund payment..............      25,921      26,172      26,572
    02.46 Re-employed annuitants salary
            offset..........................          36          37          38
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..      82,414      87,541      89,865
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...     679,748     714,814     748,729
        Appropriations:
    05.00 Civil service retirement and
            disability fund.................        -122        -118         -90
    05.01 Civil service retirement and
            disability fund.................     -82,290     -87,423     -89,865
    05.02 Civil service retirement and
            disability fund.................      29,937      31,590      31,106
    05.03 Civil service retirement and
            disability fund.................                       1
                                               ---------   ---------  ----------
    05.99   Total appropriations............     -52,475     -55,950     -58,849
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............     627,273     658,864     689,880
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8135-0-7-602      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Annuities.........................      52,048      55,511      58,431
    00.02 Refunds and death claims..........         305         295         298
    00.03 Administration--operations........         116         138         114
    00.04 Transfer to MSPB..................           3           3           3
    00.05 Administration--OIG...............           3           3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      52,475      55,950      58,849
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......      52,475      55,950      58,849
    23.95 Total new obligations.............     -52,475     -55,950     -58,849
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.26   Appropriation (trust fund)......         122         118          90
    40.37   Appropriation temporarily
              reduced.......................                      -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         122         117          90
          Mandatory:

    60.26   Appropriation (trust fund)......      82,290      87,423      89,865
    60.45   Portion precluded from balances.     -29,937     -31,590     -31,106
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................      52,353      55,833      58,759
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      52,475      55,950      58,849
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       4,402       4,599       4,937
    73.10 Total new obligations.............      52,475      55,950      58,849
    73.20 Total outlays (gross).............     -52,277     -55,612     -58,574
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       4,599       4,937       5,212
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         119         117          90
    86.97 Outlays from new mandatory
            authority.......................      47,756      50,896      53,585
    86.98 Outlays from mandatory balances...       4,402       4,599       4,899
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      52,277      55,612      58,574
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      52,475      55,950      58,849
    90.00 Outlays...........................      52,277      55,612      58,574
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...     601,709     631,860     663,801
    92.02 Total investments, end of year:
            Federal securities: Par value...     631,860     663,801     695,091
    ---------------------------------------------------------------------------

        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 benefits for PTO's
    employees covered under the Civil Service Retirement System.

                                         2004 actual  2005 est.   2006 est.
    Active employees....................   2,670,000   2,670,000   2,670,000
    Annuitants:
      Employees.........................   1,774,591   1,807,153   1,840,179
      Survivors.........................     629,045     630,590     631,716
                                        ------------------------------------
          Total, annuitants.............   2,403,636   2,437,793   2,471,895
                                        ====================================

                      Status of Funds (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8135-0-7-602      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    0100  Uninvested balance................     601,736     631,873     663,802
                                               ---------   ---------  ----------
    0199    Total balance, start of year....     601,736     631,873     663,802
        Cash income during the year:
          Current law:

            Receipts:
    1200      Employee contributions, Civil
                Service Retirement and
                Disability Fund.............       3,963       3,986       3,942
    1201      District of Columbia
                contributions...............          51          45          43
    1202      Employee deposits, redeposits,
                and voluntary contributions.         519         527         535
            Offsetting receipts
                (intragovernmental):
    1240      Agency contributions, Civil
                Service Retirement and
                Disability Fund.............      12,083      12,765      13,690
    1241      Postal Service agency
                contributions, Civil Service
                Retirement and Disability
                Fund........................       3,959       4,174       4,267
    1242      Postal Service supplemental
                contributions, Civil Service
                Retirement and Disability
                Fund........................         240         240         240
    1243      Federal Financing Bank
                interest, Civil Service
                Retirement and Disability
                Fund........................                     405         651
    1244      Treasury interest, Civil
                Service Retirement and
                Disability Fund.............      35,642      39,190      39,887
    1245      General fund payment to the
                Civil Service Retirement and
                Disability Fund.............      25,921      26,172      26,572
    1246      Re-employed annuitant salary
                offset, Civil Service
                Retirement and Disability
                Fund........................          36          37          38
    1299    Income under present law........      82,414      87,541      89,865
                                               ---------   ---------  ----------
    3299    Total cash income...............      82,414      87,541      89,865
        Cash outgo during year:
          Current law:

    4500    Earned Benefit Payments.........     -52,277     -55,612     -58,574
    4599    Outgo under current law (-).....     -52,277     -55,612     -58,574
                                               ---------   ---------  ----------
    6599    Total cash outgo (-)............     -52,277     -55,612     -58,574
        Unexpended balance, end of year:
                                               ---------   ---------  ----------
    8799    Total balance, end of year......     631,873     663,802     695,093
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8135-0-7-602      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................         122         144         120
    42.0  Insurance claims and indemnities..      52,048      55,511      58,431

    [[Page 1094]]

    44.0  Refunds and death claims..........         305         295         298
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      52,475      55,950      58,849
    ---------------------------------------------------------------------------

                          Employees Life Insurance Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8424-0-8-602      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Basic life insurance payments.....       1,254       1,405       1,519
    09.02 Optional life insurance payments..         911         971       1,021
    09.03 Shenandoah Life Insurance payments           2           2           2
    09.04 Administration--OPM & OIG.........           1           1           1
    09.05 Administration--Long Term Care....           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.2)...................       2,168       2,380       2,544
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........      26,039      27,370      28,597
    22.00 New budget authority (gross)......       3,499       3,607       3,844
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      29,538      30,977      32,441
    23.95 Total new obligations.............      -2,168      -2,380      -2,544
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........      27,370      28,597      29,897
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

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

    69.00   Offsetting collections (cash)...       3,515       3,605       3,842
    69.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -17           1           1
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........       3,498       3,606       3,843
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       3,499       3,607       3,844
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         243         309         361
    73.10 Total new obligations.............       2,168       2,380       2,544
    73.20 Total outlays (gross).............      -2,119      -2,327      -2,525
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          17          -1          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         309         361         379
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           1           1           1
    86.97 Outlays from new mandatory
            authority.......................       2,118       2,326       2,524
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       2,119       2,327       2,525
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Agency contributions..........        -400        -466        -498
    88.00     Government contributions for
                annuitants..................         -35         -36         -36
    88.20     Interest on Federal securities      -1,275      -1,219      -1,312
    88.40     Basic life insurance
                withholdings................        -727        -776        -831
    88.40     Optional life insurance
                withholdings & LTC
                reimbursement...............      -1,079      -1,109      -1,166
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -3,516      -3,606      -3,843
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          17          -1          -1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................      -1,398      -1,279      -1,318
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...      26,778      28,107      29,387
    92.02 Total investments, end of year:
            Federal securities: Par value...      28,107      29,387      30,706
    ---------------------------------------------------------------------------

        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:

                                         2004 actual  2005 est.   2006 est.
    Life insurance in force (in billions
        of dollars):
      On active employees...............       571.7       580.0       590.0
      On retired employees..............        60.8        63.5        66.5
                                        ------------------------------------
          Total.........................       632.5       643.5       656.5
                                        ====================================
    Number of participants (in
        thousands):
      Active employees..................       2,401       2,401       2,401
      Annuitants........................       1,592       1,625       1,625
                                        ------------------------------------
          Total.........................       3,993       4,026       4,026
                                        ====================================

        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          2004 actual  2005 est.   2006 est.
    Held in reserve (in millions of
        dollars):
      Contingency reserve...............          50          50          50
      Beneficial association program
        reserve.........................           1           1           1
      U.S. Treasury reserve.............      28,107      29,387      30,706
                                        ------------------------------------
          Total reserves................      28,158      29,438      30,757
                                        ====================================

              Employees and Retired Employees Health Benefits Funds

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-9981-0-8-551      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Benefit payments..................      27,197      30,542      32,987
    09.02 Payments from OPM contingency
            reserve.........................         142         250         250
    09.03 Government payment for annuitants
            (1960 Act)......................           2           2           2
    09.04 Administration--operations........          14          14          14
    09.05 Administration--OIG...............          12          13          13
    09.06 Administration--Dental and Vision
            Program.........................                       1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.6)...................      27,366      30,822      33,267
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       6,554       8,408       9,712
    22.00 New budget authority (gross)......      29,220      32,126      34,625
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      35,774      40,534      44,337
    23.95 Total new obligations.............     -27,366     -30,822     -33,267
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........       8,408       9,712      11,070
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          26          27          27
          Mandatory:

    69.00   Offsetting collections (cash)...      29,113      31,987      34,489
    69.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          81         112         109
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........      29,194      32,099      34,598
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      29,220      32,126      34,625
    ----------------------------------------------------------------------------

    [[Page 1095]]

        Change in obligated balances:
    72.40 Obligated balance, start of year..       2,484       2,350       2,369
    73.10 Total new obligations.............      27,366      30,822      33,267
    73.20 Total outlays (gross).............     -27,417     -30,691     -33,173
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -81        -112        -109
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       2,350       2,369       2,354
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          26          27          27
    86.93 Outlays from discretionary
            balances........................           1
    86.97 Outlays from new mandatory
            authority.......................      26,161      29,387      31,757
    86.98 Outlays from mandatory balances...       1,230       1,277       1,389
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      27,417      30,691      33,173
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Agency contributions..........      -8,104      -8,850      -9,444
    88.00     Postal Service for Active
                Employees...................      -4,272      -4,648      -4,979
    88.00     Postal Service for Annuitants.      -1,321      -1,583      -1,821
    88.00     Government contributions for
                annuitants..................      -7,242      -7,801      -8,371
    88.20     Interest on Federal securities        -268        -356        -459
    88.40     D.C. Government contributions
                & Dental/Vision
                reimbursement...............         -68         -83         -89
    88.40     Employee salary withholdings..      -4,205      -4,625      -4,935
    88.40     Annuity withholdings..........      -3,659      -4,068      -4,418
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........     -29,139     -32,014     -34,516
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -81        -112        -109
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................      -1,721      -1,323      -1,343
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...       9,037      10,774      12,090
    92.02 Total investments, end of year:
            Federal securities: Par value...      10,774      12,090      13,434
    ---------------------------------------------------------------------------

        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:

                                         2004 actual  2005 est.   2006 est.
    Active employees....................   2,202,543   2,202,000   2,202,000
    Annuitants..........................   1,832,636   1,860,000   1,884,000
                                        ------------------------------------
        Total...........................   4,035,179   4,062,000   4,086,000
                                        ====================================

        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:

                                         2004 actual  2005 est.   2006 est.
    Uniform plan........................         509         407         326
    Private plans.......................       1,374       1,099         879
                                        ------------------------------------
        Total...........................       1,883       1,506       1,205
                                        ====================================

        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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    0100  Uninvested balance................       9,038      10,760      12,083
                                               ---------   ---------  ----------
    0199    Total balance, start of year....       9,038      10,760      12,083
        Cash income during the year:
          Current law:

            Offsetting collections:
    1280      Postal Service for active
                employees...................       4,272       4,648       4,979
    1281      Postal Service for Annuitants.       1,321       1,583       1,821
    1282      Government contributions for
                annuitants..................       7,242       7,801       8,371
    1283      Agency contributions..........       8,104       8,850       9,444
    1284      Annuity withholdings..........       3,659       4,068       4,418
    1285      Employee salary withholdings..       4,205       4,625       4,935
    1286      Contributions from DC
                government..................          68          83          89
    1287      Interest on Federal securities         268         356         459
    1299    Income under present law........      29,139      32,014      34,516
                                               ---------   ---------  ----------
    3299    Total cash income...............      29,139      32,014      34,516
        Cash outgo during year:
          Current law:

    4500    Benefit Payments (-)............     -27,417     -30,691     -33,173
    4599    Outgo under current law (-).....     -27,417     -30,691     -33,173
                                               ---------   ---------  ----------
    6599    Total cash outgo (-)............     -27,417     -30,691     -33,173
        Unexpended balance, end of year:
                                               ---------   ---------  ----------
    8799    Total balance, end of year......      10,760      12,083      13,426
    ---------------------------------------------------------------------------