[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
---------------------------------------------------------------------------