[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 2007
[[Page 1079]]
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, [$122,521,000]
$111,095,330, of which [$6,983,000] $6,913,170 shall remain available
until expended for the Enterprise Human Resources Integration project;
[$1,450,000] $1,435,500 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]. In addition, [$100,017,000] $126,908,100 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 $26,730,000 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)(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 [2006] 2007, 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, Housing and
Urban Development, the Judiciary, the District of Columbia, and
Independent Agencies Appropriations Act, 2006.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 24-0100-0-1-805 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Strategic HR policy............... 29 25 21
00.02 Human capital leadership and merit
system accountability........... 36 30 31
00.03 HR products and services.......... 5 3 2
00.04 Management services............... 99 38 33
00.05 Executive services................ 15 13 14
00.06 e-Government projects............. 15 10 8
00.07 Federal investigative services.... 2 2
--------- --------- ----------
01.00 Direct program by activities--
Subtotal...................... 199 121 111
09.00 Reimbursable program.............. 127 99 127
--------- --------- ----------
10.00 Total new obligations........... 326 220 238
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 55 68 68
22.00 New budget authority (gross)...... 339 220 238
22.10 Resources available from
recoveries of prior year
obligations..................... 2
22.30 Expired unobligated balance
transfer to unexpired account... 4
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 400 288 306
23.95 Total new obligations............. -326 -220 -238
23.98 Unobligated balance expiring or
withdrawn....................... -6
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 68 68 68
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 126 122 111
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -1
40.35 Appropriation permanently
reduced....................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 125 121 111
Spending authority from
offsetting collections:
68.00 Offsetting collections (cash). 184 99 127
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 30
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 214 99 127
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 339 220 238
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 10 -8 -9
73.10 Total new obligations............. 326 220 238
73.20 Total outlays (gross)............. -325 -221 -240
73.40 Adjustments in expired accounts
(net)........................... -10
73.45 Recoveries of prior year
obligations..................... -2
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -30
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 23
--------- --------- ----------
74.40 Obligated balance, end of year.. -8 -9 -11
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 310 205 224
86.93 Outlays from discretionary
balances........................ 15 16 16
--------- --------- ----------
87.00 Total outlays (gross)........... 325 221 240
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash)
from: Federal sources......... -190 -99 -127
Against gross budget authority only:
88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -30
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 6
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 125 121 111
90.00 Outlays........................... 135 122 113
---------------------------------------------------------------------------
It is OPM's responsibility to help agencies to build a high-quality
and diverse Federal workforce based on merit system principles, which
America needs to guarantee freedom, promote prosperity, and ensure the
security of this great Nation. OPM leads Federal agencies in the
strategic management of their human capital, proposes and implements
human resources management policy, and provides agencies with ongoing
advice and technical assistance to implement these policies and
initiatives.
In 2007, OPM will work to implement major reforms in the Federal
civil service, as contained in the Administration's proposed Working for
America Act. These reforms include a multi-year effort to replace the
current General Schedule pay system with a modern classification, pay,
and perform
[[Page 1080]]
ance management system that is both results-driven and market-based.
OPM also provides for veterans' preference in Federal hiring and
manages the process for personnel security and background checks for
suitability and national security clearances. OPM continues to honor the
Government's commitment to employees by managing the trust funds that
support the retirement and insurance benefits they earn, and delivering
benefit services and support to civil servants both during and after
their Federal careers.
The 2007 Budget will allow OPM to implement long-term human capital
strategies that deliver results, pursue an aggressive agenda of policy
initiatives to transform human resources management, and enhance the
values of the civil service. New human resources management policies
will streamline the Federal hiring process, decrease time to hire, and
change how Federal employees are paid and how their job performance is
evaluated. Many of these polices will be driven by the lessons learned
in setting up the new human resources management system of the
Department of Homeland Security (DHS) and of other agencies with
contemporary and efficient personnel systems.
The functions and objectives of the OPM Divisions are:
1. Strategic Human Resources Policy (SHRP) promulgates polices to
strengthen leadership and succession planning; provides quality
workforce information and common standards for agency payroll and human
resource (HR) systems; supports improved employee/labor relations and
security/suitability requirements; supports new HR systems for
Department of Defense (DOD), DHS, and other agencies; furthers
competitive compensation and benefits systems; and improves the hiring
process.
In 2007, OPM will continue to lead the design, development, and
implementation of HR policies and strategies that will aid Federal
agencies in adopting human resource management systems that improve
their ability to build successful, high performance organizations. Major
emphasis areas in 2007 will include supporting the Administration's
civil service reform initiative. OPM will work to maximize HR
flexibilities and results-driven compensation across the Federal
Government.
In an effort to promote the Government's ability to attract and
retain qualified employees, OPM will continue enhancements of the Senior
Presidential Management Fellows and Federal Candidate Development
programs, and will develop and make available other mechanisms to
enhance agency recruitment programs.
OPM will assess the results of its strategic HR policy activities by
analysis of data collected by the Federal Human Capital Survey and
Federal Benefits Survey in 2006. OPM will continue to track and report
on the extent to which agencies use innovations such as hiring
flexibilities, telework, and student loan repayments. It will collect
and analyze data obtained by agencies in administering annual employee
satisfaction surveys which are required by statute. The result will be
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 appropriate human resource polices.
Program performance.--During 2005, OPM developed polices to
support agencies' leadership succession planning efforts,
specifically for a Government-wide Senior Execuitve Service
(SES) Federal Candidate Development Program and the Presidential
Management Fellows Program. The agency also issued regulations
to establish an SES pay-for-performance program and to specify
the criteria that performance management systems covering senior
executives or senior professionals must meet. As a result, most
agencies now have approved or provisionally approved programs in
place. In addition, OPM worked jointly with DHS to issue
proposed regulations to establish a new human resource
management system within DHS. OPM also partnered with DOD to
implement provisions of the Defense Authorization Act of 2004,
as high level staff from both agencies worked with unions
representing the various DOD employee groups and other
stakeholders on 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.
In 2006, OPM plans to issue additional common data standards
for payroll systems; publish proposed regulations for pay-
banding at the IRS; and issue regulations on staffing and
employee development, and classification and qualification
standards for new job families. In 2007, OPM will focus on
implementing major reforms in the Federal civil service, as
contained in the Administration's proposed Working for America
Act.
2. Human Capital Leadership and Merit Systems Accountability
(HCLMSA) leads the Government-wide effort to transform human capital
management so that agencies are held accountable for managing their
workforce effectively, efficiently, and in accordance with merit system
principles to achieve mission results.
In 2007, as part of the President's Management Agenda, OPM continues
to work with Federal agencies as the owner of the Strategic Management
of Human Capital initiative. OPM uses its leadership position to
establish guidelines for human capital under the Standards for Success
in the Human Capital Assessment and Accountability Framework. OPM
provides guidance to agencies in the assessment of their human capital
programs and assists agencies in preparing for personnel reforms
Government-wide. As part of this guidance, OPM developed specific
milestones that contain tools, models, and training to hold agencies
accountable for their human capital practices. OPM also works with
agencies to ensure that agency programs are being managed to accomplish
the mission and are in accordance with merit system principles.
Furthermore, OPM assists agencies in building and strengthening their
internal human capital accountability programs to include data
collection and analysis, program evaluation, and compliance with merit
system principles.
In 2007, HCLMSA will provide technical assistance to agencies in
various ways. For instance, OPM has statutory mandates to pre-approve
agency actions in a wide range of human capital matters. HCLMSA, through
agencies' Human Capital Officers, reviews and acts on agency requests on
such authorities as: Volunteer Early Retirement Authority; Volunteer
Separation Incentive Authority; dual compensation waivers; temporary and
term appointment extensions; classification appeals; and pay and leave
claims. Through these review processes, HCLMSA staff work closely with
agency HR staff to ensure that each agency implements human capital
programs that are best suited to achieve the agency mission.
Program performance.--During 2005, HCLMSA successfully led
the implementation of the Strategic Management of Human Capital
initiative. As agencies improve their management of human
capital, more Federal employees are working for organizations
that are closing gaps in mission critical skills, better
recognizing differences in levels of employee performance,
developing a cadre of potential leaders, and linking day-to-day
work to corporate goals.
HCLSMA also made progress in ensuring agencies comply with
the merit system principles in 2005 by conducting audits of 120
Delegated Examining Units and
[[Page 1081]]
providing technical assistance and outreach to agencies. These
activities resulted in: hiring makeovers at 5 agencies that
significantly reduced the time required to fill vacancies;
certifying 60 provisional and 2 full Senior Executive Service
(SES) pay-for-performance plans; and training for 2,900 military
personnel at 28 facilities in veterans' rights and benefits in
Federal recruitment systems and employment. In addition, HCLMSA
administered the SES Qualifications Review Boards which led to
more than 500 SES appointments, as well as administered the
Administrative Law Judges Program which processed more than 500
agency requests for actions.
In 2006, OPM plans to have 20 major agencies meeting targets
for closing mission-critical occupation gaps and also have 12
agencies meeting targets for closing leadership competency gaps.
3. Human Resources Products and Services (HRPS) provides cost-
effective products and services to help maintain the Government's
position as a competitive employer by assisting agencies, employees, and
annuitants with staffing, selection, development, and retirement and
insurance programs. In addition, HRPS is responsible for supporting the
Department of Justice in ensuring voting rights for American citizens.
The 2007 Budget includes funding to improve claims processing times
and about $27 million to continue efforts to greatly improve the speed
and accuracy of Federal retiree benefit payments by implementing the
Retirement Systems Modernization (RSM) effort. RSM is OPM's central
information technology strategy to meeting its long-term customer
service, business, and financial management goals for the retirement
benefits programs.
This project will replace OPM's legacy information technology
systems with modern technology, move from paper to electronic
recordkeeping, and transition important business processes to meet the
needs of our customers and employees. RSM will deliver more cost-
efficient and timely retirement services, allow for agency life-cycle
retirement counseling, and provide employees and annuitants with access
to account information and financial tools.
During 2006, OPM will license a defined benefits technology solution
to replace its legacy systems. OPM will also begin the transition from
paper-based to electronic record keeping, modifying business processes
and infrastructure of the program to support the modern technology.
These modernization activities will allow OPM to process retirement
claims in a much more timely and cost-efficient manner.
Program performance.--OPM sets ambitious targets for its
annual performance measures which assess progress in achieving
goals and determine whether OPM meets its objectives. In 2005,
OPM reduced the FERS claims processing time from 97 days in 2004
to 93 days and achieved a rate of 80 days for CSRS. OPM achieved
its target of 29 days for CSRS survivor claims processing times
in 2005. In 2006, OPM plans to achieve retirement claims
processing times of 30 days for FERS and CSRS.
Through the Federal Employees Health Benefits (FEHB)
program, OPM will continue to provide customers with a variety
of resources to make more informed health insurance decisions,
including health plan brochures and website postings, health
plan customer satisfaction survey results, web-based comparison/
decision tools, and performance results for managed care health
plans. The FEHB program offers comprehensive and competitive
benefit choices for Federal employees, annuitants and family
members, and helps the Federal government recruit and retain a
high quality workforce.
In coming months, the Administration will identify options
for increasing price competition among health plans offered to
Federal employees and retirees. In addition, the Administration
will work with stakeholders to better coordinate the Medicare
and the FEHB programs and follow best practices from the private
sector to ensure high quality, cost-conscious choices for
retirees. These important programs jointly finance health
insurance for about 1.9 million Federal retirees and their
dependents.
In 2007, OPM will introduce an employee-pay-all dental and
vision benefits program to meet the dental and vision insurance
needs of Federal employees.
OPM will also continue to manage the Federal Employees'
Group Life Insurance Program, the Federal Long Term Care
Insurance Program which is the largest employer-sponsored long
term care insurance program in the world with over 210,000
enrollees, and the Flexible Spending Account Program which
allows employees to pay for health and dependent care expenses
on a pre-tax basis.
4. Federal Investigative Services Division (FISD) provides
background investigative services to agencies on a fee-for-service
basis. These services include background investigations, suitability
determinations, technical assistance to agencies' security staff, and
agency training on investigative services and adjudicative authorities
and processes.
In 2007, funding will be used to provide for administrative and
contractor staff to handle suitability determinations to ensure the
fitness and suitability of Federal applicants for and appointees to
positions in the Federal services. FISD will take adjudicative action in
the most egregious cases where suitability issues exist and provide
uniform suitability guidelines to facilitate agency focus on day-to-day
suitability issues. FISD will also continue to provide thorough
suitability determinations that can be sustained if appealed to the
Merit Systems Protection Board.
5. 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 2007, OPM will continue to support agency-wide
performance reporting and independent evaluation of policies and
programs.
OPM also manages the Human Resources Line of Business (HR LoB)
initiative which is transforming and modernizing HR business processes
and systems Government-wide. The HR LoB has coordinated the selection
and implementation of five Shared Service Centers to provide technology
solutions to support Federal agencies Government-wide with HR management
and back office transactional activities. The HR LoB is also responsible
for agency migration to these service centers.
In addition, the Enterprise Human Resources Integration project is
an e-Government initiative to transform human resources processes from
paper-based to electronic-based. OPM operates and maintains a
comprehensive data warehouse of HR information across the Executive
branch. Cost efficiencies are realized through these streamlined HR
processes.
6. Executive Services includes: executive direction, legal advice
and representation, public affairs, and legislative activities
concerning OPM as well as assistance for the President's Commission on
White House Fellows.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 24-0100-0-1-805 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct obligations:
Personnel compensation:
11.1 Full-time permanent........... 85 56 54
11.3 Other than full-time permanent 3 3 3
11.5 Other personnel compensation.. 4 4 4
--------- --------- ----------
11.9 Total personnel compensation.. 92 63 61
12.1 Civilian personnel benefits..... 25 15 14
[[Page 1082]]
21.0 Travel and transportation of
persons....................... 3 3 2
23.1 Rental payments to GSA.......... 7 6 6
23.3 Communications, utilities, and
miscellaneous charges......... 3 3 2
24.0 Printing and reproduction....... 2 1 1
25.2 Other services.................. 59 22 18
26.0 Supplies and materials.......... 2 2 2
31.0 Equipment....................... 6 6 5
--------- --------- ----------
99.0 Direct obligations............ 199 121 111
99.0 Reimbursable obligations.......... 127 99 127
--------- --------- ----------
99.9 Total new obligations........... 326 220 238
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 24-0100-0-1-805 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 885 938 938
Reimbursable:
2001 Civilian full-time equivalent
employment...................... 1,008 1,029 1,029
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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, [$2,071,000] $1,597,860, and in addition, not to exceed
[$16,329,000] $16,165,710 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, Housing and Urban
Development, the Judiciary, the District of Columbia, and Independent
Agencies Appropriations Act, 2006.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 24-0400-0-1-805 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct program activity -- Program
oversight (audits,
investigations, etc.)........... 2 2 2
09.00 Reimbursable program.............. 16 16 16
--------- --------- ----------
10.00 Total new obligations........... 18 18 18
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 18 18 18
23.95 Total new obligations............. -18 -18 -18
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.00 Appropriation................... 2 2 2
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 2 2 2
Spending authority from
offsetting collections:
68.00 Offsetting collections (cash). 15 16 16
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 1
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 16 16 16
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 18 18 18
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. -3 1 1
73.10 Total new obligations............. 18 18 18
73.20 Total outlays (gross)............. -18 -18 -18
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -1
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 5
--------- --------- ----------
74.40 Obligated balance, end of year.. 1 1 1
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 18 18 18
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash)
from: Federal sources......... -17 -16 -16
Against gross budget authority only:
88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -1
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 2
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 2 2 2
90.00 Outlays........................... 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. 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.
Contract audits provide professional advice to agency contracting
officials on accounting and financial matters regarding the negotiation,
award, administration, repricing, and settlement of contracts.
Information systems audits review both general controls and application
controls for the agency's systems and programs. The investigative
function provides for the detection and investigation of improper and
illegal activities involving programs, personnel, and operations.
Administrative sanctions debar from participation in the health
insurance program those health care providers whose conduct may pose a
threat to the financial integrity of the program itself or to the well-
being of insurance program enrollees.
During 2005, these Inspector General activities resulted in positive
financial impacts of approximately $122 million, 38 arrests, 43
indictments, 20 criminal convictions, and 2,279 administrative
sanctions. In 2006, OIG anticipates positive financial impacts of $135
million.
In 2007, the Office of the Inspector General will continue to
develop its prescription drug audit program, which includes pharmacy
benefit managers, that was established during FY 2005. It is estimated
that $6 billion is paid annually for prescription drug premiums by both
the Federal Government and employees combined. This represents
approximately 26 percent of the total premiums for health benefit
coverage for Federal employees and annuitants. By performing these
audits, the Office of the Inspector General assists the Federal
Employees Health Benefits Program recover inappropriate expenses charged
in previous years, negotiate more favorable contracts, and positively
affect the future costs and benefits provided to program enrollees.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 24-0400-0-1-805 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct obligations:
11.1 Personnel compensation: Full-
time permanent................ 1 1 1
12.1 Civilian personnel benefits..... 1 1 1
--------- --------- ----------
99.0 Direct obligations............ 2 2 2
[[Page 1083]]
99.0 Reimbursable obligations.......... 16 16 16
--------- --------- ----------
99.9 Total new obligations........... 18 18 18
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Personnel Summary
----------------------------------------------------------------------------
Identification code 24-0400-0-1-805 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 11 18 18
Reimbursable:
2001 Civilian full-time equivalent
employment...................... 113 113 116
---------------------------------------------------------------------------
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,
Housing and Urban Development, the Judiciary, the District of Columbia,
and Independent Agencies Appropriations Act, 2006.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 24-0206-0-1-551 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Government contribution for
annuitants benefits (1959 Act).. 7,887 8,202 8,779
00.02 Government contribution for
annuitants benefits (1960 Act).. 2 2 1
--------- --------- ----------
10.00 Total new obligations (object
class 13.0)................... 7,889 8,204 8,780
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 7,889 8,204 8,780
23.95 Total new obligations............. -7,889 -8,204 -8,780
----------------------------------------------------------------------------
New budget authority (gross), detail:
Mandatory:
60.00 Appropriation................... 7,889 8,204 8,780
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 760 826 863
73.10 Total new obligations............. 7,889 8,204 8,780
73.20 Total outlays (gross)............. -7,823 -8,167 -8,728
--------- --------- ----------
74.40 Obligated balance, end of year.. 826 863 915
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 7,063 7,341 7,866
86.98 Outlays from mandatory balances... 760 826 862
--------- --------- ----------
87.00 Total outlays (gross)........... 7,823 8,167 8,728
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 7,889 8,204 8,780
90.00 Outlays........................... 7,822 8,167 8,728
---------------------------------------------------------------------------
Summary of Budget Authority and Outlays
(in millions of dollars)
2005 actual 2006 est. 2007 est.
Enacted/requested:
Budget Authority............ 7,889 8,204 8,780
Outlays..................... 7,823 8,167 8,728
Legislative proposal, not subject to
PAYGO:
Budget Authority............ -15
Outlays..................... -13
Total:
Budget Authority............ 7,889 8,204 8,765
Outlays..................... 7,823 8,167 8,715
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.
2005 actual 2006 est. 2007 est.
Annuitants:
FEHB........................ 1,834,429 1,848,500 1,874,000
(USPS non-add).............. 443,510 452,000 465,000
REHB........................ 1,565 1,252 1,001
------------------------------------
Total, annuitants........... 1,835,994 1,849,752 1,875,001
====================================
Government Payment for Annuitants, Employees Health Benefits
(Legislative proposal, not subject to PAYGO)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 24-0206-2-1-551 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Government contribution for
annuitants benefits (1959 Act).. -15
--------- --------- ----------
10.00 Total new obligations (object
class 13.0)................... -15
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... -15
23.95 Total new obligations............. 15
----------------------------------------------------------------------------
New budget authority (gross), detail:
Mandatory:
60.00 Appropriation................... -15
----------------------------------------------------------------------------
Change in obligated balances:
73.10 Total new obligations............. -15
73.20 Total outlays (gross)............. 13
--------- --------- ----------
74.40 Obligated balance, end of year.. -2
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... -13
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. -15
90.00 Outlays........................... -13
---------------------------------------------------------------------------
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, Housing and Urban Development, the Judiciary, the District of
Columbia, and Independent Agencies Appropriations Act, 2006.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 24-0500-0-1-602 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct program activity........... 38 39 39
--------- --------- ----------
10.00 Total new obligations (object
class 25.2)................... 38 39 39
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 38 39 39
23.95 Total new obligations............. -38 -39 -39
----------------------------------------------------------------------------
[[Page 1084]]
New budget authority (gross), detail:
Mandatory:
60.00 Appropriation................... 38 39 39
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 4 4 4
73.10 Total new obligations............. 38 39 39
73.20 Total outlays (gross)............. -38 -39 -39
--------- --------- ----------
74.40 Obligated balance, end of year.. 4 4 4
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 34 39 39
86.98 Outlays from mandatory balances... 4
--------- --------- ----------
87.00 Total outlays (gross)........... 38 39 39
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 38 39 39
90.00 Outlays........................... 38 39 39
---------------------------------------------------------------------------
This appropriation finances the Government's share of premiums,
which is one-third the cost, for Basic life insurance for annuitants
retiring after December 31, 1989, and who are less than 65 years old.
Payment to Civil Service Retirement and Disability Fund
For financing the unfunded liability of new and increased annuity
benefits becoming effective on or after October 20, 1969, as authorized
by 5 U.S.C. 8348, and annuities under special Acts to be credited to the
Civil Service Retirement and Disability Fund, such sums as may be
necessary: Provided, That annuities authorized by the Act of May 29,
1944, as amended, and the Act of August 19, 1950, as amended (33 U.S.C.
771-775), may hereafter be paid out of the Civil Service Retirement and
Disability Fund. (Transportation, Treasury, Housing and Urban
Development, the Judiciary, the District of Columbia, and Independent
Agencies Appropriations Act, 2006.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 24-0200-0-1-805 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.02 Payment of Government share of
retirement costs................ 10,199 10,362 10,460
00.03 Transfers for interest on unfunded
liability and payment of
military service annuities...... 15,348 16,748 17,000
00.05 Spouse equity payment............. 71 72 72
--------- --------- ----------
10.00 Total new obligations........... 25,618 27,182 27,532
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 25,618 27,182 27,532
23.95 Total new obligations............. -25,618 -27,182 -27,532
----------------------------------------------------------------------------
New budget authority (gross), detail:
Mandatory:
60.00 Appropriation................... 15,348 16,748 17,000
60.00 Appropriation................... 10,270 10,434 10,532
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 25,618 27,182 27,532
----------------------------------------------------------------------------
Change in obligated balances:
73.10 Total new obligations............. 25,618 27,182 27,532
73.20 Total outlays (gross)............. -25,618 -27,182 -27,532
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 25,618 27,182 27,532
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 25,618 27,182 27,532
90.00 Outlays........................... 25,618 27,182 27,532
---------------------------------------------------------------------------
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 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
12.1 Civilian personnel benefits....... 10,270 10,434 10,532
13.0 Benefits for former personnel..... 15,348 16,748 17,000
--------- --------- ----------
99.9 Total new obligations........... 25,618 27,182 27,532
---------------------------------------------------------------------------
Postal Service Contribution for Retiree Health Benefits
Special and Trust Fund Receipts (in millions of dollars)
----------------------------------------------------------------------------
Identification code 24-5391-0-2-551 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............ 2,961
--------- --------- ----------
01.99 Balance, start of year............ 2,961
Receipts:
02.40 Postal Service contributions for
benefits accruing to current
workers, retiree health
benefits--legislative proposal
not subject to PAYGO............ 2,933 3,138
02.41 Earning on investments, Postal
Service contribution for retiree
health benefits--legislative
proposal not subject to PAYGO... 28 105
02.42 Postal Service contributions for
benefits paid for current
retirees, retiree health
benefits--legislative proposal
not subject to PAYGO............ 1,713 1,999
--------- --------- ----------
02.99 Total receipts and collections.. 4,674 5,242
--------- --------- ----------
04.00 Total: Balances and collections... 4,674 8,203
Appropriations:
05.00 Postal Service contribution for
retiree health benefits--
legislative proposal not subject
to PAYGO........................ -4,674 -5,242
05.01 Postal Service contribution for
retiree health benefits--
legislative proposal not subject
to PAYGO........................ 2,961 3,307
--------- --------- ----------
05.99 Total appropriations............ -1,713 -1,935
--------- --------- ----------
07.99 Balance, end of year.............. 2,961 6,268
---------------------------------------------------------------------------
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.
[[Page 1085]]
As a result of this new health benefits financing system, the Postal
Service would cease to pay annual premium costs 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.
Postal Service Contribution for Retiree Health Benefits
(Legislative proposal, not subject to PAYGO)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 24-5391-2-2-551 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Employer share for Postal retiree
health insurance premiums....... 1,713 1,935
--------- --------- ----------
10.00 Total new obligations (object
class 25.6)................... 1,713 1,935
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 1,713 1,935
23.95 Total new obligations............. -1,713 -1,935
----------------------------------------------------------------------------
New budget authority (gross), detail:
Mandatory:
60.20 Appropriation (special fund).... 4,674 5,242
60.45 Portion precluded from
obligation.................... -2,961 -3,307
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 1,713 1,935
----------------------------------------------------------------------------
Change in obligated balances:
73.10 Total new obligations............. 1,713 1,935
73.20 Total outlays (gross)............. -1,713 -1,935
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 1,713 1,935
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 1,713 1,935
90.00 Outlays........................... 1,713 1,935
---------------------------------------------------------------------------
Intragovernmental funds:
Revolving Fund
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 24-4571-0-4-805 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Obligations by program activity:
09.01 Talent services................... 147 210 166
09.02 Investigation services............ 437 638 681
09.03 Leadership capacity services...... 47 99 110
09.04 Enterprise Human Resources
Integration..................... 10 28 26
--------- --------- ----------
10.00 Total new obligations........... 641 975 983
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 242 359 362
22.00 New budget authority (gross)...... 709 978 1,033
22.10 Resources available from
recoveries of prior year
obligations..................... 33
22.22 Unobligated balance transferred
from other accounts............. 16
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,000 1,337 1,395
23.95 Total new obligations............. -641 -975 -983
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 359 362 412
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
42.00 Transferred from other accounts. 25
Spending authority from
offsetting collections:
68.00 Offsetting collections (cash). 819 978 905
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... -135 128
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 684 978 1,033
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 709 978 1,033
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. -171 -126 -129
73.10 Total new obligations............. 641 975 983
73.20 Total outlays (gross)............. -698 -978 -1,033
73.45 Recoveries of prior year
obligations..................... -33
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 135 -128
--------- --------- ----------
74.40 Obligated balance, end of year.. -126 -129 -307
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 698 978 1,033
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash)
from: Federal sources......... -819 -978 -905
Against gross budget authority only:
88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... 135 -128
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 25
90.00 Outlays........................... -120 128
---------------------------------------------------------------------------
OPM's Revolving Fund supports the President's Management Agenda by
fully or partially funding three E-Government projects: E-Clearance; E-
Training; and Human Resources Integration. On a fee-for-service basis,
the Enterprise Human Resources Integration project provides Federal
agencies with an electronic official personnel folder (eOPF) system, as
well as workforce analysis and other analytical tools. These tools are
designed to streamline and automate the electronic exchange of
standardized HR data and provide comprehensive workforce analysis,
forecasting, and reporting across the Executive Branch for the strategic
management of human capital. The Revolving Fund also provides financing
on a reimbursable basis for several other products and services to
Federal agencies.
Talent services.--OPM provides Federal agencies with relevant, cost-
effective human capital products and services on a fee-for-service
basis. The Center for Talent Services' (CTS's) products and services are
designed to help Federal agencies: 1) transform the management of
Federal human capital; 2) accomplish their missions, by having the right
person in the right job at the right time; and 3) successfully implement
effective personnel systems. Examples of CTS's products and services
include a Federal job website called USAJOBS, a range of human resources
consulting services, a nationwide testing service for applicants of the
U.S. Armed Services, employee competency assessments, and surveys on
organizational culture and climate.
Investigations.--OPM conducts more than 90 percent of the Federal
Government's background investigations concerning Federal employees,
contractors, and military members for various Federal agencies.
Investigations are a critical step in the Federal hiring processes, and
can affect hiring or removal decisions based on the individual's fitness
and suitability for employment. Based on information gathered in
background investigations, Federal agencies also issue security
clearances and place individuals in positions involving national
security or the public trust where job duties are most sensitive to the
employing agency.
In early 2005, OPM accepted transfer of the Personnel Security
Investigations (PSI) program of the Department of Defense, Defense
Security Service (DSS). Through this transfer of function, OPM also
accepted the transfer of nearly 1,600 personnel and related space,
equipment, and services. The transfer of the PSI program to OPM
consolidated the re
[[Page 1086]]
sources that conduct the vast majority of background investigations for
the entire Federal government.
OPM took an aggressive approach to improve investigation case
timeliness by increasing investigative capacity during 2005. This
approach included establishing contracts with new private-sector
companies to increase capacity to meet the national demand for
investigations; maintaining continuous liaison with national record
repositories and state and local law enforcement entities to expedite
the receipt of record information; and training about 1,600 former DSS
staff in OPM investigative processes.
In coming months, OPM will work together with the Office of
Management and Budget and other stakeholders to meet various
requirements concerning the investigative and security clearance
programs that were outlined by the Intelligence Reform and Terrorism
Prevention Act of 2004 (IRTPA). Some of the IRTPA requirements include:
1) ensuring reciprocity of security clearances and access
determinations; 2) creating a database on security clearances; and 3)
evaluating the use of available technology in clearance investigations
and adjudication. Also, a reduction in length of personnel security
clearance process is mandated. For instance, the IRTPA requires that not
later than December 17, 2006, each authorized adjudicative agency shall
make a determination on at least 80 percent of all applicants for
personnel security clearances within an average of 120 days (90 days to
complete the investigation and 30 days to complete the adjudication) of
receiving the security clearance application. Beginning December 2009,
adjudicative agencies must make determinations on at least 90 percent of
all applicants for personnel security clearances within 60 days (40 days
to complete the investigation and 20 days to complete the adjudication).
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
2005 actual 2006 est. 2007 est.
Participant training days..... 101,784 102,000 101,020
Background security
investigations processed...... 184,589 210,000 150,000
National and special agency
check and inquiry cases closed 729,521 750,000 750,000
Special agreement checks
closed........................ 321,588 335,000 335,000
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 24-4571-0-4-805 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Reimbursable obligations:
Personnel compensation:
11.1 Full-time permanent............. 135 165 178
11.5 Other personnel compensation.... 10 8
--------- --------- ----------
11.9 Total personnel compensation.. 135 175 186
12.1 Civilian personnel benefits....... 28 52 57
13.0 Benefits for former personnel..... 1
21.0 Travel and transportation of
persons......................... 10 21 21
22.0 Transportation of things.......... 1 1
23.1 Rental payments to GSA............ 11 13 13
23.3 Communications, utilities, and
miscellaneous charges........... 16 31 42
24.0 Printing and reproduction......... 5 1 2
25.2 Other services.................... 382 664 650
26.0 Supplies and materials............ 35 8 6
31.0 Equipment......................... 19 8 5
--------- --------- ----------
99.9 Total new obligations........... 641 975 983
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 24-4571-0-4-805 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Reimbursable:
2001 Civilian full-time equivalent
employment...................... 1,550 2,429 2,432
---------------------------------------------------------------------------
Trust Funds
Civil Service Retirement and Disability Fund
Special and Trust Fund Receipts (in millions of dollars)
----------------------------------------------------------------------------
Identification code 24-8135-0-7-602 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............ 627,273 655,921 685,675
--------- --------- ----------
01.99 Balance, start of year............ 627,273 655,921 685,675
Receipts:
02.00 Agency contributions, Civil
service retirement and
disability fund................. 13,059 13,346 14,365
02.01 Postal Service agency
contributions, Civil service
retirement and disability fund.. 4,092 4,222 4,342
02.02 Postal Service supplemental
contributions, Civil service
retirement and disability fund.. 290 290 290
02.03 FFB, TVA, and USPS interest, Civil
service retirement and
disability fund................. 323 651 651
02.04 Treasury interest, Civil service
retirement and disability fund.. 35,871 38,162 40,161
02.05 General fund payment to the civil
service retirement and
disability fund................. 25,618 27,182 27,532
02.06 Re-employed annuitants salary
offset, Civil service retirement
and disability fund............. 34 35 36
02.60 Employee contributions, Civil
service retirement and
disability fund................. 3,818 3,768 3,659
02.61 District of Columbia
contributions, Civil service
retirement and disability fund.. 50 49 49
02.62 Employee deposits, redeposits and
other contributions, Civil
service retirement and
disability fund................. 535 550 565
--------- --------- ----------
02.99 Total receipts and collections.. 83,690 88,255 91,650
--------- --------- ----------
04.00 Total: Balances and collections... 710,963 744,176 777,325
Appropriations:
05.00 Civil service retirement and
disability fund................. -100 -91 -118
05.01 Civil service retirement and
disability fund................. 1 1
05.02 Civil service retirement and
disability fund................. -83,592 -88,255 -91,650
05.03 Civil service retirement and
disability fund................. 28,649 29,844 30,341
--------- --------- ----------
05.99 Total appropriations............ -55,042 -58,501 -61,427
--------- --------- ----------
07.99 Balance, end of year.............. 655,921 685,675 715,898
---------------------------------------------------------------------------
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 24-8135-0-7-602 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Annuities......................... 54,593 58,087 60,980
00.02 Refunds and death claims.......... 314 287 291
00.03 Administration--operations........ 129 121 150
00.04 Transfer to MSPB.................. 3 3 3
00.05 Administration--OIG............... 3 3 3
--------- --------- ----------
10.00 Total new obligations........... 55,042 58,501 61,427
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 55,042 58,501 61,427
23.95 Total new obligations............. -55,042 -58,501 -61,427
----------------------------------------------------------------------------
New budget authority (gross), detail:
Discretionary:
40.26 Appropriation (trust fund)...... 100 91 118
40.37 Appropriation temporarily
reduced....................... -1 -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 99 90 118
Mandatory:
60.26 Appropriation (trust fund)...... 83,592 88,255 91,650
60.45 Portion precluded from balances. -28,649 -29,844 -30,341
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 54,943 58,411 61,309
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 55,042 58,501 61,427
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 4,599 4,851 5,110
[[Page 1087]]
73.10 Total new obligations............. 55,042 58,501 61,427
73.20 Total outlays (gross)............. -54,790 -58,242 -61,177
--------- --------- ----------
74.40 Obligated balance, end of year.. 4,851 5,110 5,360
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 99 90 118
86.97 Outlays from new mandatory
authority....................... 50,092 53,302 55,950
86.98 Outlays from mandatory balances... 4,599 4,850 5,109
--------- --------- ----------
87.00 Total outlays (gross)........... 54,790 58,242 61,177
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 55,042 58,501 61,427
90.00 Outlays........................... 54,790 58,242 61,177
----------------------------------------------------------------------------
Memorandum (non-add) entries:
92.01 Total investments, start of year:
Federal securities: Par value... 631,860 660,750 690,754
92.02 Total investments, end of year:
Federal securities: Par value... 660,750 690,754 721,219
---------------------------------------------------------------------------
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 includes funding for legislation which would correct
benefit inequities, simplify program administration, and reduce improper
payments. The legislation for this proposed Federal Retirement
Improvements Act of 2006 will be transmitted separately. OPM will also
continue working with the Department of the Treasury to submit
legislation to amend the Right to Financial Privacy Act in order to
reduce overpayments. The Budget also 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.
2005 actual 2006 est. 2007 est.
Active employees.............. 2,668,000 2,668,000 2,668,000
Annuitants:
Employees................... 1,797,227 1,875,509 1,907,968
Survivors................... 625,300 638,693 639,074
------------------------------------
Total, annuitants....... 2,422,527 2,514,202 2,547,042
====================================
Status of Funds (in millions of dollars)
----------------------------------------------------------------------------
Identification code 24-8135-0-7-602 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Unexpended balance, start of year:
0100 Balance, start of year............ 631,873 660,773 690,786
--------- --------- ----------
0199 Total balance, start of year.... 631,873 660,773 690,786
Cash income during the year:
Current law:
Receipts:
1200 Agency contributions, Civil
service retirement and
disability fund............. 13,059 13,346 14,365
1201 Postal Service agency
contributions, Civil service
retirement and disability
fund........................ 4,092 4,222 4,342
1202 Postal Service supplemental
contributions, Civil service
retirement and disability
fund........................ 290 290 290
1203 FFB, TVA, and USPS interest,
Civil service retirement and
disability fund............. 323 651 651
1204 Treasury interest, Civil
service retirement and
disability fund............. 35,871 38,162 40,161
1205 General fund payment to the
civil service retirement and
disability fund............. 25,618 27,182 27,532
1206 Re-employed annuitants salary
offset, Civil service
retirement and disability
fund........................ 34 35 36
Offsetting governmental
receipts:
1260 Employee contributions, Civil
service retirement and
disability fund............. 3,818 3,768 3,659
1261 District of Columbia
contributions, Civil service
retirement and disability
fund........................ 50 49 49
1262 Employee deposits, redeposits
and other contributions,
Civil service retirement and
disability fund............. 535 550 565
1299 Income under present law........ 83,690 88,255 91,650
--------- --------- ----------
3299 Total cash income............... 83,690 88,255 91,650
Cash outgo during year:
Current law:
4500 Civil service retirement and
disability fund............... -54,790 -58,242 -61,177
4599 Outgo under current law (-)..... -54,790 -58,242 -61,177
--------- --------- ----------
6599 Total cash outgo (-)............ -54,790 -58,242 -61,177
Unexpended balance, end of year:
8700 Uninvested balance (net), end of
year............................ 23 32 40
8701 Invested balance, end of year..... 660,750 690,754 721,219
--------- --------- ----------
8799 Total balance, end of year...... 660,773 690,786 721,259
Commitments against unexpended balance, end of
year:
9900 Uncommitted balance, end of year 660,773 690,786 721,259
---------------------------------------------------------------------------
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 24-8135-0-7-602 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
25.2 Other services.................... 135 127 156
42.0 Insurance claims and indemnities.. 54,593 58,087 60,980
44.0 Refunds and death claims.......... 314 287 291
--------- --------- ----------
99.9 Total new obligations........... 55,042 58,501 61,427
---------------------------------------------------------------------------
Employees Life Insurance Fund
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 24-8424-0-8-602 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Obligations by program activity:
09.01 Basic life insurance payments..... 1,261 1,321 1,377
09.02 Optional
life
insurance
payments
899 935 986
09.03 Shenandoah life insurance payments 3 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)................... 2,165 2,260 2,367
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 27,370 28,716 30,169
22.00 New budget authority (gross)...... 3,511 3,713 4,016
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 30,881 32,429 34,185
23.95 Total new obligations............. -2,165 -2,260 -2,367
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 28,716 30,169 31,818
----------------------------------------------------------------------------
New budget authority (gross), detail:
Spending authority from offsetting
collections:
Discretionary:
68.00 Spending authority from
offsetting collections:
Offsetting collections
(cash)...................... 2 1 1
Mandatory:
69.00 Offsetting collections (cash). 3,514 3,707 4,006
69.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... -5 5 9
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 3,509 3,712 4,015
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 3,511 3,713 4,016
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 309 333 366
73.10 Total new obligations............. 2,165 2,260 2,367
[[Page 1088]]
73.20 Total outlays (gross)............. -2,146 -2,222 -2,359
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 5 -5 -9
--------- --------- ----------
74.40 Obligated balance, end of year.. 333 366 365
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 2 1 1
86.97 Outlays from new mandatory
authority....................... 2,144 2,221 2,358
--------- --------- ----------
87.00 Total outlays (gross)........... 2,146 2,222 2,359
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash)
from:
88.00 Agency contributions.......... -417 -486 -520
88.00 Government contributions for
annuitants.................. -38 -39 -39
88.20 Interest on Federal securities -1,166 -1,212 -1,353
88.40 Basic life insurance
withholdings................ -751 -818 -875
88.40 Optional life insurance
withholdings & LTC
reimbursement............... -1,144 -1,153 -1,220
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -3,516 -3,708 -4,007
Against gross budget authority only:
88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... 5 -5 -9
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -1,371 -1,486 -1,648
----------------------------------------------------------------------------
Memorandum (non-add) entries:
92.01 Total investments, start of year:
Federal securities: Par value... 28,107 29,485 30,937
92.02 Total investments, end of year:
Federal securities: Par value... 29,485 30,937 32,579
---------------------------------------------------------------------------
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:
2005 actual 2006 est. 2007 est.
Life insurance in force (in billions
of dollars):
On active employees......... 628.3 638.5 650.0
On retired employees........ 64.6 67.5 69.5
------------------------------------
Total................... 692.9 706.0 719.5
====================================
Number of participants (in
thousands):
Active employees............ 2,412 2,412 2,412
Annuitants.................. 1,601 1,637 1,665
------------------------------------
Total................... 4,013 4,049 4,077
====================================
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 2005 actual 2006 est. 2007 est.
Held in reserve (in millions of
dollars):
Contingency reserve......... 61 61 61
Beneficial association
program reserve........... 3 2 2
U.S. Treasury reserve....... 28,717 30,170 31,819
------------------------------------
Total reserves.......... 28,781 30,233 31,882
====================================
Employees and Retired Employees Health Benefits Funds
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 24-9981-0-8-551 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Obligations by program activity:
09.01 Benefit payments.................. 29,540 31,859 34,949
09.02 Payments from OPM contingency
reserve......................... 190 250 250
09.03 Government payment for annuitants
(1960 Act)...................... 2 2 2
09.04 Administration--operations........ 11 14 14
09.05 Administration--OIG............... 14 13 13
09.06 Administration--dental and vision
program......................... 1 1
--------- --------- ----------
10.00 Total new obligations (object
class 25.6)................... 29,757 32,139 35,229
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 8,408 10,116 11,683
22.00 New budget authority (gross)...... 31,465 33,706 36,268
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 39,873 43,822 47,951
23.95 Total new obligations............. -29,757 -32,139 -35,229
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 10,116 11,683 12,722
----------------------------------------------------------------------------
New budget authority (gross), detail:
Spending authority from offsetting
collections:
Discretionary:
68.00 Spending authority from
offsetting collections:
Offsetting collections
(cash)...................... 25 27 27
Mandatory:
69.00 Offsetting collections (cash). 31,282 33,577 36,128
69.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 158 102 113
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 31,440 33,679 36,241
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 31,465 33,706 36,268
----------------------------------------------------------------------------
Change in obligated balances:
72.40 Obligated balance, start of year.. 2,350 2,393 2,390
73.10 Total new obligations............. 29,757 32,139 35,229
73.20 Total outlays (gross)............. -29,556 -32,040 -35,092
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -158 -102 -113
--------- --------- ----------
74.40 Obligated balance, end of year.. 2,393 2,390 2,414
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 25 27 27
86.97 Outlays from new mandatory
authority....................... 28,143 30,625 33,575
86.98 Outlays from mandatory balances... 1,388 1,388 1,490
--------- --------- ----------
87.00 Total outlays (gross)........... 29,556 32,040 35,092
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash)
from:
88.00 Agency contributions.......... -8,671 -9,292 -9,901
88.00 Postal Service for Active
Employees................... -4,532 -4,801 -5,119
88.00 Postal Service for Annuitants. -1,504 -1,731 -1,955
88.00 Government contributions for
annuitants.................. -7,822 -8,167 -8,729
88.20 Interest on Federal securities -375 -531 -587
88.40 D.C. Government contributions
& Dental/Vision
reimbursement............... -68 -76 -82
88.40 Employee salary withholdings.. -4,413 -4,789 -5,166
88.40 Annuity withholdings.......... -3,922 -4,217 -4,616
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... -31,307 -33,604 -36,155
Against gross budget authority only:
88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -158 -102 -113
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -1,750 -1,564 -1,063
----------------------------------------------------------------------------
Memorandum (non-add) entries:
92.01 Total investments, start of year:
Federal securities: Par value... 10,774 12,533 14,081
92.02 Total investments, end of year:
Federal securities: Par value... 12,533 14,081 15,141
---------------------------------------------------------------------------
[[Page 1089]]
Summary of Budget Authority and Outlays
(in millions of dollars)
2005 actual 2006 est. 2007 est.
Enacted/requested:
Budget Authority............
Outlays..................... -1,751 -1,564 -1,063
Legislative proposal, not subject to
PAYGO:
Budget Authority............
Outlays..................... 41
Legislative proposal, subject to
PAYGO:
Budget Authority............
Outlays..................... -34
Total:
Budget Authority............
Outlays..................... -1,751 -1,564 -1,056
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:
2005 actual 2006 est. 2007 est.
Active employees.............. 2,173,054 2,180,000 2,180,000
Annuitants.................... 1,834,429 1,848,500 1,874,000
------------------------------------
Total..................... 4,007,483 4,028,500 4,054,000
====================================
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:
2005 actual 2006 est. 2007 est.
Uniform plan.................. 444 355 284
Private plans................. 1,121 897 717
------------------------------------
Total..................... 1,565 1,252 1,001
====================================
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 reflects savings from a proposed technical change to the
FEHB statute that will be transmitted separately. The Budget also
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 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Unexpended balance, start of year:
0100 Balance, start of year............ 10,760 12,511 14,075
--------- --------- ----------
0199 Total balance, start of year.... 10,760 12,511 14,075
Cash income during the year:
Current law:
Offsetting collections:
1280 Postal Service for Annuitants. 1,504 1,731 1,955
1281 Postal Service for Active
Employees................... 4,532 4,801 5,119
1282 Agency contributions.......... 8,671 9,292 9,901
1283 D.C. Government contributions
& Dental/Vision
reimbursement............... 68 76 82
1284 Interest on Federal securities 375 531 587
1285 Government contributions for
annuitants.................. 7,822 8,167 8,729
1286 Annuity withholdings.......... 3,922 4,217 4,616
1287 Employee salary withholdings.. 4,413 4,789 5,166
1299 Income under present law........ 31,307 33,604 36,155
Proposed legislation:
Offsetting collections:
2280 Agency contributions--
legislative proposal not
subject to PAYGO............ -15
2281 Government contributions for
annuitants--legislative
proposal not subject to
PAYGO....................... -13
2282 Postal Service for
Annuitants--legislative
proposal not subject to
PAYGO....................... -6
2283 Postal Service for Active
Employees--legislative
proposal not subject to
PAYGO....................... -7
2284 Annuity withholdings--
legislative proposal subject
to PAYGO.................... -19
2285 Employee salary withholdings--
legislative proposal subject
to PAYGO.................... -19
2299 Income under proposed
legislation................... -79
--------- --------- ----------
3299 Total cash income............... 31,307 33,604 36,076
Cash outgo during year:
Current law:
4500 Employees and retired employees
health benefits funds......... -29,556 -32,040 -35,092
4599 Outgo under current law (-)..... -29,556 -32,040 -35,092
Proposed legislation:
5500 Employees and retired employees
health benefits funds--
legislative proposal subject
to PAYGO...................... 72
5599 Outgo under proposed legislation
(-)........................... 72
--------- --------- ----------
6599 Total cash outgo (-)............ -29,556 -32,040 -35,020
Unexpended balance, end of year:
8700 Uninvested balance (net), end of
year............................ -22 -6 -3
8701 Employees and retired employees
health benefits funds........... 12,533 14,081 15,141
8701 Employees and retired employees
health benefits funds--
legislative proposal subject to
PAYGO........................... -7
--------- --------- ----------
8799 Total balance, end of year...... 12,511 14,075 15,131
Commitments against unexpended balance, end of
year:
9900 Uncommitted balance, end of year 12,511 14,075 15,131
---------------------------------------------------------------------------
Employees and Retired Employees Health Benefits Funds
(Legislative proposal, not subject to PAYGO)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 24-9981-2-8-551 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... -44
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... -44
----------------------------------------------------------------------------
New budget authority (gross), detail:
Spending authority from offsetting
collections:
Mandatory:
69.00 Offsetting collections (cash). -41
[[Page 1090]]
69.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... -3
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... -44
----------------------------------------------------------------------------
Change in obligated balances:
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 3
--------- --------- ----------
74.40 Obligated balance, end of year.. 3
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash)
from:
88.00 Agency contributions.......... 15
88.00 Postal Service for Active
Employees................... 7
88.00 Postal Service for Annuitants. 6
88.00 Government contributions for
annuitants.................. 13
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... 41
Against gross budget authority only:
88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... 3
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 41
----------------------------------------------------------------------------
Memorandum (non-add) entries:
92.01 Total investments, start of year:
Federal securities: Par value...
92.02 Total investments, end of year:
Federal securities: Par value...
---------------------------------------------------------------------------
Employees and Retired Employees Health Benefits Funds
(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 24-9981-4-8-551 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Obligations by program activity:
09.01 Benefit payments.................. -79
--------- --------- ----------
10.00 Total new obligations (object
class 25.6)................... -79
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... -38
23.95 Total new obligations............. 79
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 41
----------------------------------------------------------------------------
New budget authority (gross), detail:
Mandatory:
69.00 Spending authority from
offsetting collections:
Offsetting collections (cash). -38
----------------------------------------------------------------------------
Change in obligated balances:
73.10 Total new obligations............. -79
73.20 Total outlays (gross)............. 72
--------- --------- ----------
74.40 Obligated balance, end of year.. -7
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... -72
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash)
from:
88.40 D.C. Government contributions
& Dental/Vision
reimbursement...............
88.40 Employee salary withholdings.. 19
88.40 Annuity withholdings.......... 19
--------- --------- ----------
88.90 Total, offsetting collections
(cash)...................... 38
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -34
----------------------------------------------------------------------------
Memorandum (non-add) entries:
92.01 Total investments, start of year:
Federal securities: Par value...
92.02 Total investments, end of year:
Federal securities: Par value... -7
---------------------------------------------------------------------------