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

                                

                       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
---------------------------------------------------------------------------

                              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
---------------------------------------------------------------------------