    [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 2008

                         OFFICE OF PERSONNEL MANAGEMENT

                                  Federal 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, $101,765,000, of which
    $5,991,000 shall remain available until expended for the Enterprise
    Human Resources Integration project; $1,351,000 shall remain available
    until expended for the Human Resources Line of Business project;
    $340,000 shall remain available until expended for the E-Payroll
    project; $170,000 shall remain available until expended for the E-
    Training program. In addition, $111,936,000 for administrative expenses,
    to be transferred from the appropriate trust funds of the Office of
    Personnel Management without regard to other statutes, including direct
    procurement of printed materials, for the retirement and insurance
    programs, of which $15,000,000 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 2008, 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.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0100-0-1-805      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Strategic HR policy...............          21          20          19
    00.02 Human capital leadership and merit
            system accountability...........          29          29          28
    00.03 HR products and services..........           3           2           2
    00.04 Management services...............          98          38          32
    00.05 Executive services................          14          14          13
    00.06 E-Government projects.............          13           8           8
                                               ---------   ---------  ----------
    01.00   Total direct program............         178         111         102
    09.00 Reimbursable program..............         152         100         112
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         330         211         214
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          71          56          56
    22.00 New budget authority (gross)......         319         211         214
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           6
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         396         267         270
    23.95 Total new obligations.............        -330        -211        -214
    23.98 Unobligated balance expiring or
            withdrawn.......................         -10
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          56          56          56
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         123         111         102
    40.35   Appropriation permanently
              reduced.......................          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         122         111         102
            Spending authority from
                offsetting collections:
    58.00     Offsetting collections (cash).         175         100         112
    58.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          22
                                               ---------   ---------  ----------
    58.90     Spending authority from
                offsetting collections
                (total discretionary).......         197         100         112
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         319         211         214
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         -10          -8         -10
    73.10 Total new obligations.............         330         211         214
    73.20 Total outlays (gross).............        -317        -213        -216
    73.40 Adjustments in expired accounts
            (net)...........................           5
    73.45 Recoveries of prior year
            obligations.....................          -6
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -22
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          12
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          -8         -10         -12
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         286         197         201
    86.93 Outlays from discretionary
            balances........................          31          16          15
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         317         213         216
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -190        -100        -112
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -22
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          15
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         122         111         102
    90.00 Outlays...........................         127         113         104
    ---------------------------------------------------------------------------

        The Office of Personnel Management's (OPM) mission is to help
    agencies build an effective Federal civilian workforce based on merit
    system principles, which America needs to guarantee freedom, promote
    prosperity, and ensure the security of the 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 2008, OPM will support agencies' pay-for-performance
    demonstration projects to replace the current General Scedule pay system
    with a modern classification, pay, and performance management system
    that is both results-driven and market-based.

        OPM also supports 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

    [[Page 1000]]

    excellent benefit services and support to civil servants both during and
    after their Federal careers.

        The 2008 Budget will permit OPM to implement long-term human capital
    strategies that deliver results, pursue a progressive 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
    from agencies with contemporary and efficient personnel systems.

        The functions and objectives of the OPM Divisions are:

        Strategic Human Resources Policy (SHRP).--Promulgates human
    resources (HR) policies which strengthen leadership and succession
    planning activities; provides quality workforce information and common
    standards for agency payroll and HR systems; supports improved employee/
    labor relations and security/suitability requirements; establishes
    competitive compensation and benefits systems; and provides agencies HR
    flexibilities to hire talent.

        In 2008, OPM will continue to lead the design, development, and
    implementation of HR policies and strategies, and carry out campaigns
    that will aid Federal agencies ability to attract and retain qualified
    employees to close mission critical skill gaps. OPM also will further
    enhance the Presidential Management Fellows and Senior Executive Service
    (SES) Federal Candidate Development programs, as needed, and develop and
    provide other tools to enhance agency recruitment programs. In 2007, OPM
    will develop proposals to enhance Federal agencies' ability to both
    attract new workers and retain highly skilled retirees on a temporary
    basis. Finally, OPM will continue to assess and report on the
    effectiveness of SES performance-based pay system each year.

        OPM will continue assessing the results of its strategic human
    resources policy activities by using Federal Human Capital Survey and
    Federal Benefits Survey data collected in 2006. These two surveys are
    administered every two years and will again be administered in 2008. OPM
    will also track and report on the extent to which agencies use
    innovations such as hiring flexibilities, telework, and student loan
    repayments. Our goal is to provide broad, Government-wide indicators on
    the status of Federal human capital to lawmakers, managers, and
    employees which will enable them to develop appropriate human resource
    polices.

        During 2006, OPM further developed policies to support agencies'
    leadership succession planning efforts. OPM previously issued
    regulations to establish an SES pay-for-performance program at an agency
    and to specify the criteria that performance management systems covering
    senior executives or senior professionals must meet. As a result of
    these regulations, at the end of 2006, most agencies have approved or
    provisionally-approved programs in place.

        OPM implemented High-Deductible Health Plans with Health Savings
    Accounts and new Dental and Vision Benefit Plans under the Federal
    Employees Health Benefit Program. Also, SHRP successfully implemented a
    number of healthcare information technology initiatives to make
    information about provider costs or medical claims available
    electronically for FEHB health plan members; redesigned the Labor
    Agreement Information Retrieval System (LAIRS) to provide ability to
    search data using key words and create reports; and added OPM's
    publication, Negotiability Determinations by the Federal Labor Relations
    Authority.

        In 2007, OPM will issue additional common data standards for payroll
    systems. In addition, OPM will issue regulations on staffing and
    employee development, classification and qualification standards
    regulations for new job families. Furthermore, OPM will announce a
    Government-wide Healthier Feds campaign challenge beginning in 2007, and
    will issue the results of the Federal Human Capital Survey. In 2007 OPM
    will also develop requirements and concept of operations for issuing and
    using a unique employee number to replace the social security number as
    the primary key to employee records. Finally, OPM will implement an
    applicant assessment decision tool/guide, and SHRP will co-host with
    agency partner(s) a forum to address SES performance and executive
    development.

        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 2008, as part of the President's Management Agenda, OPM will
    continue 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. In
    addition, 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 2008, HCLMSA will continue to 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: Voluntary Early Retirement
    Authority; Voluntary Separation Incentive Authority; dual compensation
    waivers; temporary and term appointment extensions; classification
    appeals; and pay and leave claims. Through these review processes,
    HCLMSA staff will work closely with agency human resources staff to
    ensure that each agency implements human capital programs that are best
    suited to achieve the agency mission.

        During 2006, 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.

        HCLMSA also made progress in ensuring agencies comply with the merit
    system principles in 2006 by conducting audits of 145 Delegated
    Examining Units (DEUs) and full HR Operations audits at 15 agencies. OPM
    conducted follow-up audits at 13 DEUs to ensure previously identified
    problems were adequately addressed. In addition, OPM worked extensively
    with all 26 PMA agencies to develop and implement HC Accountability
    systems that conform to OPM standards, including processes to ensure
    merit system compliance. In 2007, OPM will oversee operations of HC
    Accountability systems and provide technical assistance and direction to
    support these efforts. OPM will participate on approximately 180 agency-
    led audits.

    [[Page 1001]]

        Through technical assistance and outreach activities, HCLMSA
    accomplished in 2006: hiring makeovers at five agencies that
    significantly reduced the time required to fill vacancies; 39
    provisional and one full SES system certifications as well as senior
    level (SL) and senior technical (ST) system certifications; 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 900 SES career appointments. Moreover, HCLMSA cleared more
    than 300 SES noncareer and limited term appointment authorities, and 280
    requests for pay adjustment for SES noncareer appointees. In 2007, 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.

        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 2008 Budget includes funding to maintain timely processing of
    retirement claims, administer retirement insurance programs, and funding
    to continue efforts to 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.

        RSM will deliver more cost-efficient and timely retirement services
    and allow for agency life-cycle retirement counseling. This project will
    replace OPM's legacy information technology systems with modern
    technology, move from paper to electronic record keeping, and enhance
    core retirement business processes to meet the needs of active and
    retired federal employees by providing access to account information and
    planning tools.

        The Federal Employees Health Benefits Program (FEHB) 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. Through FEHB, 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. In 2006, OPM implemented 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.

        In 2006, OPM successfully achieved four ambitious strategic goals
    related to retirement claims processing and services. OPM sets ambitious
    targets for its annual performance measures which assess progress in
    achieving goals and determine whether OPM meets its objectives. Claims
    are currently being processed within 35 days on average, an improvement
    over the 98 days average claims processing times in 2005. In 2006, a
    backlog elimination project was undertaken and was a significant factor
    in achieving the improvements to claims processing times. In 2007, OPM
    will add new operational goals and targets that improve customer
    service. OPM expects to maintain these improvements in 2008.

        In 2006, RSM awarded three significant contracts to support this
    effort: one for automated pension calculation; another to transform
    business and information technology; and the third to capture and
    convert paper data. In 2007, the integrated solution will be built and
    tested.

        E-Gov Projects.--OPM manages the Human Resources Line of Business
    (HR LOB) initiative which is transforming and modernizing HR business
    processes and systems Government-wide. In addition to the previously
    selected five Federal Shared Service Centers, the HR LOB is selecting
    additional private Shared Service Centers to provide technology
    solutions to support Federal agencies Government-wide with HR management
    and administrative 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.

        Management Services.--Include: 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 2008, OPM will continue to support agency-wide performance
    reporting and independent evaluation of policies and programs.

        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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          65          46          44
    11.3      Other than full-time permanent           1           1           1
    11.5      Other personnel compensation..           6           4           4
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          72          51          49
    12.1    Civilian personnel benefits.....          17          13          13
    21.0    Travel and transportation of
              persons.......................           3           2           2
    23.1    Rental payments to GSA..........          11          11          11
    23.3    Communications, utilities, and
              miscellaneous charges.........           8           7           7
    24.0    Printing and reproduction.......           1
    25.2    Other services..................          61          25          20
    26.0    Supplies and materials..........           1           1
    31.0    Equipment.......................           4           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............         178         111         102
    99.0  Reimbursable obligations..........         152         100         112
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         330         211         214
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 24-0100-0-1-805      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................         832         836         789
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................         897         961         950
    ---------------------------------------------------------------------------

    [[Page 1002]]

                           Office of Inspector General

                              Salaries and Expenses

                       (including transfer of trust funds)

         For necessary expenses of the Office of Inspector General in
    carrying out the provisions of the Inspector General Act, as amended,
    including services as authorized by 5 U.S.C. 3109, hire of passenger
    motor vehicles, $1,519,000, and in addition, not to exceed $16,481,000
    for administrative expenses to audit, investigate, and provide other
    oversight of the Office of Personnel Management's retirement and
    insurance programs, to be transferred from the appropriate trust funds
    of the Office of Personnel Management, as determined by the Inspector
    General: Provided, That the Inspector General is authorized to rent
    conference rooms in the District of Columbia and elsewhere.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0400-0-1-805      2006 actual   2007 est.   2008 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
            Spending authority from
                offsetting collections:
    58.00     Offsetting collections (cash).          15          16          16
    58.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........           1
                                               ---------   ---------  ----------
    58.90     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..           1          -1          -1
    73.10 Total new obligations.............          18          18          18
    73.20 Total outlays (gross).............         -18         -18         -18
    73.40 Adjustments in expired accounts
            (net)...........................          -2
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -1
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          -1          -1          -1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          17          18          18
    86.93 Outlays from discretionary
            balances........................           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          18          18          18
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -16         -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..............           1
    ----------------------------------------------------------------------------

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

        This appropriation provides agency-wide audit, investigative,
    evaluation, inspection, and administrative sanction functions to
    identify program 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 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. The evaluations and
    inspections function conducts reviews of agency programs or functions.
    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 2006, these Inspector General activities resulted in positive
    financial impacts over $75 million, 54 arrests, 56 indictments, 46
    criminal convictions, and 1,003 administrative sanctions.

        In 2008, the Office of the Inspector General (OIG) will continue to
    develop its prescription drug audit program, which includes audits of
    pharmacy benefit managers. 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, OIG assists FEHB recover
    inappropriate expenses charged in previous years, negotiate more
    favorable contracts, and positively affect the future costs and benefits
    provided to program enrollees. OIG will also continue its FEHB data
    warehouse initiative. This project streamlines and enhances the various
    administrative and analytical procedures involved in overseeing FEHB.
    The purpose of the project is to capture data from experience-rated
    insurance carriers in a data warehouse of health care information.
    Software tools are available to support a variety of analytical
    procedures, including data mining, using the data in the warehouse. The
    data warehouse project has facilitated more efficient and effective
    oversight of FEHB by enhancing the ability of our auditors and
    investigators to identify improper payments.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0400-0-1-805      2006 actual   2007 est.   2008 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
    99.0  Reimbursable obligations..........          16          16          16
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          18          18          18
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 24-0400-0-1-805      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................          18          14          14
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................         100         113         109
    ---------------------------------------------------------------------------

           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,

    [[Page 1003]]

    and the Retired Federal Employees Health Benefits Act (74 Stat. 849), as
    amended, such sums as may be necessary.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0206-0-1-551      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Government contribution for
            annuitants benefits (1959 Act)..       8,358       8,613       9,154
    00.02 Government contribution for
            annuitants benefits (1960 Act)..           2           2           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 13.0)...................       8,360       8,615       9,155
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       8,360       8,615       9,155
    23.95 Total new obligations.............      -8,360      -8,615      -9,155
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................       8,360       8,615       9,155
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         826         847         861
    73.10 Total new obligations.............       8,360       8,615       9,155
    73.20 Total outlays (gross).............      -8,339      -8,601      -9,100
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         847         861         916
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................       7,513       7,754       8,239
    86.98 Outlays from mandatory balances...         826         847         861
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       8,339       8,601       9,100
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       8,360       8,615       9,155
    90.00 Outlays...........................       8,339       8,601       9,100
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2006 actual  2007 est.   2008 est.
    Enacted/requested:
      Budget Authority............          8,360          8,615           9,155
      Outlays.....................          8,339          8,601           9,100
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority............                                           -17
      Outlays.....................                                           -15

    Total:
      Budget Authority............          8,360          8,615           9,138
      Outlays.....................          8,339          8,601           9,085

        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 OPM in administration of the Act.

        The budget authority for this account recognizes the amounts being
    remitted by the U.S. Postal Service to finance a portion of its post-
    1971 annuitants' health benefit costs.

                                         2006 actual  2007 est.   2008 est.
    Annuitants:
      FEHB........................      1,854,684      1,886,000       1,912,500
      (USPS non-add)..............        450,089        458,581         470,000
      REHB........................          1,302          1,067             875
                                        ------------------------------------
      Total, annuitants...........      1,855,986      1,887,067       1,913,375
                                        ====================================

           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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Government contribution for
            annuitants benefits (1959 Act)..                                 -17
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 13.0)...................                                 -17
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 -17
    23.95 Total new obligations.............                                  17
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................                                 -17
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                 -17
    73.20 Total outlays (gross).............                                  15
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                                  -2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                                 -15
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 -17
    90.00 Outlays...........................                                 -15
    ---------------------------------------------------------------------------

            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.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0500-0-1-602      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct program activity...........          41          41          41
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.2)...................          41          41          41
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          41          41          41
    23.95 Total new obligations.............         -41         -41         -41
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................          41          41          41
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           4           6           5
    73.10 Total new obligations.............          41          41          41
    73.20 Total outlays (gross).............         -39         -42         -41
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           6           5           5
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          36          37          37
    86.98 Outlays from mandatory balances...           3           5           4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          39          42          41
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          41          41          41
    90.00 Outlays...........................          39          42          41
    ---------------------------------------------------------------------------

    [[Page 1004]]

        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.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-0200-0-1-805      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.02 Payment of Government share of
            retirement costs................      10,625      10,460      10,451
    00.03 Transfers for interest on unfunded
            liability and payment of
            military service annuities......      17,453      21,573      23,021
    00.05 Spouse equity payment.............          73          72          72
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      28,151      32,105      33,544
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......      28,151      32,105      33,544
    23.95 Total new obligations.............     -28,151     -32,105     -33,544
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................      17,453      21,573      23,021
    60.00   Appropriation...................      10,698      10,532      10,523
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................      28,151      32,105      33,544
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............      28,151      32,105      33,544
    73.20 Total outlays (gross).............     -28,151     -32,105     -33,544
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................      28,151      32,105      33,544
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      28,151      32,105      33,544
    90.00 Outlays...........................      28,151      32,105      33,544
    ---------------------------------------------------------------------------

        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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    12.1  Civilian personnel benefits.......      10,698      10,532      10,523
    13.0  Benefits for former personnel.....      17,453      21,573      23,021
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      28,151      32,105      33,544
    ---------------------------------------------------------------------------

             Postal Service Contribution for Retiree Health Benefits

              Special and Trust Fund Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-5391-0-2-551      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    01.00 Balance, start of year............                              31,358
                                               ---------   ---------  ----------
    01.99 Balance, start of year............                              31,358
        Receipts:
    02.00 Surplus contributions from Civil
            Service Retirement and
            Disability Fund, Postal Service
            retiree health benefits fund....                  23,000
    02.40 Earnings on investments, Postal
            Service retiree health benefits
            fund............................                               1,483
    02.41 Postal Service contributions for
            benefits paid to retirees,
            Postal Service retiree health
            benefits fund...................                   5,400       5,400
    02.42 Postal Service contributions from
            escrow account, Postal Service
            retiree health benefits fund....                   2,958
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..                  31,358       6,883
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...                  31,358      38,241
        Appropriations:
    05.00 Postal Service retiree health
            benefits fund...................                 -31,358     -38,241
    05.01 Postal Service retiree health
            benefits fund...................                  31,358      38,241
                                               ---------   ---------  ----------
    05.99   Total appropriations............
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............                  31,358      38,241
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-5391-0-2-551      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        New budget authority (gross), detail:
          Mandatory:

    60.20   Appropriation (special fund)....                  31,358      38,241
    60.45   Portion precluded from
              obligation....................                 -31,358     -38,241
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................
    ----------------------------------------------------------------------------

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

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...                              31,358
    92.02 Total investments, end of year:
            Federal securities: Par value...                  31,358      38,241
    ---------------------------------------------------------------------------

        The Postal Accountability and Enhancement Act (P.L. 109-435) created
    the Postal Service Retiree Health Benefits Fund to put the Postal
    Service on a path that fully funds its substantial retiree (annuitant)
    health benefits liabilities.

        This new account receives from the Postal Service: 1) 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 were
    held in escrow during 2006; 2) payments defined within P.L. 109-435 to
    begin the liquidation of the Postal Service's unfunded liability for
    post-retirement health benefits; and 3) beginning in 2017, payments for
    the actuarial cost of Postal Service contributions for the post-
    retirement health benefits for its current employees. The new account
    also receives the surplus resources of the Civil Service Retirement and
    Disability Fund that are not needed to finance future retirement
    benefits under the Civil Service Retirement System to current or former
    employees of the United States Postal Service that are attributable to
    civilian employment with the Postal Service.

        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 in 2017. Instead, these premium payments would be
    paid from amounts

    [[Page 1005]]

    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.

                                 Revolving Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-4571-0-4-805      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    09.01 Talent services...................         209         194         202
    09.02 Investigation services............         889         916         988
    09.03 Leadership capacity services......          89          90          92
    09.04 Enterprise human resources
            integration.....................          28          27          35
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,215       1,227       1,317
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         349         407         407
    22.00 New budget authority (gross)......       1,263       1,227       1,360
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          10
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,622       1,634       1,767
    23.95 Total new obligations.............      -1,215      -1,227      -1,317
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         407         407         450
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

            Spending authority from
                offsetting collections:
    58.00     Offsetting collections (cash).       1,021       1,227       1,360
    58.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........         242
                                               ---------   ---------  ----------
    58.90     Spending authority from
                offsetting collections
                (total discretionary).......       1,263       1,227       1,360
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..        -116        -112        -112
    73.10 Total new obligations.............       1,215       1,227       1,317
    73.20 Total outlays (gross).............        -959      -1,227      -1,360
    73.45 Recoveries of prior year
            obligations.....................         -10
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................        -242
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..        -112        -112        -155
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         959       1,227       1,360
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........      -1,021      -1,227      -1,360
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................        -242
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         -62
    ---------------------------------------------------------------------------

        OPM's Revolving Fund supports the President's Management Agenda by
    fully or partially funding three E-Government projects: E-Clearance; the
    Human Resources Line of Business; and Enterprise 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.

        The Center for Talent Services (CTS) delivers integrated, expert
    solutions to support Federal agencies Human Resources needs. Talent
    Services provides relevant, cost-effective products and services on a
    fee-for-service basis that span the employment life cycle from
    recruitment and selection through training and development. Examples of
    CTS's products and services include tailored recruitment and branding,
    nationwide testing services (including screening for the U.S. Armed
    Forces), employee competency assessments, workforce and succession
    planning, surveys of organizational culture and climate, strategies for
    change, and automated Human Resources tools such as USAJOBS and
    USAStaffing.

        The Federal Investigative Services Division (FISD) provides
    background investigative services to agencies on a fee basis. FISD
    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.

        Since the merger with the Department of Defense, Defense Security
    Service in early 2005, OPM has focused on developing policies and
    strategies to meet OPM strategic goals and goals set forth by the
    Intelligence Reform and Terrorism Prevention Act (IRTPA) of 2004. FISD
    has primarily focused on reducing the backlog of pending investigations
    while also improving the timeliness on completing investigations. FISD
    has initiated aggressive hiring and training to bolster the field
    investigator workforce as well as administrative support for reviewing
    and closing out investigations. An International Group has been
    established to coordinate and conduct overseas investigations for
    Department of Defense personnel. OPM recently entered into a memorandum
    of understanding with the Department of State to assist in conducting
    overseas investigations on military installations. This relationship
    will provide additional resources and increase the timeliness for
    completing these background investigations.

        OPM has also initiated a major review and update of the core
    technology components of the Investigations program. A modernization
    analysis has started on the Personnel Investigations Processing System
    (PIPS) which is the case management system used to process all
    background investigations. An imaging system continues to be piloted
    which will allow for the electronic delivery and storage of case papers.
    The e-QIP system continues to be deployed in federal agencies and
    provides agencies with the ability to remotely enter and transmit case
    papers when requesting a background investigation. Ultimately, these
    types of technical initiatives will improve the conducting of
    investigations and granting of clearances.

        OPM continues to 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 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.

        The Center for Leadership Capacity Services (CLCS) conducts
    residential and nonresidential programs for Federal executives and
    managers to improve the effectiveness and efficiency of Federal
    programs, and provides on-line training for employees at all levels.
    CLCS operates three leadership development centers serving government
    managers and executives

    [[Page 1006]]

    from GS-11 to SES. CLCS courses are designed to fit the long term career
    development path of emerging federal leaders. These open enrollment
    courses are accredited and can be applied to college level degree
    programs. In addition, CLCS offers custom-designed leadership programs
    for individual agencies and also for communities of professional
    interest. Moreover, CLCS develops and delivers leadership candidate
    development and succession planning programs, including the Presidential
    Management Fellows program, and consulting services for leading
    organizational change initiatives.

                                 WORKLOAD COUNT

                                         2006 actual  2007 est.   2008 est.
    Participant training days.....         88,284         98,371         102,225
    Background security
    investigations processed......        134,799        135,000         135,000
    National and special agency
    check and inquiry cases closed        976,780        750,000         750,000
    Special agreement checks
    closed........................        513,666        350,000         350,000

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-4571-0-4-805      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Reimbursable obligations:
          Personnel compensation:

    11.1    Full-time permanent.............         147         187         209
    11.5    Other personnel compensation....          26          22          24
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..         173         209         233
    12.1  Civilian personnel benefits.......          42          65          75
    13.0  Benefits for former personnel.....           1           1           1
    21.0  Travel and transportation of
            persons.........................          20          23          24
    22.0  Transportation of things..........           1           1           1
    23.1  Rental payments to GSA............          13          14          14
    23.3  Communications, utilities, and
            miscellaneous charges...........          25          26          26
    24.0  Printing and reproduction.........           2           3           3
    25.2  Other services....................         920         868         923
    26.0  Supplies and materials............           5           5           5
    31.0  Equipment.........................          13          12          12
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,215       1,227       1,317
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 24-4571-0-4-805      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................       2,493       3,016       3,010
    ---------------------------------------------------------------------------

                                   Trust Funds

                  Civil Service Retirement and Disability Fund

              Special and Trust Fund Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8135-0-7-602      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    01.00 Balance, start of year............     655,921     684,824     696,344
                                               ---------   ---------  ----------
    01.99 Balance, start of year............     655,921     684,824     696,344
        Receipts:
    02.00 Agency contributions, Civil
            service retirement and
            disability fund.................      13,819      14,072      15,714
    02.01 Agency contributions, Civil
            service retirement and
            disability fund--legislative
            proposal not subject to PAYGO...                                   2
    02.02 Postal Service agency
            contributions, Civil service
            retirement and disability fund..       4,168       3,382       3,596
    02.03 Postal Service supplemental
            contributions, Civil service
            retirement and disability fund..         261
    02.04 FFB, TVA, and USPS interest, Civil
            service retirement and
            disability fund.................         651         651         653
    02.05 Treasury interest, Civil service
            retirement and disability fund..      35,781      41,408      43,072
    02.06 General fund payment to the civil
            service retirement and
            disability fund.................      28,151      32,105      33,544
    02.07 Re-employed annuitants salary
            offset, Civil service retirement
            and disability fund.............          33          39          40
    02.60 Employee contributions, Civil
            service retirement and
            disability fund.................       3,715       4,010       3,908
    02.61 Employee contributions, Civil
            service retirement and
            disability fund--legislative
            proposal subject to PAYGO.......                                   1
    02.62 District of Columbia
            contributions, Civil service
            retirement and disability fund..          50          38          33
    02.63 Employee deposits, redeposits and
            other contributions, Civil
            service retirement and
            disability fund.................         535         636         665
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..      87,164      96,341     101,228
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...     743,085     781,165     797,572
        Appropriations:
    05.00 Civil service retirement and
            disability fund.................        -135         -91        -104
    05.01 Civil service retirement and
            disability fund.................           1
    05.02 Civil service retirement and
            disability fund.................     -87,032     -90,349     -94,514
    05.03 Civil service retirement and
            disability fund.................      28,905       5,619      30,134
    05.04 Civil service retirement and
            disability fund--legislative
            proposal not subject to PAYGO...                                  -2
    05.05 Civil service retirement and
            disability fund--legislative
            proposal not subject to PAYGO...                                   2
    05.06 Civil service retirement and
            disability fund--legislative
            proposal subject to PAYGO.......                                  -1
    05.07 Civil service retirement and
            disability fund--legislative
            proposal subject to PAYGO.......                                  -1
                                               ---------   ---------  ----------
    05.99   Total appropriations............     -58,261     -84,821     -64,486
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............     684,824     696,344     733,086
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8135-0-7-602      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Annuities.........................      57,809      61,428      64,073
    00.02 Refunds and death claims..........         318         302         307
    00.03 Administration--operations........         128          85          98
    00.04 Transfer to MSPB..................           3           3           3
    00.05 Administration--OIG...............           3           3           3
    00.06 Transfer to PSRHBF................                  23,000
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      58,261      84,821      64,484
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......      58,261      84,821      64,484
    23.95 Total new obligations.............     -58,261     -84,821     -64,484
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.26   Appropriation (trust fund)......         135          91         104
    40.37   Appropriation temporarily
              reduced.......................          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         134          91         104
          Mandatory:

    60.26   Appropriation (trust fund)......      87,032      90,349      94,514
    60.45   Portion precluded from balances.     -28,905      -5,619     -30,134
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................      58,127      84,730      64,380
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      58,261      84,821      64,484
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       4,850       5,128       5,411
    73.10 Total new obligations.............      58,261      84,821      64,484
    73.20 Total outlays (gross).............     -57,983     -84,538     -64,232
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       5,128       5,411       5,663
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         134          91         104
    86.97 Outlays from new mandatory
            authority.......................      52,999      79,338      58,766
    86.98 Outlays from mandatory balances...       4,850       5,109       5,362
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      57,983      84,538      64,232
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      58,261      84,821      64,484
    90.00 Outlays...........................      57,983      84,538      64,232
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...     660,750     689,936     699,232
    92.02 Total investments, end of year:
            Federal securities: Par value...     689,936     699,232     729,379
    ---------------------------------------------------------------------------

    [[Page 1007]]

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2006 actual  2007 est.   2008 est.
    Enacted/requested:
      Budget Authority............         58,261         84,821          64,484
      Outlays.....................         57,983         84,538          64,232
    Legislative proposal, subject to
        PAYGO:
      Budget Authority............                                             2
      Outlays.....................                                             2

    Total:
      Budget Authority............         58,261         84,821          64,486
      Outlays.....................         57,983         84,538          64,234

        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 OPM 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 would specifically include technical changes
    and clarification in the calculation of retirement annuities. These
    improvements would be focused on civil service retirees also receiving
    military disability retirement, individuals with part-time service
    retiring under CSRS, and the authorization for employees to contribute
    bonus pay to their TSP. The Budget also includes funding for a
    legislative proposal to transition from non-foreign cost of living
    allowances (COLA) to locality pay for employees working in non-foreign
    areas. This will result in increased retirement pay for affected
    employees when they retire, since locality pay is creditable for
    retirement. OPM will also continue working with the Department of the
    Treasury to submit legislation to revise an existing exception to the
    Right to Financial Privacy Act to allow OPM to trace and recover
    retirement payments sent electronically to the wrong account. The Budget
    also includes a proposal 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.

                                         2006 actual  2007 est.   2008 est.
    Active employees..............      2,668,000      2,668,000       2,668,000
    Annuitants:
      Employees...................      1,828,516      1,872,908       1,897,867
      Survivors...................        620,754        624,141         619,634
                                        ------------------------------------
          Total, annuitants.......      2,449,270      2,497,049       2,517,501
                                        ====================================

                      Status of Funds (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8135-0-7-602      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Unexpended balance, start of year:
    0100  Balance, start of year............     660,773     689,954     701,757
                                               ---------   ---------  ----------
    0199    Total balance, start of year....     660,773     689,954     701,757
        Cash income during the year:
          Current law:

            Receipts:
    1200      Agency contributions, Civil
                service retirement and
                disability fund.............      13,819      14,072      15,714
    1202      Postal Service agency
                contributions, Civil service
                retirement and disability
                fund........................       4,168       3,382       3,596
    1203      Postal Service supplemental
                contributions, Civil service
                retirement and disability
                fund........................         261
    1204      FFB, TVA, and USPS interest,
                Civil service retirement and
                disability fund.............         651         651         653
    1205      Treasury interest, Civil
                service retirement and
                disability fund.............      35,781      41,408      43,072
    1206      General fund payment to the
                civil service retirement and
                disability fund.............      28,151      32,105      33,544
    1207      Re-employed annuitants salary
                offset, Civil service
                retirement and disability
                fund........................          33          39          40
            Offsetting governmental
                receipts:
    1260      Employee contributions, Civil
                service retirement and
                disability fund.............       3,715       4,010       3,908
    1262      District of Columbia
                contributions, Civil service
                retirement and disability
                fund........................          50          38          33
    1263      Employee deposits, redeposits
                and other contributions,
                Civil service retirement and
                disability fund.............         535         636         665
    1299    Income under present law........      87,164      96,341     101,225
          Proposed legislation:

            Receipts:
    2201      Agency contributions, Civil
                service retirement and
                disability fund.............                                   2
            Offsetting governmental
                receipts:
    2261      Employee contributions, Civil
                service retirement and
                disability fund.............                                   1
    2299    Income under proposed
              legislation...................                                   3
                                               ---------   ---------  ----------
    3299    Total cash income...............      87,164      96,341     101,228
        Cash outgo during year:
          Current law:

    4500    Civil service retirement and
              disability fund...............     -57,983     -84,538     -64,232
    4599    Outgo under current law (-).....     -57,983     -84,538     -64,232
          Proposed legislation:

    5500    Civil service retirement and
              disability fund...............                                  -2
    5599    Outgo under proposed legislation
              (-)...........................                                  -2
                                               ---------   ---------  ----------
    6599    Total cash outgo (-)............     -57,983     -84,538     -64,234
        Unexpended balance, end of year:
    8700  Uninvested balance (net), end of
            year............................          18       2,525       9,371
    8701  Invested balance, end of year.....     689,936     699,232     729,379
    8701  Invested balance, end of year.....                                   2
    8701  Invested balance, end of year.....                                  -1
                                               ---------   ---------  ----------
    8799    Total balance, end of year......     689,954     701,757     738,751
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8135-0-7-602      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    25.2  Other services....................         134          91         104
    42.0  Insurance claims and indemnities..      57,809      61,428      64,073
    44.0  Refunds and death claims..........         318         302         307
    94.0  Financial transfers...............                  23,000
                                               ---------   ---------  ----------
    99.0    Direct obligations..............      58,261      84,821      64,484
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      58,261      84,821      64,484
    ---------------------------------------------------------------------------

                  Civil Service Retirement and Disability Fund

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8135-2-7-602      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......                                   2
    60.45   Portion precluded from balances.                                  -2
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................
    ----------------------------------------------------------------------------

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

        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...                                   2
    ---------------------------------------------------------------------------

    [[Page 1008]]

                   Civil Service Retirement and Disability Fund

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8135-4-7-602      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Annuities.........................                                   2
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 42.0)...................                                   2
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                   2
    23.95 Total new obligations.............                                  -2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......                                   1
    60.45   Portion precluded from balances.                                   1
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................                                   2
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                   2
    73.20 Total outlays (gross).............                                  -2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                                   2
    ----------------------------------------------------------------------------

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

        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...                                  -1
    ---------------------------------------------------------------------------

                          Employees Life Insurance Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-8424-0-8-602      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    09.01 Basic life insurance payments.....       1,232       1,356       1,427
    09.02 Optional life insurance payments..         921       1,008       1,068
    09.03 Shenandoah life insurance payments           3           3           3
    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)...................       2,158       2,369       2,500
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........      28,717      30,449      32,027
    22.00 New budget authority (gross)......       3,890       3,947       4,155
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      32,607      34,396      36,182
    23.95 Total new obligations.............      -2,158      -2,369      -2,500
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........      30,449      32,027      33,682
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

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

            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).       3,854       3,999       4,138
    69.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          35         -53          16
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........       3,889       3,946       4,154
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       3,890       3,947       4,155
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         334         335         255
    73.10 Total new obligations.............       2,158       2,369       2,500
    73.20 Total outlays (gross).............      -2,122      -2,502      -2,469
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -35          53         -16
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         335         255         270
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           1           1           1
    86.97 Outlays from new mandatory
            authority.......................       1,787       2,165       2,213
    86.98 Outlays from mandatory balances...         334         336         255
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       2,122       2,502       2,469
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Agency contributions..........        -437        -472        -479
    88.00     Government contributions for
                annuitants..................         -40         -41         -41
    88.20     Interest on Federal securities      -1,297      -1,346      -1,438
    88.40     Basic life insurance
                withholdings................        -791        -811        -830
    88.40     Optional life insurance
                withholdings & LTC
                reimbursement...............      -1,290      -1,330      -1,351
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................      -3,855      -4,000      -4,139
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -35          53         -16
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................      -1,733      -1,498      -1,670
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...      29,485      31,282      32,682
    92.02 Total investments, end of year:
            Federal securities: Par value...      31,282      32,682      34,351
    ---------------------------------------------------------------------------

        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 Administration proposes that 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:

                                         2006 actual  2007 est.   2008 est.
    Life insurance in force (in billions
        of dollars):
      On active employees.........          643.1          658.2           673.8
      On retired employees........           70.2           76.3            82.9
                                        ------------------------------------
          Total...................          713.3          734.5           756.7
                                        ====================================
    Number of participants (in
        thousands):
      Active employees............          2,395          2,395           2,395
      Annuitants..................          1,617          1,634           1,643
                                        ------------------------------------
          Total...................          4,012          4,029           4,038
                                        ====================================

        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          2006 actual  2007 est.   2008 est.
    Held in reserve (in millions of
        dollars):
      Contingency reserve.........            100            100             100
      Beneficial association
        program reserve...........              2              2               2
      U.S. Treasury reserve.......         30,449         32,028          33,683
                                        ------------------------------------
          Total reserves..........         30,551         32,130          33,785
                                        ====================================

    [[Page 1009]]

              Employees and Retired Employees Health Benefits Funds

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 24-9981-0-8-551      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    09.01 Benefit payments..................      30,989      33,002      36,296
    09.02 Payments from OPM contingency
            reserve.........................         162         250         250
    09.03 Government payment for annuitants
            (1960 Act)......................           2           1           1
    09.04 Administration--operations........          13          14          13
    09.05 Administration--OIG...............          12          12          13
    09.06 Administration--dental and vision
            program.........................           2           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.6)...................      31,180      33,280      36,574
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........      10,116      12,532      14,146
    22.00 New budget authority (gross)......      33,596      34,894      37,248
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      43,712      47,426      51,394
    23.95 Total new obligations.............     -31,180     -33,280     -36,574
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........      12,532      14,146      14,820
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    58.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          25          26          26
          Mandatory:

            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).      33,524      34,813      37,123
    69.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          47          55          99
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........      33,571      34,868      37,222
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      33,596      34,894      37,248
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       2,393       2,242       2,225
    73.10 Total new obligations.............      31,180      33,280      36,574
    73.20 Total outlays (gross).............     -31,284     -33,242     -36,436
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -47         -55         -99
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       2,242       2,225       2,264
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          25          26          26
    86.97 Outlays from new mandatory
            authority.......................      29,824      31,781      34,920
    86.98 Outlays from mandatory balances...       1,435       1,435       1,490
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      31,284      33,242      36,436
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Agency contributions..........      -9,143      -9,439     -10,094
    88.00     Postal Service for Active
                Employees...................      -4,761      -4,887      -5,157
    88.00     Postal Service for Annuitants.      -1,646      -1,801      -2,004
    88.00     Government contributions for
                annuitants..................      -8,339      -8,601      -9,100
    88.20     Interest on Federal securities        -577        -692        -731
    88.40     D.C. Government contributions
                & Dental/Vision
                reimbursement...............         -67         -68         -66
    88.40     Employee salary withholdings..      -4,755      -4,924      -5,276
    88.40     Annuity withholdings..........      -4,261      -4,427      -4,721
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................     -33,549     -34,839     -37,149
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -47         -55         -99
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................      -2,265      -1,597        -713
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...      12,533      14,825      16,378
    92.02 Total investments, end of year:
            Federal securities: Par value...      14,825      16,378      17,092
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2006 actual  2007 est.   2008 est.
    Enacted/requested:
      Budget Authority............
      Outlays.....................         -2,265         -1,597            -713
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority............
      Outlays.....................                                            42
    Legislative proposal, subject to
        PAYGO:
      Budget Authority............
      Outlays.....................                                           -38

    Total:
      Budget Authority............
      Outlays.....................         -2,265         -1,597            -709

        This display combines 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 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:

                                         2006 actual  2007 est.   2008 est.
    Active employees..............      2,169,470      2,159,000       2,157,000
    Annuitants....................      1,854,684      1,886,000       1,912,500
                                        ------------------------------------
        Total.....................      4,024,154      4,045,000       4,070,000
                                        ====================================

        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:

                                         2006 actual  2007 est.   2008 est.
    Uniform plan..................            371            304             249
    Private plans.................            931            763             626
                                        ------------------------------------
        Total.....................          1,302          1,067             875
                                        ====================================

        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.

         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 permit the programs Service Benefit Plan and
    Indemnity Benefit Plan to offer more

    [[Page 1010]]

    than two coverage options and from a proposal to reduce the amount of
    the Government contribution for new annuitants with fewer than 10 years
    of Federal service. These and other cost-neutral proposals will be
    transmitted separately. Finally, the Budget also proposes that the 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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Unexpended balance, start of year:
    0100  Balance, start of year............      12,511      14,776      16,373
                                               ---------   ---------  ----------
    0199    Total balance, start of year....      12,511      14,776      16,373
        Cash income during the year:
          Current law:

            Offsetting collections:
    1280      Employees and retired
                employees health benefits
                funds.......................       4,755       4,924       5,276
    1281      Employees and retired
                employees health benefits
                funds.......................       4,761       4,887       5,157
    1282      Employees and retired
                employees health benefits
                funds.......................       4,261       4,427       4,721
    1283      Employees and retired
                employees health benefits
                funds.......................       1,646       1,801       2,004
    1284      Employees and retired
                employees health benefits
                funds.......................       8,339       8,601       9,100
    1285      Employees and retired
                employees health benefits
                funds.......................       9,143       9,439      10,094
    1286      Employees and retired
                employees health benefits
                funds.......................         577         692         731
    1287      Employees and retired
                employees health benefits
                funds.......................          67          68          66
    1299    Income under present law........      33,549      34,839      37,149
          Proposed legislation:

            Offsetting collections:
    2280      Employees and retired
                employees health benefits
                funds.......................                                 -15
    2281      Employees and retired
                employees health benefits
                funds.......................                                  -7
    2282      Employees and retired
                employees health benefits
                funds.......................                                  -4
    2283      Employees and retired
                employees health benefits
                funds.......................                                 -16
    2284      Employees and retired
                employees health benefits
                funds.......................                                 -19
    2285      Employees and retired
                employees health benefits
                funds.......................                                 -18
    2299    Income under proposed
              legislation...................                                 -79
                                               ---------   ---------  ----------
    3299    Total cash income...............      33,549      34,839      37,070
        Cash outgo during year:
          Current law:

    4500    Employees and retired employees
              health benefits funds.........     -31,284     -33,242     -36,436
    4599    Outgo under current law (-).....     -31,284     -33,242     -36,436
          Proposed legislation:

    5500    Employees and retired employees
              health benefits funds.........                                  75
    5599    Outgo under proposed legislation
              (-)...........................                                  75
                                               ---------   ---------  ----------
    6599    Total cash outgo (-)............     -31,284     -33,242     -36,361
        Unexpended balance, end of year:
    8700  Uninvested balance (net), end of
            year............................         -49          -5          -5
    8701  Employees and retired employees
            health benefits funds...........      14,825      16,378      17,092
    8701  Invested balance, end of year.....                                  -5
                                               ---------   ---------  ----------
    8799    Total balance, end of year......      14,776      16,373      17,082
    ---------------------------------------------------------------------------

              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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 -45
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........                                 -45
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).                                 -42
    69.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........                                  -3
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........                                 -45
    ----------------------------------------------------------------------------

        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.                                   4
    88.00     Government contributions for
                annuitants..................                                  16
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................                                  42
          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...........................                                  42
    ----------------------------------------------------------------------------

        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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    09.01 Benefit payments..................                                 -81
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.6)...................                                 -81
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 -37
    23.95 Total new obligations.............                                  81
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........                                  44
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).                                 -37
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                 -81
    73.20 Total outlays (gross).............                                  75
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                                  -6
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                                 -75
    ----------------------------------------------------------------------------

        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..........                                  18
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................                                  37
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................

    [[Page 1011]]

    90.00 Outlays...........................                                 -38
    ----------------------------------------------------------------------------

        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...                                  -5
    ---------------------------------------------------------------------------

                          GENERAL FUND RECEIPT ACCOUNT

                               (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    Offsetting receipts from the public:
      24-322000  All other general fund
        proprietary receipts including
        budget clearing accounts: Enacted/
        requested...........................          -3           2           2
                                               ---------   ---------  ----------
    General Fund Offsetting receipts from
     the public.............................          -3           2           2
    ---------------------------------------------------------------------------