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