Full text of Budget of the United States Government - Appendix : Fiscal Year 2004 : Office of Personnel Management

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OFFICE OF PERSONNEL MANAGEMENT
24.40

Federal Funds
General and special funds:
SALARIES
(INCLUDING

AND

EXPENSES

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,
$118,748,000, of which $2,000,000 shall remain available until expended for the cost of the enterprise human resources integration
project, $2,500,000 shall remain available until expended for the cost
of leading the government-wide initiative to modernize federal payroll
systems and service delivery, and $2,500,000 shall remain available
through September 30, 2005 to coordinate and conduct program evaluation and performance measurement; and in addition $135,914,000
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 $36,700,000 shall
remain available until expended for the cost of automating the retirement recordkeeping systems: Provided, That the provisions of this
appropriation shall not affect the authority to use applicable trust
funds as provided by sections 8348(a)(1)(B) and 9004(f)(1)(A), and
(2)(A) 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 2004,
accept donations of money, property, and personal services in connection with the development of a publicity brochure 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 2003 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. 107–229, as amended). The amounts included for 2003 in this budget reflect the
Administration’s 2003 policy proposals.

Program and Financing (in millions of dollars)
2002 actual

Identification code 24–0100–0–1–805

2003 est.

2004 est.

Obligations by program activity:
HR program development ..............................................
Agency merit systems accountability and human capital .............................................................................
00.03 HR products and services .............................................
00.04 Management services ....................................................
00.05 Executive services ..........................................................
09.01 Reimbursable program ..................................................

30
114
46
10
3

39
142
54
10
24

41
143
62
10
24

10.00

Total new obligations ................................................

236

317

311

21.40
22.00

Budgetary resources available for obligation:
Unobligated balance carried forward, start of year
New budget authority (gross) ........................................

7
263

7 ...................
317
311

23.90
23.95
23.98

Total budgetary resources available for obligation
Total new obligations ....................................................
Unobligated balance expiring or withdrawn .................

270
¥236
¥27

324
311
¥317
¥311
¥7 ...................

00.01
00.02

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Unobligated balance carried forward, end of year .......

7 ................... ...................

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation .............................................................
68.00 Spending authority from offsetting collections: Offsetting collections (cash) ..............................................

129

119

164

188

192

70.00

Total new budget authority (gross) ..........................

263

317

311

72.40
73.10
73.20
74.40

Change in obligated balances:
Obligated balance, start of year ...................................
Total new obligations ....................................................
Total outlays (gross) ......................................................
Obligated balance, end of year .....................................

18
236
¥231
22

22
317
¥316
23

23
311
¥311
22

86.90
86.93

Outlays (gross), detail:
Outlays from new discretionary authority .....................
231
Outlays from discretionary balances ............................. ...................

300
16

296
15

87.00

Total outlays (gross) .................................................

231

316

311

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

¥164

¥188

¥192

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

99
68

129
128

119
119

89.00
90.00

99.00
99.01

Additional net budget authority and outlays to cover cost of fully accruing retirement:
Budget authority ............................................................
5
5
Outlays ...........................................................................
5
5

6
6

The Office of Personnel Management (OPM) has responded
to President George W. Bush’s charge to assume greater responsibility for the strategic management of human capital
government-wide by crafting a new Strategic Plan.
This plan holds OPM accountable for Federal agencies
adopting human resources management systems that use effective merit-based human capital strategies that, in turn,
improve their ability to build and maintain successful, high
performance organizations, with a rewarding work environment, that help agencies to accomplish their missions and
goals.
To better meet these responsibilities, OPM is undertaking
in FY 2003 a major restructuring that will align its efforts
to the goals in the Strategic Plan. This restructuring will
eliminate stovepipes and significantly reduce the number of
offices, resulting in a delayered agency better able to serve
its customers. FY 2004 will be the first full year OPM will
be operating in its new structure. Concurrently, with the
adoption of the new goals of the Strategic Plan and restructuring, OPM will develop a more robust performance evaluation program in FY 2003 to be deployed in FY 2004.
The functions and objectives of the restructured OPM are:
Human Resources Program Development (HRPD).—This
new organization will develop policies and programs in an
integrated manner. HRPD will: (1) Develop policies that support agencies efforts to develop and maintain the capacity
of their workforce to continue to meet and improve their
strategic performance targets; (2) Support the establishment
of the Department of Homeland Security (DHS) by developing
policies and regulations consistent with the DHS bill; (3) Provide the Federal Government with a modern compensation
system that is performance-oriented, market-sensitive, and assists Federal agencies in meeting their strategic goals; and
(4) Increase the effectiveness and efficiency of the Federal
hiring process and make Federal employment attractive to
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OPM

971

972

THE BUDGET FOR FISCAL YEAR 2004

Federal Funds—Continued

General and special funds—Continued
SALARIES
(INCLUDING

AND

EXPENSES—Continued

TRANSFER OF TRUST FUNDS)—Continued

high-quality applicants of diverse backgrounds. This function
also includes two of 24 Government-wide e-Government
projects: the e-Payroll project, which reduces the number of
payroll providers from 22 to 4 resulting in planned savings
of at least $1.2 billion over the next 10 years, and the Enterprise Human Resources Integration project, which will develop and establish a repository for electronic employee
records to enable electronic transfer of data between agencies.
Program performance.—OPM will continue to survey the
Senior Executive Service (SES), Human Resources Directors,
Human Resources Specialists, and the general workforce to
assess and address the impact of policies affecting recruitment, performance, retention, human resource development
programs, and their satisfaction with them. The 2001 HR
Directors’ Customer Satisfaction Survey showed that the percentage of Human Resources Directors who were satisfied
with OPM’s policy leadership were as follows; 91 percent in
pay and leave administration, 80 percent in performance management, 82 percent in position classification and position
management, and 74 percent in the Federal Wage System.
OPM will deploy in FY 2004 a new evaluation strategy that
will assess the value and impact of OPM programs. This
strategy will measure effectiveness of OPM programs in how
they help agencies strategically improve their human capital
practices in support of their missions. Deployment will result
in the establishment of baselines and improvement targets
for FY 2004 accomplishments.
Agency Merit Systems Accountability and Human Capital
Programs.—OPM established this organization to create agency-focused teams to explore, promote and help agencies adopt
the best human capital practices that generate results and
meet agencies’ unique needs. This organization will: (1) Ensure that agencies implement flexible and customized human
capital practices that will attract and retain a diverse, high
quality, well motivated workforce that is able to tackle the
complex issues of today and tomorrow; (2) Provide advice
to agencies and promote best practices on solutions, actions
and strategies to meet both their immediate and long term
human capital management needs; (3) Monitor and assess
Federal agencies’ effectiveness in implementing merit-based
human capital strategies that support their missions; (4)
Work with agencies and constituent groups to improve the
Senior Executive Service hiring process and address other
leadership issues; and (5) Provide advice and assistance in
establishing the Department of Homeland Security and ensure that human capital needs for the homeland security
community are met. In FY 2002 and FY 2003, OPM took
a lead role in establishing the human resource systems of
the Department. For the remainder of FY 2003 and throughout FY 2004, OPM will lead in establishing the human capital
practices that will help give the 170,000 employees the skills,
tools and motivation to achieve the new Department’s mission, goals and objectives.
Program performance.—OPM will develop an index that will
allow an assessment of merit systems and human capital
practices across Federal agencies as well as how those human
capital practices help agencies better fulfill their missions,
thereby establishing a link between human capital strategies
and the results Americans expect from the Federal Government. In addition, OPM will track Government-wide data and
trends through centralized data sources such as the Central
Personnel Data File (CPDF), the Government-wide Survey
(GWS) and other appropriate metrics to assess human capital
progress and help agencies improve. In support of the President’s Management Agenda, the GWS provides a
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eral employees, who work in 27 member agencies of the President’s Management Council, about agency human capital
management practices. The 2002 GWS provided baseline data
that can be used to measure and help understand changes
in survey results over time.
HR Products and Services.—Under this new organization,
OPM has consolidated functions and activities that: (1) Provide cost-effective, relevant and useful human capital products
and services to agencies; (2) Make the transition from active
employment to retirement seamless and expeditious, facilitating retirement income security for Federal employees; and
(3) Give Federal employees, annuitants and their families
choices of quality and fiscally responsible carriers for addressing their specific insurance needs.
Products and services include security and suitability personnel investigations, support to the department of Justice
for the Voting Rights program, automated employment information needed to recruit and hire the federal workforce, and
administration of earned employee benefits—the retirement
and insurance programs—for federal employees, retirees, and
their families.
Program performance.—OPM establishes annual performance goals and objectives designed to achieve long-term strategic goals. Customer service is measured through OPM’s
Customer Satisfaction Survey, surveys of attendees at conferences, workshops, and/or seminars, and feedback from
users of the OPM website and email. Progress is monitored
through program performance indicators and output measures.
The Retirement Systems Modernization (RSM) project is
OPM’s central strategy for meeting its long term retirement
program customer service, financial management, business
process, and workforce performance goals. OPM is moving
from a paper-based record keeping system to program-wide
electronic data and transactions. The on-going project is being
implemented in phases, reaching full capability in 2010.
During FY 2003, RSM will begin a large-scale data effort
to convert masses of hardcopy paper records for current employees to electronic data that will be available to program
administrators via the Internet, and will automatically populate OPM’s retirement benefits calculator and coverage determination tools. Additionally, OPM will begin providing webenabled member self-service to facilitate electronic filing of
benefits applications. Outcomes include faster, cheaper and
more accurate claims processing, increased customer satisfaction and a significant decrease in the amount of space needed
to house paper records, reducing storage costs.
In FY 2004, OPM will begin receiving recurring employee
data from agencies through the Enterprise Human Resource
(HR) Integration project, an OPM-led e-Government initiative,
which will minimize the HR data that agencies must send
to OPM. Other planned work packages will improve retirement benefits counseling, make claims processing real-time
for a significant number of retiring federal employees, and
reduce the manual data entry required for claims processing.
On average, OPM processes 170,000 Civil Service and Federal Employees’ Retirement System (CSRS and FERS) annuity and survivor claims annually. Since FY 2000, the processing time for interim annuity payments has been reduced
from five days to two days, and, in FY 2002, more than
56 percent of interim payments were authorized within one
day. As OPM leveraged technology investments to increase
its claims processing capacity and efficiency, FERS claims
processing times dropped from 185 days in FY 2000 to 70
days in FY 2002, while customer satisfaction about the timeliness of the first annuity payment has remained at or near
80 percent since FY 1997.
OPM’s continuing focus is to develop a comprehensive and
competitive benefits package for the Federal workforce that
offers choices comparable to the private sector, and which
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OPM

OFFICE OF PERSONNEL MANAGEMENT

supports our human capital efforts to recruit and retain an
effective workforce. To mitigate the effects of rising health
insurance premiums, OPM implemented premium conversion
in FY 2001, which allows Federal employees to deduct their
share of health insurance premiums from their taxable income, thereby reducing their taxes and making health coverage more affordable. In addition, OPM is implementing a
Flexible Spending Account (FSA) program. These accounts
allow employees to set aside a part of their salary by pretax withholdings and use the pretax dollars to pay for some
medical, dental, vision and dependent-care expenses. FSAs
are scheduled to be available to Federal employees beginning
July 1, 2003.
The Administration will work with stakeholders to better
coordinate the Medicare and Federal Employees Health Benefits programs and look to the practices of the private sector
to ensure high quality, cost-conscious choices for retirees.
These important programs jointly finance health insurance
for about 2.1 million Federal retirees and their dependents.
Management Services.—Includes: OPM human resources,
equal employment opportunity, security, facilities, telecommunications, publishing, acquisitions, information resources management, and financial management to support
all of OPM’s goals. As mentioned previously, this organization
will include the new evaluation function that will facilitate
the deployment of a new evaluation strategy in FY 2004.
It is being developed and piloted during FY 2003 to assess
the use and impact of OPM programs and create an index
that will allow an assessment of merit systems and human
capital practices across Federal agencies. This organization
will also coordinate strategic planning and program performance reporting across the agency.
Executive Services.—Includes: executive direction, legal advice and representation, public affairs, legislative activities,
and the operating expenses of the President’s Commission
on White House Fellows.
Reimbursable Programs.—OPM provides administrative, information resources management, and executive services to
other OPM accounts on a reimbursable basis. OPM also performs a small amount of reimbursable work under the Economy Act at the request of other agencies.
Object Classification (in millions of dollars)
2002 actual

Identification code 24–0100–0–1–805

11.1
11.3
11.5

Direct obligations:
Personnel compensation:
Full-time permanent .............................................
Other than full-time permanent ...........................
Other personnel compensation .............................

2003 est.

2004 est.

109
5
4

111
5
4

117
7
4

118
27
3
17

120
28
3
17

128
30
3
17

24.0
25.2
26.0
31.0

Total personnel compensation .........................
Civilian personnel benefits .......................................
Travel and transportation of persons .......................
Rental payments to GSA ...........................................
Communications, utilities, and miscellaneous
charges .................................................................
Printing and reproduction .........................................
Other services ............................................................
Supplies and materials .............................................
Equipment .................................................................

10
2
48
3
5

11
2
104
3
5

10
2
89
3
5

99.0
99.0

Direct obligations ..................................................
Reimbursable obligations ..............................................

233
3

293
24

287
24

11.9
12.1
21.0
23.1
23.3

973

Federal Funds—Continued

2001

Reimbursable:
Total compensable workyears: Civilian full-time equivalent employment ......................................................

141

HUMAN CAPITAL PERFORMANCE FUND
(Legislative proposal, not subject to PAYGO)
For the Human Capital Performance Fund established under section
639 of this Act, $500,000,000: Provided, That such amounts as are
determined by the Director of the Office of Personnel Management
may be transferred to Federal agencies to carry out the purposes
of this Fund.
Program and Financing (in millions of dollars)
2002 actual

Identification code 24–0700–2–1–805

2003 est.

2004 est.

00.01

Obligations by program activity:
Human capital performance fund ................................. ................... ...................

500

10.00

Total new obligations (object class 11.1) ................ ................... ...................

500

22.00
23.95

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

500
¥500

New budget authority (gross), detail:
Discretionary:
40.00
Appropriation ............................................................. ................... ...................

500

73.10
73.20

Change in obligated balances:
Total new obligations .................................................... ................... ...................
Total outlays (gross) ...................................................... ................... ...................

500
¥500

86.90

Outlays (gross), detail:
Outlays from new discretionary authority ..................... ................... ...................

500

89.00
90.00

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

500
500

The Human Capital Performance Fund is designed to create
performance-driven pay systems for employees and reinforce
the value of employee performance management systems. The
Administration proposes providing additional pay over and
above any annual, across-the-board pay raise to certain civilian employees based on individual or organizational performance and/or other critical agency human capital needs. Ninety
percent of funds appropriated would be distributed to agencies
on a pro rata basis, upon OPM approval of an agency’s plan.
The remainder, and any amount withheld from agencies due
to inadequate plans, would be allocated at the discretion of
OPM.
The current GS system would remain unchanged; individual
employees would remain at their existing GS levels and on
schedule for all routine pay raises such as a within-grade
increase. Any pay increase received from the Fund would
be treated as increases to base pay for retirement and other
purposes and would stay with an employee throughout his/
her career.
The Administration plans to transmit a detailed legislative
proposal to Congress in the near future.
f

OFFICE

INSPECTOR GENERAL

SALARIES AND EXPENSES

99.9

Total new obligations ................................................

236

317

311

Personnel Summary
2002 actual

Identification code 24–0100–0–1–805

Direct:
1001 Total compensable workyears: Civilian full-time equivalent employment ......................................................
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2003 est.

2004 est.

2,032

2,087

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(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, $1,498,000; and in addition, not to exceed $14,427,000 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
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OPM

974

THE BUDGET FOR FISCAL YEAR 2004

Federal Funds—Continued

General and special funds—Continued
OFFICE

INSPECTOR GENERAL—Continued

SALARIES AND EXPENSES—Continued

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 2003 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. 107–229, as amended). The amounts included for 2003 in this budget reflect the
Administration’s 2003 policy proposals.

Program and Financing (in millions of dollars)
2002 actual

Identification code 24–0400–0–1–805

2004 est.

10.00

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

11
¥11

12
¥12

16
¥16

70.00

Change in obligated balances:
Obligated balance, start of year ...................................
¥5
¥3 ...................
Total new obligations ....................................................
11
12
16
Total outlays (gross) ......................................................
¥11
¥12
¥16
Change in uncollected customer payments from Federal sources (expired) ................................................ ...................
3 ...................
74.40 Obligated balance, end of year .....................................
¥3 ................... ...................
72.40
73.10
73.20
74.10

Outlays (gross), detail:
Outlays from new discretionary authority .....................

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

¥10

¥11

¥15

Net budget authority and outlays:
Budget authority ............................................................
1
Outlays ........................................................................... ...................

1
1

86.90

89.00
90.00

Additional net budget authority and outlays to cover cost of fully accruing retirement:
99.00 Budget authority ............................................................
1
1
99.01 Outlays ...........................................................................
1
1

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2003 est.

2004 est.

11.1
12.1
23.1
25.2

6
2
1
1

7
2
1
1

9
4
1
1

99.0
99.5

Direct obligations ..................................................
Below reporting threshold ..............................................

10
1

11
1

15
1

99.9

Total new obligations ................................................

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2002 actual

Identification code 24–0400–0–1–805

Direct:
1001 Total compensable workyears: Civilian full-time equivalent employment ......................................................
89
Reimbursable:
2001 Total compensable workyears: Civilian full-time equivalent employment ...................................................... ...................

1
1

Fmt 3616

2003 est.

2004 est.

102

125

GOVERNMENT PAYMENT

ANNUITANTS, EMPLOYEES HEALTH
BENEFITS

FOR

For payment of Government contributions with respect to retired
employees, as authorized by chapter 89 of title 5, United States Code,
and the Retired Federal Employees Health Benefits Act (74 Stat. 849),
as amended, such sums as may be necessary.
Note.—A regular 2003 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. 107–229, as amended). The amounts included for 2003 in this budget reflect the
Administration’s 2003 policy proposals.

Program and Financing (in millions of dollars)
2002 actual

Identification code 24–0206–0–1–551

This appropriation provides agency-wide audit, investigative, evaluation, inspection, and administrative sanction functions to identify management and administrative deficiencies
that may create conditions for fraud, waste, and mismanagement. The audits function provides internal agency audit,
insurance audit, contract audit, and information systems
audit services. Contract audits provide professional advice to
agency contracting officials on accounting and financial matters regarding the negotiation, award, administration, repricing, and settlement of contracts. Internal agency audits review and evaluate all facets of agency operations, including
financial statements. Insurance audits review the operations
of health and life insurance carriers, health care providers,
and insurance subscribers. Information systems audits review
both general controls and application controls for the agency’s
systems and programs. The investigative function provides
for the detection and investigation of improper and illegal
activities involving programs, personnel, and operations. Administrative sanctions debar from participation in the health
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.
VerDate Dec 13 2002

2002 actual

Direct obligations:
Personnel compensation: Full-time permanent ........
Civilian personnel benefits .......................................
Rental payments to GSA ...........................................
Other services ............................................................

Personnel Summary

Object Classification (in millions of dollars)
Identification code 24–0400–0–1–805

2003 est.

Obligations by program activity:
00.01 Direct program activity ..................................................
Total new obligations ................................................

These Inspector General activities resulted in positive financial impacts of approximately $116 million, 24 criminal convictions, and 3,827 administrative sanctions in 2002.
Additional resources in 2004 will finance more audit staff,
special agent criminal investigators, associated analytical
staff, and improved information systems. OPM expects to reduce the audit cycle from 5 years to 3.6 years for communityrelated carriers. Recoveries are expected to increase by $16
million annually as a result.

2003 est.

2004 est.

Obligations by program activity:
Government contribution for annuitants benefits (1959
Act) ............................................................................
00.02 Government contribution for annuitants benefits (1960
Act) ............................................................................

6,069

6,754

7,454

10.00

Total new obligations (object class 13.0) ................

6,071

6,756

7,456

22.00
23.95

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

6,071
¥6,071

6,756
¥6,756

7,456
¥7,456

New budget authority (gross), detail:
Mandatory:
60.00
Appropriation .............................................................

6,071

6,756

7,456

72.40
73.10
73.20
74.40

550
6,071
¥6,015
606

606
6,756
¥6,707
654

654
7,456
¥7,414
695

86.97
86.98

Outlays (gross), detail:
Outlays from new mandatory authority .........................
Outlays from mandatory balances ................................

5,465
550

6,101
606

6,760
654

87.00

Total outlays (gross) .................................................

6,015

6,707

7,414

89.00

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

6,071

6,756

7,456

00.01

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OPM

OFFICE OF PERSONNEL MANAGEMENT
90.00

Outlays ...........................................................................

Federal Funds—Continued

6,016

6,707

7,414

This appropriation covers: (1) the Government’s share of
the cost of health insurance for annuitants as defined in
sections 8901 and 8906 of title 5, United States Code; (2)
the Government’s share of the cost of health insurance for
annuitants (who were retired when the Federal employees
health benefits law became effective), as defined in the Retired Federal Employees Health Benefits Act of 1960; and
(3) the Government’s contribution for payment of administrative expenses incurred by the Office of Personnel Management
in administration of the Act.
The budget authority for this account recognizes the
amounts being remitted by the U.S. Postal Service (USPS)
to finance a portion of its post-1971 annuitants’ health benefit
costs.
2002 actual

2003 est.

2004 est.

Annuitants:
FEHB ........................................................................................
(USPS non-add) ..................................................................
REHB .......................................................................................

1,857,014
427,000
2,877

1,871,000
427,000
2,388

1,910,000
426,000
1,982

Total, annuitants ...........................................................

1,859,891

1,873,388

1,911,982

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 2003 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. 107–229, as amended). The amounts included for 2003 in this budget reflect the
Administration’s 2003 policy proposals.

Program and Financing (in millions of dollars)
2002 actual

Identification code 24–0500–0–1–602

2003 est.

10.00

Total new obligations (object class 25.2) ................

22.00
23.95

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

33
¥33

34
¥34

35
¥35

72.40
73.10
73.20
74.40

3
33
¥33
4

4
34
¥34
4

4
35
¥35
4

86.97
86.98

Outlays (gross), detail:
Outlays from new mandatory authority .........................
Outlays from mandatory balances ................................

31
3

32
3

87.00

Total outlays (gross) .................................................

89.00
90.00

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

33
33

34
34

35
35

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.
Jkt 193833

CIVIL SERVICE RETIREMENT

AND

DISABILITY FUND

Note.—A regular 2003 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. 107–229, as amended). The amounts included for 2003 in this budget reflect the
Administration’s 2003 policy proposals.

Program and Financing (in millions of dollars)
2002 actual

Identification code 24–0200–0–1–805

2003 est.

2004 est.

Obligations by program activity:
Payment of Government share of retirement costs
Transfers for interest on unfunded liability and payment of military service annuities ............................
00.05 Spouse equity payment ..................................................

9,615

9,715

9,915

12,426
67

12,700
69

12,800
72

10.00

Total new obligations ................................................

22,108

22,484

22,787

22.00
23.95

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

22,108
¥22,108

22,484
¥22,484

22,787
¥22,787

New budget authority (gross), detail:
Mandatory:
Appropriation:
60.00
Appropriation .........................................................
60.00
Appropriation .........................................................

12,426
9,682

12,700
9,784

12,800
9,987

62.50

Appropriation (total mandatory) ...........................

22,108

22,484

22,787

73.10
73.20

Change in obligated balances:
Total new obligations ....................................................
Total outlays (gross) ......................................................

22,108
¥22,108

22,484
¥22,484

22,787
¥22,787

86.97

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

22,108

22,484

22,787

89.00
90.00

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

22,108
22,108

22,484
22,484

22,787
22,787

00.02
00.03

Summary of Budget Authority and Outlays
(in millions of dollars)

New budget authority (gross), detail:
Mandatory:
60.00
Appropriation .............................................................

16:34 Jan 23, 2003

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.

2004 est.

Obligations by program activity:
00.01 Direct program activity ..................................................

VerDate Dec 13 2002

PAYMENT

975

PO 00000

Frm 00005

Fmt 3616

Enacted/requested:
2002 actual
Budget Authority .....................................................................
22,108
Outlays ....................................................................................
22,108
Legislative proposal, not subject to PAYGO:
Budget Authority ..................................................................... ....................
Outlays .................................................................................... ....................
Total:
Budget Authority .....................................................................
Outlays ....................................................................................

22,108
22,108

2003 est.

2004 est.

22,484
22,484

22,787
22,787

2,059
2,059

2,085
2,085

24,543
24,543

24,872
24,872

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.
Sfmt 3616

E:\BUDGET\OPM.XXX

OPM

976

THE BUDGET FOR FISCAL YEAR 2004

Federal Funds—Continued

General and special funds—Continued
PAYMENT

CIVIL SERVICE RETIREMENT
Continued

AND

DISABILITY FUND—

Object Classification (in millions of dollars)
2002 actual

Identification code 24–0200–0–1–805

2003 est.

2004 est.

12.1
13.0

Civilian personnel benefits ............................................
Benefits for former personnel ........................................

9,682
12,426

9,784
12,700

9,987
12,800

99.9

Total new obligations ................................................

22,108

22,484

22,787

PAYMENT

CIVIL SERVICE RETIREMENT

AND

2003 est.

86.90
2,059

2,085

10.00

Total new obligations (object class 13.0) ................ ...................

2,059

2,085

22.00
23.95

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

2,059
¥2,059

2,085
¥2,085

2,059

Change in obligated balances:
73.10 Total new obligations .................................................... ...................
73.20 Total outlays (gross) ...................................................... ...................

2,059
¥2,059

2,085

2,085
¥2,085

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

2,059

2,085

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

2,059
2,059

2,085
2,085

The budget includes a legislative proposal that corrects for
an anticipated USPS overfunding of Civil Service Retirement
System (CSRS) retirement benefits. This anticipated overfunding is due to a number of factors, including higher than
expected past pension investment yields and overly prescriptive and inflexible statutory language. While the legislative
proposal would reduce USPS payments to the Retirement
Fund, it ensures that USPS meets its pension obligations
so that no employee or retiree would lose any benefits. The
proposal is consistent with the structure and financing of
the Federal Employees’ Retirement System as well as the
Administration’s legislative proposal to fully fund the CSRS
liabilities for non-USPS employees and retirees.
f

Intragovernmental funds:
REVOLVING FUND
Program and Financing (in millions of dollars)
2002 actual

2003 est.

2004 est.

09.01
09.02
09.03

Obligations by program activity:
Government services ......................................................
Investigations .................................................................
Training and development .............................................

86
447
33

86
629
35

90
678
35

10.00

Total new obligations ................................................

566

750

803

21.40
22.00

Budgetary resources available for obligation:
Unobligated balance carried forward, start of year
New budget authority (gross) ........................................

161
516

110
750

110
803

Frm 00006

Fmt 3616

VerDate Dec 13 2002

16:34 Jan 23, 2003

Jkt 193833

PO 00000

Spending authority from offsetting collections
(total discretionary) .....................................

Outlays (gross), detail:
Outlays from new discretionary authority .....................

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources
Against gross budget authority only:
88.95
Change in uncollected customer payments from
Federal sources (unexpired) ..................................

89.00
90.00

New budget authority (gross), detail:
Mandatory:
60.00
Appropriation ............................................................. ...................

Identification code 24–4571–0–4–805

68.90

677
¥566
110

860
¥750
110

913
¥803
110

563

750

803

¥47 ................... ...................
516

750

803

¥126
566
¥460

26
750
¥750

26
803
¥803

47 ................... ...................
26
26
26

2004 est.

Obligations by program activity:
00.03 Transfers for interest on unfunded liability and payment of military service annuities ............................ ...................

89.00
90.00

New budget authority (gross), detail:
Spending authority from offsetting collections:
Discretionary:
68.00
Offsetting collections (cash) ................................
68.10
Change in uncollected customer payments from
Federal sources (unexpired) .............................

Change in obligated balances:
Obligated balance, start of year ...................................
Total new obligations ....................................................
Total outlays (gross) ......................................................
Change in uncollected customer payments from Federal sources (unexpired) ............................................
74.40 Obligated balance, end of year .....................................

Program and Financing (in millions of dollars)
2002 actual

Total budgetary resources available for obligation
Total new obligations ....................................................
Unobligated balance carried forward, end of year .......

72.40
73.10
73.20
74.00

DISABILITY FUND

(Legislative proposal, not subject to PAYGO)

Identification code 24–0200–2–1–805

23.90
23.95
24.40

99.00
99.01

460

750

803

¥563

¥750

¥803

47 ................... ...................

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
¥102 ................... ...................
Additional net budget authority and outlays to cover cost of fully accruing retirement:
Budget authority ............................................................
3
3
Outlays ...........................................................................
3
3

3
3

OPM’s Revolving Fund supports the President’s Management Agenda by fully or partially funding three e-Government
projects: e-Clearance; e-Training; and Recruitment One-Stop.
The Revolving Fund also provides financing on a reimbursable
basis for several products and services to Federal agencies.
Government Services.—OPM provides assistance to Government agencies in managing the development of training and
human resources management solutions that meet their specific short-term and long-range objectives. This is accomplished through an expedited contracting process, which is
managed by an experienced team of HR and contracting professionals. Much of the Training Management Assistance
(TMA) workload supports development of training programs
for anti-terrorism, emergency preparedness, and intelligence
activities at the U.S. Customs Service, Department of Defense
(DOD), U.S. Air Force, Federal Aviation Administration, Federal Emergency Management Agency, and the Immigration
and Naturalization Service. About 250 programs are managed
annually.
OPM delivers employment information, testing and recruiting services, automated staffing, and related human resource
management services to Federal agencies nationwide. Nationwide testing involves work planning, scheduling, and administration of written examinations upon request from agencies
including the DOD and the Department of Homeland Security.
Investigations.—Through a contract with a private company, OPM conducts National Agency Check and Inquiry
cases and background security investigations for Federal
agencies on a reimbursable basis. When OPM is required
to pay a fee to the Federal Bureau of Investigation (FBI)
for name and fingerprint checks, agencies are required to
reimburse OPM for such fees through the Revolving Fund.
In FY 2002, a significant part of OPM’s business came
from the DOD, for which OPM helped reduce a backlog of
reinvestigations for civilian and military personnel. When it
was necessary, OPM sent teams of OPM employees and conSfmt 3616

E:\BUDGET\OPM.XXX

OPM

OFFICE OF PERSONNEL MANAGEMENT

977

Trust Funds

tractor staff to assist with special hiring needs, for the Transportation Security Administration (TSA) and the Federal
Aviation Administration (FAA). OPM provided these agencies
with onsite assistance to complete investigative forms and
used portable live-scan equipment to digitize and transmit
fingerprints to the FBI for quicker applicant screening. OPM
will continue to work closely with its contractor to provide
useful, cost-effective products and services in support of
Homeland Security.
Training and Development.—OPM conducts residential and
nonresidential programs for Federal executives and managers
to improve the effectiveness and efficiency of Federal programs.

02.45

General fund payment, legislative proposal not
subject to PAYGO .................................................. ...................
Re-employed annuitants salary offset ..........................
29

2,059
29

2,085
30

79,849

83,346

Total: Balances and collections ....................................
618,589
649,336
Appropriations:
Appropriations:
05.00
Civil service retirement and disability fund .............
¥49,102
¥51,185
05.00
Proposed legislation, subject to PAYGO .................... ................... ...................

681,497

02.46
02.99

Total receipts and collections ...................................

80,069

04.00

¥52,845
¥3

05.99

Total appropriations ..................................................

¥49,102

¥51,185

¥52,848

07.99

Balance, end of year .....................................................

569,487

598,151

628,649

Program and Financing (in millions of dollars)
WORKLOAD COUNT
Participant training days ............................................................
Background security investigations processed ...........................
National and special agency check and inquiry cases closed ..
Special agreement checks closed ...............................................

2003 est.

95,802
92,634
526,672
1,184,585

95,051
73,000
270,000
700,000

2002 actual

Identification code 24–4571–0–4–805

2003 est.

94,560
70,000
270,000
700,000

Personnel compensation:
Full-time permanent ..................................................
Other than full-time permanent ...............................
Other personnel compensation ..................................

22
5
2

23
5
2

11.9
12.1
21.0
23.1
23.3
24.0
25.2
26.0
31.0

Total personnel compensation ..............................
Civilian personnel benefits ............................................
Travel and transportation of persons ............................
Rental payments to GSA ................................................
Communications, utilities, and miscellaneous charges
Printing and reproduction ..............................................
Other services ................................................................
Supplies and materials .................................................
Equipment ......................................................................

29
8
3
7
5
1
496
7
10

30
10
3
7
5
1
672
10
12

30
10
3
7
5
1
725
10
12

99.9

Total new obligations ................................................

566

750

803

Personnel Summary
2002 actual

2003 est.

626

669

2004 est.

00.01
00.02
00.03
00.04

Obligations by program activity:
Annuities ........................................................................
Refunds and death claims ............................................
OPM administration .......................................................
Transfer to MSPB ...........................................................

48,668
300
131
3

50,756
52,416
290
284
136
145
3 ...................

10.00

Total new obligations ................................................

49,102

51,185

52,845

22.00
23.95

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

49,102
¥49,102

51,185
¥51,185

52,845
¥52,845

103

108

122

79,966
¥30,967

81,079
¥30,002

83,644
¥30,921

2004 est.

11.1
11.3
11.5

Reimbursable:
2001 Total compensable workyears: Civilian full-time equivalent employment ......................................................

2003 est.

2004 est.

Object Classification (in millions of dollars)

Identification code 24–4571–0–4–805

2002 actual

Identification code 24–8135–0–7–602
2002 actual

2004 est.

669

New budget authority (gross), detail:
Discretionary:
40.26
Appropriation (trust fund) .........................................
Mandatory:
60.26
Appropriation (trust fund) .........................................
60.45
Portion precluded from obligation ............................
62.50

Appropriation (total mandatory) ...........................

48,999

51,077

52,723

70.00

Total new budget authority (gross) ..........................

49,102

51,185

52,845

72.40
73.10
73.20
74.40

4,119
49,102
¥48,970
4,251

4,251
51,185
¥50,991
4,445

4,445
52,845
¥52,599
4,691

86.90
86.97
86.98

Outlays (gross), detail:
Outlays from new discretionary authority .....................
Outlays from new mandatory authority .........................
Outlays from mandatory balances ................................

103
44,748
4,119

108
46,632
4,251

122
48,094
4,383

87.00

Total outlays (gross) .................................................

48,970

50,991

52,599

89.00
90.00

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

49,102
48,970

51,185
50,991

52,845
52,599

542,637

573,713

602,591

573,713

602,591

633,339

Trust Funds
CIVIL SERVICE RETIREMENT

AND

DISABILITY FUND

Unavailable Collections (in millions of dollars)

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

2002 actual

Identification code 24–8135–0–7–602

01.99

Balance, start of year ....................................................
538,520
Receipts:
02.00 Employee contributions ..................................................
3,998
02.01 District of Columbia contributions ................................
61
02.02 Employee deposits, redeposits and other contributions
477
02.40 Agency contributions ......................................................
10,731
Offsetting receipts (intragovernmental):
02.41
Postal Service agency contributions .........................
2,888
02.41
Postal Service agency contributions, legislative proposal subject to PAYGO ........................................ ...................
Offsetting receipts (intragovernmental):
02.42
Postal Service supplemental contributions ...............
3,875
02.42
Postal Service supplemental contributions, legislative proposal subject to PAYGO ............................ ...................
02.43 Federal Financing Bank interest ...................................
1,337
Offsetting receipts (intragovernmental):
02.44
Treasury interest ........................................................
34,565
02.44
Treasury interest, legislative proposal not subject
to PAYGO ............................................................... ...................
Offsetting receipts (intragovernmental):
02.45
General fund payment to the Civil Service Retirement and Disability fund .....................................
22,108
VerDate Dec 13 2002

16:34 Jan 23, 2003

Jkt 193833

PO 00000

2003 est.

2004 est.

569,487

598,151

3,930
52
494
9,975

3,858
46
520
10,739

2,985

3,080

551

1,049

4,041

4,141

99.00
99.01

5
5

Summary of Budget Authority and Outlays
(in millions of dollars)

¥4,041
¥3,707
403 ...................
36,863

38,768

¥50

22,484

22,787

Frm 00007

Fmt 3616

Enacted/requested:
2002 actual
2003 est.
Budget Authority .....................................................................
49,102
51,185
Outlays ....................................................................................
48,970
50,991
Legislative proposal, subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
Outlays .................................................................................... .................... ....................
Total:
Budget Authority .....................................................................
Outlays ....................................................................................
Sfmt 3647

E:\BUDGET\OPM.XXX

OPM

49,102
48,970

51,185
50,991

2004 est.

52,845
52,599
3
3
52,848
52,602

978

THE BUDGET FOR FISCAL YEAR 2004

Trust Funds—Continued

CIVIL SERVICE RETIREMENT

AND

4500

DISABILITY FUND—Continued

This fund: (1) pays annuities to retired employees or their
survivors; (2) makes refunds to separated employees for
amounts withheld and to beneficiaries of employees who died
before retirement or before annuities equaled the amount
withheld; and (3) pays expenses of the Office of Personnel
Management for administering the program.
The fund covers two Federal civilian retirement systems:
the Civil Service Retirement System (CSRS) and the Federal
Employees’ Retirement System (FERS).
CSRS is basically a defined benefit plan, covering Federal
employees hired prior to 1984. CSRS participants do not participate in the Social Security system. FERS is a three-tiered
pension program that uses Social Security as a base, provides
an additional basic benefit, and includes a thrift savings plan.
FERS covers employees hired after 1983 and formerly CSRScovered employees who elected to join FERS.
2002 actual

2003 est.

2004 est.

Active employees .........................................................................
Annuitants:
Employees ...............................................................................
Survivors .................................................................................

2,601,563

2,596,763

1,748,920
634,130

1,768,337
631,640

1,812,286
633,640

Total, annuitants ...........................................................

2,383,050

2,399,977

2,445,926

Lump sum payments to estates or beneficiaries
of deceased annuitants and employees ..........
Refunds to living separated employees ...............
Administration .......................................................

¥163
¥127
¥136

¥169
¥114
¥148

Outgo under current law (¥) ..............................
¥48,970
¥50,991
Proposed legislation:
Proposed legislation, subject to PAYGO .................... ................... ...................

¥52,599

4500
4500
4599
5500
6599

Total cash outgo (¥) ...............................................
Unexpended balance, end of year:
8700 Uninvested balance .......................................................
Federal securities:
8701
Par value ...................................................................
8702
Unrealized discounts .................................................
8799

Total balance, end of year ........................................

¥150
¥135
¥131

¥3

¥48,970

¥50,991

¥52,602

573,713
¥2

602,591
¥4

633,339
¥4

573,738

602,596

633,340

Object Classification (in millions of dollars)
2002 actual

Identification code 24–8135–0–7–602

2003 est.

2004 est.

25.2
42.0
44.0

Other services ................................................................
Insurance claims and indemnities ................................
Refunds and death claims ............................................

134
48,668
300

136
50,759
290

145
52,416
284

99.9

Total new obligations ................................................

49,102

51,185

52,845

CIVIL SERVICE RETIREMENT
Status of Funds (in millions of dollars)
2002 actual

Identification code 24–8135–0–7–602

AND

DISABILITY FUND

(Legislative proposal, subject to PAYGO)
2003 est.

2004 est.

Program and Financing (in millions of dollars)

Unexpended balance, start of year:
0100 Treasury balance ............................................................
Federal securities:
0101
Par value ...................................................................
0102
Unrealized discounts .................................................

542,608
¥3

573,713
¥2

602,591
¥4

00.01

Obligations by program activity:
Annuities ........................................................................ ................... ...................

0199

542,639

573,738

602,596

10.00

Total new obligations (object class 42.0) ................ ................... ...................

22.00
23.95

3
¥3

New budget authority (gross), detail:
Mandatory:
60.26
Appropriation (trust fund) ......................................... ................... ...................

73.10
73.20

3
¥3

86.97

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

89.00
90.00

3
3

Total balance, start of year ......................................
Cash income during the year:
Current law:
Receipts:
1200
Employee contributions, Civil Service Retirement
and Disability Fund ..........................................
1201
District of Columbia contributions .......................
1202
Employee deposits, redeposits, and voluntary
contributions .....................................................
Offsetting receipts (intragovernmental):
1240
Agency contributions, Civil Service Retirement
and Disability Fund ..........................................
1241
Postal Service agency contributions, Civil Service
Retirement and Disability Fund .......................
1242
Postal Service supplemental contributions, Civil
Service Retirement and Disability Fund ..........
1243
Federal Financing Bank interest, Civil Service
Retirement and Disability Fund .......................
1244
Treasury interest, Civil Service Retirement and
Disability Fund .................................................
1245
General fund payment to the Civil Service Retirement and Disability Fund ...........................
1246
Re-employed annuitant salary offset, Civil Service Retirement and Disability Fund .................

3,998
61

3,930
52

3,858
46

477

494

520

10,731

9,975

10,739

2,888

2,985

3,080

3,875

4,041

4,141

1,337

36,863

38,768

22,108

22,484

22,787

80,069

81,256

83,969

...................

551

1,049

...................

¥4,041

¥3,707

...................

¥50

...................

2,059

2,085

2299

Income under proposed legislation ...................... ...................

¥1,407

¥623

3299

80,069

79,849

83,346

¥40,758
¥6
¥7,790

¥42,475
¥4
¥8,086

¥43,667
¥4
¥8,497

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2241
2242
2244
2245

Income under present law ....................................
Proposed legislation:
Offsetting receipts (intragovernmental):
Postal Service agency contributions, legislative
proposal subject to PAYGO ..............................
Postal Service supplemental contribitions, legislative proposal subject to PAYGO ....................
Treasury interest, legislative proposal not subject to PAYGO ...................................................
General fund payment, legislative proposal not
subject to PAYGO .............................................

Total cash income .....................................................
Cash outgo during year:
Current law:
Cash outgo during the year (¥):
4500
Payment of claims to retired employees ..............
4500
Payment of alternative annuity refunds ...............
4500
Payment of claims to survivor annuitants ...........
VerDate Dec 13 2002

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2003 est.

2004 est.

403 ...................

34,565

1299

2002 actual

Identification code 24–8135–4–7–602

The Administration will propose legislation to simplify the
computation of annuities under the Civil Service Retirement
System for individuals with part-time service. The change
would eliminate an unintended adverse effect on employees
who perform part-time service at the end of their careers,
and provide agencies increased flexibility to recruit and retain
personnel.
In addition, the budget includes a legislative proposal, a
portion of which scores PAYGO, that corrects for an anticipated USPS over-funding of Civil Service Retirement System
(CSRS) retirement benefits. This anticipated over-funding is
due to a number of factors, including higher than expected
past pension investment yields and overly prescriptive and
inflexible statutory language. While the legislative proposal
would reduce USPS payments to the Retirement Fund, it
ensures that USPS meets its pension obligations so that no
employee or retiree would lose any benefits. The proposal
is consistent with the structure and financing of the Federal
Employees’ Retirement System as well as the AdministraSfmt 3616

E:\BUDGET\OPM.XXX

OPM

OFFICE OF PERSONNEL MANAGEMENT

979

Trust Funds—Continued

tion’s legislative proposal to fully fund the CSRS liabilities
for non-USPS employees and retirees.
f

Outlays ...........................................................................

¥1,540

¥1,400

¥1,424

23,690

24,603

25,992

24,603

25,992

27,385

90.00

92.01

EMPLOYEES LIFE INSURANCE FUND
Unavailable Collections (in millions of dollars)
2002 actual

Identification code 24–8424–0–8–602

2003 est.

2004 est.

01.99

Balance, start of year .................................................... ................... ................... ...................
Receipts:
02.80 Employees life insurance fund, offsetting collections
3,501
3,570
3,678
Appropriations:
05.00 Employees life insurance fund ......................................
¥3,501
¥3,570
¥3,678
05.99
07.99

Total appropriations ..................................................

¥3,501

¥3,570

¥3,678

Balance, end of year ..................................................... ................... ................... ...................

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.
Budget program.—The status of the basic (regular and optional) life insurance program on September 30 is as follows:
Life insurance in force (in billions of dollars):
On active employees ...............................................................
On retired employees ..............................................................

2002 actual

550
54

560
56

570
58

Total ...............................................................................

604

616

628

Number of participants (in thousands):
Active employees .....................................................................
Annuitants ...............................................................................

2,399
1,585

2,380
1,590

2,372
1,595

Total ...............................................................................

3,984

3,970

3,967

Program and Financing (in millions of dollars)
2002 actual

Identification code 24–8424–0–8–602

2003 est.

2004 est.

Obligations by program activity:
09.01 Regular program premiums ...........................................
09.02 Optional program premiums ..........................................
09.03 Beneficial program premiums .......................................
09.04 Administration ................................................................
09.05 Long term care administration ......................................

1,157
841
2
2
1

1,268
922
2
2
1

1,288
1,002
2
2
1

10.00

Total new obligations (object class 25.2) ................

2,003

2,195

2,295

21.40
22.00

Budgetary resources available for obligation:
Unobligated balance carried forward, start of year
New budget authority (gross) ........................................

23,134
3,472

24,603
3,584

25,992
3,688

23.90
23.95
24.40

Total budgetary resources available for obligation
Total new obligations ....................................................
Unobligated balance carried forward, end of year .......

26,606
¥2,003
24,603

28,187
¥2,195
25,992

29,680
¥2,295
27,385

New budget authority (gross), detail:
Discretionary:
68.00
Spending authority from offsetting collections: Offsetting collections (cash) .....................................
Mandatory:
69.00
Offsetting collections (cash) .....................................
69.10
Change in uncollected customer payments from
Federal sources (unexpired) ..................................

70.00

Status of Reserves

2002 actual

3,499

3,568

3,676

2004 est.

100
1
25,350

100
1
24,471

100
1
25,779

Total reserves .................................................................

25,451

24,572

25,880

¥29

EMPLOYEES

AND

RETIRED EMPLOYEES HEALTH BENEFITS FUNDS

Unavailable Collections (in millions of dollars)

3,470

3,582

3,686

Total new budget authority (gross) ..........................

3,472

3,584

3,688

131
2,003
¥1,961

202
2,195
¥2,170

213
2,295
¥2,254

29
202

¥14
213

¥10
244

Change in obligated balances:
Obligated balance, start of year ...................................
Total new obligations ....................................................
Total outlays (gross) ......................................................
Change in uncollected customer payments from Federal sources (unexpired) ............................................
74.40 Obligated balance, end of year .....................................

2003 est.

Held in reserve (in millions of dollars):
Contingency reserve ................................................................
Beneficial association program reserve .................................
U.S. Treasury reserve ..............................................................

Spending authority from offsetting collections
(total mandatory) .............................................

72.40
73.10
73.20
74.00

2004 est.

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:

2002 actual

Identification code 24–9981–0–8–551

69.90

2003 est.

2004 est.

01.99

Balance, start of year .................................................... ................... ................... ...................
Receipts:
02.80 Employees and retired employees health benefits
fund, offsetting collections .......................................
23,610
26,820
29,468
Appropriations:
05.00 Employees and retired employees health benefits fund
¥23,610
¥26,820
¥29,468
05.99
07.99

Total appropriations ..................................................

¥23,610

¥26,820

¥29,468

Balance, end of year ..................................................... ................... ................... ...................

Program and Financing (in millions of dollars)
Outlays (gross), detail:
86.90 Outlays from new discretionary authority .....................
86.97 Outlays from new mandatory authority .........................

2
1,959

2
2,168

2
2,252

Identification code 24–9981–0–8–551

87.00

Total outlays (gross) .................................................

1,961

2,170

2,254

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.00
Agency contributions .............................................
88.20
Interest on Federal securities ...............................
Non-Federal sources:
88.40
Regular program ..............................................
88.40
Optional program .............................................

09.01
09.02
09.03
09.04

Obligations by program activity:
Benefit payments ...........................................................
Payments from OPM contingency reserve .....................
Government payment for annuitants (1960 Act) ..........
Administration ................................................................

22,667
125
2
24

26,185
250
2
24

28,581
250
2
27

¥420
¥1,366

¥461
¥1,325

¥482
¥1,331

10.00

Total new obligations (object class 25.6) ................

22,820

26,461

28,859

¥666
¥1,049

¥702
¥1,082

¥740
¥1,125

21.40
22.00

Budgetary resources available for obligation:
Unobligated balance carried forward, start of year
New budget authority (gross) ........................................

4,418
23,742

5,341
26,947

5,827
29,582

88.90

¥3,501

¥3,570

¥3,678

23.90
23.95
24.40

Total budgetary resources available for obligation
Total new obligations ....................................................
Unobligated balance carried forward, end of year .......

28,161
¥22,820
5,341

32,288
¥26,461
5,827

35,409
¥28,859
6,551

¥14

¥10
New budget authority (gross), detail:
Discretionary:
68.00
Spending authority from offsetting collections: Offsetting collections (cash) .....................................

88.95

Net budget authority and outlays:
89.00 Budget authority ............................................................ ................... ................... ...................
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2002 actual

OPM

2003 est.

2004 est.

980

THE BUDGET FOR FISCAL YEAR 2004

Trust Funds—Continued

EMPLOYEES

AND

1280
1280
1280
1280

RETIRED EMPLOYEES HEALTH BENEFITS FUNDS—
Continued

Interest Earned .................................................
Contributions from DC Government .................
Contributions from Active Employees ..............
Contributions from Annuitants .........................

210
65
3,371
3,059

302
80
3,811
3,391

379
88
4,178
3,786

Income under present law ....................................
Cash outgo during year:
Current law:
Cash outgo during the year (¥):
4500
Benefit Payments (¥) .........................................
4500
Payments to Carriers from OPM Contingency Reserves (¥) .......................................................
4500
Administration (¥) ..............................................

23,610

26,820

29,468

¥22,557

¥25,907

¥28,449

¥125
¥25

¥250
¥24

¥250
¥27

4599

¥22,707

¥26,181

¥28,726

7,554
¥10

8,202
¥11

8,944
¥12

7,556

8,195

8,939

Program and Financing (in millions of dollars)—Continued
1299

2002 actual

Identification code 24–9981–0–8–551

69.00
69.10
69.90
70.00

Mandatory:
Offsetting collections (cash) .....................................
Change in uncollected customer payments from
Federal sources (unexpired) ..................................

2003 est.

2004 est.

23,586

26,796

29,441

133

127

114

Spending authority from offsetting collections
(total mandatory) .............................................

23,719

26,923

29,556

Total new budget authority (gross) ..........................

23,742

26,947

29,583

Change in obligated balances:
72.40 Obligated balance, start of year ...................................
73.10 Total new obligations ....................................................
73.20 Total outlays (gross) ......................................................
74.00 Change in uncollected customer payments from Federal sources (unexpired) ............................................
74.40 Obligated balance, end of year .....................................

2,235
22,820
¥22,707

2,215
26,461
¥26,181

2,368
28,859
¥28,726

¥133
2,215

¥127
2,368

¥114
2,388

86.90
86.97
86.98

24
21,786
897

24
25,127
1,030

27
27,542
1,157

87.00

Total outlays (gross) .................................................

22,707

26,181

28,726

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
Federal sources:
88.00
Agency contributions ........................................
88.00
Government contributions for annuitants ........
88.20
Interest on Federal securities ...............................
Non-Federal sources:
88.40
Employee salary withholdings ..........................
88.40
Annuity withholdings ........................................
88.40
Contributions from D.C. Government ...............

¥9,896
¥7,009
¥210

¥11,364
¥7,871
¥302

¥12,327
¥8,711
¥379

¥3,371
¥3,059
¥65

¥3,811
¥3,392
¥80

¥4,178
¥3,785
¥88

¥23,610

¥26,820

¥29,468

¥133

¥127

¥114

88.90
88.95

89.00
90.00

Total, offsetting collections (cash) ..................
Against gross budget authority only:
Change in uncollected customer payments from
Federal sources (unexpired) ..................................
Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

¥1 ................... ...................
¥903
¥639
¥742

92.01

99.00
99.01

6,651

7,554

8,202

7,554

8,202

8,944

Additional net budget authority and outlays to cover cost of fully accruing retirement:
Budget authority ............................................................
1
1
Outlays ...........................................................................
1
1

1
1

Outgo under current law (¥) ..............................
Unexpended balance, end of year:
8700 Uninvested balance .......................................................
Federal securities:
8701
Par value ...................................................................
8702
Unrealized discounts .................................................
8799

Total balance, end of year ........................................

This display combines the Federal Employees Health Benefits (FEHB) fund and the Retired Employees Health Benefits
(REHB) fund.
The FEHB fund provides for the cost of health benefits
for: (1) active employees; (2) employees who retired after June
1960, or their survivors; (3) those annuitants transferred from
the REHB program as authorized by Public Law 93–246; and
(4) the related expenses of the Office of Personnel Management (OPM) in administering the program.
The REHB fund, created by the Retired Federal Employees
Health Benefits Act of 1960, provides for: (1) the cost of health
benefits for retired employees and survivors who enroll in
a Government-sponsored uniform health benefits plan; (2) the
contribution to retired employees and survivors who retain
or purchase private health insurance; and (3) expenses of
OPM in administering the program.
Budget program.—The balance of the FEHB fund is available for payments without fiscal year limitation. Numbers
of participants at the end of each fiscal year are as follows:
2002 actual

2003 est.

2004 est.

Active employees .........................................................................
Annuitants ...................................................................................

2,189,131
1,857,014

2,186,000
1,871,000

2,182,000
1,910,000

Total ....................................................................................

4,046,145

4,057,000

4,092,000

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:

Status of Funds (in millions of dollars)
2002 actual

Identification code 24–9981–0–8–551

2002 actual
2003 est.

2004 est.

Unexpended balance, start of year:
Treasury balance ............................................................
Federal securities:
0101
Par value ...................................................................
0102
Unrealized discounts .................................................

6,651
¥14

7,554
¥10

8,202
¥11

0199

6,653

7,556

8,195

6,234

7,207

7,811

3,662

4,157

4,516

993

1,164

1,296

6,016

6,707

7,415

Frm 00010

Fmt 3616

0100

Total balance, start of year ......................................
Cash income during the year:
Current law:
Offsetting collections:
Offsetting governmental receipts:
1280
Contributions from Employing Agencies ..........
1280
Contributions from Postal Service for Active
Employees ....................................................
1280
Contributions from Postal Service for Annuitants ............................................................
1280
Government Payment for Annuitant Health
Benefits ........................................................
VerDate Dec 13 2002

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2003 est.

2004 est.

Uniform plan ...............................................................................
Private plans ...............................................................................

747
2,130

620
1,768

515
1,467

Total ....................................................................................

2,877

2,388

1,982

Financing.—The funds are financed by: (1) withholdings
from active employees and annuitants; (2) agency contributions for active employees; (3) Government contributions for
annuitants appropriated to OPM; and (4) contributions made
by the United States Postal Service in accordance with the
provisions of Public Law 101–508 and Public Law 103–66.
Operating results.—Funds made available to carriers but
not used to pay claims in the current period are carried forward as special reserves for use in subsequent periods.
OPM maintains a contingency reserve, funded by employee
and Government contributions, that may be used to defray
future cost increases or provide increased benefits. OPM
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OPM

OFFICE OF PERSONNEL MANAGEMENT

Trust Funds—Continued

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

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981

unexpected claims experience or variations from expected
community rates.

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OPM

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Full text of Budget of the United States Government - Appendix : Fiscal Year 2004 : Office of Personnel Management

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