OFFICE OF PERSONNEL MANAGEMENT

Office of Personnel Management

NO BUREAU GROUP

Office of Personnel Management

Federal Funds

All Other General Fund Proprietary Receipts Including Budget Clearing Accounts

Enacted/requested

Postal Service Contributions for Current Workers, Postal Service Retiree Health Benefits Fund

Enacted/requested

Legislative proposal, subject to PAYGO

Earnings on Investments, Postal Service Retiree Health Benefits Fund

Enacted/requested

Legislative proposal, not subject to PAYGO

Postal Service Contributions for Benefits Paid to Retirees, Postal Service Retiree Health Benefits Fund

Enacted/requested

Legislative proposal, subject to PAYGO

Postal Service Contributions from Escrow Account, Postal Service Retiree Health Benefits Fund

Enacted/requested

Salaries and Expenses

Enacted/requested

Salaries and Expenses(including transfer of trust funds)For necessary expenses to carry out functions of the Office of Personnel Management (OPM) 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 OPM 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, $97,774,000 $90,541,000, of which $6,004,000 shall remain available until expended for the Enterprise Human Resources Integration project, of which $642,000 may be for strengthening the capacity and capabilities of the acquisition workforce (as defined by the Office of Federal Procurement Policy Act, as amended (41 U.S.C. 4001 et seq.)), including the recruitment, hiring, training, and retention of such workforce and information technology in support of acquisition workforce effectiveness or for management solutions to improve acquisition management, and of which $1,416,000 shall remain available until expended for the Human Resources Line of Business project; and in addition $112,516,000, $114,708,000 for administrative expenses, to be transferred from the appropriate trust funds of OPM without regard to other statutes, including direct procurement of printed materials, for the retirement and insurance programs: 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 OPM 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 2012 2013, 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. (Financial Services and General Government Appropriations Act, 2012.)The Office of Personnel Management's (OPM) mission is to help agencies build an effective Federal civilian workforce based on merit system principles. OPM leads Federal agencies in the strategic management of their human resources, proposes and implements human resources management policy, and provides agencies with ongoing advice and technical assistance to implement these policies and initiatives. 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 excellent benefit services and support to civil servants both during and after their Federal careers. The 2013 Budget will permit OPM to pursue long-term human resources strategies that deliver results and enhance the values of the civil service. The functions and objectives of the OPM major organizations are:

Employee Services

Provides leadership and guidance to Federal agencies on Government-wide human resource policies. Specifically, ES provides direction and guidance on staffing, classification, pay, leave, performance management, training, executive resources, and employee and labor relations programs. Employee Services is responsible for issuing Government-wide policy on reciprocity of suitability investigations and suitability standards across government. ES also manages the operations of OPM's internal human resources program.

Merit System Audit and Compliance

Ensures that Federal agency human resources programs are effective and meet merit system principles and related civil service requirements. Merit System Audit and Compliance also manages the Combined Federal Campaign and provides Federal observers to monitor the election process in areas designated by the U.S. Attorney General.

Retirement Services

Administers the Civil Service Retirement System (CSRS) and the Federal Employee Retirement System (FERS), serving Federal retirees and survivors who receive monthly annuity payments. Retirement program activities will continue to focus on making initial eligibility determinations, adjudications, post retirement changes, and survivor processing based on applicable laws and regulations. The 2013 Budget permits increased staffing levels to process funding to maintain timely processing of retirement claims and provide services to Federal annuitants.

Policy and Planning Analysis

Provides guidance on proposing and developing new program-related legislation, writing program regulations, and developing policy guidance for Federal agencies, insurance carriers and program beneficiaries.

Healthcare and Insurance

Administers Federal Employees Health Benefit Program (FEHBP) health benefits contracts for the Federal government, and administer the Federal Employee Group Life Insurance (FEGLI) program covering employees, retirees and their families. Healthcare and Insurance is also responsible for implementing and overseeing Patient Protection and Affordable Care Act's Multi-State Plan Options.

Federal Investigative Services

Provides investigative products and services for over one hundred Federal agencies to use as the basis for security clearance or suitability decisions as required by Executive Orders and other rules and regulations. Over ninety percent of the Government's background investigations are provided by OPM. This function is completely financed by payment for these services from other Federal agencies through OPM's Revolving Fund.

Human Resources Solutions

Assists Federal agencies in achieving their missions by providing solutions that develop leaders, attract and build a high quality public sector workforce, and transform agencies into high performing organizations. This function is completely financed by payment for these services from other Federal agencies through OPM's revolving fund. Program and Financing(in millions of dollars)Identification code 24–0100–0–1–8052011 actual2012 est.2013 est.Obligations by program activity:0001Employee Services3034340002Merit System Audit & Compliance1313130003Office of the Chief Financial Officer200004Office of the Chief Information Officer2522100005Executive Services2917190006Planning & Policy Analysis41280007Health and Insurance760100Total direct program121105900799Total direct obligations121105900801Trust Fund activity2421131150900Total new obligations363218205Budgetary Resources:Unobligated balance:1000Unobligated balance brought forward, Oct 1317Budget authority:Appropriations, discretionary:1100Appropriation9898911160Appropriation, discretionary (total)989891Spending authority from offsetting collections, discretionary:1700Collected2241131151701Change in uncollected payments, Federal sources371750Spending auth from offsetting collections, disc (total)2611131151900Budget authority (total)3592112061930Total budgetary resources available390218206Memorandum (non-add) entries:1940Unobligated balance expiring–201941Unexpired unobligated balance, end of year71Change in obligated balance:Obligated balance, start of year (net):3000Unpaid obligations, brought forward, Oct 1 (gross)125168393010Uncollected pymts, Fed sources, brought forward, Oct 1–104–110–1103020Obligated balance, start of year (net)2158–713030Obligations incurred, unexpired accounts3632182053031Obligations incurred, expired accounts13040Outlays (gross)–312–347–2153050Change in uncollected pymts, Fed sources, unexpired–373051Change in uncollected pymts, Fed sources, expired313081Recoveries of prior year unpaid obligations, expired–9Obligated balance, end of year (net):3090Unpaid obligations, end of year (gross)16839293091Uncollected pymts, Fed sources, end of year–110–110–1103100Obligated balance, end of year (net)58–71–81Budget authority and outlays, net:Discretionary:4000Budget authority, gross359211206Outlays, gross:4010Outlays from new discretionary authority2521991944011Outlays from discretionary balances60148214020Outlays, gross (total)312347215Offsets against gross budget authority and outlays:Offsetting collections (collected) from:4030Federal sources–246–113–115Additional offsets against gross budget authority only:4050Change in uncollected pymts, Fed sources, unexpired–374052Offsetting collections credited to expired accounts224060Additional offsets against budget authority only (total)–154070Budget authority, net (discretionary)9898914080Outlays, net (discretionary)662341004180Budget authority, net (total)9898914190Outlays, net (total)66234100Object Classification(in millions of dollars)Identification code 24–0100–0–1–8052011 actual2012 est.2013 est.Direct obligations:Personnel compensation:11.1Full-time permanent71504811.3Other than full-time permanent11111.5Other personnel compensation31111.9Total personnel compensation75525012.1Civilian personnel benefits20131021.0Travel and transportation of persons13323.3Communications, utilities, and miscellaneous charges77724.0Printing and reproduction4425.2Other services from non-Federal sources14221226.0Supplies and materials12231.0Equipment32299.0Direct obligations1211059099.0Reimbursable obligations24211311599.9Total new obligations363218205Employment SummaryIdentification code 24–0100–0–1–8052011 actual2012 est.2013 est.1001Direct civilian full-time equivalent employment8469209202001Reimbursable civilian full-time equivalent employment9579501,013

Office of Inspector General

Enacted/requested

Office of Inspector Generalsalaries 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 of 1978, including services as authorized by 5 U.S.C. 3109, hire of passenger motor vehicles, $3,142,000 $4,232,000, and in addition, not to exceed $21,174,000 $21,172,000 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. (Financial Services and General Government Appropriations Act, 2012.) This appropriation provides agency-wide audit, investigation, administrative sanction, and debarment functions to identify program management, contractual, and administrative deficiencies that may create conditions for fraud, waste, abuse, and mismanagement. During 2011, the Office of Inspector General (OIG) activities resulted in positive financial impacts of over $155 million and led to 46 arrests, 64 indictments, 63 criminal convictions, and 770 suspensions or debarments within the Federal Employees Health Benefits Program (FEHBP). The audits function provides audit services covering agency functions, the FEHBP, the Federal Employees Group Life Insurance (FEGLI) program, the Federal retirement programs, revolving fund programs and operations, and information systems and security audits. Internal agency audits review all facets of agency operations, and include the oversight of the agency financial statement audit. Insurance audits review the operations of health and life insurance carriers, health care providers, pharmacy benefit managers, and insurance subscribers. Information systems audits review general controls, application controls and security within the agency's information systems and programs as well as for the information systems of insurance carriers within the FEHBP. The investigations function detects and investigates improper and illegal activities involving agency programs, personnel, and operations. A large component of the investigative program involves criminal activities within the FEHBP, retirement and life insurance trust fund programs, as well as the OPM revolving fund programs. Our administrative sanctions program debars and suspends health care providers whose conduct may pose a financial threat to the FEHBP or health and safety risk to FEHBP enrollees and their families.In 2013, the OIG will continue its audits and investigations of OPM programs, including the FEHBP and retirement trust fund programs, OPM revolving fund programs, and OPM financial statement oversight and other program areas. The OIG will continue to advance its prescription drug audit program, which includes audits of pharmacy benefit managers. OPM estimates that approximately 28 percent of FEHBP expenses, or over $13 billion in 2013 will be for prescription drugs. Through these audits, the OIG helps the FEHBP recover inappropriate charges, negotiate more favorable contracts, control future cost growth, and improve benefits provided to program enrollees. The OIG will also continue its FEHBP claims data warehouse initiative in 2013. This project streamlines and enhances the various administrative and analytical procedures involved in the oversight of the FEHBP. The purpose of the project is to capture data from experience-rated insurance carriers in a data warehouse of health care information. The system's software tools support a variety of analytical procedures, including data mining, using the data in the warehouse. The project has facilitated more efficient and effective oversight of the FEHBP by enhancing the ability of auditors and investigators to identify improper payments. The OIG is also assisting OPM with plans for an FEHBP data warehouse. Another challenge facing the OIG is the oversight of the vast OPM revolving fund programs, most notably the Federal Investigative Services, responsible for the Federal background investigations which have significant national security implications. The revolving fund programs are projected to spend over $1.9 billion in 2013. The FY 2013 Budget includes funds associated with OPM's implementation of the Patient Protection and Affordable Care Act (ACA), including the Indian Health Care Improvement Reauthorization and Extension Act of 2009 (IHCIA), which was enacted as part of the ACA. The OIG is currently working with OPM on its implementation of the ACA. The OIG will also be partnering with the Department of Health and Human Services to implement the Level Playing Field provisions of the ACA. OPM recognized the OIGs role in this area and has asked OIG to work closely with them. These provisions will impact the drafting of the Multi-State Plan Program (MSPP) contracts in the area of fraud and abuse control requirements and will impact the ability of the OIG to provide oversight to the MSPP. Program and Financing(in millions of dollars)Identification code 24–0400–0–1–8052011 actual2012 est.2013 est.Obligations by program activity:0001Direct program activity: Program oversight (audits, investigations, etc.)3340801Reimbursable program activity2021210900Total new obligations232425Budgetary Resources:Budget authority:Appropriations, discretionary:1100Appropriation3341160Appropriation, discretionary (total)334Spending authority from offsetting collections, discretionary:1700Collected1821211701Change in uncollected payments, Federal sources41750Spending auth from offsetting collections, disc (total)2221211900Budget authority (total)2524251930Total budgetary resources available252425Memorandum (non-add) entries:1940Unobligated balance expiring–2Change in obligated balance:Obligated balance, start of year (net):3000Unpaid obligations, brought forward, Oct 1 (gross)5663010Uncollected pymts, Fed sources, brought forward, Oct 1–7–9–93020Obligated balance, start of year (net)–2–3–33030Obligations incurred, unexpired accounts2324253040Outlays (gross)–22–24–303050Change in uncollected pymts, Fed sources, unexpired–43051Change in uncollected pymts, Fed sources, expired2Obligated balance, end of year (net):3090Unpaid obligations, end of year (gross)6613091Uncollected pymts, Fed sources, end of year–9–9–93100Obligated balance, end of year (net)–3–3–8Budget authority and outlays, net:Discretionary:4000Budget authority, gross252425Outlays, gross:4010Outlays from new discretionary authority1924244011Outlays from discretionary balances364020Outlays, gross (total)222430Offsets against gross budget authority and outlays:Offsetting collections (collected) from:4030Federal sources–20–21–21Additional offsets against gross budget authority only:4050Change in uncollected pymts, Fed sources, unexpired–44052Offsetting collections credited to expired accounts24060Additional offsets against budget authority only (total)–24070Budget authority, net (discretionary)3344080Outlays, net (discretionary)2394180Budget authority, net (total)3344190Outlays, net (total)239Object Classification(in millions of dollars)Identification code 24–0400–0–1–8052011 actual2012 est.2013 est.Direct obligations:11.1Personnel compensation: Full-time permanent22312.1Civilian personnel benefits11199.0Direct obligations33499.0Reimbursable obligations20212199.9Total new obligations232425Employment SummaryIdentification code 24–0400–0–1–8052011 actual2012 est.2013 est.1001Direct civilian full-time equivalent employment717232001Reimbursable civilian full-time equivalent employment119117116

Government Payment for Annuitants, Employees Health Benefits

Enacted/requested

Government Payment for Annuitants, Employees Health BenefitsFor 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), such sums as may be necessary. (Financial Services and General Government Appropriations Act, 2012.)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. 2011 actual2012 est.2013 est.Annuitants:FEHB1,861,0001,881,0001,901,000(USPS non-add)480,173485,236489,987REHB534439361Total, annuitants1,861,5341,881,4391,901,361Program and Financing(in millions of dollars)Identification code 24–0206–0–1–5512011 actual2012 est.2013 est.Obligations by program activity:0001Government contribution for annuitants benefits (1959 Act)10,26010,47411,0260002Government contribution for annuitants benefits (1960 Act)110900Total new obligations (object class 13.0)10,26010,47511,027Budgetary Resources:Budget authority:Appropriations, mandatory:1200Appropriation10,26010,47511,0271260Appropriations, mandatory (total)10,26010,47511,0271930Total budgetary resources available10,26010,47511,027Change in obligated balance:Obligated balance, start of year (net):3000Unpaid obligations, brought forward, Oct 1 (gross)1,0721,1769143030Obligations incurred, unexpired accounts10,26010,47511,0273040Outlays (gross)–10,156–10,737–10,970Obligated balance, end of year (net):3090Unpaid obligations, end of year (gross)1,1769149713100Obligated balance, end of year (net)1,176914971Budget authority and outlays, net:Mandatory:4090Budget authority, gross10,26010,47511,027Outlays, gross:4100Outlays from new mandatory authority9,0849,56110,0554101Outlays from mandatory balances1,0721,1769154110Outlays, gross (total)10,15610,73710,9704180Budget authority, net (total)10,26010,47511,0274190Outlays, net (total)10,15610,73710,970

Legislative proposal, subject to PAYGO

The Budget proposes that the Office of Personnel Management (OPM) be given authority to streamline pharmacy benefit contracting within the FEHB program and leverage enrollees' purchasing power to reduce costs and obtain greater value for enrollees.

Government Payment for Annuitants, Employee Life Insurance

Enacted/requested

Government Payment for Annuitants, Employee Life InsuranceFor 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. (Financial Services and General Government Appropriations Act, 2012.)Per P.L. 96–427, Federal Employees Group Life Insurance Act of 1980, enacted October 10, 1980, 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.Program and Financing(in millions of dollars)Identification code 24–0500–0–1–6022011 actual2012 est.2013 est.Obligations by program activity:0001Direct program activity4545450900Total new obligations (object class 25.2)454545Budgetary Resources:Budget authority:Appropriations, mandatory:1200Appropriation4545451260Appropriations, mandatory (total)4545451930Total budgetary resources available454545Change in obligated balance:Obligated balance, start of year (net):3000Unpaid obligations, brought forward, Oct 1 (gross)6663030Obligations incurred, unexpired accounts4545453040Outlays (gross)–45–45–45Obligated balance, end of year (net):3090Unpaid obligations, end of year (gross)6663100Obligated balance, end of year (net)666Budget authority and outlays, net:Mandatory:4090Budget authority, gross454545Outlays, gross:4100Outlays from new mandatory authority3939454101Outlays from mandatory balances664110Outlays, gross (total)4545454180Budget authority, net (total)4545454190Outlays, net (total)454545

Payment to Civil Service Retirement and Disability Fund

Enacted/requested

Payment to Civil Service Retirement and Disability FundFor 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, and the Act of August 19, 1950 (33 U.S.C. 771–775), may hereafter be paid out of the Civil Service Retirement and Disability Fund. (Financial Services and General Government Appropriations Act, 2012.)The Payment to the Civil Service Retirement and Disability Fund consists of an appropriation and a permanent indefinite authorization to pay the Government's share of retirement costs as defined in the Civil Service Retirement Amendments of 1969 (P.L. 91–93), the Federal Employees Retirement Act of 1986 (P.L. 99–335), and the Civil Service Retirement Spouse Equity Act of 1985 (P.L. 98–615). The payment is made directly from the General Fund of the U.S. Treasury into the Civil Service Retirement and Disability Fund and is in addition to appropriated funds that will be contributed from agency budgets.

Current Appropriation Payment of Government share of retirement costs

P.L. 91–93 provides for an annual appropriation to amortize, over a 30-year period, all increases in Civil Service Retirement System costs resulting from acts of Congress granting new or liberalized benefits, extensions of coverage, or pay raises, exclusive of the effects of cost-of-living adjustments (COLAs). OPM has notified the Secretary of the Treasury each year of such sums as may be necessary to carry out these provisions.

Permanent Indefinite Authorization

Transfers for interest on static unfunded liability and payment of military service annuities. - P.L. 91–93 also provides permanent, indefinite authorization for the Secretary of the Treasury to transfer, on an annual basis, an amount equal to 5 percent interest on the Civil Service Retirement and Disability Funds current statutory unfunded liability, calculated based on static economic assumptions, and annuity disbursements attributable to credit for military service.

Payments for Spouse Equity

The permanent, indefinite authorization also includes a payment in accordance with P.L. 98–615 which provides for the Secretary of the Treasury to transfer an amount equal to the annuities granted to eligible former spouses of annuitants who died between September 1978 and May 1985 who did not elect survivor coverage.

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, and the Act of August 19, 1950 (33 U.S.C. 771–775), may hereafter be paid out of the Civil Service Retirement and Disability Fund. (Financial Services and General Government Appropriations Act, 2010.)Program and Financing(in millions of dollars)Identification code 24–0200–0–1–8052011 actual2012 est.2013 est.Obligations by program activity:0002Payment of Government share of retirement costs9,5059,2009,1000003Transfers for interest on unfunded liability and payment of military service annuities21,70022,70022,7000005Spouse equity payment7676760900Total new obligations31,28131,97631,876Budgetary Resources:Budget authority:Appropriations, mandatory:1200Appropriation21,70022,70022,7001200Appropriation9,5819,2769,1761260Appropriations, mandatory (total)31,28131,97631,8761930Total budgetary resources available31,28131,97631,876Change in obligated balance:3030Obligations incurred, unexpired accounts31,28131,97631,8763040Outlays (gross)–31,281–31,976–31,876Budget authority and outlays, net:Mandatory:4090Budget authority, gross31,28131,97631,876Outlays, gross:4100Outlays from new mandatory authority31,28131,97631,8764180Budget authority, net (total)31,28131,97631,8764190Outlays, net (total)31,28131,97631,876Summary of Budget Authority and Outlays(in millions of dollars)2011 actual2012 est.2013 est.Enacted/requested:Budget Authority31,28131,97631,876Outlays31,28131,97631,876Legislative proposal, not subject to PAYGO:Budget Authority–38Outlays–38Total:Budget Authority31,28131,97631,838Outlays31,28131,97631,838Object Classification(in millions of dollars)Identification code 24–0200–0–1–8052011 actual2012 est.2013 est.Direct obligations:12.1Civilian personnel benefits9,5819,2769,17613.0Benefits for former personnel21,70022,70022,70099.9Total new obligations31,28131,97631,876

Legislative proposal, not subject to PAYGO

The unfunded liabilities of the Civil Service Retirement and Disability Fund (CSRDF) will be reduced by two policies included in the Budget. First, the President's Retirement Reform proposal, included in the President's Plan for Economic Growth and Deficit Reduction (September 2011), would increase agency contributions to the retirement fund above and beyond those necessary to support the accumulating benefits of their employees, and these excess funds would be applied to the unfunded liabilities of the CSRDF. (The President's proposal to eliminate the FERS supplemental benefit for new employees will not have a measurable impact on the balance of the CSRDF within the next 10 fiscal years.) Second, the Administration's Phased Retirement proposal, included in the Administration's Federal Hiring Modernization Act of 2010 (September, 2010), is designed to incent retirement-age employees to phase into their retirement status and increase the sharing of institutional knowledge, and will also have a small but measurable impact on the CSRDF. These impacts are not subject to PAYGO because the Treasury's General Fund would otherwise be required by law to fund these liabilities. Program and Financing(in millions of dollars)Identification code 24–0200–2–1–8052011 actual2012 est.2013 est.Obligations by program activity:0003Transfers for interest on unfunded liability and payment of military service annuities–380900Total new obligations (object class 13.0)–38Budgetary Resources:Budget authority:Appropriations, mandatory:1200Appropriation–381260Appropriations, mandatory (total)–381930Total budgetary resources available–38Change in obligated balance:3030Obligations incurred, unexpired accounts–383040Outlays (gross)38Budget authority and outlays, net:Mandatory:4090Budget authority, gross–38Outlays, gross:4100Outlays from new mandatory authority–384180Budget authority, net (total)–384190Outlays, net (total)–38

Flexible Benefits Plan Reserve

Enacted/requested

This account contains reserve resources required under the Office of Personnel Management's contract with the administrator of the Flexible Benefits program. This account is funded by payments from Federal agencies based on the participation of their employees in the program and from net forfeitures, as authorized by the National Defense Authorization Act for Fiscal Year 2004 (P.L. 108–136). Account assets are available to indemnify the administrator when benefit payments exceed contributions, and for program enhancements. Program and Financing(in millions of dollars)Identification code 24–0800–0–1–8052011 actual2012 est.2013 est.Obligations by program activity:0801FSA FEDS Risk Reserve2324240900Total new obligations (object class 25.6)232424Budgetary Resources:Unobligated balance:1000Unobligated balance brought forward, Oct 1638998Budget authority:Spending authority from offsetting collections, mandatory:1800Collected4933341850Spending auth from offsetting collections, mand (total)4933341930Total budgetary resources available112122132Memorandum (non-add) entries:1941Unexpired unobligated balance, end of year8998108Change in obligated balance:3030Obligations incurred, unexpired accounts2324243040Outlays (gross)–23–24–24Budget authority and outlays, net:Mandatory:4090Budget authority, gross493334Outlays, gross:4100Outlays from new mandatory authority232424Offsets against gross budget authority and outlays:Offsetting collections (collected) from:4120Federal sources–17–4–44123Non-Federal sources–32–29–304130Offsets against gross budget authority and outlays (total)–49–33–344170Outlays, net (mandatory)–26–9–104190Outlays, net (total)–26–9–10Object Classification(in millions of dollars)Identification code 24–0800–0–1–8052011 actual2012 est.2013 est.99.0Reimbursable obligations232424

Postal Service Retiree Health Benefits Fund

Enacted/requested

The Postal Accountability and Enhancement Act (P.L.109–435) created the Postal Service Retiree Health Benefits Fund to help fully fund the Postal Service's retiree (annuitant) health benefits liabilities. This 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, and modified by P.L. 111–68, 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. This account also receives any 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 Postal Service that are attributable to civilian employment with the Postal Service. As a result of this health benefits financing system, beginning in 2017, the Postal Service will cease to pay annual premium costs for its post-1971 current annuitants directly to the Employees and Retired Employees Health Benefits Fund. Instead, these premium payments will be paid from amounts that the Postal Service remits to this 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.Special and Trust Fund Receipts(in millions of dollars)Identification code 24–5391–0–2–5512011 actual2012 est.2013 est.0100Balance, start of year42,11543,70746,826Receipts:0240Postal Service Contributions for Current Workers, Postal Service Retiree Health Benefits Fund3,1763,3390241Earnings on Investments, Postal Service Retiree Health Benefits Fund1,5921,7901,8920242Earnings on Investments, Postal Service Retiree Health Benefits Fund–1190243Postal Service Contributions for Benefits Paid to Retirees, Postal Service Retiree Health Benefits Fund11,1005,6000244Postal Service Contributions for Benefits Paid to Retirees, Postal Service Retiree Health Benefits Fund–10,344–4,7240299Total receipts and collections1,5925,7225,9880400Total: Balances and collections43,70749,42952,814Appropriations:0500Postal Service Retiree Health Benefits Fund–1,592–12,890–7,4920501Postal Service Retiree Health Benefits Fund1,59212,8907,4920502Postal Service Retiree Health Benefits Fund7,1681,5040503Postal Service Retiree Health Benefits Fund–9,771–4,4160599Total appropriations–2,603–2,9120799Balance, end of year43,70746,82649,902Program and Financing(in millions of dollars)Identification code 24–5391–0–2–5512011 actual2012 est.2013 est.Budgetary Resources:Budget authority:Appropriations, mandatory:1201Appropriation (special or trust fund)1,59212,8907,4921235Appropriations precluded from obligation–1,592–12,890–7,492Memorandum (non-add) entries:5000Total investments, SOY: Federal securities: Par value42,11543,70856,5975001Total investments, EOY: Federal securities: Par value43,70856,59764,089

Legislative proposal, subject to PAYGO

Under current law, from 2012 to 2016, USPS must make a stream of payments set in statute in 2006 toward paying down retiree health benefit unfunded liabilities, as well as pay annual Federal Employees Health Benefits Program premiums for current retirees. Also under current law, starting in 2017, USPS must pay the per capita accruing costs (or normal cost) to fund future retiree health benefits of current employees and a 40-year amortization of the remaining UFL for current retirees. The Budget proposes to shift how the Postal Service (USPS) pre-funds its retiree health benefits unfunded liability (UFL). Under the proposal, starting in 2012, USPS would pay the normal costs for the future retiree health benefits of current employees and also a stream of payments associated with paying down the remaining UFL for current retirees. Further, the Budget would provide USPS temporary financial relief as the 2012 ($5.5 billion deferred from 2011 and $5.6 billion in 2012) and 2013 ($5.6 billion) UFL payments would be adjusted so that USPS would pay through 2013 a total of $14.1 billion less than what it would have paid to this Fund under current law. USPS would make up this $14.1 billion payment to the Fund by paying larger amounts in future years through the 40-year amortization of the remaining UFL that starts in 2017.This proposal provides the following benefits to USPS: 1) USPS would be provided temporary financial relief in the form of lower payments in 2012 and 2013; 2) The new calculations of normal cost and UFL are based on new actuarial assumptions that reflect that USPS has fewer employees than in 2006, when the pre-funding mechanism was originally adopted therefore the actual annual payments for the normal costs would be reset each year based on the number of USPS employees; 3) This Fund would pay the premiums for current USPS retirees now, rather than starting in 2017- this accelerates what would have occurred anyway in 2017 under current law. See also the Postal Service section of this Appendix for information on this proposal. Program and Financing(in millions of dollars)Identification code 24–5391–4–2–5512011 actual2012 est.2013 est.Budgetary Resources:Unobligated balance:1000Unobligated balance brought forward, Oct 12,603Budget authority:Appropriations, mandatory:1201Appropriation (special or trust fund)–7,168–1,5041235Appropriations precluded from obligation9,7714,4161260Appropriations, mandatory (total)2,6032,9121930Total budgetary resources available2,6035,515Memorandum (non-add) entries:1941Unexpired unobligated balance, end of year2,6035,515Change in obligated balance:Obligated balance, start of year (net):3000Unpaid obligations, brought forward, Oct 1 (gross)–2,6033040Outlays (gross)–2,603–2,912Obligated balance, end of year (net):3090Unpaid obligations, end of year (gross)–2,603–5,5153100Obligated balance, end of year (net)–2,603–5,515Budget authority and outlays, net:Mandatory:4090Budget authority, gross2,6032,912Outlays, gross:4100Outlays from new mandatory authority2,6032,9124180Budget authority, net (total)2,6032,9124190Outlays, net (total)2,6032,912Memorandum (non-add) entries:5000Total investments, SOY: Federal securities: Par value–9,7715001Total investments, EOY: Federal securities: Par value–9,771–14,187

Revolving Fund

Enacted/requested

Budget Program

OPM's Revolving Fund provides financing for investigations, training, and other functions that OPM is authorized or required to perform on a reimbursable basis. OPM programs offer the following: OPM's Human Resources Solutions organization delivers human resources products and services to Federal agencies on a reimbursable basis. These products and services are designed to help Federal agency customers develop leaders committed to public service values, attract and build a top quality public sector workforce and aid in their transformation into high-performing organizations. As a revolving fund program, HR Solutions recovers costs of operations by managing thousands of individual reimbursable agreements from more than 150 Federal Departments and agencies for HR products and services. HR Solutions' comprehensive plan for fiscal years 2012 and 2013 include continued delivery of the full array of HR services, including: staffing products and services (examining, testing, recruitment and branding, and automated talent acquisition technology), human resources consulting, and leadership training. Initiatives include implementing the recommendations of key business process reviews, implementing a balanced scorecard framework to assess performance, and investing in research and development for enhancing current products and services.OPM's USAJOBS program, and more specifically the USAJOBS.gov website, has emerged over the last decade as the face of Federal hiring. USAJOBS 3.0 fosters a comprehensive realignment of Federal recruiting and hiring. A key element to this strategy is that the product is Government-hosted, with key enterprise components brought under full Government control, while the Federal Government leverages innovation from the private sector. USAJOBS 3.0 has an increased capacity to provide applicants, hiring managers, and human resource professionals with information to improve the recruitment and hiring process, as well as provide robust and secure data standardization and sharing.OPM's Presidents Management Fellows Program (PMF) is a leadership development program at the entry level for advanced degree candidates. The PMF Program attracts and selects candidates with the goal of developing future government leaders. PMF provides agencies with graduates from a variety of academic disciplines and career paths, who have a clear interest in, and commitment to, excellence in the leadership and management of public policies and programs.OPM's Federal Investigative Services organization provides personnel background investigative services to determine individuals suitability for Federal civilian, military, and contract employment and eligibility for access to classified national security information. Background investigations are performed for Federal agencies on a fee-for-service basis. Federal Investigative Services conducts more than 90 percent of the Federal Governments background investigations concerning Federal employees, contractors, and military members for various Federal agencies. Investigations are a critical step in the Federal hiring process, and can affect hiring or removal decisions based on the individuals fitness and suitability for employment. Based on information gathered in background investigations, Federal agencies also issue security clearances and place individuals in sensitive positions involving national security or the public trust.OPM revolving fund also partially supports the Human Resources Line of Business and Enterprise Human Resources Integration (EHRI). The Human Resources Line of Business (HR LoB) leads the government-wide transformation of HR Information Technology by focusing on modernization, integration, and performance assessment of shared service centers for HR and payroll. The HR LoB is a model for cross-agency collaboration which achieves HR service delivery improvements and cost savings results. On a fee-for-service basis, the EHRI program provides Federal agencies with an electronic official personnel folder (eOPF) system, as well as workforce analysis and other analytical tools. The eOPF is a web-based application that is capable of storing, processing, and displaying the OPFs of all current, separated, and retired Federal Employees. The system will replace the existing manual HR process by automating the Federal Governments HR processes and thereby creating a streamlined Federal HR system for all Federal Employees. The analytical tools streamline and automate the electronic exchange of standardized HR data and provide comprehensive workforce analysis, forecasting, and reporting capabilities across the Executive Branch for the strategic management of human resources.

Financing

OPM's revolving fund account gains spending authority from agreements with other Federal agencies who are seeking the following services: Human Resources Solutions provides a multitude of HR services to other Federal agencies, which include consulting services, training, staffing programs, vendor management, and administrative law judge services. Individual pricing and fee structures for HR Solutions offerings differ because the business models for each of its products and services vary. USAJOBS is financed by an annual fee assessed to Federal agencies. The fee is based on the Federal agency's pro rata share of total Federal government FTE population supported, as provided in the Central Personnel Data File (CPDF). PMF Program assesses a fixed fee for each fellow hired by a Federal agency. The Federal Investigative Services provides personnel background investigative services on a fixed price basis to determine individual's fitness or suitability for Federal civilian, military, and contract employment and/or eligibility for a security clearance. EHRI provides two primary service offerings on a fee-for-service basis: the electronic Official Personnel Folder (eOPF), including deployment and hosting services, and a suite of analytical tools enabling agencies to perform workforce analysis and forecasting. EHRI provides customized eOPF systems to other agencies at additional cost, in which the customer pays for ongoing eOPF maintenance. The pricing structure for eOPF maintenance is a fixed price per license (i.e., electronic folder) and is based on the number of active users at the customer agency. The HR LOB has established public and private Shared Service Centers (SSCs) to provide technology solutions to support multiple agencies with HR information technology and HR services and is financed in part by agency contributions from partner agencies.

Operating Results

In fiscal year 2011, OPM's revolving fund businesses revenue total was $1.989B and the expenses total was $1.986B which provided a net gain on operations of $3 million. The cumulative retained income on was $357M. The following revolving fund programs will utilize the resources as follows: The Federal Investigative Services will continue to improve the automation of the background investigation process, USAJOBS will continue the development of the enterprise integration components which will allow agencies the flexibility to connect relevant public and private assessment, on-boarding, and recruitment tools to enhance the functionality of the USAJOBS system, and Human Resources Solutions will invest in research and development for enhance product and services to meet customer demand. Program and Financing(in millions of dollars)Identification code 24–4571–0–4–8052011 actual2012 est.2013 est.Obligations by program activity:0801Talent services8647506220802Investigation services1,1399991,1530803Leadership capacity services450804Enterprise human resources integration7578680805USAJOBS/PMF2113160900Total new obligations2,1441,8401,859Budgetary Resources:Unobligated balance:1000Unobligated balance brought forward, Oct 16944135171021Recoveries of prior year unpaid obligations631050Unobligated balance (total)757413517Budget authority:Spending authority from offsetting collections, mandatory:1800Collected2,0011,9441,8481801Change in uncollected payments, Federal sources–2011850Spending auth from offsetting collections, mand (total)1,8001,9441,8481900Budget authority (total)1,8001,9441,8481930Total budgetary resources available2,5572,3572,365Memorandum (non-add) entries:1941Unexpired unobligated balance, end of year413517506Change in obligated balance:Obligated balance, start of year (net):3000Unpaid obligations, brought forward, Oct 1 (gross)1,0471,1401,0363010Uncollected pymts, Fed sources, brought forward, Oct 1–1,172–971–9713020Obligated balance, start of year (net)–125169653030Obligations incurred, unexpired accounts2,1441,8401,8593040Outlays (gross)–1,988–1,944–1,8483050Change in uncollected pymts, Fed sources, unexpired2013080Recoveries of prior year unpaid obligations, unexpired–63Obligated balance, end of year (net):3090Unpaid obligations, end of year (gross)1,1401,0361,0473091Uncollected pymts, Fed sources, end of year–971–971–9713100Obligated balance, end of year (net)1696576Budget authority and outlays, net:Discretionary:Offsets against gross budget authority and outlays:Offsetting collections (collected) from:Mandatory:4090Budget authority, gross1,8001,9441,848Outlays, gross:4100Outlays from new mandatory authority8397571,8484101Outlays from mandatory balances1,1491,1874110Outlays, gross (total)1,9881,9441,848Offsets against gross budget authority and outlays:Offsetting collections (collected) from:4120Federal sources–2,001–1,944–1,848Additional offsets against gross budget authority only:4140Change in uncollected pymts, Fed sources, unexpired2014170Outlays, net (mandatory)–134190Outlays, net (total)–13Object Classification(in millions of dollars)Identification code 24–4571–0–4–8052011 actual2012 est.2013 est.Reimbursable obligations:Personnel compensation:11.1Full-time permanent23920522711.5Other personnel compensation49424911.9Total personnel compensation28824727612.1Civilian personnel benefits71618121.0Travel and transportation of persons30252322.0Transportation of things1123.1Rental payments to GSA17151723.3Communications, utilities, and miscellaneous charges21184324.0Printing and reproduction32125.2Other services from non-Federal sources1,6721,4361,38726.0Supplies and materials87631.0Equipment33282599.9Total new obligations2,1441,8401,859Employment SummaryIdentification code 24–4571–0–4–8052011 actual2012 est.2013 est.2001Reimbursable civilian full-time equivalent employment3,4293,6693,189

Trust Funds

Employee Contributions, Civil Service Retirement and Disability Fund

Enacted/requested

Legislative proposal, subject to PAYGO

Agency Contributions, Civil Service Retirement and Disability Fund

Enacted/requested

Legislative proposal, not subject to PAYGO

District of Columbia Contributions, Civil Service Retirement and Disability Fund

Enacted/requested

Postal Service Agency Contributions, Civil Service Retirement and Disability Fund

Enacted/requested

Postal Service Supplemental Contributions, Civil Service Retirement and Disability Fund

Enacted/requested

FFB, TVA, and USPS Interest, Civil Service Retirement and Disability Fund

Enacted/requested

Employee Deposits, Redeposits and Other Contributions, Civil Service Retirement and Disability Fund

Enacted/requested

Treasury Interest, Civil Service Retirement and Disability Fund

Enacted/requested

Legislative proposal, not subject to PAYGO

General Fund Payment to the Civil Service Retirement and Disability Fund

Enacted/requested

Legislative proposal, not subject to PAYGO

Re-employed Annuitants Salary Offset, Civil Service Retirement and Disability Fund

Enacted/requested

Civil Service Retirement and Disability Fund

Enacted/requested

The Civil Service Retirement and Disability Fund is the oldest and largest of the four trust funds administered by the Compensation Group. The Fund is financed and structured very differently from the other three trust funds. It is characterized by permanent indefinite budget authority. Budget Authority is the authority to incur obligations and pay expenses which become available to an agency during any fiscal year. Once approved, permanent budget authority is permanently available for all future years. Indefinite budget authority is used when the precise amount of budget authority required cannot be forecast in advance and must be thus be determined at some future point in time (e.g. when actual receipts and expenses become known). The Civil Service Retirement and Disability Fund covers two Federal civilian retirement systems: the Civil Service Retirement System (CSRS) established on May 22, 1920, and the Federal Employees Retirement System (FERS) established on June 6, 1986. The Retirement Fund is a single plan even though there are two different benefit tiers and funding methods. 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 proposes that the United States Patent and Trademark Office (PTO) continue to fund the full cost for retirement benefits for PTO's employees covered under the Civil Service Retirement System.

Financing

The financing of the Retirement Fund is easily the most complex of the four trust funds. CSRS has been financed under a statutory funding method passed by Congress in 1969. This funding method is based on the static economic assumptions of no future inflation, no future general schedule salary increases, and a 5 percent interest rate. Under CSRS, regular employees contribute 7 percent of pay. Law Enforcement Officers, Firefighters, and Congressional employees contribute an extra 0.5 percent of pay, and Members of Congress an extra 1.0 percent of pay. Non-Postal Agencies match the employee contributions. Also under the static funding method for CSRS, the Treasury pays interest on any static unfunded liabilities that are not being financed by the Postal Service. The Treasury also makes payments to amortize, over a 30-year period, any increases in the static unfunded liability due to salary increases for Non-Postal employees that occurred during the year, and pays for the cost of any benefits attributable to military service for both Postal and Non-Postal employees that were paid out during the year.FERS is funded under a dynamic entry age funding method as prescribed in Chapter 84 of Title 5, United States Code, and employees and agencies together contribute the full amount of the dynamic normal cost. During fiscal year 2010, the dynamic normal cost was 12.0 percent (employees share, 0.8% and employers share, 11.2%) of pay for regular employees. Effective fiscal year 2011, the normal cost will be 12.5 percent (employees share, 0.8% and employers share, 11.5%), and for fiscal year 2012, the normal cost is projected to be 12.7 percent (employees share, 0.8% and employers share, 11.9%). An extra 0.5 percent of pay is contributed by Law Enforcement Officers, Firefighters, Air Traffic Controllers, Congressional employees, and Members of Congress. This normal cost is for the defined benefit plan only, and does not include the cost of Social Security or the Thrift Plan. FERS regular employees contribute a percentage of salary that is equal to the difference between the contribution rate for CSRS employees, as set forth above, and the tax rate under the Old Age, Survivors and Disability Insurance (OASDI) portion of Social Security, which currently is 6.2 percent of pay. In December of 2010, President Obama signed The Middle Class Tax Relief Act of 2010 (Public Law 111–312), which reduced FERS employees' Social Security payroll tax rate from 6.2 to 4.2 percent for one year.The Budget proposes amendments to employer and employee FERS and CSRS contributions, as well as the introduction of a FERS phased retirement program and elimination of the FERS annuity Supplement for new federal employees, described in legislative proposal sections, below. 2011 actual2012 est.2013 est.Active employees2,831,0002,831,0002,831,000Annuitants:Employees1,926,6091,963,4901,998,993Survivors603,428593,092582,726Total, annuitants2,530,0372,556,5822,581,719Special and Trust Fund Receipts(in millions of dollars)Identification code 24–8135–0–7–6022011 actual2012 est.2013 est.0100Balance, start of year774,161797,479812,479Adjustments:0190Adjustment - rounding–10199Balance, start of year774,160797,479812,479Receipts:0200Employee Contributions, Civil Service Retirement and Disability Fund3,3103,5763,3170201Employee Contributions, Civil Service Retirement and Disability Fund8990202District of Columbia Contributions, Civil Service Retirement and Disability Fund3023200203Employee Deposits, Redeposits and Other Contributions, Civil Service Retirement and Disability Fund6516957470240Agency Contributions, Civil Service Retirement and Disability Fund21,01820,98721,2620241Agency Contributions, Civil Service Retirement and Disability Fund–50242Postal Service Agency Contributions, Civil Service Retirement and Disability Fund2,1823,8743,9330243FFB, TVA, and USPS Interest, Civil Service Retirement and Disability Fund4743913290244Treasury Interest, Civil Service Retirement and Disability Fund34,99833,54631,9720245Treasury Interest, Civil Service Retirement and Disability Fund–1340246General Fund Payment to the Civil Service Retirement and Disability Fund31,28131,97631,8760247General Fund Payment to the Civil Service Retirement and Disability Fund–380248Re-employed Annuitants Salary Offset, Civil Service Retirement and Disability Fund5051520299Total receipts and collections93,99495,11994,2300400Total: Balances and collections868,154892,598906,709Appropriations:0500Civil Service Retirement and Disability Fund–102–102–1050501Civil Service Retirement and Disability Fund–93,892–95,119–93,5080502Civil Service Retirement and Disability Fund23,31820,55215,5820503Civil Service Retirement and Disability Fund1770504Civil Service Retirement and Disability Fund–1770505Civil Service Retirement and Disability Fund–8980506Civil Service Retirement and Disability Fund–5,450–4,5520599Total appropriations–70,676–80,119–83,4810795Adjustment - rounding10799Balance, end of year797,479812,479823,228Program and Financing(in millions of dollars)Identification code 24–8135–0–7–6022011 actual2012 est.2013 est.Obligations by program activity:0001Annuities70,20974,34277,7190002Refunds and death claims3212252070003Administration - operations13995990004Transfer to MSPB3320005Administration - OIG4440900Total new obligations70,67674,66978,031Budgetary Resources:Budget authority:Appropriations, discretionary:1101Appropriation (special or trust fund)1021021051160Appropriation, discretionary (total)102102105Appropriations, mandatory:1201Appropriation (special or trust fund)93,89295,11993,5081235Portion precluded from balances–23,318–20,552–15,5821260Appropriations, mandatory (total)70,57474,56777,9261900Budget authority (total)70,67674,66978,0311930Total budgetary resources available70,67674,66978,031Change in obligated balance:Obligated balance, start of year (net):3000Unpaid obligations, brought forward, Oct 1 (gross)6,2226,3686,7193030Obligations incurred, unexpired accounts70,67674,66978,0313040Outlays (gross)–70,530–74,318–77,765Obligated balance, end of year (net):3090Unpaid obligations, end of year (gross)6,3686,7196,9853100Obligated balance, end of year (net)6,3686,7196,985Budget authority and outlays, net:Discretionary:4000Budget authority, gross102102105Outlays, gross:4010Outlays from new discretionary authority381021054011Outlays from discretionary balances614020Outlays, gross (total)99102105Mandatory:4090Budget authority, gross70,57474,56777,926Outlays, gross:4100Outlays from new mandatory authority64,26967,86871,1234101Outlays from mandatory balances6,1626,3486,5374110Outlays, gross (total)70,43174,21677,6604180Budget authority, net (total)70,67674,66978,0314190Outlays, net (total)70,53074,31877,765Memorandum (non-add) entries:5000Total investments, SOY: Federal securities: Par value780,365803,813817,9295001Total investments, EOY: Federal securities: Par value803,813817,929833,409Summary of Budget Authority and Outlays(in millions of dollars)2011 actual2012 est.2013 est.Enacted/requested:Budget Authority70,67674,66978,031Outlays70,53074,31877,765Legislative proposal, subject to PAYGO:Budget Authority5,4505,450Outlays5,4505,439Total:Budget Authority70,67680,11983,481Outlays70,53079,76883,204Status of Funds(in millions of dollars)Identification code 24–8135–0–7–6022011 actual2012 est.2013 est.Unexpended balance, start of year:0100Balance, start of year780,384803,848819,1990199Total balance, start of year780,384803,848819,199Cash income during the year:Current law:Receipts:1200Employee Contributions, Civil Service Retirement and Disability Fund3,3103,5763,3171202District of Columbia Contributions, Civil Service Retirement and Disability Fund3023201203Employee Deposits, Redeposits and Other Contributions, Civil Service Retirement and Disability Fund651695747Offsetting receipts (intragovernmental):1240Agency Contributions, Civil Service Retirement and Disability Fund21,01820,98721,2621242Postal Service Agency Contributions, Civil Service Retirement and Disability Fund2,1823,8743,9331243FFB, TVA, and USPS Interest, Civil Service Retirement and Disability Fund4743913291244Treasury Interest, Civil Service Retirement and Disability Fund34,99833,54631,9721246General Fund Payment to the Civil Service Retirement and Disability Fund31,28131,97631,8761248Re-employed Annuitants Salary Offset, Civil Service Retirement and Disability Fund5051521299Income under present law93,99495,11993,508Proposed legislation:Receipts:2201Employee Contributions, Civil Service Retirement and Disability Fund899Offsetting receipts (intragovernmental):2241Agency Contributions, Civil Service Retirement and Disability Fund–52245Treasury Interest, Civil Service Retirement and Disability Fund–1342247General Fund Payment to the Civil Service Retirement and Disability Fund–382299Income under proposed legislation7223299Total cash income93,99495,11994,230Cash outgo during year:Current law:4500Civil Service Retirement and Disability Fund–70,530–74,318–77,7654599Outgo under current law (-)–70,530–74,318–77,765Proposed legislation:5500Civil Service Retirement and Disability Fund–5,450–5,4395599Outgo under proposed legislation (-)–5,450–5,4396599Total cash outgo (-)–70,530–79,768–83,204Unexpended balance, end of year:8700Uninvested balance (net), end of year356,7207,8508701Civil Service Retirement and Disability Fund803,813817,929833,4098701Civil Service Retirement and Disability Fund–5,450–11,0348799Total balance, end of year803,848819,199830,225Object Classification(in millions of dollars)Identification code 24–8135–0–7–6022011 actual2012 est.2013 est.Direct obligations:25.2Other services from non-Federal sources14610210542.0Insurance claims and indemnities70,20974,34277,71944.0Refunds and death claims32122520799.9Total new obligations70,67674,66978,031

Legislative proposal, not subject to PAYGO

The following describes portions of three legislative proposals that are not subject to PAYGO that would impact the financing and benefits of the Civil Service Retirement and Disability Fund (CSRDF).The first legislative proposal, the President's Retirement Reform proposal, was presented in the President's Plan for Economic Growth and Deficit Reduction (September 2011). It would increase employee contributions to the retirement fund by 1.2% of pay, phased in over 3 years beginning in 2013, and retain employer contributions at current rates. The portion of employer contributions that are not needed to fund accumulating benefits of current employees would reduce the CSRDF's unfunded liability, and would thus reduce interest payments to the CSRDF. This proposal also included the elimination of the FERS supplemental annuity for new FERS employees, which would reduce the normal cost of FERS benefits resulting in reduced agency contributions to the CSRDF.The second legislative proposal, the Administration's Phased Retirement proposal, which was included in the Administration's Federal Hiring Modernization Act of 2010 (September, 2010), gives federal agencies an additional tool to help ensure continuity of operations and facilitate knowledge management by allowing valued employees to transition into retirement. This proposal would decrease agency contributions because agencies would not immediately replace individuals engaged in a phased retirement.The third legislative proposal would provide financial relief to the United States Postal Service by refunding FERS contributions that exceeded the projected liability for future Postal Service retirees covered under FERS. This proposal is one part of a comprehensive Postal relief and reform proposal reflected in the Budget. This proposal decreases the amount of funds the CSRDF would have available to invest in securities and thereby would decrease projected interest earnings of CSRDF. These impacts are not subject to PAYGO because they reflect intragovernmental accrual and interest payments.Program and Financing(in millions of dollars)Identification code 24–8135–2–7–6022011 actual2012 est.2013 est.Budgetary Resources:Budget authority:Appropriations, mandatory:1201Appropriation (special or trust fund)–1771235Portion precluded from balances177

Legislative proposal, subject to PAYGO

The following describes portions of three legislative proposals that are subject to PAYGO that would impact the financing and benefits of the Civil Service Retirement and Disability Fund (CSRDF).The first legislative proposal, the President Retirement Reform proposal, was presented in the President's Plan for Economic Growth and Deficit Reduction (September 2011). It would increase FERS employee contributions to the retirement fund by 1.2% of pay, phased in over 3 years beginning in 2013, and retain employer contributions at current rates. The increase of receipts from employees would score.The second legislative proposal, the Administrations Phased Retirement proposal, which was included in the Administrations Federal Hiring Modernization Act of 2010 (September, 2010), gives federal agencies an additional tool to help ensure continuity of operations and facilitate knowledge management by allowing valued employees to transition into retirement. This proposal would decrease outlays from the CSRDF by incenting some employees to delay the date of full retirement they would otherwise choose.Third, the Budget proposes to return to the Postal Service (USPS) surplus amounts it has paid into its Office of Personnel Management (OPM) account for its share of Federal Employee Retirement System costs. OPM has determined this surplus, as of September 30, 2010, is approximately $10.9 billion. Under the proposal, half of the surplus would be paid back to USPS in 2012 and the other half paid back in 2013. See also the Postal Service section of this Appendix. Program and Financing(in millions of dollars)Identification code 24–8135–4–7–6022011 actual2012 est.2013 est.Obligations by program activity:0006USPS Refund5,4505,4500900Total new obligations (object class 44.0)5,4505,450Budgetary Resources:Budget authority:Appropriations, mandatory:1201Appropriation (special or trust fund)8981235Portion precluded from balances5,4504,5521260Appropriations, mandatory (total)5,4505,4501900Budget authority (total)5,4505,4501930Total budgetary resources available5,4505,450Change in obligated balance:3030Obligations incurred, unexpired accounts5,4505,4503040Outlays (gross)–5,450–5,439Obligated balance, end of year (net):3090Unpaid obligations, end of year (gross)113100Obligated balance, end of year (net)11Budget authority and outlays, net:Mandatory:4090Budget authority, gross5,4505,450Outlays, gross:4100Outlays from new mandatory authority5,4505,4504101Outlays from mandatory balances–114110Outlays, gross (total)5,4505,4394180Budget authority, net (total)5,4505,4504190Outlays, net (total)5,4505,439Memorandum (non-add) entries:5000Total investments, SOY: Federal securities: Par value–5,4505001Total investments, EOY: Federal securities: Par value–5,450–11,034

Employees Life Insurance Fund

Enacted/requested

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:2011 actual2012 est.2013 est.Life insurance in force (in billions of dollars):On active employees760.0777.5795.4On retired employees82.984.686.4On tribal employees03.03.0Total842.9865.1884.8Number of participants (in thousands):Active employees2,5892,6242,660Annuitants1,6231,6211,619Tribal employees01010Total4,2124,2554,289

Financing

Non-Postal Service employees, employees of Tribal organizations, and all retirees under 65 pay two-thirds of the premium costs for Basic coverage; agencies and tribal organizations 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 Reserves2011 actual2012 est.2013 est.Held in reserve (in millions of dollars):Contingency reserve320320320Beneficial association program reserve000U.S. Treasury reserve39,67841,69443,762Total reserves39,99842,01444,082Program and Financing(in millions of dollars)Identification code 24–8424–0–8–6022011 actual2012 est.2013 est.Obligations by program activity:0801Basic life insurance payments1,4911,5731,6480802Optional life insurance payments1,1151,1451,1870803Shenandoah life insurance payments5560804Administration—OPM & OIG2220805Administration—long term care2220900Total new obligations (object class 25.2)2,6152,7272,845Budgetary Resources:Unobligated balance:1000Unobligated balance brought forward, Oct 136,74738,78340,834Budget authority:Spending authority from offsetting collections, discretionary:1700Collected2221750Spending auth from offsetting collections, disc (total)222Spending authority from offsetting collections, mandatory:1800Collected4,6564,7914,8801801Change in uncollected payments, Federal sources–7–1581850Spending auth from offsetting collections, mand (total)4,6494,7764,8881900Budget authority (total)4,6514,7784,8901930Total budgetary resources available41,39843,56145,724Memorandum (non-add) entries:1941Unexpired unobligated balance, end of year38,78340,83442,879Change in obligated balance:Obligated balance, start of year (net):3000Unpaid obligations, brought forward, Oct 1 (gross)7858158493010Uncollected pymts, Fed sources, brought forward, Oct 1–383–376–3613020Obligated balance, start of year (net)4024394883030Obligations incurred, unexpired accounts2,6152,7272,8453040Outlays (gross)–2,585–2,693–2,8093050Change in uncollected pymts, Fed sources, unexpired715–8Obligated balance, end of year (net):3090Unpaid obligations, end of year (gross)8158498853091Uncollected pymts, Fed sources, end of year–376–361–3693100Obligated balance, end of year (net)439488516Budget authority and outlays, net:Discretionary:4000Budget authority, gross222Outlays, gross:4010Outlays from new discretionary authority122Offsets against gross budget authority and outlays:Offsetting collections (collected) from:4030Federal sources–2Mandatory:4090Budget authority, gross4,6494,7764,888Outlays, gross:4100Outlays from new mandatory authority1,7991,9061,9884101Outlays from mandatory balances7857858194110Outlays, gross (total)2,5842,6912,807Offsets against gross budget authority and outlays:Offsetting collections (collected) from:4120Federal sources–564–551–5544121Interest on Federal securities–1,310–1,246–1,3064123Non-Federal sources–2,782–2,996–3,0224130Offsets against gross budget authority and outlays (total)–4,656–4,793–4,882Additional offsets against gross budget authority only:4140Change in uncollected pymts, Fed sources, unexpired715–84160Budget authority, net (mandatory)–2–24170Outlays, net (mandatory)–2,072–2,102–2,0754190Outlays, net (total)–2,073–2,100–2,073Memorandum (non-add) entries:5000Total investments, SOY: Federal securities: Par value37,60539,67841,6945001Total investments, EOY: Federal securities: Par value39,67841,69443,762Object Classification(in millions of dollars)Identification code 24–8424–0–8–6022011 actual2012 est.2013 est.Reimbursable obligations:25.2Other services from non-Federal sources2,6152,7272,84599.0Reimbursable obligations2,6152,7272,845

Employees and Retired Employees Health Benefits Funds

Enacted/requested

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; 4) tribal organizations; and 5) 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:2011 actual2012 est.2013 est.Active employees1,723,0001,719,0001,719,000Annuitants1,861,0001,881,0001,901,000Tribal Organizations030,78846,182Total3,584,0003,630,7883,666,182In 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:2011 actual2012 est.2013 est.Uniform plan158130107Private plans376309254Total534439361

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. 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, which 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 proposes that the Patent and Trademark Office continue to fund the accruing costs associated with post-retirement health benefits for its employees. The Budget also proposes that the Office of Personnel Management (OPM) be given authority to streamline pharmacy benefit contracting within the FEHB program and leverage enrollees' purchasing power to reduce costs and obtain greater value for enrollees. Program and Financing(in millions of dollars)Identification code 24–9981–0–8–5512011 actual2012 est.2013 est.Obligations by program activity:0801Benefit payments40,72343,21347,0530802Payments from OPM contingency reserve1633503500803Government payment for annuitants (1960 Act)1110804Administration - operations1616150805Administration - OIG1716160806Administration - dental and vision program2550900Total new obligations (object class 25.6)40,92243,60147,440Budgetary Resources:Unobligated balance:1000Unobligated balance brought forward, Oct 114,07016,58717,746Budget authority:Spending authority from offsetting collections, discretionary:1700Collected3332311750Spending auth from offsetting collections, disc (total)333231Spending authority from offsetting collections, mandatory:1800Collected43,55244,67747,2751801Change in uncollected payments, Federal sources–146511171850Spending auth from offsetting collections, mand (total)43,40644,72847,3921900Budget authority (total)43,43944,76047,4231930Total budgetary resources available57,50961,34765,169Memorandum (non-add) entries:1941Unexpired unobligated balance, end of year16,58717,74617,729Change in obligated balance:Obligated balance, start of year (net):3000Unpaid obligations, brought forward, Oct 1 (gross)4,1304,4174,5293010Uncollected pymts, Fed sources, brought forward, Oct 1–2,031–1,885–1,9363020Obligated balance, start of year (net)2,0992,5322,5933030Obligations incurred, unexpired accounts40,92243,60147,4403040Outlays (gross)–40,635–43,489–47,2783050Change in uncollected pymts, Fed sources, unexpired146–51–117Obligated balance, end of year (net):3090Unpaid obligations, end of year (gross)4,4174,5294,6913091Uncollected pymts, Fed sources, end of year–1,885–1,936–2,0533100Obligated balance, end of year (net)2,5322,5932,638Budget authority and outlays, net:Discretionary:4000Budget authority, gross333231Outlays, gross:4010Outlays from new discretionary authority2132314011Outlays from discretionary balances114020Outlays, gross (total)323231Offsets against gross budget authority and outlays:Offsetting collections (collected) from:4030Federal sources–33Mandatory:4090Budget authority, gross43,40644,72847,392Outlays, gross:4100Outlays from new mandatory authority36,48339,04142,7654101Outlays from mandatory balances4,1204,4164,4824110Outlays, gross (total)40,60343,45747,247Offsets against gross budget authority and outlays:Offsetting collections (collected) from:4120Federal sources–30,482–31,306–33,0414121Interest on Federal securities–286–362–2784123Non-Federal sources–12,784–13,041–13,9874130Offsets against gross budget authority and outlays (total)–43,552–44,709–47,306Additional offsets against gross budget authority only:4140Change in uncollected pymts, Fed sources, unexpired146–51–1174160Budget authority, net (mandatory)–32–314170Outlays, net (mandatory)–2,949–1,252–594190Outlays, net (total)–2,950–1,220–28Memorandum (non-add) entries:5000Total investments, SOY: Federal securities: Par value16,24419,19420,4325001Total investments, EOY: Federal securities: Par value19,19420,43220,481Status of Funds(in millions of dollars)Identification code 24–9981–0–8–5512011 actual2012 est.2013 est.Unexpended balance, start of year:0100Balance, start of year16,17119,12120,3410199Total balance, start of year16,17119,12120,341Cash income during the year:Current law:Offsetting collections:1280Federal sources, Discretionary331281Federal sources, Mandatory2863622781282Interest on Federal securities12,78413,04113,9871283Non-Federal sources, Mandatory30,48231,30633,0411299Income under present law43,58544,70947,3063299Total cash income43,58544,70947,306Cash outgo during year:Current law:4500Employees and Retired Employees Health Benefits Funds–40,635–43,489–47,2784599Outgo under current law (-)–40,635–43,489–47,2786599Total cash outgo (-)–40,635–43,489–47,278Unexpended balance, end of year:8700Uninvested balance (net), end of year–73–91–1128701Employees and Retired Employees Health Benefits Funds19,19420,43220,4818799Total balance, end of year19,12120,34120,369Object Classification(in millions of dollars)Identification code 24–9981–0–8–5512011 actual2012 est.2013 est.Reimbursable obligations:25.6Medical care40,92243,60147,44099.0Reimbursable obligations40,92243,60147,440

Legislative proposal, subject to PAYGO

No Fund Title

GENERAL FUND RECEIPT ACCOUNT

Enacted/requested

(in millions of dollars)2011 actual2012 est.2013 est.Offsetting receipts from the public:24–322000All Other General Fund Proprietary Receipts Including Budget Clearing Accounts: Enacted/requested522General Fund Offsetting receipts from the public522This account represents general miscellaneous receipts of the Office of Personnel Management and receipts that must be returned to the General Fund of the Treasury.