FY 2000
Budget Justification/Performance Plan
|
U.S. Office of Personnel
Management FY 2000 |
| (Last page of Payment Accounts information) | |
| Additional Information Available on the Next Page |  |
| FY 1998 Actual |
FY 1999 Estimate |
FY 2000 Request |
FY 2000 Change |
|
| PROGRAM BY ACTIVITY | ||||
| Payment of
annuities under special acts |
$431 | $362 | $333 | ($29) |
| Payment of
Government share of retirement |
8,381,255 | 8,702,818 | 9,120,539 | 417,721 |
| Transfer for interest on unfunded liability and payment of military service annuities | 12,916,700 | 12,885,786 | 12,634,317 | (251,469) |
| Spouse equity payment | 58,915 | 56,348 | 56,348 | — |
| Transfer for payment of FERS supplemental liability | — | — | — | — |
| Total Obligations | $21,357,301 | $21,645,314 | $21,811,537 | $166,223 |
| FINANCING | ||||
| Appropriation (current) | $8,381,686 | $8,703,180 | $9,120,872 | $417,692 |
| Appropriation (permanent, Indefinite) |
12,975,615 | 12,942,134 | 12,690,665 | (251,469) |
| Budget Authority | $21,357,301 | $21,645,314 | $21,811,537 | $166,223 |
| Outlays | $21,357,301 | $21,645,314 | $21,811,537 | $166,223 |
PAYMENT TO THE CIVIL SERVICE RETIREMENT AND DISABILITY FUND
CURRENT AND PERMANENT BUDGET AUTHORITY
(dollar amounts in thousands)
SUMMARY EXPLANATION OF CHANGES
REQUESTED FOR FY 2000
| Current | Permanent | Total | |
| FY 1999 Total Budget Authority/Obligations | $8,703,180 | $12,942,134 | $21,645,314 |
| FY 2000 Program Changes | |||
| Decrease in payment for annuities under special acts. | (29) | --- | (29) |
| Increase in 30-year amortization payments resulting from an assumed 4.4% January pay raise (including locality pay adjustments). | 417,721 | --- | 417,721 |
| Decrease in the annual payment of interest on the Civil Service Retirement System unfunded liability resulting from increased Postal Service contributions. | --- | (405,697) | (405,697) |
| Increase in the annual payment for military service credit due to annuity roll growth and payment of the 2.4% January 2000 COLA. | --- | 154,228 | 154,228 |
| Total Changes | $417,692 | ($251,469) | $166,223 |
| FY 2000 Total Budget Authority/ Obligations | $9,120,872 | $12,690,665 | $21,811,537 |
The Civil Service Retirement and Disability Fund was established in 1920 to administer the financing and payment of annuities to retired Federal employees and their survivors. In FY 1999 the Fund will serve approximately 2.6 million active employees, 1.8 million annuitants and 0.6 million survivors and will make benefit payments in excess of $44 billion. The Fund covers the operation of both the Civil Service Retirement System and the Federal Employees Retirement System.
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 (Public Law 91-93), the Federal Employees Retirement Act of 1986 (Public Law 99-335) and the Civil Service Retirement Spouse Equity Act of 1985 (Public Law 98-615). The payment is made directly from the General Fund of the U.S. Treasury and is in addition to appropriated funds that will be contributed from agency budgets in FY 2000.
Current Appropriation
Public Law 91-93 provides for an annual appropriation to amortize, over a 30-year period, all increases in Civil Service Retirement System (CSRS) 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. Since FY 1994, the Office of Personnel Management has notified the Secretary of the Treasury each year of the "such sums as may be necessary" to carry out these provisions.
The total current appropriation request for FY 2000 ($9,120,872,000) is the sum of the annual payments authorized since the law was enacted in 1969 ($8,702,818,000), plus the estimated payment resulting from assumed pay raises totaling 4.4% in January 2000 ($417,721,000). It also includes funding for the annuities of persons employed on the construction of the Panama Canal and widows of former Lighthouse Service employees (Annuitants under Special Acts, $333,000). The total FY 2000 current appropriation estimate represents an increase of $417,692,000 from the amount estimated for FY 1999 of which $417,721,000 is attributed to increases in employees' pay, and $29,000 for decreases in payments to annuitants under special acts.
Permanent Indefinite Authorization
Public Law 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 System's current statutory unfunded liability, calculated based on static economic assumptions, of $8,977,153,000, and annuity disbursements attributable to credit for military service of $3,657,164,000.
It also includes a payment of $56,348,000 in accordance with Public Law 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.
The permanent indefinite authorization in FY 2000 will total $12,690,665,000, a decrease of $251,469,000 from FY 1999. The decrease reflects a lower CSRS unfunded liability interest payment of $405,697,000, and a higher payment for military service credit of $154,228,000.
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Web Page Created 14 May 1999