Government equity: Retained earnings (reserve for contingencies).... 225,920 come reserves.. 14,033 Reserve for dividends. 8,250 Total liabilities..... 1,075,478 Unobligated balance: U.S. securities (par)..--Invested capital and earnings.... Operating reserves. 1963 actual Total Government equity... 1,789 1,003,002 2,109 97,834 49 Identification code 29-00-8150-0-7-805 1,104,783 22,231 805,044 29,305 1964 actual 29,305 70,013 33.0 Investments and loans (policy loans). 42.0 Insurance claims and indemnities.......... 99.0 Total obligations... 1,873 980,840 2,044 92,800 39 1,077,596 22,401 764,878 70,420 70,177 68,954 6,239 -1,975 -2,192 29.305 35.544 33.569 233,422 13,375 7,975 1,042,052 984,669 962,355 97.883 92,839 -1,053,247 -1,019,650 35,544 35,544 Analysis of Government Equity (in thousands of dollars) 70,270 1965 estimate 1,893 960,475 1,926 88,300 35 1,052,629 23,391 744,969 230,000 13,000 7,700 1,019,060 33,569 Object Classification (in thousands of dollars) 1964 actual 940,903 88,335 -995,669 33,569 68,804 1966 estimate 1.538 945,000 1,032,323 23,739 725,507 31,377 924,549 84,035 -977,207 31,377 1965 1966 estimate estimate Identification code Relation of obligations to expenditures: 90 Expenditures 225,000 71 72 12,700 74 14,000 90 1,000.946 10 DEPOSIT FUNDS Program and Financing (in thousands of dollars) Financing: 21 Unobligated balance available, start of year. 60 10,564 8,620 6,850 25.1 97,369 96,224 89,456 26.0 107,933 104,844 96,306 99.0 CONTRIBUTIONS Program and Financing (in thousands of dollars) Program by activities: 1. Purchase of flowers... 2. Repair of non-Federal war memorials... Total obligations..... Relation of obligation to expenditures: Expenditures..... New obligational authority (appropri- Identification code 1964 1965 1966 actual estimate estimate 67,076 65,520 63,964 -65,520 -63,964 -62,408 1,556 1,556 1,556 Other services... Total obligations. 1964 actual 1965 1966 estimate estimate 3 3 3 ** 3 3 3 1964 1965 1966 actual estimate estimate 1. Purchase of flowers.-Funds are deposited with the Commission by private citizens for the purchase of floral decorations for graves in the World War I and World War II military cemeteries. The donor is advised when the flowers have been placed. 2. Repair of private war memorials. When requested to do so and upon receipt of the necessary funds, the Commission will arrange for and oversee the repair of war memorials erected in foreign countries by American citizens, States, municipalities, or associations. Such moneys are accounted for through this fund. Object Classification (in thousands of dollars) 3 3 3 3 3 3 4 3 Payment from other funds: Employing agency contributions.... 1965 estimate Federal contributions__ Interest and profits on investments. ice payments, etc.......... Total.... 1,324,968 1964 actual 1,448,829 1,628,000 -2,383 -2,383 -14,279,250 -15,490,611 2,383 15,490,611 2,660,190 1966 estimate 1,448,829 1,499,000 1,327,886 1,448,829 1,628,000 93,038 104,087 119,460 1,458 -104,087 -119,460 -131,867 1,318,296 1,433,456 1,615,593 1965 estimate 1966 U.S. securities brought forward (par). 13,154,721 14,279,250 15,490,611 979,941 62,000 419,838 979,886 14,592 2,456,257 2,432 16,600,000 2,737,438 1,628,000 Balance of fund brought forward... 13,247,759 14,385,720 15,612.454 Cash income during year: 1,043,250 494,098 This fund is used to pay annuities to retired employees or their survivors, to make refunds to former employees who have left the service, and to pay claims for employees who have died before retirement, or before their annuities are paid in full (5 U.S.C. ch. 14). It is estimated that as of 21.98 June 30, 1966, there will be 778,571 persons on the annuity roll, compared with 732,243 as of June 30, 1965, and 687,986 as of June 30, 1964. The status of the fund is as follows (in thousands of dollars): 1,043,250 67,000 569,346 1,043,250 14,592 14,592 2,660,190 2,737,438 750-100-65-67 1965 1966 estimate estimate 384,077 448,421 502,064 -398,639-462.291 -520,173 This fund finances the payment of subscription charges to approved carriers of the costs of health benefits protection as provided by the Federal Employees Health Benefits Act of 1959 (Public Law 86-382, 5 U.S.C. 3006) together with expenses incurred by the Civil Service Commission in administration of the act. Budget program. The act provides that the employees health benefits fund will be available to pay for administrative expenses incurred by the Commission, within such limitation as may be specified by the Congress. Almost 2 million employees and approximately 160,850 annuitants are participating in this program. By the end of 1966 it is estimated that an additional 94,000 eligible employee and survivor annuitants will participate in the program. For 1966 it is estimated that $364.1 million will be deposited into the fund from amounts withheld from employees and annuitants and $157.6 million will be contributed by the Government. On the basis of these forecasts, $501.7 million will be paid from the fund in 1966 to approved health benefit plans. An amount equal to 3% of the contribution toward each plan is set aside in the fund to provide a contingency reserve for that plan. The contingency reserve can only be used to defray future increased rates, or to reduce contributions, or to provide increased benefits. Effective with the contract period beginning November 1, 1963, an amendment to the regulations provides for additional payments to experience rated carriers from the contingency reserve when the reserves held by the carrier are less than a stipulated amount and the plan's contingency reserve held by the fund exceeds one month's subscription charges. Community rated carriers may also receive additional payments from their plan's contingency reserve held by the fund, when properly justified. In 1964, $861 thousand was paid from the contingency reserve to qualified carriers and for 1965 approximately $6 million will be paid and an estimated $4.5 million will be paid in 1966. In addition, an amount equal to 1% of all contributions is set aside for administrative expenses incurred by the Commission in the administration of the act. Public Law 88-284, enacted March 17, 1964, provides that the Commission from time to time and in such amounts as it considers appropriate may transfer unused funds for administrative expenses to the contingency reserve of the plans under contract. To implement this provision $7.8 million was transferred from the administrative expense reserve to the contingency reserve in May 1964. During 1965 another $2.5 million will be available for transfer, and in 1966 slightly more than $2.5 million will become available. Unpaid undelivered orders 1. Unobligated balance.... Invested capital and earnings. Total trust equity....... Identification code 1963 actual 12.0 Personnel benefits.... 25.2 Services of other agencies. 31.0 Equipment............ 8,480 37,924 32,572 20 29 Total costs, funded... 94.0 Change in selected resources. 99.0 Total obligations. 79,026 39,144 50 39,194 39,831 1964 actual 187 39,596 49 39,831 397,327 467,840 524,641 382,536 454,816 507,368 14,792 13,024 17,273 39,831 54,623 67,647 54,623 67,647 84,920 1964 actual 7,939 53,028 31,260 9 28 92,263 1965 1966 estimate estimate Analysis of Trust Equity (in thousands of dollars) 179 54,407 37 54,623 1965 estimate 37,445 44,032 195 37,640 44,032 8,836 66,000 36,809 9 25 54,623 67,647 1964 actual 111,679 381,367 1,165 3 179 67,434 34 67,647 1965 estimate 1 The changes in these items are reflected on the program and financing schedule. Object Classification (in thousands of dollars) 453,635 1,176 2 454,813 1966 estimate 8,945 84,000 41.277 9 22 134,253 49,333 49,333 84,920 179 84,710 31 84,920 1966 estimate 506, 174 1,189 2 507,365 382,534 -19 382,515 454,813 507,365 OTHER INDEPENDENT AGENCIES-Continued CIVIL SERVICE COMMISSION-Continued EMPLOYEES LIFE INSURANCE FUND -56,500 Non-Federal sources: lections.. Other revenue. 21.98 Unobligated balance available, start of 171,060 172.240 138,332 2 128,486 138,334 138,334 -52,426-56,000 1966 estimate Most of the difference between receipts and benefit payments under the policy is placed in reserves. On June 30, 1964, the end of the last completed policy year, there were total reserves of $447 million of which $100 million was held as a special contingency reserve by the insurer at interest, and $347 million was held by the fund with the Treasury of the United States. The contingency reserve is now limited to a level of $100 million, and all amounts above this figure periodically are returned and 139,519 deposited in the Treasury of the United States to be invested. 10,073 10,575 352,910 129 A summary statement of the operations of the con139,519 tingency reserve for the three most recent policy years, 1962 through 1964, and the total at the end of the 10th policy year follows: STATEMENT OF ANNUAL ACCOUNTING AND CONTINGENCY 139,519 -28 -3,295 -3,100 -3,000 -14,195 -10,073 -10,575 -303.406-352,910-400,000 10,276 400,000 450,000 138,334 -173,868-185,925-189,220 -45,382 -47,591 -49,701 -10,930 -6,929 -6,929 6,929 6,929 6,929 -49,383 -47,591 | -49,701 139,519 127,505 138,334 139.519 -176,888 -185,925 -189,220 was withheld from the salaries of covered employees and $402.6 million was contributed by the Government to the fund. It is estimated that in 1966, $113 million will be paid into the fund by employees and $56.5 million by the Government. As of June 30, 1964, a total of $787 million had been paid by the insurer in benefits. It is estimated that over $145 million in benefits will be paid in 1966. are identified on the statement of financial This fund finances the payment of group life insurance premiums to private insurance companies under the Federal Employees' Group Life Insurance Act of 1954 (5 U.S.C. 2091-2103) and any expenses incurred by the Civil Service Commission in administration of this act as annually authorized by Congress. Budget program.-Through June 30, 1964, with respect to the basic insurance program, a total of $805.2 million 2.184 338 2,432 2,768 38,483 277,888 100,000 1 The refunds from the contingency reserve were made as follows: $18 million, Dec. 26, 1963; $14 million, July 1, 1964; $15.690. Aug. 6, 1964. Through June 30, 1964. individuals whose beneficial life insurance agreements have been assumed by the fund paid $22.8 million into the fund. It is estimated that in 1966 about $3 million will be paid into the fund by this group. Former members of beneficial associations continue to pay premiums according to the rate schedules in effect at the time their life insurance agreements were assumed by the fund, but the Government makes no current contributions to the fund for these individuals as it does for employees covered under the regular program. A contingency reserve has been established and held by the insurer at interest under the policy covering members 759,667 47,158 6,012 812.837 19,991 2.931 9,995 32,917 377,888 |