6. Contingency reserve for the year (before returns).... 138,679 Less premiums returned to Employees life insurance fund... 120,557 138,483 38,679 100,000 Obligations (from program and financing) Increase (-) in gross unpaid obligations.. Gross expenditures.. Revenues and other receipts (from program and financing) Increase (-) in accounts receivable, net. Applicable receipts_____ Trust expenditures.......... 153,843 138,525 167,548 -70,303 -27,355 -52,724 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, 1962, with respect to the basic insurance program, a total of $600.5 million was withheld from the salaries of covered employees and $300.2 million was contributed by the Government to the fund. It is estimated that in 1964, $100.5 million will be paid into the fund by employees and $50.2 million by the Government. As of June 30, 1962, a total of $556 million had been paid by the insurer in benefits. It is estimated that over $124.4 million in benefits will be paid in 1964. Most of the difference between receipts and benefit payments under the policy is placed by the insurer in a contingency reserve which is used primarily to pay benefits accruing to the survivors of retirees-a group which will rapidly increase as more insured employees reach retirement age. On June 30, 1962, the end of the last completed policy year, there was a total reserve of $351.8 million of which $101.5 million was held as a special contingency reserve by the insurer at interest, and $250.3 million was on deposit in the Treasury of the United States. The contingency reserve is limited to a level of $100 million, and the amount above this figure held by the insurer 8. Contingency reserve held by 1 By amendment to group policy 17,000G, the seventh policy year ended June 30, 1961. Policy years thereafter will be from July 1 through the subsequent June 30, The refunds from the contingency reserve were made as follows: $15 million, December 28, 1961; $22 million, June 29, 1962; $1,483 thousand. July 31, 1962 Through June 30, 1962, individuals whose beneficial life insurance agreements have been assumed by the fund paid $16.9 million into the fund. It is estimated that in 1964 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 of beneficial associations. This reserve, which was estimated to be $2.3 million on June 30, 1962, will accumulate interest consistent with that provided under the regular program. If the Commission determines that the contingency reserve under the beneficial association program has reached a level sufficient to meet adverse fluctuation in future charges, any amounts above this level will be returned to the fund. was returned in July 1962, and deposited in the Treasurer of the United States to be invested. Financing.-Premium costs are met by withholding from the salaries of employees 25 cents biweekly for each A summary statement of the operations of the contin- ment, and direct premium payments from beneficial $1 thousand life insurance, contributions by the Govern gency reserve for the three most recent policy years, 1960 association members. NGENCY Operating results.-Earnings are retained to meet the cost of future benefits. 965 Revenue.. Expense.. Net income for year... Retained earnings, start of year. || Assets: Treasury balance.. U.S. securities (par). Accounts receivable, net. Selected assets: 1 Supplies... Loans to retired employees health benefits fund.. Fixed assets, net.. Liabilities: Current.. Trust equity: Retained earnings.. OTHER INDEPENDENT AGENCIES-Continued Financial Condition (in thousands of dollars)-Continued CIVIL SERVICE COMMISSION-Continued 1961 actual 1962 1963 1964 actual estimate estimate RETIRED EMPLOYEES HEALTH BENEFITS FUND-Continued This fund established in accordance with the Retired Federal Employees' Health Benefits Act (Public Law 96-724, 74 Stat. 849) finances (1) the payment of subscription charges to an approved carrier for those qualified employees and survivors who enroll in the uniform Government-wide health benefits plan; (2) the contribution to qualified employees and survivors who retain or purchase non-Government approved health insurance plans; and (3) the payment of expenses incurred by the Civil Service Commission in the administration of the act. Budget program.-The act authorized the Commission to use money from the Employees life insurance fund, without regard to limitation on expenditures from that fund, through June 30, 1962, for administrative expenses. For 1963, however, Congress provided a dollar limitation for the Commission's administrative expenses rather than the 2% limitation of Government contributions as set forth in section 4(b) and section 6(c) of the act. The estimate of administrative expenses for 1964 is based on anticipated needs. During 1964 an estimated $28,765 thousand will be deposited in the fund. Participating retired employees and survivors are expected to pay $13,658 thousand and the Government will pay $15,107 thousand. It is estimated that at least $21,600 thousand in subscription charges will be paid to the carrier of the Government-wide plan, and $6,773 thousand to annuitants for their private health insurance plans. Financing. The fund will be financed by contributions from those participants enrolled in the Government-wide plan and by Government contributions for 1964. Operating results.-There will be a $417 thousand surplus in the fund at the end of 1964 as compared with $267 thousand in 1963. This is interest earned on investments held during the years 1962, 1963, and 1964 but liquidated periodically to meet obligations. Revenue, Expense, and Retained Earnings (in thousands of dollars) 1964 estimate estimate OTHER INDEPENDENT AGENCIES-Continued NATIONAL CAPITAL HOUSING AUTHORITY ects conveyed to the Authority for low-rent use; all other projects are permanently financed through the sale of Housing Authority bonds which are supported by the contribution equal to the debt service less any excess operating receipts over operating expense. OPERATION AND MAINTENANCE, PROPERTIES AIDED BY PUBLIC pledge of the Public Housing Administration to pay annual HOUSING ADMINISTRATION (TRUST REVOLVING FUND) Program and Financing (in thousands of dollars) Revenue, Expense, and Retained Earnings (in thousands of dollars) |