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30,826 13,980 9,019 U.S. securities (par) -
11,051,014 12,080,760 13,018,787 Receipts: Deductions from employees' salaries...
851,145 896,396 920,283 Payments from other funds:
Employing agency contribu-
851,251 896,396 920,283 Federal contribution..
62,000 Voluntary contributions, dona
tions, service credit payments,
12,375 12,000 12,000
315,848 347,274 415,963 Gain from premium or discount on investments.
3,346 Unobligated balance carried for
ward (-): Cash..---.
-13,980 -9,019 -9,637 U.S. securities (par)
-12,080,760 -13,018,787 -14,003,210 Total financing
1,065,702 1,219,000 1,345,488
Total capital outlay-.-
Total program costs, funded. Change in selected resources 1.
Employees' salary withholdings...
Total revenues and other receipts..
U.S. securities (par)..-
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 June 30, 1964, there will be 691,500 persons on the annuity roll, compared with 602,269 as of June 30, 1962, and 648,024 as of June 30, 1963.
The status of the fund is as follows (in thousands of dollars):
1962 actual 1963 estimate 1964 estimate U.S. securities brought forward (par). 11,051,014 12,080,760 13,018,787 Cash (unexpended balance) ---
107,964 95,831 90,870 Balance of fund brought forward 11,158,978 12,176,591 13,109,657 Cash income during year.
2,075,256 2,152,066 2,330,529 Cash outgo during year: Payment of claims
937,080 1,067,882 1,194,370 Refunds..
123,909 151,118 151,118 Gain from discount on investments.. -3,346 Total annual outgo...
1,057,644 1,219,000 1,345,488 U.S. securities carried forward (par)... 12,080,760 13,018,787 14,003,210 Cash (unexpended balance)
95,831 90,870 91,488 Balance of fund carried forward. 12,176,591 13,109,657 14,094,698
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, 73 Stat. 713), together with expenses incurred by the Civil Service Commission in administration of the act.
Budget program.--The Act provides that beginning in 1963 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 1,900,000 employees and approximately 79,000 annuitants are participating in this program. By the end of 1964 it is estimated that an additional 79,000 eligible employee and survivor annuitants will participate in the program. For 1964 it is estimated that $266.9 million will be deposited into the fund from amounts withheld from employees and annuitants and $140.5 million will be contributed by the Government. On the basis of these forecasts, $391.7 million will be paid from the fund to approved health benefit plans. For each health benefits plan, 3% of the contribution toward such plan is set aside in the fund to provide a contingency reserve which will be used to defray future increased rates, or to reduce contributions, or to provide increased benefits. In addition, 1% of all contributions is set aside for administrative expenses incurred by the Commission in the administration of the act.
Financing.—The fund will be financed by contributions from participants and the Government.
Operating results.-Earnings will be retained to meet the cost of administration and future benefits.
Revenue, Expense, and Retained Earnings (in thousands of dollars)
144, 120 59, 470
Net premium payments...Administration:
(a) Basic program.
(b) Beneficial association. Other expense.
Net operating income. Retained earnings, start of year.
Retained earnings, end of year.
Total capital outlay..
Financial Condition (in thousands of dollars)
health benefits fund...
Employees' salary withholdings.
From U.S. securities.....
Total revenues and other receipts.....
OTHER INDEPENDENT AGENCIES-Continued
through 1962 and the total at the end of the eighth policy year follows:
CIVIL SERVICE COMMISSION—Continued
STATEMENT OF ANNUAL ACCOUNTING AND CONTINGENCY
Totals, end of
eighth policy year 888, 703
U.S. securities (par).
1,741 21.921 24,847 196,626 247,570 294,000 -21,921-24,847-25,571 -247,570-294,000 -346,000
85,423 111,170 114,824
(By policy year. In thousands of dollars|
Sixth Seventh Eighth
26, 1960 1961 1 1962
4,083 2,579 4,435
4,674 3,461 4,890
87,777 60,243 100,761
Financing applied to program...
1 Balance of selected resources are identified on the statement of financial condition,
Summary of Sources and Application of Funds (in thousands of dollars)
4. Expense and risk charges estimate
(a) Premium and other Obligations (from program and financing). 85,423 111,170 114,824
1,898 1,413 2,184 14,790 Increase (-) in gross unpaid obligations. -1.883
(b) Office of Federal Em
ployees Group Life Gross expenditures.83,540
(c) Other expense and Revenues and other receipts (from program and
risk charges -
1,005 643 1,107 7,571 financing)--156,547 160,525 167,548
Total... Increase (-) in accounts receivable, net. -2,704 -22,000
3,227 2,242 3,630 24,548 Applicable receipts...
153,843 138,525 167,548
38,679 20,557 38,483 309,928 Trust expenditures..
6. Contingency reserve for the
year (before returns).... 138,679 120,557 138,483 7. Less premiums returned to
Employees life insurance This fund finances the payment of group life insurance fund.
38,679 20,557 2 38, 483 209,928 premiums to private insurance companies under the
8. Contingency reserve held by
insurer at end of year---- 100,000 Federal Employees' Group Life Insurance Act of 1954
100,000 100,000 100,000 (5 U.S.C. 2091-2103) and any expenses incurred by the
1 By amendment to group policy 17,000G, the seventh policy year ended June 30,
1961. Policy years thereafter will be from July I through the subsequent June 30, Civil Service Commission in administration of this act as The refunds from the contingency reserve were made as follows: $15
December 28, 1961: $22 million, June 29, 1962: $1,483 thousand. July 31. 1962 annually authorized by Congress.
Budget program.-Through June 30, 1962, with respect Through June 30, 1962, individuals whose beneficial to the basic insurance program, a total of $600.5 million life insurance agreements have been assumed by the fund was withheld from the salaries of covered employees and paid $16.9 million into the fund. It is estimated that in $300.2 million was contributed by the Government to the 1964 about $3 million will be paid into the fund by this fund. It is estimated that in 1964, $100.5 million will be group. Former members of beneficial associations conpaid into the fund by employees and $50.2 million by the tinue to pay premiums according to the rate schedules in Government. As of June 30, 1962, a total of $556 million effect at the time their life insurance agreements were had been paid by the insurer in benefits. It is estimated assumed by the fund, but the Government makes no current that over $124.4 million in benefits will be paid in 1964. contributions to the fund for these individuals as it does
Most of the difference between receipts and benefit pay- for employees covered under the regular program. ments under the policy is placed by the insurer in a A contingency reserve has been established and held by contingency reserve which is used primarily to pay bene the insurer at interest under the policy covering members fits accruing to the survivors of retireesma group which of beneficial associations. This reserve, which was will rapidly increase as more insured employees reach estimated to be $2.3 million on June 30, 1962, will accumuretirement age. On June 30, 1962, the end of the last late interest consistent with that provided under the completed policy year, there was a total reserve of $351.8 regular program. If the Commission determines that million of which $101.5 million was held as a special the contingency reserve under the beneficial association contingency reserve by the insurer at interest, and $250.3 program has reached a level sufficient to meet adverse million was on deposit in the Treasury of the United States. fluctuation in future charges, any amounts above this The contingency reserve is limited to a level of $100 mil-level will be returned to the fund. lion, and the amount above this figure held by the insurer Financing.---Premium costs are met by withholding was returned in July 1962, and deposited in the Treasury from the salaries of employees 25 cents biweekly for each of the United States to be invested.
$1 thousand life insurance, contributions by the GovernA summary statement of the operations of the contin ment, and direct premium payments from beneficial gency reserve for the three most recent policy years, 1960 association members.
OTHER INDEPENDENT AGENCIES-Continued
Financial Condition (in thousands of dollars)-Continued
CIVIL SERVICE COMMISSION—Continued
1962 1963 1964
actual estimate estimate RETIRED EMPLOYEES HEALTH BENEFITS FUND—Continued
Liabilities--Continued This fund established in accordance with the Retired
Deferred (Government contribution for Federal Employees' Health Benefits Act (Public Law annuitants).
415 96–724, 74 Stat. 849) finances (1) the payment of subscrip
3,084 Total liabilities...
2,607 2,438 2,521 tion charges to an approved carrier for those qualified employees and survivors who enroll in the uniform Govern Trust equity: ment-wide health benefits plan; (2) the contribution to Retained earnings or deficit (-).
142 267 417 qualified employees and survivors who retain or purchase non-Government approved health insurance plans; and
Analysis of Trust Equity (in thousands of dollars) (3) the payment of expenses incurred by the Civil Service Commission in the administration of the act.
Unpaid undelivered orders 1
7 Budget program.—The act authorized the Commission
-341 to use money from the Employees life insurance fund, Unobligated balance. -
253 403 without regard to limitation on expenditures from that Invested capital and earnings
5 14 14 fund, through June 30, 1962, for administrative expenses.
Total trust equity---
-381 142 267 417 For 1963, however, Congress provided a dollar limitation for the Commission's administrative expenses rather than the 2% limitation of Government contributions as set
1 The change in these items is reflected on the program and financing schedule. forth in section 4(b) and section 6(c) of the act. The
Object Classification (in thousands of dollars) estimate of administrative expenses for 1964 is based on anticipated needs. During 1964 an estimated $28,765
actual estimate thousand will be deposited in the fund. Participating
estimate retired employees and survivors are expected to pay
12 Personnel benefits...
25,704 25,482 28,373 $13,658 thousand and the Government will pay $15,107
25 Other services. ---
475 393 thousand. It is estimated that at least $21,600 thousand 33 Investments and loans..
847 in subscription charges will be paid to the carrier of the Government-wide plan, and $6,773 thousand to annuitants
27,026 25,875 28,765 Change in selected resources.
-2 for their private health insurance plans. Financing.-The fund will be financed by contributions Total obligations--
27,024 25,875 28,765 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
FEDERAL COMMUNICATIONS COMMISSION held during the years 1962, 1963, and 1964 but liquidated INTERNATIONAL TELECOMMUNICATIONS SETTLEMENTS periodically to meet obligations.
(TRUST REVOLVING FUND) Revenue, Expense, and Retained Earnings (in thousands of dollars)
Program and Financing (in thousands of dollars)