Page images
PDF
EPUB
[blocks in formation]
[blocks in formation]

Financing:
Unobligated balance brought for-

ward:
Cash..

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-
tion...

851,251 896,396 920,283 Federal contribution..

44,637

62,000 Voluntary contributions, dona

tions, service credit payments,
etc.

12,375 12,000 12,000
Interest and profits on invest-
ments...

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

[blocks in formation]

Capital outlay:
3. Purchase of equipment.---

Total capital outlay-.-

Total program costs, funded. Change in selected resources 1.

Total obligations.--

[blocks in formation]

Financing:
Revenues and other receipts:

Employees' salary withholdings...
Agency contributions....
Government's contribution for annuitants..
Annuity withholdings..
Interest revenue..

Total revenues and other receipts..
Unobligated balance brought forward:

Cash.

U.S. securities (par)..-
Unobligated balance carried forward(-):

Cash.
U.S. securities (par)---

[blocks in formation]
[blocks in formation]

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

[blocks in formation]
[blocks in formation]

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.

[blocks in formation]

Revenue, Expense, and Retained Earnings (in thousands of dollars)

144, 120 59, 470

149,900

154,540

170_39,000

0_40,000

[blocks in formation]

84,650

110,900

114,540

Net premium payments...Administration:

(a) Basic program.

(b) Beneficial association. Other expense.

[blocks in formation]
[blocks in formation]
[ocr errors]
[blocks in formation]

Net operating income. Retained earnings, start of year.

Retained earnings, end of year.

[blocks in formation]
[blocks in formation]

Capital outlay:
Acquisition of assets:
Loans to Retired employees health bene-

fits fund..
Purchase of equipment.

Total capital outlay..

506

Financial Condition (in thousands of dollars)

[blocks in formation]
[blocks in formation]
[blocks in formation]
[blocks in formation]

847

[blocks in formation]
[blocks in formation]

34,288

Financing:
Revenues and other receipts:
Repayment of loans by retired employees

health benefits fund...
Revenues:

Employees' salary withholdings.
Agency contributions....
Beneficial association premium collections.
Interest revenue:

From U.S. securities.....
From loans to retired employees health

benefits fund.
Other revenue...

Total revenues and other receipts.....

37,160

38,646

43,283

1,125

3

[blocks in formation]

Total liabilities.

35,413

37,163

38.646

43,283

[blocks in formation]
[blocks in formation]
[blocks in formation]

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

RESERVE

[blocks in formation]

Totals, end of

eighth policy year 888, 703

Financing-Continued
Unobligated balance brought forward:

Cash..

U.S. securities (par).
Unobligated balance carried forward (-):

Cash..
U.S. securities (par).

23,161

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
year,

year,
November November July 1,
29, 1959 27, 1960 1961-
November June 30, June 30,

26, 1960 1961 1 1962
1. Premiums accrued.... 125,600 80,464 138,439
2. Interest added to contin-
gency reserve...

4,083 2,579 4,435
3. Mortality and other claim

charges incurred:
(a) Life insurance. 82,468 56,434 95,238
(b) Accidental death and

dismemberment
insurance...

4,674 3,461 4,890
(c) Conversion charges.. 635 348

632 Total

87,777 60,243 100,761

537,169

Financing applied to program...

1 Balance of selected resources are identified on the statement of financial condition,

35,191 5,027

Summary of Sources and Application of Funds (in thousands of dollars)

577.388

1962 actual

1963 estimate

1964

4. Expense and risk charges estimate

incurred:

(a) Premium and other Obligations (from program and financing). 85,423 111,170 114,824

taxes

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

İnsurance.. 111,170

324 114,824

185

2,186

338

(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
48 5. Total addition to contin-

38,679 20,557 38,483 309,928 Trust expenditures..

-70,303-27,355 -52,724

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

million,

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.

[blocks in formation]

OTHER INDEPENDENT AGENCIES-Continued

Financial Condition (in thousands of dollars)-Continued

1961 actual

15_245

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).

537

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 (-).

-381

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

Unfunded liability.

-341 to use money from the Employees life insurance fund, Unobligated balance. -

-52 128

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

Total costs..

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)

1962

1963

1964

392

[merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][ocr errors][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small]
« PreviousContinue »