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

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.

[blocks in formation]

Object Classification (in thousands of dollars)

[blocks in formation]
[blocks in formation]

Payment from other funds: Employing

agency contributions....

1965 estimate

Federal contributions__

Interest and profits on investments.
Deductions from employees' salaries
Voluntary contributions, donations, serv-

ice payments, etc..........

Total....

1,324,968
123,861

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
129,000

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
estimate

U.S. securities brought forward (par). 13,154,721 14,279,250 15,490,611
Cash (unexpended balance).
93,038 106,470 121,843

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
65,000

494,098
1,043,250

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

[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][ocr errors][ocr errors][ocr errors][ocr errors][merged small][ocr errors]
[ocr errors]
[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, 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.

[blocks in formation]
[blocks in formation]

OTHER INDEPENDENT AGENCIES-Continued

CIVIL SERVICE COMMISSION-Continued

EMPLOYEES LIFE INSURANCE FUND
Program and Financing (in thousands of dollars)

[blocks in formation]

-56,500

Non-Federal sources:
Employees' salary withholdings...-104,853 -112.000 -113,000
Beneficial association premium col-

lections..

Other revenue.
Interest revenue.

21.98 Unobligated balance available, start of

171,060 172.240
33,000 33,000
138,060 139.240

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
150

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
-13,266

-3,295 -3,100 -3,000
-25 -20
-14,800 -16,700

-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.

[blocks in formation]

2.184

338
1,108
3,630

2,432 2,768
388
356
1,182 1,241
3.971 4,398
32,016
35.945
38.483
138,483 135,945 1132,016
35,945 132,016
100,000 100,000 100,000

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.

759,667

47,158

6,012

812.837

19,991

2.931

9,995 32,917 377,888

[merged small][ocr errors][ocr errors][merged small][ocr errors][ocr errors][merged small][ocr errors][ocr errors][ocr errors][merged small][ocr errors][merged small][merged small][merged small]

1 Balances of selected resources condition.

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

A contingency reserve has been established and held by the insurer at interest under the policy covering members

250ry

Recu

Tota

2500

was

1963 actual

1964 actual

1965 estimate

1966 estimate

1965

1966

actual

of beneficial associations. This reserve, which

Analysis of Trust Equity (in thousands of dollars)
estimated to be $5 million on June 30, 1964, will accumu-
late interest consistent with that provided under the
regular program. If the Commission determines that the
contingency reserve under the beneficial association pro- Unpaid undelivered orders!

6
6
6

6 gram has reached a level sufficient to meet adverse Unobligated balance..

317,601 362,983 410,575 460,276 fluctuation in future charges, any amounts above this Invested capital earnings

14
13
13

10 level will be returned to the fund.

Total trust equity.

317,622 363,003 410,594 460,292 Financing.Premium costs are met by withholding from the salaries of employees 25 cents biweekly for

1 The changes in these items are reflected on the program and financing schedule. each $1 thousand of life insurance, contributions by the Government, and direct premium payments from

Object Classification (in thousands of dollars) beneficial association members.

Identification code

1964 Operating results.-Earnings are retained to meet the 30–28-8424-0-8-654

estimate estimate cost of future benefits.

12.0 Personnel benefits.

128,226 138,060 139,240 U.S. CIVIL SERVICE COMMISSION EMPLOYEES' LIFE INSURANCE 25.1 Other services..

3
FUND

93.0 Administrative expenses (see separate
schedule in part I).

257 274 279 Disposition Schedule of Selected Receipts and Premium Payments. August 29, 1954 through June 30, 1964

Total costs, funded.

128,485 138,334 139,519

1 [In thousands of dollars)

94.0 Change in selected resources. Disposition of selected receipts:

99.0 Total obligations...

128, 486 138,334 139,519 Employees' salary withholdings through June 30, 1964.

805,164 Agency contributions through June 30, 1964...

402.582 Total employees' salary withholding and agency contributions re

RETIRED EMPLOYEES HEALTH BENEFITS FUND ceived and accrued through June 30, 1964.

1,207,746 Less withholdings and contributions retained in life insurance

Program and Financing (in thousands of dollars) fund through June 30, 1964..

16,103

Identification code Gross premium due underwriter through June 30, 1964.. 1,191,643

30-28-8445-0-8-654

actual estimate estimate Disposition of premium payments:

Program by activities: Mortality and other claim charges through June 30, 1964.

812,837

Operating costs, funded: Expense and risk charges through June 30, 1964..

32,917

1. Subscription charges to uniform Premiums returned to Commission and deposited in life insurance

plan carrier...

19,486 20.900

20,200 fund...

277,888

2. Government contributions to anBalance in contingency reserve as of June 30, 1964.

100,000

nuitants with private plans.. 6,300 6,700 6,600 Less interest added to contingency reserve through policy

3. Administration....

243 347 312 year ended June 30, 1964..

32,000 68,000

Total operating costs, funded..- 26,029 27,947 27,112 Balance to be accounted for at end of current year..

1,191.643

Capital outlay, funded:
4. Purchase of equipment..

1

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

Total program costs, funded.... 26,029 27,948 27,113 Change in selected resources

-2 10 Total obligations....

26,027 27,948 27,113

Financing: Revenue...

173,868 185,925 189,220

Receipts and reimbursements from: Expense.

128, 487 138,334 139,522

11 Administrative budget accounts:
Government contributions..

-13,566 -14,619 -14.215 Net income for year.

45,381 47,591 49.698 14 Non-Federal sources: Retained earnings, start of year. 317,622 363,003 410,594

Annuity withholdings-

-12,462 -13,329 -12,898 Interest revenue..

-66 -75 -100 Retained earnings, end of year.

363,003 410,594 460,292

21.98 Unobligated balance available, start of

year:
Treasury balance.

-137 - 203 -78 Financial Condition (in thousands of dollars)

U.S. securities (par)..

-100 -100 -300 24.98 Unobligated balance available, end of

year:
1965
Treasury balance.

203
78

78
estimate estimate
U.S. securities (par).

100 300 400

1964

1965

1966

1

1964 actual

1965 estimate

1966 estimate

1966

1963 actual

1964 actual

[blocks in formation]
« PreviousContinue »