FY 2000
Budget Justification/Performance Plan
|
U.S. Office of Personnel
Management FY 2000 |
| (Payment Accounts - continued) | |
| Additional Information Available on the Next Page |  |
GOVERNMENT
PAYMENT FOR ANNUITANTS,
EMPLOYEES LIFE INSURANCE
SUMMARY EXPLANATION OF CHANGES
REQUESTED FOR FY 2000
(dollar amounts in thousands)
| FY 1998 Actual |
FY 1999 Estimate |
FY 2000 Request |
FY 2000 Change |
|
| Budget Authority | $30,025 | $34,576 | $36,207 | $1,631 |
| Obligations | $30,025 | $34,576 | $36,207 | $1,631 |
| Outlays | $30,107 | $34,576 | $36,085 | $1,509 |
Public Law 96-427, Federal Employees’ Group Life Insurance Act of 1980, enacted October 10, 1980, requires that all employees under age 65 who separate for the purposes of retirement on or after January 1, 1990, continue to make contributions toward their Basic life insurance coverage (currently $.36 per month for each $1,000 of coverage). As with active Federal employees, the Government is required to contribute one-third of the cost of the premium (currently $.18 per month for each $1,000 coverage) for Basic coverage. OPM, acting as the payroll office on behalf of Federal retirees, is requesting the funds necessary to make the required Government contribution associated with annuitants' post retirement basic life coverage.
Budget Authority:
Funds appropriated to this account remain available until expended for the sole purpose of financing post-retirement life insurance benefits. OPM notifies the Secretary of the Treasury of the "such sums as may be necessary" to carry out these provisions each fiscal year.
Basic insurance coverage increases based on the basic salary of employees. Thus, as the final salaries of retirees increases over time, so will their life insurance premiums. The account requires an increase of $1,631,000 to account for these changes.
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