Performance and Accountability 2001 Homepage

Performance and Accountability 2001 Homepage Appendices Appendix A—Program Description and Statistics Appendix B—Acronyms

 

Appendix A—Program Descriptions and Statistics

 

OPM accomplishes its mission through the administration of Programs that address the full range of federal human resources management issues including oversight of the merit system, design and delivery of employee benefits position, classification, pay and leave systems, maintenance of personnel security, promoting executive development, and the support of workforce relations.

The Retirement Program

The Retirement Program covers essentially all Federal civilian employees. It is comprised of two defined benefit programs: the Civil Service Retirement System (CSRS) and the Federal Employees' Retirement System (FERS). The basic benefits of both systems are paid by the Civil Service Retirement and Disability Fund (CSRDF). By law, CSRDF funds may be used to pay all disbursements and operating expenses of both programs.

The Civil Service Retirement System. The Civil Service Retirement System (CSRS) was created by the Civil Service Retirement Act in 1920 to provide retirement benefits for Federal employees. The CSRS is a stand-alone pension system-its defined benefits are not intended to be a supplement to or be supplemented by other retirement benefits. The CSRS covers most Federal employees hired before 1984 and provides benefits to the survivors of deceased CSRS annuitants and employees. For all practical purposes, the system was closed to new entrants in 1984.

The Federal Employees Retirement System. The Federal Employees Retirement System (FERS) was established on June 6, 1986, by the Federal Employees' Retirement System Act of 1986 (P.L. 99-335). FERS is a three-part pension program, using Social Security as a base and providing a defined benefit component and a thrift savings plan. OPM administers the defined benefit component of FERS. The Federal Retirement Thrift Investment Board, an independent agency, administers the thrift savings plan. The FERS covers most employees first hired after December 31, 1983 and provides benefits to the survivors of deceased FERS annuitants and employees.

Retirement Program Participation. FERS membership among active employees overtook CSRS membership in 1995 and by the end of fiscal year 2000 represents 60% of all covered employees. We expect the CSRS population to decline significantly over the next decade, as CSRS participants retire or leave Federal service for other reasons. The following chart shows CSRS and FERS participation among active employees:

	1997	1998	1999	2000*	2001
CSRS	1,272,000	1,189,000	1,009,165	947,918	911,028
FERS	1,463,000	1,497,000	1,536,339	1,569,656	1,743,449
Total	2,735,000	2,686,000	2,545,504	2,517,574	2,654,477
* Revised

As the FERS employee population has grown, so too has the FERS annuitant population. As can be seen below, the number of FERS annuitants is still quite small, representing only 6 percent of the total annuitant population at the end of FY 2001.

	1997	1998	1999	2000*	2001
CSRS	2,269,074	2,271,188	2,258,757	2,247,691	2,231,499
FERS	83,203	98,162	109,360	128,813	151,502
Total	2,352,277	2,369,350	2,368,117	2,376,504	2,383,001

The Health Benefits Program

The Health Benefits Program was established by the Federal Employees Health Benefits Act of 1959 (P.L. 86-382). The law made basic hospital and major medical protection available to active Federal employees, annuitants, and their families. The law also allows OPM to contract with qualified carriers and establish program-wide eligibility requirements. The Program has several features that make it one of the Nation's leading health benefits plan: participants have an unparalleled choice in the variety of available health plans; they are not required to pass a medical exam in order to enroll; there are no coverage exclusions for pre-existing conditions or waiting periods; and participants are given an opportunity to change their coverage every year during the annual Open Season.

Types of Plans. In fiscal year 2001, 250 health benefits plans participated in the Program. These plans generally are of two types: Fee-for-Service (comprised of the Federal employees plan offered by the Blue Cross and Blue Shield Association and the employee organization sponsored plans) and health maintenance organizations (HMOs). A Fee-for-Service (FFS) plan is a traditional type of insurance that allows the participant to use any doctor or hospital; they are called FFS because doctors and other providers are paid for each service. An HMO is a health plan that provides care through a network of physicians and hospitals located in particular geographic or service areas.

Health Benefit Program Enrollment. Enrollment in the Program is 4.1 million, or about 86% of the eligible population-2.2 million enrollees are active employees and 1.9 million are annuitants. Including dependents, the Program covers approximately 9 million individuals. Enrollment in the Health Benefits Program, by type of plan, is presented below. As can be seen below, enrollment in the Program as a whole and by type of plan has remained relatively constant since 1996.

	1997	1998	1999	2000*	2001
Fee-for-Service	2,920,031	2,888,827	2,892,681	2,898,144	2,918,406
HMO	1,212,985	1,230,354	1,229,969	1,185,642	1,162,722
Total	4,133,016	4,119,181	4,122,650	4,083,786	4,081,128

 

The Life Insurance Program

The Life Insurance Program was created in 1954 by the Federal Employees Group Life Insurance Act (P.L. 83-598) and covers over 4 million Federal employees and annuitants—about 90% of eligible employees and annuitants. Administered through a contract with the Metropolitan Life Insurance Company (MetLife), it is the largest group life insurance program in the world.

Types of Coverage. The Program provides group term life insurance. As such, it does not build up any cash value or paid-up value. It consists of Basic life insurance coverage and three options:

Basic life insurance is determined by the amount of an employee's annual rate of basic pay, rounded to the next highest thousand, plus two thousand dollars. All eligible, or most Federal employees are automatically covered by Basic insurance unless they decline.

Standard optional insurance is $10,000 of coverage an employee can elect in addition to Basic insurance. Additional optional insurance is coverage an employee can elect based on multiples of his or her basic pay. Family optional insurance is coverage an employee can elect in multiples of $5,000 up to a maximum of $25,000 for spousal coverage, and in multiples of $2,500 up to a maximum of $12,500 for each eligible child.

Program Enrollment. The following table shows enrollment in the Life Insurance Program for Basic life insurance and the three optional coverages (in thousands). As can be seen, although enrollment in the Program as a whole has remained generally constant since 1996, "Additional" and "Family" coverage has experienced increase in popularity in the last year or two, while enrollment in "Standard" has been consistently falling.

	1997	1998	1999	2000*	2001
Basic	3,982	3,973	3,953	3,941	3,905
Standard	1,379	1,356	1,352	1,330	1,353
Additional	1,288	1,277	1,294	1,375	1,352
Family	1,226	1,220	1,299	1,347	1,322

 

Merit Systems Oversight Programs

Merit Systems and Veterans' Rights Oversight. The administration of a civil service merit system ensures compliance with Federal personnel laws and regulations. Merit principles ensure that Federal agencies invest taxpayers' money only in employees who are most likely to do a good job, and that they base hiring, pay, promotions, and reductions in force on a process that is objective, job-related, and fair. Veterans rights are an integral part of the merit-based personnel system that OPM oversees.

Agency adherence to the merit principles and veterans rights is assessed by conducting oversight reviews at the government-wide, agency, and installation levels. The information gathered from these reviews is used for policy development to ensure compliance with both the merit principles and personnel laws and regulations. Work is conducted with other agencies on demonstration projects to explore potential improvements in personnel systems and better and simpler ways to manage Federal personnel.

Workforce Information System. OPM sets the standards for the maintenance of personnel records at employing agencies and provides instructions for release of personnel data under the Freedom of Information and the Privacy Acts. Data pertaining to the Federal workforce is collected and maintained to support personnel management decision-making. In addition, statistical data on the diversity of the Federal workforce is gathered, analyzed, and maintained and evaluation reports prepared for the Congress.

Employment Programs

Delegated Examining Unit Certification Programs. The authority for most employment examining was delegated to employing agencies in 1994, while responsibility to ensure that they adhere to corporate policies for staffing were retained at OPM. These policies include merit principles, veterans' preference, and a commitment to equal opportunity. To make delegated examining effective, training and reference materials are provided to employing agencies and their examining operations are certified through the Delegated Examining Unit Certification Program.

Workforce Planning Program. The workforce planning program establishes policy, provides guidance, and administers programs for reductions in force, separation incentives, and early retirement, as well as provides advice on internal reorganization and career transition initiatives. These activities ensure that agencies can effectively address their strategic human capital needs and maintain diversity in the workforce. Many of these workforce planning services are provided on a reimbursable basis.

Administrative Law Judge Program. The government-wide Administrative Law Judges (ALJ) program allows employing agencies to fill those positions in a way that protects public confidence. The program reviews and approves competitive employment actions, classify positions, and administers the ALJ loan and senior ALJ employment programs.

Employment Information Program. The employment information program administers a government-wide listing of all job vacancies in the competitive service currently open to outside applicants, plus many vacancies outside of the competitive service. This allows employers to quickly reach a wide-range of potential employees and provides for open competition from all segments of society. Job-seekers find it easy to learn about job openings 24 hours a day, seven days a week, through USAJOBS. USAJOBS uses the Internet, telephones, and touch-screen kiosks, to provide the public more information than ever before about job vacancies throughout the Federal government.

The Federal Personnel Security Program

The Federal Personnel Security Program ensures the fitness and suitability of applicants for and appointees to positions in the Federal service. To carry out this responsibility, OPM sets government-wide investigations policy for the Federal personnel security program and carry out on-site inspections to ensure that employing agencies are following established policies. Personnel investigations relating to personnel suitability and security also are provided, on a reimbursable basis, through a contractor.

Workforce Compensation and Performance Programs

Classification, Pay and Leave Programs. The standards for classifying Federal jobs, establishing pay scales, and enhancing the Federal government's leave package are governed by several laws, regulations, and executive orders. Through the classification, pay, and leave programs these compensation factors are adjusted for labor markets and to address recruitment and retention issues.

Performance Management and Awards Programs. The performance management and awards promote effective performance management and ensure that individual accountability is established and maintained throughout the Federal workforce. The programs set guidelines for evaluating, developing, and rewarding employee performance and also provide agencies with guidance and assistance about how to identify and correct performance problems.

Workforce Relations Programs

Advice and consultation is provided to employing agency officials through a broad range of workforce relation programs to support the development of effective labor-management relations, employee relations practices, life long learning programs, and family-friendly workplaces. These programs help agencies accomplish their missions and develop effective agency policies in these areas. The programs act as a clearinghouse for government-wide information on best practices, innovations, data trends and other information on Federal labor-management and employee relations. Through the Training and Management Assistance (TMA) program, we provide assistance to federal managers in the development of training and other human resource management solutions that meet specific short and long-range agency objectives.

Executive Resources Programs

The development, selection, and management of Federal executives are fostered by the executive resources programs. This is accomplished by allocating senior executive position and appointment authorities; establishing critical competencies used to select and develop new executives; administering qualifications review boards and the Presidential Rank Award program; and overseeing the Senior Executive Service (SES) Candidate Development Programs and the SES Performance Management System.

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