[Appendix, Budget of the United States Government, Fiscal Year 1998]
[Page 409-410]
MILITARY RETIREMENT
Federal Funds
General and special funds:
Payment to Military Retirement Fund
Program and Financing (in millions of dollars)
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Identification code 97-0040-0-1-054 1996 actual 1997 est. 1998 est. 1999 est.
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Obligations by program activity:
10.00 Total obligations (object class
13.0)........................... 10,699 15,151 15,833 16,545
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Budgetary resources available for
obligation:
22.00 New budget authority (gross)...... 10,699 15,151 15,833 16,545
23.95 New obligations................... -10,699 -15,151 -15,833 -16,545
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New budget authority (gross),
detail:
60.05 Appropriation (indefinite)........ 10,699 15,151 15,833 16,545
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Change in unpaid obligations:
73.10 New obligations................... 10,699 15,151 15,833 16,545
73.20 Total outlays (gross)............. -10,699 -15,151 -15,833 -16,545
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Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 10,699 15,151 15,833 16,545
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Net budget authority and outlays:
89.00 Budget authority.................. 10,699 15,151 15,833 16,545
90.00 Outlays........................... 10,699 15,151 15,833 16,545
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The 1998 payment to the military retirement fund includes funds for
the amortization of the unfunded liability for all retirement benefits
earned by military personnel for service prior to 1985. The amortization
schedule for the unfunded liability is determined by the Department of
Defense Retirement Board of Actuaries. For fiscal year 1997 and beyond,
the Board adjusted the amortization schedule to reflect a 50 year rather
than a 60 year stream of payments. Included in the unfunded liability
are the consolidated requirements of the military departments to cover
retired officers and enlisted personnel of the Army, Navy, Marine Corps,
and Air Force, retainer pay of enlisted personnel of the Fleet Reserve
of the Navy and Marine Corps, and survivors benefits.
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[[Page 410]]
Trust Funds
Military Retirement Fund
Unavailable Collections (in millions of dollars)
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Identification code 97-8097-0-7-602 1996 actual 1997 est. 1998 est.
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Balance, start of year:
01.99 Balance, start of year............ 124,331 128,713 136,449
Receipts:
02.01 Employing agency contributions.... 11,174 11,180 10,544
02.02 General fund payment (unfunded
liability)...................... 10,699 15,151 15,833
02.03 Earnings on investments........... 11,501 11,600 11,800
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02.99 Total receipts.................. 33,374 37,931 38,177
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04.00 Total: Balances and collections... 157,705 166,644 174,626
Appropriation:
05.01 Military retirement fund.......... -28,992 -30,195 -31,345
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05.99 Subtotal appropriation............ -28,992 -30,195 -31,345
07.99 Total balance, end of year........ 128,713 136,449 143,281
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Program and Financing (in millions of dollars)
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Identification code 97-8097-0-7-602 1996 actual 1997 est. 1998 est.
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Obligations by program activity:
00.01 Nondisability..................... 24,839 25,870 26,855
00.02 Temporary disability.............. 91 95 99
00.03 Permanent disability.............. 1,414 1,473 1,529
00.04 Fleet Reserve..................... 1,142 1,190 1,235
00.05 Survivors' benefits............... 1,505 1,568 1,627
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10.00 Total obligations (object class
42.0)......................... 28,991 30,195 31,345
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Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 28,991 30,195 31,345
23.95 New obligations................... -28,991 -30,195 -31,345
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New budget authority (gross), detail:
60.27 Appropriation (trust fund,
indefinite)..................... 33,272 37,931 38,177
60.45 Portion precluded from obligation. -4,280 -7,736 -6,832
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63.00 Appropriation (total)........... 28,991 30,195 31,345
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70.00 Total new budget authority
(gross)....................... 28,991 30,195 31,345
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Change in unpaid obligations:
72.41 Unpaid obligations, start of year:
Obligated balance: U.S.
Securities: Par value........... 2,375 2,536 2,626
73.10 New obligations................... 28,991 30,195 31,345
73.20 Total outlays (gross)............. -28,831 -30,105 -31,251
74.41 Unpaid obligations, end of year:
Obligated balance: U.S.
Securities: Par value........... 2,536 2,626 2,720
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Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 28,831 30,105 31,251
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Net budget authority and outlays:
89.00 Budget authority.................. 28,991 30,195 31,345
90.00 Outlays........................... 28,831 30,105 31,251
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Public Law 98-94 provided for accrual funding of the military
retirement system and for the establishment of a Department of Defense
Military Retirement Fund in 1985. The fund is financed through Federal
contributions for retired pay and retirement pay of military personnel
on the retired lists of the Army, Navy, Marine Corps, and Air Force,
including the reserve components thereof, and retainer pay for personnel
of the Inactive Fleet Reserve, Government contributions consisting of a
normal cost accrual percentage applied to basic pay amounts contained in
the military personnel appropriations, and interest on investments.
The status of the fund is as follows:
Status of Funds (in millions of dollars)
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Identification code 97-8097-0-7-602 1996 actual 1997 est. 1998 est.
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Unexpended balance, start of year:
0100 Treasury balance.................. -22 58
U.S. Securities:
0101 Par value....................... 112,963 116,991 125,376
0102 Unrealized discounts............ 13,766 14,201 13,698
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0199 Total balance, start of year.... 126,707 131,250 139,074
Cash income during the year:
Intragovernmental transactions:
0240 Employing agency contributions,
DOD military.................. 11,170 11,176 10,540
0241 Employing agency contributions,
Corps of Engineers............ 4 4 4
0242 Earning on investments.......... 11,501 11,600 11,800
0243 Federal contributions........... 10,699 15,151 15,833
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0299 Total cash income............... 33,374 37,931 38,177
Cash outgo during year:
0500 Military retirement fund.......... -28,831 -30,105 -31,251
Unexpended balance, end of year:
0700 Uninvested balance................ 58
U.S. Securities:
0701 Par value....................... 116,991 125,376 132,302
0702 Unrealized discounts............ 14,201 13,698 13,698
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0799 Total balance, end of year...... 131,250 139,074 146,000
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