[Appendix, Budget of the United States Government, Fiscal Year 1999]
[Page 867-868]
[DOCID:1999_app_civ-1]
From the Budget of the U.S., FY 1999 Online via GPO Access
[wais.access.gpo.gov]


                     THE BUDGET FOR FISCAL YEAR 1999

[[Page 867]]


                      OTHER DEFENSE--CIVIL PROGRAMS

 
                           MILITARY RETIREMENT

                              Federal Funds

General and special funds:

                  Payment to Military Retirement Fund 

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 97-0040-0-1-054      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        13.0)...........................      15,151      15,119      15,724
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......      15,151      15,119      15,724
23.95 New obligations...................     -15,151     -15,119     -15,724
----------------------------------------------------------------------------

    New budget authority (gross), detail:
60.05 Appropriation (indefinite)........      15,151      15,119      15,724
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 New obligations...................      15,151      15,119      15,724
73.20 Total outlays (gross).............     -15,151     -15,119     -15,724
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................      15,151      15,119      15,724
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................      15,151      15,119      15,724
90.00 Outlays...........................      15,151      15,119      15,724
---------------------------------------------------------------------------

    The 1999 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.

                                <F-dash>

                               Trust Funds

                        Military Retirement Fund 

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 97-8097-0-7-602      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............     128,714     136,628     142,962
    Receipts:
02.01 Employing agency contributions....      11,102      10,543      10,563
02.02 General fund payment (unfunded 
        liability)......................      15,151      15,119      15,724
02.03 Earnings on investments...........      11,920      12,121      12,328
                                           ---------   ---------  ----------
02.99   Total receipts..................      38,173      37,783      38,615
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...     166,887     174,411     181,577
    Appropriation:
05.01 Military retirement fund..........     -30,259     -31,449     -32,379
                                           ---------   ---------  ----------
05.99 Subtotal appropriation............     -30,259     -31,449     -32,379
07.99 Total balance, end of year........     136,628     142,962     149,198
---------------------------------------------------------------------------

                Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 97-8097-0-7-602      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Nondisability.....................      25,925      26,945      27,742
00.02 Temporary disability..............          80          83          86
00.03 Permanent disability..............       1,392       1,446       1,489
00.04 Fleet Reserve.....................       1,255       1,304       1,343
00.05 Survivors' benefits...............       1,607       1,670       1,720
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          42.0).........................      30,259      31,449      32,379
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......      30,259      31,449      32,379
23.95 New obligations...................     -30,259     -31,449     -32,379
----------------------------------------------------------------------------

    New budget authority (gross), detail:
60.27 Appropriation (trust fund, 
        indefinite).....................      38,173      37,783      38,615
60.45 Portion precluded from obligation.      -7,914      -6,334      -6,236
                                           ---------   ---------  ----------
63.00   Appropriation (total)...........      30,259      31,449      32,379
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................      30,259      31,449      32,379
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.41 Unpaid obligations, start of year: 
        Obligated balance: U.S. 
        Securities: Par value...........       2,536       2,606       2,669
73.10 New obligations...................      30,259      31,449      32,379
73.20 Total outlays (gross).............     -30,188     -31,386     -32,314
74.41 Unpaid obligations, end of year: 
        Obligated balance: U.S. 
        Securities: Par value...........       2,606       2,669       2,734
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................      30,188      31,386      32,314
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................      30,259      31,449      32,379
90.00 Outlays...........................      30,188      31,386      32,314
---------------------------------------------------------------------------

    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 has three sources of income. 
The first is payments from the Military Personnel accounts, which cover 
the liability for future benefits accruing to current service members. 
The second is a payment from the general treasury to cover the accrued 
unfunded liability of current members and current retirees. The third 
source is income from the investment of fund balances from past and 
current payments into the fund.

    The status of the fund is as follows: 

                  Status of Funds (in millions of dollars)

----------------------------------------------------------------------------
Identification code 97-8097-0-7-602      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
    Unexpended balance, start of year:
0100  Treasury balance..................          58           5
      U.S. Securities:

0101    Par value.......................     116,991     126,237     131,933
0102    Unrealized discounts............      14,201      12,992      13,698
                                           ---------   ---------  ----------
0199    Total balance, start of year....     131,250     139,234     145,631
    Cash income during the year:
      Intragovernmental transactions:

0240    Employing agency contributions, 
          DOD military..................      11,098      10,539      10,559
0241    Employing agency contributions, 
          Corps of Engineers............           4           4           4
0242    Earning on investments..........      11,920      12,121      12,328
0243    Federal contributions...........      15,151      15,119      15,724
                                           ---------   ---------  ----------
0299    Total cash income...............      38,173      37,783      38,615
    Cash outgo during year:
0500  Military retirement fund..........     -30,188     -31,386     -32,314
    Unexpended balance, end of year:
0700  Uninvested balance................           5

[[Page 868]]

      U.S. Securities:

0701    Par value.......................     126,237     131,933     138,234
0702    Unrealized discounts............      12,992      13,698      13,698
                                           ---------   ---------  ----------
0799    Total balance, end of year......     139,234     145,631     151,932
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