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United States Government Accountability Office:

Washington, DC 20548:

March 4, 2005:

The Honorable Michael G. Oxley: 
Chairman: 
Committee on Financial Services: 
House of Representatives:

Subject: Catalogue of Federal Insurance Activities:

Dear Mr. Chairman:

The federal government assumes insurance risk for a wide range of 
activities that are funded through numerous federal budget accounts and 
administered by a variety of federal organizations.[Footnote 1] For 
some activities, such as those funded through the National Flood 
Insurance account, the federal government assumes the entire insurance 
risk. The federal government also assumes part of the risk for 
insurance activities that are administered by state and local 
governments--for example, those funded through the Unemployment Trust 
Fund or that are partly underwritten by private insurers, such as those 
funded through the Special Workers' Compensation Expenses account. 
These insurance risks, whether fully or partially assumed by the 
federal government, are in lines of insurance that private insurers 
also recognize: health, life, disability, and property/casualty 
insurance. 

The federal government has generally assumed insurance risks for at 
least two reasons. First, the government may step in when insurance is 
not widely available because private insurers cannot collectively 
absorb or affordably price the insurance risk. For example, when 
private insurers were unable to offer affordable terrorism insurance in 
the aftermath of September 11, 2001, the federal government created a 
terrorism insurance program. Second, the federal government has self-
insured--that is, elected to pay for losses itself when it has 
determined that doing so is preferable to purchasing insurance in the 
private market. For example, the government has self-insured for risks 
associated with legal settlements and awards to resolve property damage 
claims, employment litigation, and contract disputes, even though 
recognized lines of private insurance could cover these risks. 

Federal insurance activities can be difficult to identify in part 
because no generally accepted definition of federal insurance exists. 
They may also be difficult to identify because they may be funded 
through budget accounts with names and primary activities that are not 
directly related to federal insurance. For example, the Health 
Resources Services Administration of the Department of Health and Human 
Services, has a Medical Malpractice Claims Fund that provides medical 
liability insurance to physicians at federal health centers. This fund 
is part of the administration's much larger Health Resources and 
Services account, whose primary mission is to provide various non-
insurance health services to low-income individuals. The malpractice 
claim fund's fiscal year 2003 outlays of $23 million were a small part 
of the overall account's outlays of $6.1 billion. Finally, federal 
insurance activities can be difficult to identify because their costs 
may be integrated in the account that funds overall agency operations. 

As part of the committee's in-depth review of insurance regulation, you 
asked us for information on federal insurance activities. On the basis 
of your request and subsequent discussions with committee staff, this 
report (1) provides criteria for identifying federal insurance 
activities and (2) describes federal insurance activities that meet 
these criteria. 

We used two criteria to identify federal insurance activities. First, 
the federal government must accept the risk of financial loss in 
providing protection against specific types of losses, events, or 
conditions whose timing, magnitude, or duration, are uncertain or 
unknown.[Footnote 2] Second, by accepting this insurance risk, the 
federal government must be obligated to pay compensation or provide 
benefits if the losses, events, or conditions occur. In addition, we 
verified that the activities we catalogued as federal insurance were 
also recognized lines of insurance in the private sector. However, we 
found that federal insurance differed from private sector insurance in 
a number of ways:

* Those covered by federal insurance need not pay premiums;[Footnote 3]

* For many federal insurance activities, such as those serving a 
nationwide population, the federal government need not identify a risk 
pool for pricing its risk because the pool of insureds will be 
sufficiently large and diverse;[Footnote 4]

* The insureds need not be policyholders or enrolled in the insurance 
activity before the loss, event, or condition occurs for which 
compensation or benefits are available;

* A contract need not exist between the insured or a group of insureds 
and the insurer;

* Financial resources need not be set aside or specifically designated 
for paying compensation or benefits;

* The federal government may be the backup or secondary source rather 
than the initial source of compensation or benefit payments; and:

* The federal government is assumed to have an insurable interest 
through the legislation authorizing the insurance activity. 

Some of the federal insurance activities that we have identified are 
directly comparable to private sector insurance, and a consensus will 
likely exist that they constitute federal insurance. Other activities 
that we categorize as insurance are sometimes identified by others as 
benefit programs or social insurance, because they serve groups with 
particular risks that are uninsurable or underinsured in the private 
insurance market. For example, one such activity is the State 
Children's Health Insurance Fund, which provides health insurance for 
children in low-income families. We have included this activity in our 
catalogue because it meets our criteria for federal insurance, and 
health insurance is a recognized line of insurance in the private 
market. In addition, we have included federal defined benefit 
retirement plans in our catalogue of federal insurance activities 
because they provide beneficiaries or their survivors with guaranteed 
income (or income protection) for life. These plans expose the 
government to insurance risk and the benefits are equivalent to private 
annuities, a commonly recognized insurance product. Finally, we include 
in enclosure IV a number of activities that we label "self-insurance," 
where the government assumes the risk of loss that arises from some of 
its own activities. For example, claims against an agency for damage 
caused to property or vehicles incident to the agency's mission, or 
exposure to litigation costs arising from employment discrimination or 
contract disputes. Because the timing, magnitude, or duration of these 
losses are uncertain, and because in the private sector, it would be 
possible to purchase insurance against them, we have included them in a 
separate listing. 

Examining two types of activities that did not meet our criteria for 
federal insurance helps to further clarify our criteria for federal 
insurance. First, activities under the Employees Life Insurance Fund 
and the Federal Long Term Care Insurance Program do not meet our 
criteria for federal insurance because the federal government does not 
assume the insurance risk itself. Rather, the government facilitates 
the payment of premiums to private insurers that assume the risk. 
Second, disaster relief programs appear to serve an insurance-like 
function in that the federal government may provide assistance to 
communities and individuals to compensate them for losses following 
natural disasters such as hurricanes and tornados. However, because the 
federal government can elect whether to provide assistance, disaster 
relief does not qualify as federal insurance. Specifically, the 
governor of a state in which a disaster has occurred must ask the 
President to declare an area a disaster site, and the government 
provides assistance only if the President issues a formal declaration. 

We developed our catalogue of federal insurance activities through a 
review of the federal budget and other sources. Other criteria and 
search methods could yield federal activities that may not be in our 
catalogue. For example, financial protection against liability for 
injury or damage caused by nuclear energy hazards provided by Section 4 
of the Atomic Energy Damages Act (also known as the Price-Anderson 
Act)[Footnote 5] and American Nuclear Insurers is not part of our 
catalogue. Even though the federal government assumes part of the risk 
of potentially paying for claims in the event of nuclear injury or 
damage, Price-Anderson insurance activities are not part of our catalog 
because claims stipulated by the act have not represented a cost to the 
federal government and therefore were not identified in the course of 
our budget search for federal insurance activities. The activities that 
meet our criteria are described in enclosures II-V. The information 
provided for each activity varies depending on whether the activity is 
insurance that covers entities other than the federal government 
(enclosure II), the activity can be categorized as federal deposit 
insurance, federal pension insurance, or a federal loan guarantee 
(enclosure III); or the activity is federal self-insurance (enclosure 
IV). All quantitative data are for fiscal year 2003, unless otherwise 
indicated. 

More specifically, enclosure I contains a complete description of our 
scope and methodology. Enclosure II describes 71 activities that 
provide federal insurance to entities other than the federal 
government. We provide the most comprehensive information for these 
activities because of your particular interest in understanding the 
scope of the federal government's efforts to provide insurance to 
nonfederal entities and a general lack of familiarity with many of the 
activities the enclosure describes. Enclosure III lists 64 federal 
deposit insurance, pension guaranty insurance, and loan guarantee 
activities that also provide federal insurance to entities other than 
the federal government. We provide descriptions of each of these three 
insurance categories rather than of the individual activities because 
the activities in each category tend to be similar and because these 
activities are generally better known. Enclosure IV describes the 22 
federal self-insurance activities we identified that had outlays in 
fiscal year 2003. Because of limitations in our methodology, we likely 
did not identify all federal self-insurance activities (see enclosure 
I). We were also limited in our efforts to find information on these 
activities because, as we have noted, the federal budget does not 
generally report self-insurance activities separately from those 
related to an agency's overall mission. Finally, to provide a 
perspective on the diversity of the 157 insurance activities that we 
identified and the 30 federal organizations that administer them, 
enclosure V lists all the activities presented in the report, 
alphabetically by the administering organization. Enclosure VI lists 
key contributors to this correspondence. 

It should be noted that, although we relied extensively on federal 
budgetary information published by the Office of Management and Budget 
(OMB), our project was not an audit of the federal budget process nor 
of OMB but simply a search for and compilation of information on 
federal insurance activities. 

We did our work between January 2004 and March 2005, in Chicago, Ill., 
and Washington, D.C. in accordance with generally accepted government 
auditing standards. Enclosure I contains a complete description of our 
scope and methodology. 

As agreed with your office, unless you publicly announce the contents 
of this report earlier, we plan no further distribution until 30 days 
from the date of this letter. At that time we will send copies of this 
report to the Honorable Barney Frank, Ranking Member, Committee on 
Financial Services and other interested parties. We will also make 
copies available to others on request. In addition, the report will be 
available at no charge on the GAO Web site at http://www.gao.gov. 

If you or your staff have any questions about this report, please 
contact me at (202) 512-8678 or hillmanr@gao.gov. Key contributors to 
this report are listed in enclosure VI. 

Signed by: 

Richard J. Hillman: 
Director, Financial Markets and Community Investment:

[End of section]

Enclosure I: Scope and Methodology:

To provide criteria for identifying federal insurance activities, we 
reviewed the Federal Accounting Standards Advisory Board's (FASAB) 
Statement of Federal Financial Accounting Standards Number 5, 
"Accounting for Liabilities of the Federal Government." The statement 
discusses characteristics of federal insurance, including risk 
assumption, loss protection, and compensation payment that became 
central elements of our criteria for federal insurance. We also 
reviewed the National Association of Insurance Commissioners' (NAIC) 
Annual Financial Statement Instructions to better understand the nature 
of private sector insurance and how it might be similar to or different 
from federal insurance.[Footnote 6] In addition, we reviewed the 
chapter on credit and insurance in Analytical Perspectives, Budget of 
the United States Government, Fiscal Year 2005 to determine what 
guidance the Office of Management and Budget (OMB) offered for 
developing our criteria and to identify any features the federal 
insurance activities shared. Further, we reviewed the definition of 
insurance found in section 302 of the Gramm-Leach-Bliley Act[Footnote 
7] to determine whether that definition could help us identify federal 
insurance activities. In addition, we consulted with FASAB, NAIC, and 
OMB representatives and insurance experts at the U.S. Department of the 
Treasury, American Academy of Actuaries, and Wharton School of Business 
to learn which criteria they would use in identifying federal insurance 
and to obtain their comments on our criteria. In our meetings with OMB 
officials, we also attempted to clarify how OMB defines federal 
insurance for budgetary purposes. 

To describe federal insurance activities that meet the criteria we 
developed, we first attempted to identify the universe of such 
activity. We began by asking FASAB, NAIC, and OMB representatives to 
share with us any work they had done on federal insurance. They told us 
that their organizations had not attempted to compile a complete list 
of federal insurance accounts or activities. However, as part of our 
discussions, OMB officials identified some budget accounts with 
activities they considered to be federal insurance, and we included 
these activities in our catalogue. In addition, we reviewed a 1997 GAO 
report that, as part of exploring federal budgeting issues, also 
described a number of activities that met our criteria for federal 
insurance and are included in our catalogue. Next, we searched the 
Appendix, Budget of the United States Government, Fiscal Year 2005, 
using key words, such as "annuity," "benefits," "catastrophic," 
"claims," "compensation," "contingency," "damages," "disability," 
"disaster," "emergency," "indemnity," "insurance," "pension," 
"reinsurance," "reserve," and "retirement." Searching the Appendix 
allowed us to develop a comprehensive list of federal insurance because 
we could identify accounts that had small amounts of insurance 
activity. For example, we were able to identify the U.S. Department of 
Defense military personnel accounts that fund death benefits for 
military personnel, among other things. 

Once we had identified an account through our word search, we applied 
our criteria for federal insurance to descriptions of the activities 
funded through the account. Our key word search ultimately allowed us 
to identify two kinds of accounts. First, we identified accounts 
through which the government provides insurance to entities other than 
the federal government--for example, crop insurance for farmers and 
flood insurance for communities. Second, we identified accounts with 
self-insurance outlays in fiscal year 2003 for various kinds of 
damages, litigation, and claims, such as court judgments and torts 
arising out of vehicle accidents and employment discrimination. 

To test the reliability of our criteria and better support our decision 
to include an activity in our catalogue of federal insurance, we 
verified that the insurance matched one or more lines of private sector 
insurance that NAIC had identified. According to NAIC, approximately 95 
percent of private sector insurance companies use these descriptions in 
preparing the annual financial statements they submit to the 
association. Also, to better assure that we were consistently applying 
our criteria, we compared our treatment of activities that had similar 
characteristics. For example, we compared the Non-insured Crop Disaster 
Assistance Program activities found in the Farm Service Agency's 
Salaries and Expenses account (enclosure II, table 63) with insurance 
activity found in the Federal Crop Insurance Corporation Fund 
(enclosure II, table 64) and observed that both protect farmers against 
catastrophic loss of crops due to unavoidable natural events. Based on 
our criteria, we identified both of these activities as federal 
insurance. 

Our catalogue of insurance activities is based solely on the criteria 
we developed for this report: other criteria might yield a list that 
differs from ours in both number and composition of activities. Also, 
alternative methods for searching the budget or other sources might 
yield insurance activities that are not included in this report. For 
example, we identified numerous budget accounts with federal self-
insurance activity for fiscal year 2003 within a category called 
"insurance claims and indemnities." However, using a key word search, 
we could not identify all self-insurance activities because not all 
budget accounts with self-insurance activities separately break out 
insurance claims and indemnities for fiscal year 2003. 

To describe the federal insurance activities in the accounts we 
identified and in the deposit insurance, pension insurance, and loan 
guarantee categories, we reviewed budget documents, agency annual 
reports, agency Websites, and/or information provided by agency 
officials. Because 2003 was the latest year for which the Budget of the 
United States Government, Fiscal Year 2005 provided actual data rather 
than estimates, the quantitative data are for fiscal year 2003, unless 
otherwise indicated. As a quality control, we provided a draft of each 
of the 95 tables in enclosures II and IV to officials in the relevant 
agencies and received a total of 82 responses. Based on the comments 
received, we revised the tables as appropriate. We used budget data 
that the agency provided us when that data differed from the federal 
budget data and when doing so provided more precise and/or accurate 
information. Data from the agencies differed from data in the federal 
budget in some instances when the federal insurance activity was only a 
part of the overall account activity and thus was not accounted for 
separately in the budget. Despite our best efforts, the amount and 
quality of information on individual accounts may vary. 

Except for certain federal loan guarantees (discussed below), the 
activities are identified by the name of the budget account that funds 
them. Enclosure II describes activities that provide federal insurance 
to entities other than the federal government. Some overlap exists 
among categories found in the enclosure because several of the 
retirement annuity activities are funded from accounts that also 
contain disability, health, and life insurance. Although some of these 
activities provide retirement, health, and disability benefits for 
federal employees, their beneficiaries, and survivors we included the 
activities here because they benefit federal employees and others whom 
we defined as separate from the federal government. In contrast, we 
cataloged activities involving legal settlements that agencies pay to 
other entities as self-insurance (enclosure IV) because the agencies 
make these payments to protect their own financial self-interests. For 
example, if an agency pays another entity in settlement for a claim 
from an accident involving a federal employee driving an agency 
vehicle, the employee would be an agency representative, and the 
payment would comprise a federal self-insurance expenditure. 

Enclosure III lists federal deposit insurance, pension guaranty 
insurance, and loan guarantee activities that also provide federal 
insurance to nonfederal entities. For a perspective on the relative 
sizes and activity levels of the various accounts, we provided outlays, 
obligated balances, and Unobligated balances for federal deposit 
insurance and federal pension guaranty insurance. For guaranteed loan 
activities, we provided data on the amount of federal loan guarantees 
outstanding. Enclosure IV describes the activities that we identified 
with expenditures for federal self-insurance in fiscal year 2003--that 
is, federal agency costs for damages to government property and losses 
associated with litigation and claims, including compensation for 
employment discrimination. Less information is available on the 
activities in this enclosure than on those in enclosure II because the 
federal budget does not generally report or fund self-insurance 
activities separately from those related to an agency's overall 
mission. Because of a lack of detailed budget information, the 
quantitative data were generally provided by agency officials. For 
example, outlays differ from the total outlays (gross) reported in 
enclosure II, as the data in enclosure II are directly from the budget. 
Enclosure V provides a complete list of insurance activities identified 
for this report, listed by the responsible agency. 

We have included the financial data described above, particularly that 
on total outlays by activity, as well as obligated and Unobligated 
balances, in order to provide a general perspective on the level of 
financial activity and resources of each federal insurance activity 
that we catalogued. However, the data provide a perspective for one 
point in time and therefore do not measure the long term federal costs 
or budgetary impact of these insurance activities. Also the data do not 
measure the exposure to insurance risk that the federal government may 
face in these activities. Widely agreed upon measures of federal 
insurance risks are not available or calculable in most instances. 

We did our work in accordance with generally accepted government 
auditing standards between January 2004 and March 2005. We performed 
our work in Chicago, Ill. and Washington, D.C. 

[End of section]

Enclosure II: Description of Accounts Funding Federal Insurance 
Provided to Entities Other Than the Federal Government:

This enclosure describes 71 activities that provide federal insurance 
to entities other than the federal government, identified by the name 
of the budget account that funds them. For activities that are not 
primarily insurance, or that are found in an account whose title does 
not suggest the presence of insurance, we have provided additional 
information in parentheses after the account name. We collected the 
information presented in this enclosure from budget documents, agency 
officials, annual reports, agency Web sites, or some combination of 
these sources. Because 2003 is the latest year for which the Budget of 
the United States Government, Fiscal Year 2005 provides actual data 
rather than estimates, the quantitative data are for fiscal year 2003, 
unless otherwise indicated. 

For each activity, we have provided a table with the following 
information: (1) administering organization, (2) insurance description, 
(3) funding source(s), (4) total outlays (gross), (5) obligated 
balance, (6) Unobligated balance, and (7) number of federal full-time 
equivalent (FTE) employees. Total outlays (gross) are total fiscal year 
expenditures for the account's insurance activity. Obligated balances 
show the financial resources of the account at the end of the fiscal 
year that are committed to specific purposes related to the insurance 
activity in the coming fiscal year. Unobligated balances show the 
financial resources of the account at fiscal year-end that are not yet 
designated for specific purposes. The number of FTE employees is a 
measure of the size of the federal workforce devoted to the account's 
insurance activity. Unless otherwise indicated, FTE data are reported 
for the principle federal organization administering the insurance 
activity and not other public or private sector organizations that may 
also devote resources to the activity. We are providing information on 
total outlays, obligated balances and Unobligated balances in order to 
give a perspective on the budgetary impact of each activity for the 
year that we report. These figures do not reflect the total cost of 
these activities to the federal government over time. Moreover, they 
are not intended to describe the exposure that the federal government 
may have to the financial risks associated with these activities, 
either individually or in the aggregate, as such information is largely 
unavailable. Finally, although administrative expenses for some 
insurance activities were funded by separate accounts, we did not list 
those accounts separately but included the administrative expenses data 
along with the other data for the particular activity in one table. 

Disability, Workers, and Unemployment Compensation (Tables 1-10):

Table 1: Black Lung Disability Trust Fund:

Administering organization: Division of Coal Mine Workers' 
Compensation, Office of Workers' Compensation Programs, and Employment 
Standards Administration, U.S. Department of Labor, U.S. Department of 
Health and Human Services, and U.S. Department of the Treasury. 

Insurance description: This account pays workers' compensation and 
medical benefits to former miners who become totally disabled with 
pneumoconiosis (a respiratory condition resulting from coal dust 
exposure that is commonly known as black lung disease). To be eligible 
for payments from this account, the disease must be work-related, the 
individual must have stopped working as a miner before 1970, and it 
must not be possible to assign financial liability for the miner's 
condition to a particular mine operator. The fund also pays benefits to 
survivors if an eligible miner's death can be attributed at least 
partially to the disease. Premiums are not paid for coverage. 

Funding source(s): 
* Excise taxes on mined coal and borrowings from the U.S. Treasury[A]. 

Total outlays (gross): 
* $1,041 million. 

Obligated balance: 
*-$8,205 million[B]. 

Unobligated balance: 
* $30 million. 

Number of FTE employees: 
* 214. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 20-8144-0-7-601, p. 723; and U.S. 
Department of Labor, U.S. Department of Health and Human Services, and 
U.S. Department of the Treasury. 

[A] For the past few years annual revenues have been sufficient to pay 
all annual benefits and administrative costs. Thus new borrowings from 
the U.S. Treasury have been only to service interest payments on the 
accumulated debt. 

[B] The obligated balance is negative because it includes $8,244 
million in outstanding debt to the U.S. Treasury. 

[End of table]

Table 2: Disability Compensation Benefits (Veterans):

Administering organization: U.S. Department of Veterans Affairs. 

Insurance description: The account pays compensation to veterans and 
their survivors for disabilities that the veteran incurred or that were 
aggravated during active military service. The account also pays 
dependency and indemnity compensation to survivors of service persons 
or veterans whose death occurred while on active duty or as a result of 
service-connected disabilities. In addition, children of Vietnam 
veterans who were born with certain birth defects are eligible for 
compensation and vocational rehabilitation. Veterans with certain 
conditions are eligible for a clothing allowance. Finally, the 
department may provide other miscellaneous benefits to certain 
veterans, including automobile grants and adaptive equipment. During 
fiscal year 2003, the fund paid benefits to 2,444,807 veterans, 311,813 
survivors, and 1,044 children. A separate account funds administrative 
expenses. 

Funding source(s): 
* Appropriations. 

Total outlays (gross): 
* $24,705 million (benefits); 
* $713 million (administrative). 

Obligated balance: 
* $2,002 million (benefits); 
* $125 million (administrative). 

Unobligated balance: 
* $1,112 million (benefits); 
* $40 million (administrative). 

Number of FTE employees: 
* 7,264. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification codes 36-0102-0-1-701 (benefits) and 36-
0102-4-1-701(administrative), pp. 876-878; and U.S. Department of 
Veterans Affairs. 

[End of table]

Table 3: Energy Employees Occupational Illness Compensation Fund:

Administering organization: Division of Energy Employees' Occupational 
Illness Compensation, Office of Workers' Compensation Programs, 
Employment Standards Administration, U.S. Department of Labor. 

Insurance description: This account provides benefits to federal 
employees at Department of Energy facilities and employees of 
contractors and sub-contractors under the Energy Employees' 
Occupational Illness Compensation Program Act of 2000[A] suffering from 
certain illnesses related to their exposure to radiation as a result of 
their work in producing or testing nuclear weapons. The benefits 
typically cover radiation-related cancer and lung disease (beryllium 
disease and silicosis) caused by exposure to beryllium or silica. For 
such illnesses the account will pay the employee a lump sum of up to 
$150,000 and reimbursement of medical expenses. The account also 
provides smaller lump-sum payments and medical benefits to those 
eligible under the Radiation Exposure Compensation Act.b A separate 
account funds administrative expenses. During fiscal year 2003, the 
compensation and administrative accounts received $450 million in 
appropriations. 

Funding source(s): 
* Appropriations. 

Total outlays (gross): 
* $321 million (benefits); 
* $61 million (administrative). 

Obligated balance: 
* $1 million (benefits); 
* $46 million (administrative). 

Unobligated balance: 
* $59 million (benefits); 
* $140 million (administrative). 

FTE employees: 
* 380. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification codes 16-1523-0-1-053 (benefits) and 16-
1524-0-1-053 (administrative), p. 721; and U.S. Department of Labor. 

[A] Codified at 42 U.S.C. §§ 7384 et seq. 

[B] Codified at 42 U.S.C. § 2210 note. 

[End of table]

Table 4: Federal Disability Insurance Trust Fund:

Administering organization: U.S. Social Security Administration. 

Insurance description: The insurance pays cash benefits to those who 
are unable to work due to a physical or mental impairment that lasts or 
can be expected to last continuously for at least 12 months or that can 
be expected to result in death. The insurance also provides benefits to 
spouses, dependent minor children, and disabled dependent children of 
wage earners over age 18, if the child's disability occurred before age 
22 and continues. In fiscal year 2003, 179.7 million workers were 
covered, or about 78 percent of the U.S. population between the ages of 
20 and 65. 

Funding source(s): 
* Social Security taxes paid by wage earners and self-employed 
individuals. 

Total outlays (gross): 
* $71,982 million. 

Obligated balance: 
* $17,605 million. 

Unobligated balance: 
* $153,188 million. 

Number of FTE employees: 
* Approximately 20,700. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 20-8007-0-7-651, pp. 1081-1082; and 
U.S. Social Security Administration. 

[End of table] 

Table 5: Public Safety Officers' Benefits:

Administering organization: Bureau of Justice Assistance, U.S. 
Department of Justice. 

Insurance description: The insurance provides death, disability, and 
educational benefits for public safety officers killed or permanently 
and totally disabled in the line of duty. Public safety officers 
include paid and unpaid individuals serving a public agency as law 
enforcement officers, firefighters, or members of a public rescue squad 
or ambulance crew. The insurance also provides death benefits to 
eligible survivors of public safety officers and educational assistance 
to children or spouses of officers who were killed or permanently 
disabled in the line of duty. In fiscal year 2003, 510 claims totaling 
$55.2 million were paid to beneficiaries. 

Funding source(s): 
* Appropriations. 

Total outlays (gross): 
* $56 million. 

Obligated balance: 
* $5 million. 

Unobligated balance: 
* $5 million. 

Number of FTE employees: 
* 6 and 1 contractor. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 15-0403-0-1-754, p. 701; and U.S. 
Department of Justice. 

[End of table] 

Table 6: Service-Disabled Veterans Insurance Fund:

Administering organization: U.S. Department of Veterans Affairs. 

Insurance description: The fund provides life insurance policies for 
veterans who left military service after April 24, 1951 and have a 
service-connected disability. Veterans are eligible for the insurance 
if they (1) are in good health other than for their service-connected 
disability, (2) apply for the insurance within 2 years of establishing 
that their disability is service-connected, and (3) received other than 
a dishonorable discharge. Policy premiums are based on rates that 
healthy veterans would have paid when the program began in 1951; these 
premiums may be waived for eligible veterans who are totally disabled. 
At the end of fiscal year 2003, the fund had $1.5 billion of insurance 
in force on 154,537 policies. 

Funding source(s): 
* Interest on loans to policyholders, premiums, and appropriations. 

Total outlays (gross): 
* $66 million. 

Obligated balance: 
* $9 million. 

Unobligated balance: 
* $9 million. 

Number of FTE employees: 
* 513 for 6 veterans programs[A]. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 36-4012-0-3-701, p. 886; and U.S. 
Department of Veterans Affairs. 

[A] The following insurance programs for veterans are administered from 
the department's Philadelphia office: Veterans Mortgage Life Insurance, 
National Service Life Insurance, Veterans Reopened Life Insurance, 
Service-Disabled Veterans Insurance, Veterans Special Life Insurance, 
and U.S. Government Life Insurance. 

[End of table] 

Table 7: Special Benefits (Federal Employees):

Administering organization: Division of Federal Employees' 
Compensation, Office of Workers' Compensation Programs, Employment 
Standards Administration, U.S. Department of Labor. 

Insurance description: This account provides monetary and medical 
benefits to federal workers and their survivors when the federal worker 
sustains a work-related injury or disease or dies from work-related 
causes. Benefits include long-term wage replacement benefits, coverage 
of medical care costs, and medical and vocational rehabilitation 
assistance needed for returning to work. The account covered 2.8 
million federal employees, including postal employees and civilian 
employees of the armed services as of the end of fiscal year 2003. This 
account and a separate salaries and expenses account funds 
administrative expenses. 

Funding source(s): 
* Appropriations and reimbursements from employing federal agencies. 

Total outlays (gross): 
* $2,371 million (benefits); 
* $130 million (administrative). 

Obligated balance: 
* $145 million (benefits); 
* $1.2 million (administrative from salaries and expenses account). 

Unobligated balance: 
* Not available. 

Number of FTE employees: 
* 133[A]. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 16-1521-0-1-600, pp. 719-720; and 
U.S. Department of Labor. 

[A] Another 839 FTEs are funded from a separate salaries and expenses 
account. 

[End of table] 

Table 8: Special Benefits for Disabled Coal Miners:

Administering organization: Division of Coal Mine Workers' 
Compensation, Office of Workers' Compensation Programs, Employment 
Standards Administration, U.S. Department of Labor. 

Insurance description: This account provides workers' compensation and 
medical benefits to former miners who were totally disabled by work-
related pneumoconiosis (a respiratory condition resulting from coal 
dust exposure that is commonly known as black lung disease). It also 
provides benefits to coal miners' survivors if an eligible miner's 
death can be attributed at least partially to the disease. The account 
pays benefits on claims filed between December 30, 1969, and June 30, 
1973. 

Funding source(s): 
* Appropriations. 

Total outlays (gross): 
* $421 million. 

Obligated balance: 
* $37 million. 

Unobligated balance: 
* $2 million. 

Number of FTE employees: 
* 17. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 16-0169-0-1-601, p. 722; and U.S. 
Department of Labor. 

[End of table] 

Table 9: Special Workers' Compensation Expenses:

Administering organization: Employment Standards Administration, U.S. 
Department of Labor. 

Insurance description: This trust fund provides additional compensation 
and medical benefits to maritime workers who become disabled as a 
result of a second injury received on the job and benefits to their 
dependents if the injury causes death. Compensation may be in the form 
of continuing benefits when an employer defaults on its obligation or 
when an employer's obligation is limited to a specific time period. The 
account also funds a portion of the benefits paid to maritime workers 
permanently disabled before 1972, maintenance payments to disabled 
maritime workers in vocational rehabilitation, and covers the 
procurement of such services. 

Funding source(s): 
* Assessments on commercial insurers and employers of maritime workers 
that self-insure rather than buy coverage from commercial insurers, 
fines and penalty payments, appropriations, and funding amounts the 
department receives when an employee entitled to benefits dies without 
having a beneficiary entitled to compensation. 

Total outlays (gross): 
* $144 million. 

Obligated balance: 
* $144 million. 

Unobligated balance: 
* $67 million. 

Number of FTE employees: 
* 107. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 16-9971-0-7-601, pp. 724-725; and 
U.S. Department of Labor. 

[End of table] 

Table 10: Unemployment Trust Fund:

Administering organization: Employment and Training Administration, 
U.S. Department of Labor. 

Insurance description: The insurance pays benefits to the unemployed, 
covering almost all wage and salary workers. State and federal payroll 
taxes on employers that are deposited into the account fund the bulk of 
benefits and administrative costs. The state employer payroll taxes 
cover standard state unemployment benefits, while the federal employer 
payroll taxes cover extended unemployment benefits and administrative 
costs. The fund invests the taxes in U.S. government securities until 
needed to pay benefits or administrative costs. In fiscal year 2003, 
128.9 million workers were covered. During this period, $54 billion was 
paid to the unemployed, compensating them for 211 million weeks of 
unemployment. 

Funding source(s): 
* Federal and state payroll taxes on employers. 

Total outlays (gross): 
* $58,393 million. 

Obligated balance: 
* $1,304 million. 

Unobligated balance: 
* $45,810 million. 

Number of FTE employees: 
* 202. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 20-8042-0-7-999, pp. 713-714; and 
U.S. Department of Labor. 

[End of table] 

Medical Liability and Injury Compensation (Tables 11-14):

Table 11: Health Resources and Services (Medical Malpractice Claims 
Fund):

Administering organization: Health Resources and Services 
Administration, U.S. Department of Health and Human Services. 

Insurance description: The fund pays medical malpractice claims made 
against physicians and health care employees acting within the scope of 
their employment at federally supported health centers, including free 
health clinics. The insurance is provided at no charge to the centers 
and clinics and is intended to reduce or eliminate the need for 
participants to purchase private medical malpractice insurance, thereby 
making more funds available for health services. 

Funding source(s): 
* Appropriations. 

Total outlays (gross): 
* $23 million in claims[A]. 

Obligated balance: 
* Not available. 

Unobligated balance: 
* Not available. 

Number of FTE employees: 
* Not available. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 75-0350-0-1-550, pp. 423-425; and 
U.S. Department of Health and Human Services. 

[A] Claims are projected to rise to $50 million in fiscal year 2004. 

[End of table] 

Table 12: Public Health and Social Services Emergency Fund (Smallpox 
Injury Compensation):

Administering organization: Health Resources and Services 
Administration, U.S. Department of Health and Human Services. 

Insurance description: The insurance provides medical, death, and lost 
employment income benefits to eligible parties, including (1) 
individuals who received a smallpox vaccine under a department-approved 
federal, state, or local plan and who sustained a resulting medical 
injury, (2) individuals who contracted a sickness, called vaccinia, 
that results from contact with someone who received the smallpox 
vaccination or from contact with someone who had the sickness, and (3) 
the estate and certain survivors of the individuals described in (1) 
and (2). Fifty-one requests were made for benefits from the program's 
inception on April 30, 2003, through July 5, 2005. 

Funding source(s): 
* Appropriations. 

Total outlays (gross): 
* $214,000. 

Obligated balance: 
* $0. 

Unobligated balance: 
* $41.7 million. 

Number of FTE employees: 
* 6. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 75-9912-0-1-551, p. 461; and U.S. 
Department of Health and Human Services. 

[End of table] 

Table 13: Vaccine Injury Compensation:

Administering organization: Health Resources and Services 
Administration, U.S. Department of Health and Human Services. 

Insurance description: The insurance provides compensation and benefits 
to individuals, or the estates of individuals, who were injured or died 
as a result of receiving routinely administered vaccines such as polio, 
measles, and mumps before October 1, 1988. The insurance also generally 
provides medical liability protection to doctors, drug manufacturers, 
and hospitals that administer the vaccines on behalf of the U.S. Public 
Health Service. 

Funding source(s): 
* Appropriations[A]. 

Total outlays (gross): 
* about $900 million. 

Obligated balance: 
* about $900 million. 

Unobligated balance: 
* $1.4 million. 

Number of FTE employees: 
* 9. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 75-0320-0-1-551, p. 425; and U.S. 
Department of Health and Human Services. 

[A] The account has not received appropriations since fiscal year 1997 
because prior year balances have been sufficient to pay claims. 

[End of table] 

Table 14: Vaccine Injury Compensation Program Trust Fund:

Administering organization: Health Resources and Services 
Administration, U.S. Department of Health and Human Services. 

Insurance description: The insurance provides compensation and benefits 
to individuals, or the estates of individuals, who were injured or died 
as a result of receiving routinely administered vaccines such as polio, 
measles, and mumps after October 1, 1988. Vaccine purchasers, such as 
the Centers for Disease Control and Prevention and health care 
providers, pay excise taxes to vaccine producers. These taxes are 
remitted to the U.S. Department of the Treasury for deposit into the 
trust fund. Using the fund's resources, the Department of Health and 
Human Services purchases government-owned annuity contracts from 
private insurance companies to cover benefits provided to the injured 
party. In addition, the insurance generally provides medical liability 
protection to doctors, drug manufacturers, and hospitals that 
administer the vaccines. Over 950 annuity contracts were purchased from 
the program's inception on October 1, 1988, to July 2, 2004. In fiscal 
year 2003, $73.4 million was awarded to 59 petitioners. 

Funding source(s): 
* Excise taxes and interest on investments. 

Total outlays (gross): 
* $84 million. 

Obligated balance: 
* $1 million. 

Unobligated balance: 
* $1,901 million. 

Number of FTE employees: 
* 9. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 20-8175-0-7-551, pp. 428-429; and 
U.S. Department of Health and Human Services. 

[End of table] 

Health Insurance (Tables 15-22):

Table 15: Employees and Retired Employees Health Benefit Funds:

Administering organization: U.S. Office of Personnel Management. 

Insurance description: This account is comprised of the Federal 
Employees Health Benefits (FEHB) program and the Retired Employees 
Health Benefits (REHB) program. The FEHB program covers the cost of 
health benefits for employees who are currently active or retired after 
July 1960, or their survivors. The REHB program covers the cost of 
health benefits for other retired employees, or their survivors, 
including those who retain or purchase private insurance or enroll in 
government sponsored insurance. The Office of Personnel Management 
approves the various health plans that are offered (approximately 205 
at the end of fiscal year 2003). As of the end of fiscal year 2003, 2.2 
million active federal employees and 1.8 million annuitants were 
enrolled in the FEHB program, and 2,362 retirees were enrolled in the 
REHB program. 

Funding source(s): 
* Employee withholdings, contributions from federal employing agencies 
and annuitants, appropriations, and interest income. Employee and 
government contributions also fund a contingency reserve that the 
Office of Personnel Management maintains and that may be used to pay 
for increased costs or benefits. 

Total outlays (gross): 
* $24,964 million. 

Obligated balance: 
* $2,484 million. 

Unobligated balance: 
* $6,554 million. 

Number of FTE employees: 
* 100. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 24-9981-0-8-55, pp. 1065-1066; and 
U.S. Office of Personnel Management. 

[End of table] 

Table 16: Federal Hospital Insurance Trust Fund (Medicare Part A):

Administering organization: Centers for Medicare and Medicaid Services, 
U.S. Department of Health and Human Services. 

Insurance description: The account funds the Medicare Part A program, 
which partially covers the costs of, among other things, home health 
care and inpatient care in hospitals and skilled nursing facilities and 
fully covers the costs of hospice care. Based on their work history, 
most U.S. citizens and permanent residents and their spouses are 
eligible for Medicare Part A if they are 65 years of age or older. 
Also, persons under 65 years old with certain types of disabilities or 
with chronic renal disease are eligible for coverage. Enrollees or 
their spouses who have contributed to Medicare through payroll taxes 
for at least 10 years of employment are automatically enrolled at age 
65 and need not pay premiums to receive coverage. Individuals who have 
not met this eligibility requirement may purchase Part A coverage. 
Medicare Part A had 40.5 million enrollees at mid-fiscal year 2003. 

Funding source(s): 
* Payroll taxes and premiums payments. 

Total outlays (gross): 
* $152,793 million. 

Obligated balance: 
* $1,228 million. 

Unobligated balance: 
* $249,863 million. 

Number of FTE employees: 
* Not available[A]. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 20-8005-0-7-571, p. 447; and U.S. 
Department of Health and Human Services. 

[A] An estimated 3,471 FTEs supported all Medicare programs in fiscal 
year 2003. 

[End of table] 

Table 17: Federal Supplementary Medical Insurance Trust Fund (Medicare 
Part B):

Administering organization: Centers for Medicare and Medicaid Services, 
U.S. Department of Health and Human Services. 

Insurance description: This account, also known as Medicare Part B, 
partially covers the cost of doctors' services and outpatient hospital 
care. It also covers other services that are not covered under Medicare 
Part A, such as durable medical equipment and outpatient laboratory 
services. Eligibility requirements for Medicare Part B are the same as 
those for Part A (see table 16). However, unlike for Medicare Part A, 
eligible individuals must enroll and pay a premium to receive Part B 
coverage. Medicare Part B had an average of 38.4 million enrollees in 
fiscal year 2003. 

Funding source(s): 
* Primarily beneficiary premiums and appropriations. 

Total outlays (gross): 
* $124,055 million. 

Obligated balance: 
* $1,072 million. 

Unobligated balance: 
* $23,729 million. 

Number of FTE employees: 
* Not available[A]. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 20-8004-0-7-571, pp. 449-450; and 
U.S. Department of Health and Human Services. 

[A] An estimated 3,471 FTEs supported all Medicare programs in fiscal 
year 2004. 

[End of table] 

Table 18: Payments to Health Care Trust Funds:

Administering organization: Centers for Medicare and Medicaid Services, 
U.S. Department of Health and Human Services. 

Insurance description: The primary purpose of this account is to pay 
benefits under the Federal Hospital Insurance Trust Fund and the 
Federal Supplementary Medical Insurance Trust Fund accounts, commonly 
known as Medicare Parts A and B, respectively, to the small groups of 
beneficiaries who did not qualify for the benefits at the programs' 
inception. Such groups include workers and their spouses who reached 
the age of 65 by 1968, people on active military duty before 1957, and 
federal workers who converted from the Civil Service Retirement System 
to the Federal Employees Retirement System. In 1986, the account 
received a lump sum payment to cover all future benefits. Since then, 
agency actuaries and trustees have reviewed the account every 5 years 
to determine if adjustments are needed. 

Funding source(s): 
* Appropriations. 

Total outlays (gross): 
* $393 million. 

Unobligated balance: 
* $0. 

Obligated balance: 
* $0. 

Number of FTE employees: 
* Not available. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 75-0580-0-1-571, p. 443; and U.S. 
Department of Health and Human Services. 

[End of table] 

Table 19: Railroad Unemployment Insurance Trust Fund:

Administering organization: U.S. Railroad Retirement Board. 

Insurance description: Consistent with the Railroad Retirement Board's 
mission of administering benefit programs for railroad workers and 
their families, the insurance provides two kinds of benefits for 
railroad employees--unemployment benefits for those who are able but 
not working and sickness benefits for those who are unable to work 
because of illness or injury. In the benefit year ending June 30, 2003, 
the fund paid unemployment and sickness benefits to 36,400 of 259,100 
employees qualified to receive benefits. 

Funding source(s): 
* Employer contributions and investment income. 

Total outlays (gross): 
* $123 million. 

Obligated balance: 
* $5 million. 

Unobligated balance: 
* $0. 

Number of FTE employees: 
* 170. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 60-8051-0-7-603, pp. 1177-1178; and 
U. S. Railroad Retirement Board. 

[End of table] 

Table 20: State Children's Health Insurance Fund:

Administering organization: Centers for Medicare and Medicaid Services, 
U.S. Department of Health and Human Services. 

Insurance description: The account funds health insurance for children 
under 19 years old who live with low-income families. An expansion of 
the Social Security Act created the program, which is administered by 
the states. Some states have expanded the minimum income requirements, 
and others are covering entire families, not just children. The program 
funding "sunsets" after fiscal year 2007.[A] In all of fiscal year 
2003, 5.8 million children were enrolled in the program. 

Funding source(s): 
* Appropriations that match state funding. 

Total outlays (gross): 
* $4,355 million. 

Obligated balance: 
* $9,755 million. 

Unobligated balance: 
* $0. 

Number of FTE employees: 
* 75. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 75-0515-0-1-551, p. 446; and U.S. 
Department of Health and Human Services. 

[A] Funding is said to "sunset" when it is subject to automatic 
statutory termination at the end of a fixed period unless formally 
renewed. 

[End of table] 

Table 21: Transitional Drug Assistance, Federal Supplementary Medical 
Assistance Trust Fund:

Administering organization: Centers for Medicare and Medicaid Services, 
U.S. Department of Health and Human Services. 

Insurance description: The account funds a $600 credit to help cover 
the cost of prescription drugs for low-income Medicare participants in 
the Transitional Drug Assistance program. Individuals are eligible for 
benefits if their income is not more than 135 percent of the poverty 
line, and they do not have outpatient drug coverage from other sources. 
Coverage from the program will end when the Medicare Part D drug 
benefit becomes effective on January 1, 2006. The program credit 
assisted 1.3 million enrollees as of the end of fiscal year 2004.[A]. 

Funding sources: 
* Appropriations. 

Total outlays (gross): 
* $216 million in fiscal year 2004 for credit benefits[A]. 

Obligated balance: 
* $281 million in fiscal year 2004[A]. 

Unobligated balance: 
* Not available. 

Number of FTE employees: 
* 270 in fiscal year 2004[A]. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 75-8307-0-7-571, p. 450; and U.S 
Department of Health and Human Services. 

[A] Data are first available for the fourth quarter of fiscal year 2004 
when the program was implemented. 

[End of table] 

Table 22: Uniformed Services Retiree Health Care Fund:

Administering organization: U.S. Department of Defense. 

Insurance description: The fund provides coverage for medical expenses 
not covered by Medicare, with some restrictions, and medical care 
provided at military treatment facilities. Retirees of the uniformed 
services who are eligible for Medicare and qualifying dependents can 
receive coverage for expenses not covered by Medicare, but they must 
first be enrolled in Medicare Part B unless they receive care at a 
military treatment facility. In that case, they need only be eligible 
for Medicare Part A. In fiscal year 2003, 1.7 million individuals 
received benefits. 

Funding source(s): 
* Appropriations, agency contributions, and investment income. 

Total outlays (gross): 
* $4,315 million. 

Obligated balance: 
* $268 million. 

Unobligated balance: 
* $0. 

Number of FTE employees: 
* Not available. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 97-5472-0-2-551, p. 928; and U.S. 
Department of Defense. 

[End of table] 

Life Insurance and Death Benefits (Tables 23-38):

Table 23: Burial Benefits (Veterans):

Administering organization: U.S. Department of Veterans Affairs. 

Insurance description: The Department of Veterans Affairs uses this 
account to fund and administer a range of burial benefit programs for 
veterans through two of its organizations--the Veterans Benefits 
Administration and the National Cemetery Administration. Benefits 
include flags for draping caskets and cash allowances for funeral and 
burial expenses, headstones and markers, and grave maintenance. Fund 
outlays cover, among other things, benefit payments and administrative 
expenses. The latter are funded from a separate account. During fiscal 
year 2003, the burial benefit programs provided cash allowances for 
78,000 burials and 341,000 headstones and markers. 

Funding source(s): 
* Appropriations. 

Total outlays (gross): 
* $143 million (benefits); 
* $206 million (administrative). 

Obligated balance: 
* $0 (benefits); 
* $129 million (administrative). 

Unobligated balance: 
* $0 (benefits); 
* $175 million (administrative). 

Number of FTE employees: 
* 1,655. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification codes 36-0139-0-1-701 (benefits) and 36-
0129-0-1-700 (administrative), pp. 885-886; and U.S. Department of 
Veterans Affairs. 

[End of table] 

Table 24: Insurance Benefits (Veterans Mortgage Life Insurance):

Administering organization: U.S. Department of Veterans Affairs. 

Insurance description: Veterans Mortgage Life Insurance was established 
in 1971 to pay up to $90,000 on an unpaid home mortgage in the event of 
an eligible veteran's death. The insurance covers veterans who received 
grants from the Department of Veterans Affairs for housing specially 
adapted for veterans with severe disabilities incurred during military 
service. At the end of fiscal year 2003, the program had $175 million 
of insurance in force on 2,793 policies. 

Funding source(s): 
* Appropriations and premiums. 

Total outlays (gross): 
* $30 million. 

Obligated balance: 
* $209,000. 

Unobligated balance: 
* $615,000. 

Number of FTE employees: 
* 513 people administer 6 insurance programs[A]. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification codes 36-0120-0-1-701 (benefits) and 36-
0141-0-1-701 (administrative), pp. 882-883; and U.S. Department of 
Veterans Affairs. 

[A] The following insurance programs for veterans are administered from 
the department's Philadelphia office: Veterans Mortgage Life Insurance, 
National Service Life Insurance, Veterans Reopened Life Insurance, 
Service-Disabled Veterans Insurance, Veterans Special Life Insurance, 
and U.S. Government Life Insurance. 

[End of table] 

Table 25: Military Personnel, Air Force (death gratuity):

Administering organization: U.S. Air Force, U.S. Department of Defense. 

Insurance description: In addition to its primary purpose of funding 
various expenses of Air Force personnel, including pay, allowances, and 
certain travel expenses, the account funds a $12,000 death gratuity to 
beneficiaries of deceased Air Force military personnel whose death 
occurred (a) while on active duty or traveling to or from duty, (b) 
during the 120-day period following date of discharge or release from 
active duty when death results from a service-connected or-aggravated 
injury or disease, or (c) while traveling to or from or while at a 
place for final acceptance or entry into active duty. 

Funding source(s): 
* Appropriations. 

Total outlays (gross): 
* $1.9 million for death gratuities to 160 beneficiaries. 

Obligated balance: 
* Not available. 

Unobligated balance: 
* Not available. 

Number of FTE employees: 
* Not available. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 57-3500-0-1-051, pp. 250-251; and 
U.S. Department of Defense. 

[End of table] 

Table 26: Military Personnel, Army (death gratuity):

Administering organization: U.S. Army, U.S. Department of Defense. 

Insurance description: In addition to its primary purpose of funding 
various expenses of Army personnel, including pay, allowances, and 
certain travel expenses, the account funds a $12,000 death gratuity to 
beneficiaries of deceased Army military personnel whose death occurred 
(a) while on active duty or traveling to or from duty, (b) during the 
120-day period following date of discharge or release from active duty 
when death results from a service-connected or-aggravated injury or 
disease, or (c) while traveling to or from active duty, or while at a 
place for final acceptance or entry into active duty. 

Funding source(s): 
* Appropriations. 

Total outlays (gross): 
* $3.2 million for death gratuities to 528 beneficiaries. 

Obligated balance: 
* Not available. 

Unobligated balance: 
* Not available. 

Number of FTE employees: 
* Not available. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 21-2010-0-1-051, p. 248; and U.S. 
Department of Defense. 

[End of table] 

Table 27: Military Personnel, Marine Corps (death gratuity):

Administering organization: U.S. Marine Corps, U.S. Department of 
Defense. 

Insurance description: In addition to its primary purpose of funding 
various expenses of Marine Corps personnel, including pay, allowances, 
and certain travel expenses, the account funds insurance claim and 
indemnity activities that include making $12,000 death gratuity 
payments to beneficiaries of deceased Marine Corps personnel whose 
death occurred (a) while on active duty or traveling to or from duty, 
(b) during the 120-day period following date of discharge or release 
from active duty when death results from a service-connected or-
aggravated injury or disease, or (c) while traveling to or from active 
duty, or while at a place for final acceptance or entry into active 
duty. 

Funding source(s): 
* Appropriations. 

Total outlays (gross): 
* $1.2 million for death gratuities to 104 beneficiaries. 

Obligated balance: 
* Not available. 

Unobligated balance: 
* Not available. 

Number of FTE employees: 
* Not available. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 17-1105-0-1-051, pp. 249-250; and 
U.S. Department of Defense. 

[End of table] 

Table 28: Military Personnel, Navy (death gratuity):

Administering organization: U.S. Navy, U.S. Department of Defense. 

Insurance description: In addition to its primary purpose of funding 
various expenses of Navy personnel, including pay, allowances, and 
certain travel expenses, the account funds a $12,000 death gratuity to 
beneficiaries of deceased Navy military personnel whose death occurred 
(a) while on active duty or traveling to or from duty, (b) during the 
120-day period following date of discharge or release from active duty 
when death results from a service-connected or-aggravated injury or 
disease, or (c) while traveling to or from active duty, or while at a 
place for final acceptance or entry into active duty. 

Funding source(s): 
* Appropriations. 

Total outlays (gross): 
* $1.6 million for death gratuities paid to 260 beneficiaries. 

Obligated balance: 
* Not available. 

Unobligated balance: 
* Not available. 

Number of FTE employees: 
* Not available. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 17-1453-0-1-151, pp. 248-249; and 
U.S. Department of Defense. 

[End of table] 

Table 29: National Guard Personnel, Air Force (death gratuity):

Administering organization: U.S. Air Force, U.S. Department of Defense. 

Insurance description: In addition to its primary purpose of funding 
the salaries and expenses of Air Force National Guard personnel, the 
account funds a $12,000 death gratuity to beneficiaries of deceased Air 
Force National Guard personnel whose death occurred (a) while on active 
duty, (b) participating in training for active or inactive duty, or (c) 
traveling directly to or from duty. 

Funding source(s): 
* Appropriations. 

Total outlays (gross): 
* $12,000 for a death gratuity to 1 beneficiary. 

Obligated balance: 
* Not available. 

Unobligated balance: 
* Not available. 

Number of FTE employees: 
* Not available. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 57-3850-0-1-051, p. 254; and U.S. 
Department of Defense. 

[End of table] 

Table 30: National Guard Personnel, Army (death gratuity):

Administering organization: Army National Guard, U.S. Department of 
Defense. 

Insurance description: In addition to its primary purpose of funding 
the salaries and expenses of Army National Guard personnel, the account 
funds a $12,000 death gratuity to beneficiaries of deceased Army 
National Guard personnel whose death occurred (a) while on active duty, 
(b) participating in training for active or inactive duty, or (c) while 
traveling to or from duty. 

Funding source(s): 
* Appropriations. 

Total outlays (gross): 
* $316,000 for death gratuities to 53 beneficiaries. 

Obligated balance: 
* Not available. 

Unobligated balance: 
* Not available. 

Number of FTE employees: 
* Not available. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 21-2060-0-1-051, p. 253-254; and U.S. 
Department of Defense. 

[End of table] 

Table 31: National Service Life Insurance Fund (Veterans):

Administering organization: U.S. Department of Veterans Affairs. 

Insurance description: This fund was opened in 1940 to meet the 
insurance needs of World War II military service personnel. By the time 
the program was closed in 1951 it had issued over 22 million policies 
with an aggregate face value of $174 billion. The basic policy has a 
maximum face amount of $10,000, although policyholders could purchase 
additional insurance that would provide income if they became totally 
disabled before age 65. At the end of fiscal year 2003, the program had 
$14.8 billion of insurance in force on 1.4 million policies, and the 
average policy in force had a face value of about $10,500. 

Funding source(s): 
* Investment income, premiums, and appropriations. 

Total outlays (gross): 
* $1,613 million. 

Obligated balance: 
* $1,461 million. 

Unobligated balance: 
* $9,795 million. 

Number of FTE employees: 
* 513 people administer 6 insurance programs[A]. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 36-8132-0-7-701, pp. 895-896; and 
U.S. Department of Veterans Affairs. 

[A] The following insurance programs for veterans are administered from 
the department's Philadelphia office: Veterans Mortgage Life Insurance, 
National Service Life Insurance, Veterans Reopened Life Insurance, 
Service-Disabled Veterans Insurance, Veterans Special Life Insurance, 
and U.S. Government Life Insurance. 

[End of table] 

Table 32: Reserve Personnel, Air Force (death gratuity):

Administering organization: U.S. Air Force, U.S. Department of Defense. 

Insurance description: In addition to its primary purpose of funding 
the salaries and expenses of U.S. Air Force reserve personnel, the 
account funds a $12,000 death gratuity to beneficiaries of deceased Air 
Force reserve personnel whose death occurred (a) while on active duty, 
(b) participating in training for active or inactive duty, or (c) 
traveling directly to or from duty. 

Funding source(s): 
* Appropriations. 

Total outlays (gross): 
* $24,000 for death gratuities to 2 beneficiaries. 

Obligated balance: 
* Not available. 

Unobligated balance: 
* Not available. 

Number of FTE employees: 
* Not available. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 57-3700-0-1-051, pp. 252-253; and 
U.S. Department of Defense. 

[End of table] 

Table 33: Reserve Personnel, Army (death gratuity):

Administering organization: U.S. Army, U.S. Department of Defense. 

Insurance description: In addition to its primary purpose of funding 
the salaries and expenses of Army reserve personnel, the account funds 
a $12,000 death gratuity to beneficiaries of deceased Army reserve 
personnel whose death occurred (a) while on active duty, (b) 
participating in training for active or inactive duty, or (c) traveling 
directly to or from duty. 

Funding source(s): 
* Appropriations. 

Total outlays (gross): 
* $114,000 for death gratuities to 9 beneficiaries. 

Obligated balance: 
* Not available. 

Unobligated balance: 
* Not available. 

Number of FTE employees: 
* Not available. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 21-2070-0-1-051, p. 251; and U.S. 
Department of Defense. 

[End of table] 

Table 34: Reserve Personnel, Marine Corps (death gratuity):

Administering organization: U.S. Marine Corps, U.S. Department of 
Defense. 

Insurance description: In addition to its primary purpose of funding 
the salaries and expenses of Marine Corps reserve personnel, the 
account funds a $12,000 death gratuity to beneficiaries of deceased 
Marine Corps reserve personnel whose death occurred (a) while on active 
duty, (b) participating in training for active or inactive duty, or (c) 
traveling directly to or from duty. 

Funding source(s): 
* Appropriations. 

Total outlays (gross): 
* $48,000 for death gratuities to 4 beneficiaries. 

Obligated balance: 
* Not available. 

Unobligated balance: 
* Not available. 

Number of FTE employees: 
* Not available. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 17-1108-0-1-051, p. 252; and U.S. 
Department of Defense. 

[End of table] 

Table 35: Reserve Personnel, Navy (death gratuity):

Administering organization: U.S. Navy, U.S. Department of Defense. 

Insurance description: In addition to its primary purpose of paying the 
salaries and expenses of Navy reserve personnel, the account funds a 
$12,000 death gratuity to beneficiaries of deceased Navy reserve 
personnel whose death occurred (a) while on active duty, (b) 
participating in training for active or inactive duty, or (c) while 
traveling directly to or from duty. 

Funding source(s): 
* Appropriations. 

Total outlays (gross): 
* $132,000 for death gratuities to 11 beneficiaries. 

Obligated balance: 
* Not available. 

Unobligated balance: 
* Not available. 

Number of FTE employees: 
* Not available. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 17-1405-0-1-051, pp. 251-252; and 
U.S. Department of Defense. 

[End of table] 

Table 36: United States Government Life Insurance Fund (Veterans):

Administering organization: U.S. Department of Veterans Affairs. 

Insurance description: This account funds life insurance for persons in 
the military before October 8, 1940, and was created to meet the needs 
of World War I veterans when private insurers were unwilling to assume 
war-related risks. In addition to the death benefit, the policy 
provides a disability benefit to veterans who become totally and 
permanently disabled. The level of assets in the trust fund was 
sufficient to allow the program to declare all policies paid up as of 
January 1, 1983, and to stop collecting premiums from policyholders. In 
addition, the investment earnings by the trust fund have exceeded 
amounts needed to pay future claims, allowing the program to pay 
dividends to policyholders. The program had $37 million of insurance in 
force on 11,770 policies at the end of fiscal year 2003. 

Funding source(s): 
* Investment income, interest on loans to policyholders, and 
appropriations. 

Total outlays (gross): 
* $10 million. 

Obligated balance: 
* $17 million. 

Unobligated balance: 
* $39 million. 

Number of FTE employees: 
* 513 people administer 6 insurance programs[A]. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 36-8150-0-7-701, pp. 896-897; and 
U.S. Department of Veterans Affairs. 

[A] The following insurance programs for veterans are administered from 
the department's Philadelphia office: Veterans Mortgage Life Insurance, 
National Service Life Insurance, Veterans Reopened Life Insurance, 
Service-Disabled Veterans Insurance, Veterans Special Life Insurance, 
and U.S. Government Life Insurance. 

[End of table] 

Table 37: Veterans Reopened Insurance Fund:

Administering organization: U.S. Department of Veterans Affairs. 

Insurance description: This fund was created to provide life insurance 
for disabled veterans, mainly from World War II and the Korean 
Conflict, who, between October 8, 1940, and January 1, 1957, had been 
eligible for or enrolled in an insurance program but had dropped out or 
were uninsurable because of their disability. The disabled veterans had 
1 year, beginning May 1, 1965, to apply for coverage. At the end of 
fiscal year 2003, the fund had $556 million of insurance in force on 
63,000 policies. 

Funding source(s): 
* Investment income, premiums, and interest on loans to policyholders. 

Total outlays (gross): 
* $64 million. 

Obligated balance: 
* $51 million. 

Unobligated balance: 
* $409 million. 

Number of FTE employees: 
* 513 people administer 6 insurance programs[A]. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 36-4010-0-3-701, p. 887; and U.S. 
Department of Veterans Affairs. 

[A] The following insurance programs for veterans are administered from 
the department's Philadelphia office: Veterans Mortgage Life Insurance, 
National Service Life Insurance, Veterans Reopened Life Insurance, 
Service-Disabled Veterans Insurance, Veterans Special Life Insurance, 
and U.S. Government Life Insurance. 

[End of table] 

Table 38: Veterans Special Life Insurance Fund:

Administering organization: U.S. Department of Veterans Affairs. 

Insurance description: This fund was established in 1951 to meet the 
insurance needs of veterans who served during the Korean Conflict and a 
few years thereafter--a period from April 2, 1951, through January 1, 
1957. During this period, all service members on active duty received 
$10,000 of life insurance coverage at no cost to them. That coverage 
remained in force for 120 days after their discharge, at which time 
they could purchase $10,000 of term life insurance. Policyholders could 
also elect to purchase disability income coverage. The fund has been 
distributing excess income resulting from lower than expected death 
rates to policyholders as dividends. At the end of fiscal year 2003, 
220,719 policies were in force with an aggregate face value of $2.6 
billion. 

Funding source(s): 
* Investment income, premiums, and interest on loans to policyholders. 

Total outlays (gross): 
* $189 million. 

Obligated balance: 
* $312 million. 

Unobligated balance: 
* $1,540 million. 

Number of FTE employees: 
* 513 people administer 6 insurance programs[A]. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 36-8455-0-8-701, p. 897; and U.S. 
Department of Veterans Affairs. 

[A] The following insurance programs for veterans are administered from 
the department's Philadelphia office: Veterans Mortgage Life Insurance, 
National Service Life Insurance, Veterans Reopened Life Insurance, 
Service-Disabled Veterans Insurance, Veterans Special Life Insurance, 
and U.S. Government Life Insurance. 

[End of table] 

Retirement Annuity (Tables 39-53):

Table 39: Central Intelligence Agency Retirement and Disability System 
Fund:

Administering organization: U.S. Central Intelligence Agency. 

Insurance description: This account maintains the funds needed to 
operate the agency's retirement program for designated employees with 
at least 5 years of qualifying service involving activities abroad 
hazardous to life or health, or clearly distinguishable from normal 
government service because of specialized security duties. The fund 
pays the costs of disbursing annuities related to military service, 
costs not covered by employee and employer contributions, and costs of 
financing unfunded liabilities. 

Funding source(s): 
* Appropriations. 

Total outlays (gross): 
* $223 million. 

Obligated balance: 
* $0. 

Unobligated balance: 
* $0. 

Number of FTE employees: 
* Not available. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 56-3400-0-1-054 pp. 1090-1091. 

[End of table] 

Table 40: Civil Service Retirement and Disability Fund:

Administering organization: U.S. Office of Personnel Management. 

Insurance description: The fund provides retirement and disability 
benefits for active federal employees and federal retirees and 
survivors. The account pays benefits under two federal civilian 
retirement systems: (1) the Civil Service Retirement System, a defined 
benefit plan that covers federal employees hired before 1984 and (2) 
the Federal Employees' Retirement System that covers federal employees 
hired after 1983 and those who convert from the Civil Service 
Retirement System. The Federal Employees' Retirement System is a three-
tiered pension program that includes a basic defined benefit, a thrift 
savings plan, and social security. This fund provides the basic defined 
benefit component. Other funds provide for the Thrift Savings Plan and 
social security benefits. The fund covered 2.7 million active federal 
employees and 2.4 million federal retirees and survivors in fiscal year 
2003. 

Funding source(s): 
* Employee and agency contributions and appropriations. 

Total outlays (gross): 
* $50,368 million. 

Obligated balance: 
* $4,402 million. 

Unobligated balance: 
* $597,334 million. 

Number of FTE employees: 
* 800. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 24-8135-0-7-602, pp. 1063-1064; and 
U.S. Office of Personnel Management. 

[End of table] 

Table 41: District of Columbia Federal Pension Liability Trust Fund 
(and Federal Supplemental District of Columbia Fund):

Administering organization: Office of District of Columbia Pensions, 
U.S. Department of the Treasury. 

Insurance description: The District of Columbia Federal Pension 
Liability Trust Fund pays the retirement benefits earned through June 
30, 1997, of district police officers, firefighters, and teachers and 
the expenses of the Secretary of the Treasury in administering the 
fund. The Department of Treasury established this fund and two others 
(the District of Columbia Judicial Retirement and Survivors Annuity 
Fund and the Federal Supplemental District of Columbia Pension Fund) in 
1997 when it assumed financial responsibility for certain pension 
obligations of the District of Columbia. The District of Columbia 
retained responsibility for funding retirement benefits earned after 
June 1997 through current contributions by police, firefighters, and 
teachers and the District of Columbia funds. Because federal liability 
for these plans pertains to benefits earned before July 1997, employees 
do not contribute to the fund. After the liability trust fund is 
depleted, benefits and administrative costs will be paid from the 
Federal Supplemental District of Columbia Pension Fund. The liability 
trust and supplemental funds covered 20,409 active and retired 
employees at the end of fiscal year 2003. 

Funding source(s): 
* Investment income, appropriations. 

Total outlays (gross): 
* $488 million for liability trust fund; 
* $0 for supplemental fund. 

Obligated balance: 
* $67 million in liability trust fund; 
* $0 in supplemental fund. 

Unobligated balance: 
* $1,992 million in liability trust fund; 
* $1,640 million in supplemental fund. 

Number of FTE employees: 
* 21 administer 3 funds[A]. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification codes 20-8230-0-7-601 (liability trust 
fund) and 20-5500-0-2-601 (supplemental fund), pp. 1110-1112; and U.S. 
Department of the Treasury. 

[A] The three funds are the District of Columbia Federal Pension 
Liability Trust Fund, the District of Columbia Judicial Retirement and 
Survivors Annuity Fund, and the Federal Supplemental District of 
Columbia Pension Fund. 

[End of table] 

Table 42: District of Columbia Judicial Retirement and Survivors 
Annuity Fund:

Administering organization: Office of District of Columbia Pensions, 
U.S. Department of the Treasury. 

Insurance description: The fund provides the retirement and survivor 
benefits of active and retired District of Columbia judges. As of the 
end of fiscal year 2003, 138 active and retired judges were covered by 
the fund. The U.S. Department of Treasury established this fund and two 
others (the District of Columbia Federal Pension Liability Trust Fund 
and the Federal Supplemental District of Columbia Pension Fund) in 1997 
when it assumed financial responsibility for certain pension 
obligations of the District of Columbia. 

Funding source(s): 
* Appropriations, investment earnings, and payroll withholdings. 

Total outlays (gross): 
* $7 million. 

Obligated balance: 
* $1 million. 

Unobligated balance: 
* $91 million. 

Number of FTE employees: 
* 21 administer 3 funds[A]. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 20-8212-0-7-602, p. 1107 and U.S. 
Department of the Treasury. 

[A] The three funds are the District of Columbia Federal Pension 
Liability Trust Fund, the District of Columbia Judicial Retirement and 
Survivors Annuity Fund, and the Federal Supplemental District of 
Columbia Pension Fund. 

[End of table] 

Table 43: Federal Old Age and Survivors Insurance (Social Security):

Administering organization: U.S. Social Security Administration. 

Insurance description: This trust fund provides monthly cash benefits 
to retired workers and their dependents and to survivors of deceased 
workers. While most beneficiaries receive retirement benefits, others 
receive benefits because they are one of the following: (1) a disabled 
widow, or disabled adult child of a deceased worker, (2) a spouse or 
child of someone who receives social security, (3) a spouse or child of 
a deceased worker, or (4) a dependent parent of a deceased worker. The 
fund's largest funding source is social security payroll taxes, which 
finance social security benefits paid to current recipients. The level 
of payroll taxes collected is not expected to keep pace with growth in 
the number of beneficiaries. If, as projected, the number of persons 65 
years old and older doubles within the next 15 years, fund resources 
are projected to be insufficient to maintain existing benefit levels 
unless steps are taken to more closely balance funding and benefits. In 
December 2003, 39.4 million people were receiving benefits. 

Funding source(s): 
* Payroll taxes from employers, employees, and the self-employed; 
interest income; and income taxes on benefits. 

Total outlays (gross): 
* $402,698 million. 

Obligated balance: 
* $39,949 million. 

Unobligated balance: 
* $1,273,446 million. 

Number of FTE employees: 
* 19,000[A]. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 20-8006-0-7-651, p. 1080; and U.S. 
Social Security Administration. 

[A] Data include overtime converted into FTEs. 

[End of table] 

Table 44: Foreign Service Retirement and Disability Fund:

Administering organization: Bureau of Human Resources, Personnel 
Retirement Division, U.S. Department of State. 

Insurance description: The insurance pays retirement and disability 
benefits to foreign service officers and their survivors. Various 
departments and agencies employ these officers, including the 
Departments of State, Agriculture, and Commerce as well as the Peace 
Corps and U.S. Agency for International Development. Foreign Service 
retirement benefits are paid under two plans, the Foreign Service 
Retirement and Disability System, which is equivalent to the Civil 
Service Retirement System, and the Foreign Service Pension System, 
which is equivalent to the Federal Employees Retirement System. Under 
the defined benefit provisions of these pension plans, participants 
earn a retirement annuity based on participant and employer 
contributions and participant salary and years of service. About 14,600 
beneficiaries received $623 million in fiscal year 2003. 

Funding source(s): 
* Employee withholdings, employing agencies' contributions, 
appropriations, and interest on investments. 

Total outlays (gross): 
* $623 million. 

Obligated balance: 
* $0. 

Unobligated balance: 
* $12,300 million. 

Number of FTE employees: 
* 30 and 5 contractors. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 19-8186-0-7-602, pp. 747-748; and 
U.S. Department of State. 

[End of table] 

Table 45: Judicial Officers' Retirement Fund:

Administering organization: Administrative Office of the U.S. Courts. 

Insurance description: This trust fund pays the retirement annuities of 
U.S. bankruptcy and magistrate judges. Bankruptcy judges for a judicial 
district are appointed by the judges of the U.S. court of appeal for 
the circuit and exercise jurisdiction over bankruptcy matters. 
Magistrate judges are appointed by each U.S. district court and 
exercise jurisdiction over matters assigned by law and those delegated 
by the district judges. As of June 30, 2004, 157 active judges were 
enrolled in the program, and 216 retired judges were receiving 
retirement annuities. 

Funding source(s): 
* Appropriations. 

Total outlays (gross): 
* $22 million. 

Obligated balance: 
* $1 million. 

Unobligated balance: 
* $174 million. 

Number of FTE employees: 
* 4 as of June 30, 2004. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 10-8122-0-7-602, pp. 63-64; and 
Administrative Office of the U.S. Courts. 

[End of table] 

Table 46: Judicial Survivors' Annuities Fund:

Administering organization: Administrative Office of the U.S. Courts. 

Insurance description: This trust fund pays annuities to the surviving 
widows and dependent children of judicial officers, including survivors 
of justices and judges of the U.S. Courts; full time bankruptcy and 
magistrate judges; the administrative assistant to the Chief Justice of 
the Supreme Court; and the directors of the Federal Judicial Center and 
Administrative Office of the U.S. Courts. As of June 30, 2004, 1,488 
judicial officers were participating in the program, and 294 survivors 
of participants were receiving benefits. 

Funding source(s): 
* Investment earnings, withholdings from salaries, and federal 
payments. 

Total outlays (gross): 
* $16 million. 

Obligated balance: 
* $2 million. 

Unobligated balance: 
* $418 million. 

Number of FTE employees: 
* 3 as of June 30, 2004. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 10-8110-0-7-602, p. 64; and 
Administrative Office of the U.S. Courts. 

[End of table] 

Table 47: Military Retirement Fund:

Administering organization: U.S. Department of Defense. 

Insurance description: The fund finances a defined benefit pension plan 
for military personnel who have retired with at least 20 years of 
service or who were disabled in combat. Retirees can also make elective 
contributions so that upon their death a surviving spouse or dependents 
can continue to receive survivor benefits. At the end of fiscal year 
2003, about 1.722 million retirees and 265,000 surviving families were 
covered by the fund. 

Funding source(s): 
* U.S. Treasury general fund, agency contributions, and investment 
income. 

Total outlays (gross): 
* $35,568 million. 

Obligated balance: 
* $2,963 million. 

Unobligated balance: 
* $0. 

Number of FTE employees: 
* Not available. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 197-8097-0-7-602, pp. 927-928; and 
U.S. Department of Defense. 

[End of table] 

Table 48: Pension Benefits (Veterans):

Administering organization: U.S. Department of Veterans Affairs. 

Insurance description: The account funds pensions for certain veterans 
or their survivors. Veterans are entitled to benefits if they were on 
active duty for 90 days or more during a designated war period, 
sustained permanent and total disabilities, and have income below a 
certain level. The disability requirement does not apply to certain 
survivors or to veterans that are at least 65 years old. A separate 
account funds administrative expenses. 

Funding source(s): 
* Appropriations. 

Total outlays (gross): 
* $3,229 million (benefits); 
* $149 million (administrative). 

Obligated balance: 
* $264 million. 

Unobligated balance: 
* $65 million. 

Number of FTE employees: 
* 827. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification codes 36-0154-0-1-701 (benefits) and 36-
0143-0-1-701(administrative), pp. 883-884; and U.S. Department of 
Veterans Affairs. 

[End of table] 

Table 49: Railroad Industry Pension Fund:

Administering organization: U.S. Railroad Retirement Board. 

Insurance description: The fund provides income protection during old 
age and in the event of disability, sickness, or death to: (1) railroad 
workers who retire because of age or disability; (2) eligible spouses 
and divorced spouses of retired employees; and (3) surviving 
widow(er)s, remarried widow(er)s, surviving divorced spouses, children, 
and dependent parents of deceased employees. The fund paid benefits to 
666,200 individuals in fiscal year 2003. 

Funding source(s): 
* Appropriations; employer and employee payroll taxes; transfers from 
the Railroad Retirement Account, the Social Security Equivalent Benefit 
Account, and the Dual Benefits Payments Account; and investment income. 

Total outlays (gross): 
* $21,437 million[A]. 

Obligated balance: 
* $301 million. 

Unobligated balance: 
* $206 million. 

Number of FTE employees: 
* 909. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 60-8011-0-7-601, pp. 1178-1179; and 
U.S. Railroad Retirement Board. 

[A] Total outlays (gross) includes $17,750 million in transfers to the 
National Railroad Retirement Investment Trust and excludes outlays for 
the Social Security Equivalent Benefit Account and Dual Benefits 
Payments Account. 

[End of table] 

Table 50: Retired Pay (U.S. Coast Guard):

Administering organization: U.S. Coast Guard, U.S. Department of 
Homeland Security. 

Insurance description: The account funds retirement pay for military 
personnel of the U.S. Coast Guard and Coast Guard Reserve and members 
of the former Lighthouse Service. It also provides an annuity for 
survivors of Coast Guard retirees who elect to participate in the 
related plan. Additionally, it funds payments for the medical care of 
retired personnel and their dependents. In fiscal year 2003, the 
account paid $832 million in benefits: $667 million in retirement 
benefits to regular military personnel, $45 million in retirement 
benefits to reserve personnel, $16 million in survivor benefits, and 
$104 million in medical care benefits to retirees and their dependents. 
At the end of the fiscal year, 35,000 personnel were eligible for the 
account's retirement pay benefits. 

Funding source(s): 
* Appropriations. 

Outlays: 
* $812 million. 

Obligated balance: 
* $141 million. 

Unobligated balance: 
* $0. 

Number of FTE employees: 
* 0. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 70-0602-0-1-403, pp. 492-493; and 
U.S. Department of Homeland Security. 

[End of table] 

Table 51: Retirement Pay and Medical Benefits for Commissioned Officers 
(Public Health Service):

Administering organization: U.S. Public Health Service, U.S. Department 
of Health and Human Services. 

Insurance description: The account funds medical, dental, disability, 
and retirement pay and benefits for retired Public Health Service 
commissioned officers. It also provides payments and medical benefits 
to survivors of deceased officers and medical benefits to dependents 
and beneficiaries. In fiscal year 2003, the account paid $291 million 
in benefits: $214 million for retirement benefits, $13 million for 
survivor benefits, and $64 million for medical care benefits to about 
33,000 beneficiaries. 

Funding source(s): 
* Appropriations. 

Total outlays (gross): 
* $305 million. 

Obligated balance: 
* $30 million. 

Unobligated balance: 
* $0. 

Number of FTE employees: 
* 8 FTEs, 3 consultants, and 2 temporary contractors. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 75-0379-0-1-551, p. 463; and U.S. 
Department of Health and Human Services. 

[End of table] 

Table 52: Special Benefits for Certain World War II Veterans:

Administering organization: U.S. Social Security Administration. 

Insurance description: This account funds social security benefits for 
certain World War II veterans who meet program eligibility criteria. 
Those eligible for program benefits include individuals who: (1) were 
at least 65 years old as of December 14, 1999 and reside outside the 
United States; (2) were in the U.S. military during World War II, 
including veterans who were in the Filipino Army and Filipino Scouts; 
and (3) were eligible for Supplemental Security Income for the month of 
December 1999 and meet other requirements. 

Funding source(s): 
* Appropriations and state supplement payments[A]. 

Total outlays (gross): 
* $9 million. 

Obligated balances: 
*-$1 million. 

UnObligated balances: 
* $0. 

Number of FTE employees: 
* 5. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 28-0401-0-1-701, pp. 1078-1079; and 
U.S. Social Security Administration. 

[A] California provides additional funds to the Social Security 
Administration for the benefit of the veterans receiving benefits under 
this insurance activity. 

[End of table] 

Table 53: United States Court of Federal Claims Judges' Retirement Fund:

Administering organization: Administrative Office of the U.S. Courts. 

Insurance description: This trust fund pays the retirement annuities of 
U.S. Court of Federal Claims judges. The court's jurisdiction includes, 
among other things, most claims for money damages against the United 
States, disputes over federal contracts, federal contract bid protests, 
constitutional claims, and patent and copyright infringement. Three 
active and 13 retired judges were enrolled or receiving benefits as of 
June 30, 2004. 

Funding source(s): 
* Appropriations. 

Total outlays (gross): 
* $2 million. 

Obligated balance: 
* $0. 

Unobligated balance: 
* $11 million. 

Number of FTE employees: 
* Less than 1 as of June 30, 2004. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 10-8124-0-7-602, pp. 64-65; and 
Administrative Office of the U.S. Courts. 

Property Damage or Financial Loss Compensation (Tables 54-62):

[End of table] 

Table 54: Agricultural Credit Insurance Program Account (Dairy 
Indemnity Program):

Administering organization: Farm Service Agency, U.S. Department of 
Agriculture. 

Insurance description: The program compensates dairy farmers for milk 
or cows at fair market value when a regulatory agency (such as the 
departments of agriculture or public health in the various states) 
directs them to remove raw milk from the commercial market or to 
destroy their livestock because of contamination by certain pesticides, 
toxic substances, chemical residues, or nuclear radiation or fallout. 
The program also compensates manufacturers at fair market value for 
dairy products removed from the commercial market because of pesticide 
contamination. 

Funding source(s): 
* Appropriations. 

Total outlays (gross): 
* $393,000. 

Obligated balance: 
* $0. 

Unobligated balance: 
* $1 million. 

Number of FTE employees: 
* Less than 5. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 12-1140-0-1-351, p. 106-108; and U.S. 
Department of Agriculture. 

[End of table] 

Table 55: Animal and Plant Health Inspection Service (disease control 
compensation):

Administering organization: Animal and Plant Health Inspection Service, 
U.S. Department of Agriculture. 

Insurance description: In addition to its primary purpose of funding 
activities designed to protect the nation's animal and plant resources 
from destructive pests and diseases, this account reimburses owners for 
the loss of animals that the agency determines are diseased and need to 
be destroyed. During fiscal year 2003, the agency reimbursed owners for 
the loss of animals or plants with, among other diseases, Tuberculosis 
(a contagious bacteria affecting both animals and humans), Exotic 
Newcastle (a contagious and fatal viral disease affecting all species 
of birds), Chronic Wasting Disease (a neurological illness affecting 
deer and elk), Spring Viremia of Carp (a contagious and potentially 
fatal viral disease of fish such as koi and carp) and with citrus 
canker (a disease affecting citrus growing plants). 

Funding source(s): 
* Transfers from Department of Agriculture's Commodity Credit 
Corporation. 

Total outlays (gross): 
* $98 million in agency reimbursements to owners[A]. 

Obligated balance: 
* Not applicable[B]. 

Unobligated balance: 
* Not applicable[C]. 

Number of FTE employees: 
* Not available[D]. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 12-1600-0-1-352, pp. 87-89; and U.S. 
Department of Agriculture. 

[A] The $98 million in reimbursements to animal and plant owners is 
about 8 percent of the account's $1,153 million in total outlays 
(gross). 

[B] The obligated balance for the reimbursements for departmental 
activity related to destroyed animals is not reported separately from 
the Animal and Plant Health Inspection Service Salaries and Expenses 
account in the budget. 

[C] The Unobligated balance for the reimbursements for departmental 
activity related to destroyed animals is not reported separately from 
the Animal and Plant Health Inspection Service Salaries and Expenses 
account in the budget. 

[D] FTEs are not separately determined for reimbursements for 
departmental activity related to destroyed animals and plants. 

[End of table] 

Table 56: Check Forgery Insurance Fund:

Administering organization: Financial Management Service, U.S. 
Department of the Treasury. 

Insurance description: This account funds the replacement of forged and 
stolen U.S. Treasury checks. Losses are incurred when the fund is 
unable to recover from parties responsible for the thefts or forgeries. 
In fiscal year 2003, total losses, gross were about $23 million of 
which $20 million were recovered and $3 million were unrecovered. 
Losses may be recovered through claims made against a forger or thief, 
or against the financial institution that negotiated the forged or 
stolen check. 

Funding source(s): 
* Appropriations and offsetting collections. 

Total outlays (gross): 
* $23 million. 

Obligated balance: 
* $1 million. 

Unobligated balance: 
* $8 million. 

Number of FTE employees: 
* Not available[A]. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 20-4109-0-3-803, p. 847; and U.S. 
Department of the Treasury. 

[A] Staff are devoted to this activity part-time. 

[End of table] 

Table 57: Fishermen's Contingency Fund:

Administering organization: National Oceanic and Atmospheric 
Administration, U.S. Department of Commerce. 

Insurance description: The account compensates U.S. commercial 
fishermen for damage and losses to their fishing equipment when debris 
from U.S. Outer Continental Shelf activities related to oil and gas 
exploration, development, or production damage fishing boats and 
related fishing gear. The fund also compensates fishermen for 50 
percent of their gross economic loss when damage to boats and equipment 
prevents them from fishing or causes them to reduce their fishing 
efforts. Eighteen claims totaling $108,000 were paid in fiscal year 
2003. 

Funding source(s): 
* Assessments on oil and gas companies operating on the Outer 
Continental Shelf and interest on invested balances, and funds 
recovered by the government by persons responsible for covered damages. 

Total outlays (gross): 
* $1 million. 

Obligated balance: 
* $0. 

Unobligated balance: 
* $1.25 million. 

Number of FTE employees: 
* 1. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 13-5120-0-2-376, pp. 222-223; and 
U.S. Department of Commerce. 

[End of table] 

Table 58: Homeowners Assistance Fund:

Administering organization: U.S. Department of Defense. 

Insurance description: The account provides funds to reduce the 
financial hardship or loss to military, Coast Guard, and civilian 
personnel when Department of Defense base realignments or closures 
require them to relocate and dispose of their homes. Eligible personnel 
may be reimbursed for certain losses that result from the forced sale 
of their homes. In fiscal year 2003, homeowners made 110 claims and 
received $2.4 million in assistance. 

Funding source(s): 
* Appropriations and revenue from the sale of homes the Defense 
Department acquires as a result of base realignments or closures. 

Total outlays (gross): 
* $9 million. 

Obligated balance: 
* $1 million. 

Unobligated balance: 
* $18 million. 

Number of FTE employees: 
* 10. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 97-4090-0-3-051, pp. 309; and U.S. 
Department of Defense. 

[End of table] 

Table 59: National Endowment for the Arts (Arts and Artifacts Indemnity 
Program):

Administering organization: Federal Council on the Arts and Humanities. 

Insurance description: The program provides insurance coverage for 
losses or damages to artifacts in exhibitions from abroad while 
traveling in the United States. Such exhibits include artwork, 
artifacts, or rare documents with educational, cultural, historical, or 
scientific value that are certified by the U.S. Department of State as 
being in the national interest. The exhibits may come from foreign 
state and private museums, and private collections. Any domestic museum 
that seeks to bring an exhibit into the United States from abroad may 
apply for coverage of up $600 million. Total coverage of all exhibits 
under the program at any given time may not exceed $8 billion. By 
making this insurance coverage available, the program seeks to provide 
U.S. citizens an opportunity to see exhibits from abroad. At the end of 
fiscal year 2003, the program had $4.98 billion in insurance in force 
on 33 exhibitions that if obtained commercially would have cost 
exhibitors an estimated $13.3 million in premiums. 

Funding source(s): 
* Special appropriations that cover claims; 
* Administrative expenses that are absorbed by the National Endowment 
for the Arts. 

Total outlays (gross): 
* $104,700 for two claims since the program began in 1975; 
* $100,000 annually in administrative costs. 

Obligated balance: 
* $0. 

Unobligated balance: 
* $0. 

Number of FTE employees: 
* 1. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 59-0100-0-1-503, pp. 1159-1160; and 
Federal Council on the Arts and Humanities. 

[End of table] 

Table 60: Oil Spill Liability Trust Fund:

Administering organization: National Pollution Funds Center, U.S. Coast 
Guard, U.S. Department of Homeland Security. 

Insurance description: The insurance pays valid claims from parties 
damaged by oil spills in navigable waters and from onshore production 
and storage facilities when a responsible party does not pay. The 
damage must have occurred after August 17, 1990. Costs and damages 
covered by the fund include uncompensated oil removal costs, damages to 
natural resources, damages to real or personal property, loss of 
subsistence, loss of government revenues, and increased costs of public 
services. Any individual, corporation, or state or local government can 
present a claim for uncompensated removal costs or damages. The account 
paid $50 million to remove 551 oil spills and $24 million to settle 255 
claims in fiscal year 2003. During the same period, over 19,000 vessels 
and over 1,100 operating companies were regulated through the National 
Pollution Funds Center. 

Funding source(s): 
* Fines and penalties, cost recoveries, and interest on investments. 

Total outlays (gross): 
* $76 million. 

Obligated balance: 
* $123 million. 

Unobligated balance: 
* $31 million. 

Number of FTE employees: 
* Not available[A]. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 70-8185-0-7-304, p. 495; and U.S. 
Department of Homeland Security. 

[A] The National Pollution Funds Center office had 112 FTEs that 
administered this and other activities. 

[End of table] 

Table 61: Postal Service Fund (Domestic and Foreign Mail Indemnity 
Claim Fund):

Administering organization: U.S. Postal Service. 

Insurance description: In addition to its primary purpose of funding 
various postal activities, the fund supports the activities of the U.S. 
Postal Service Domestic and Foreign Mail Indemnity Program, under which 
postal customers can purchase up to $5,000 of insurance against loss or 
damage to mailed items. During fiscal year 2003, the U.S. Postal 
Service processed approximately 270,000 mail indemnity claims. 

Funding source(s): 
* Fees collected from customers. 

Total outlays (gross): 
* $24 million for claims[A]. 

Obligated balance: 
* Not available[B]. 

Unobligated balance: 
* Not available[C]. 

Number of FTE employees: 
* 27 for claims over $50[D]. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 18-4020-0-3-372, pp. 1174-1176; and 
U.S. Postal Service. 

[A] Total outlays (gross) are for the Domestic And Foreign Mail 
Indemnity Program and not for the entire account. 

[B] The obligated balance for the Domestic and Foreign Mail Indemnity 
Program is not reported separately from the postal service fund account 
in the budget and is, therefore, not available. 

[C] The Unobligated balance for the Domestic And Foreign Mail Indemnity 
Program is not reported separately from The Postal Service Fund account 
in the budget and is, therefore, not available. 

[D] Claims for losses or damages of $50 or less are typically processed 
and resolved at the windows of the thousands of local post offices 
throughout the country. The local post offices do not maintain records 
of the amount of staff time spent processing such claims. 

[End of table] 

Table 62: Surety Bond Guarantees Revolving Fund:

Administering organization: U.S. Small Business Administration. 

Insurance description: The fund provides bond guarantees of up to $2 
million to surety companies that enter into construction, service, and 
supply contracts with contractors that cannot obtain surety bonds 
through regular commercial channels or otherwise compete in the 
contracting industry due to such factors as size or newness to the 
industry. Contractors must meet the surety's bonding qualifications and 
qualify as a small business. The program will reimburse surety 
companies up to 90 percent of the losses they sustain if a contractor 
defaults. In fiscal year 2003, 25 surety companies received bond 
guarantees. 

Funding source(s): 
* Fees from surety companies, recoveries from defaulting contractors, 
and appropriations. 

Total outlays (gross): 
* $9 million. 

Obligated balance: 
* $0. 

Unobligated balance: 
* $23 million. 

Number of FTE employees: 
* 25. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 73-4156-0-3-376, p. 1068; and U.S. 
Small Business Administration. 

[End of table] 

Natural Disaster Compensation (Tables 63-65):

Table 63: Farm Service Agency Salaries and Expenses (Non-Insured Crop 
Disaster Assistance Program):

Administering organization: Farm Service Agency, U.S. Department of 
Agriculture. 

Insurance description: The account provides crop loss protection to 
producers of crops (of food or fiber) that are not insurable and for 
which catastrophic natural disaster insurance is unavailable. To be 
eligible for coverage, among other things, the natural disaster must 
occur before or during the harvest and must directly affect the crop. 
Eligible events include drought, tornados, hurricanes, earthquakes, and 
floods. Conditions related to these events may also be eligible for 
coverage such as disease or insect infestation. In fiscal year 2003, 
63,932 producers were covered. 

Funding source(s): 
* Service fees and the Department of Agriculture, Commodity Credit 
Corporation. 

Total outlays (gross): 
* Not available. 

Obligated balance: 
* Not available. 

Unobligated balance: 
* Not available. 

Number of FTE employees: 
* Not available[A]. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 12-0600-0-1-351, pp. 103-104; and 
U.S. Department of Agriculture. 

[A] Staff in 2,500 U.S. Department of Agriculture Service Centers in 
all 50 states provide fractional units of administrative time. 

[End of table] 

Table 64: Federal Crop Insurance Corporation Fund:

Administering organization: Risk Management Agency, U.S. Department of 
Agriculture. 

Insurance description: The fund provides crop producers multi-peril and 
catastrophic crop insurance protection against losses from unavoidable 
natural events and market fluctuations. Under various insurance plans, 
producers of wheat, feed grains, soybeans, rice, cotton, and other 
crops receive protection against revenue losses resulting from low 
prices, poor yields, or a combination of both. Compensation is provided 
for losses up to a certain percentage of the expected market price or 
average crop yield. Premiums charged to producers are partially or 
fully subsidized, depending on the level of insurance protection 
obtained. At the end of crop year 2003, the program had $40,586 billion 
of insurance in force in 50 states and 3,067 counties. 

Funding source(s): 
* Premium income from farmers and appropriations. 

Total outlays (gross): 
* $4,087 million. 

Obligated balance: 
* $120 million. 

Unobligated balance: 
* $1,854 million. 

Number of FTE employees: 
* 568 ceiling. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 12-4085-0-3-351, p. 102; and U.S. 
Department of Agriculture. 

[End of table] 

Table 65: National Flood Insurance Fund:

Administering organization: Mitigation Division, Federal Emergency 
Management Agency, U.S. Department of Homeland Security. 

Insurance description: The fund was created to, among other things, 
provide federally backed insurance to homeowners, renters, and business 
owners in flood-prone communities. In exchange for the insurance, 
eligible communities must adopt and enforce floodplain management 
ordinances intended to reduce future flood damage. Insurance coverage 
may be in amounts of up to $350,000 for residential buildings and $1 
million for other types of buildings. At the end of fiscal year 2003, 
$662 billion of flood insurance was in force on 4.4 million policies, 
covering 20,000 communities. Premium income totaled $1.9 billion during 
the fiscal year. 

Funding source(s): 
* Premium and fee income, investment income, and authorization to 
borrow from the U.S. Treasury. 

Total outlays (gross): 
* $1,097 million. 

Obligated balance: 
* $615 million. 

Unobligated balance: 
* $1,440 million. 

Number of FTE employees: 
* 239. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 70-4236-0-4-453, p. 503; and U.S. 
Department of Homeland Security. 

[End of table]

Political and War Risk Insurance (Tables 66-71):

Table 66: Aviation Insurance Revolving Fund:

Administering organization: Federal Aviation Administration, U.S. 
Department of Transportation. 

Insurance description: The insurance covers commercial aircraft that 
provide essential air service during extraordinary circumstances--such 
as war and other hostilities--when such insurance is unavailable 
commercially or under reasonable terms and conditions. The insurance 
also provides protection for U.S. aircraft used by the U.S. Departments 
of Defense and State in certain government contract operations. The 
Federal Aviation Administration provides war risk insurance for (1) 
aircraft hull loss and (2) passenger and third party liability for 
damage or destruction of property, personal injury, or death. The 
insurance covers civil aircraft operations losses above $50 million and 
up to $100 million. As of July 3, 2004, 115 policies were in force. No 
claims were made or paid in fiscal year 2003. 

Funding source(s): 
* Premiums and fees paid by commercial aircraft owners and income from 
investments in U.S. Treasury securities. 

Total outlays (gross): 
* $15 million. 

Obligated balance: 
* $5 million. 

Unobligated balance: 
* $218 million. 

Number of FTE employees: 
* 3. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 69-4120-0-3-402, pp. 768-769; and 
U.S. Department of Transportation. 

[End of table] 

Table 67: Fishermen's Guaranty Fund:

Administering organization: U.S. Department of State. 

Insurance description: This fund compensates commercial fishermen for 
financial losses resulting from the seizure of their fishing vessels in 
a foreign country and for allowed resulting economic losses, including 
the loss of equipment, confiscation of catch, and loss of fishing time. 
No claims were filed or paid in fiscal year 2003. 

Funding source(s): 
* No funding requested or received for the fiscal year. 

Total outlays (gross): 
* $0. 

Obligated balance: 
* $0. 

Unobligated balance: 
* $3 million. 

Number of FTE employees: 
* Less than one. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 19-5121-0-2-376, p. 758-759; and U.S. 
Department of State. 

[End of table] 

Table 68: Fishermen's Protective Fund:

Administering organization: U.S. Department of State. 

Insurance description: The fund provides financial compensation for 
losses to owners of fishing vessels by reimbursing them for fines, fees 
and other charges they incur to secure the release of their vessels and 
crews when seized by foreign governments. The fund does not cover 
seizures by countries at war with the United States or seizures that 
are in accordance with conventions or treaties between the United 
States and foreign governments. 

Funding source(s): 
* No funding in fiscal year 2003 and no new budget authority requested 
for fiscal years 2004 and 2005. 

Total outlays (gross): 
* $0. 

Obligated balance: 
* $0. 

Unobligated balance: 
* $1 million. 

Number of FTE employees: 
* Less than one. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 19-5121-0-2-376, p. 758-759; and U.S. 
Department of State. 

[End of table] 

Table 69: Overseas Private Investment Corporation Noncredit Account:

Administering organization: Overseas Private Investment Corporation. 

Insurance description: This account funds political risk insurance for 
U.S. investors, contractors, exporters, and financial institutions 
involved in international transactions. The insurance provides 
protection against asset losses resulting from, among other things, (1) 
deterioration of a developing country's currency relative to the U.S. 
dollar that could impede an investor's ability to transfer profits and 
meet debt obligations; (2) nationalization, confiscation, or 
expropriation of investments by a foreign government; and (3) war, 
revolution, insurrection, terrorism, or political strife. The insurance 
generally covers 90 percent of an investment for up to 20 years. At the 
end of fiscal year 2003, the program had $11.9 billion of insurance in 
force, which was about 41 percent of the statutory limit of $29 
billion. The program has paid about $1 billion in claims since its 
origination in 1949. 

Funding source(s): 
* Income from political risk insurance premiums and interest income 
from U.S. Treasury securities and loans. 

Total outlays (gross): 
* $76 million. 

Obligated balance: 
* $63 million. 

Unobligated balance: 
* $3,608 million. 

Number of FTE employees: 
* 23[A]. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 71-4184-0-3-151, pp. 1012-1013; and 
Overseas Private Investment Corporation. 

[A] The 23 FTEs reported are less than half of the total FTEs for 
fiscal year 2003 when indirect FTEs are included. 

[End of table] 

Table 70: Terrorism Insurance Program:

Administering organization: Terrorism Risk Insurance Office, U.S. 
Department of the Treasury. 

Insurance description: Through this insurance the federal government, 
insurers, and policyholders share the risk of property and casualty 
losses resulting from terrorist acts. Coverage is for fiscal years 2003 
through 2005 and is limited to foreign-related terrorist acts, as 
defined by law, that result in more than $5 million of property and 
casualty insurance losses. Under the enacting legislation, generally 
all insurers must offer coverage (1) to any person or entity that 
purchases commercial property and casualty insurance coverage within 
the United States, and (2) for U.S. air carriers and maritime vessels 
operating outside the United States. If an act of terrorism occurs, the 
federal government's share is 90 percent of the insured losses that are 
in excess of an insurer's deductible, with overall insured loss 
payments subject to an aggregate annual cap of $100 billion. While no 
upfront charge is made for the federal government's reinsurance-type 
coverage under the program, the federal government has mandatory and 
discretionary authority to recoup the federal share of compensation 
through subsequent policyholder surcharges. 

Funding source(s): 
* Permanent indefinite appropriation[A]. 

Total outlays (gross): 
* $564,000. 

Obligated balance: 
* $3.5 million. 

Unobligated balance: 
* $4.9 million. 

Number of FTE employees: 
* 8. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 20-0123-0-1-376, p. 832; and U.S. 
Department of the Treasury. 

[A] The legislation provides for the mandatory and discretionary 
recoupment of the federal share of compensation for insured losses 
through prospective policyholder surcharges, not to exceed 3 percent of 
the premium charged for the policy's property and casualty coverage, 
and for the remittance of the surcharges to the Secretary of the 
Department of the Treasury. 

[End of table] 

Table 71: War Risk Insurance Revolving Fund:

Administering organization: Maritime Administration, U.S. Department of 
Transportation. 

Insurance description: The insurance protects against wartime damage to 
or loss of, among other things, shipping vessels and their cargo. It 
also covers the death or injury of vessel crew. The goal of the 
insurance is to preserve the regular flow of commerce and the 
availability of merchant vessels for national defense when commercial 
insurance cannot be obtained on reasonable terms and conditions. When 
damage or loss occurs, the Maritime Administration initially pays 
claims, but is then reimbursed by the Department of Defense. In fiscal 
year 2003, 97 policies were issued. Between September 28, 2001, and 
April 1, 2004, 315 policies were in force, covering $10 billion in 
risk. 

Funding source(s); Premiums, fees, and investment income. 

Total outlays (gross); $50,000. 

Obligated balance; $0. 

Unobligated balance; $37 million. 

Number of FTE employees; 2. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 69-4302-0-3-403, p. 815; and U.S. 
Department of Transportation. 

[End of table]

[End of section]

Enclosure III: Federal Deposit Insurance, Pension Insurance, and Loan 
Guarantees:

This enclosure lists 64 federal deposit insurance, pension insurance, 
and loan guarantee activities that, like the activities included in 
enclosure II, provide federal insurance to entities other than the 
federal government. The enclosure also provides a description of each 
of these three categories of insurance, with the activities listed 
alphabetically under each category by administering organization. We 
have also included certain quantitative data to provide a perspective 
on relative size and activity level, including outlays, obligated 
balances, and Unobligated balances for federal deposit insurance and 
pension insurance and federally guaranteed amounts outstanding for 
federal loan guarantees. 

Federal Deposit and Pension Insurance:

Federal deposit insurance protects individual depositors from financial 
loss should the depository institutions holding their deposits fail. 
The protection is capped at a maximum dollar amount per individual 
account and covers deposits in commercial banks, savings associations 
(thrifts), and most credit unions. Federal deposit insurance is 
intended to promote U.S. financial stability and prevent bank failures 
from causing widespread disruption in the financial markets. Federal 
deposit insurance activities are funded primarily by assessments 
collected from financial institutions with federal deposit insurance 
and investment income. Table 72 below provides data on the four federal 
deposit insurance accounts, three of which are administered by the 
Federal Deposit Insurance Corporation and one by the National Credit 
Union Administration. 

Pension insurance protects pensioners against loss of benefits if their 
private sector defined benefit pension plans are terminated or unable 
to pay benefits. Employers provide defined benefit pension plans and 
commit to paying employees a specific benefit for life, typically 
through annuities. Pension plans are sometimes unable to pay benefits 
if employers underfund them or become insolvent. The federal government 
provides pension insurance through the Pension Benefit Guaranty 
Corporation, which covers millions of workers and retirees 
participating in private sector pension plans. As shown in table 72, 
the insurance activities of the Pension Benefit Guaranty Corporation 
are funded through trust funds established in the Pension Benefit 
Guaranty Corporation Fund, which is administered by the Department of 
Labor. The account is funded primarily by investment income, 
appropriations, and premiums collected from employers whose pension 
plans are insured. 

Table 72: Federal Deposit Insurance and Federal Pension Insurance 
Agencies and Accounts, Fiscal Year 2003:

(Dollars in millions). 

Federal Deposit Insurance Accounts: 

Federal Deposit Insurance Corporation: Bank Insurance Fund; 
Outlays: $2,487; 
Obligated balance: $31,262; 
Unobligated balance: $37. 

Federal Deposit Insurance Corporation: Federal Savings and Loan 
Insurance Corporation Resolution Fund; 
Outlays: $504; 
Obligated balance: $3,268; 
Unobligated balance: $2. 

Federal Deposit Insurance Corporation: Savings Association Insurance 
Fund; 
Outlays: $371; 
Obligated balance: $11,505; 
Unobligated balance: $4. 

National Credit Union Administration: National Credit Union Share 
Insurance Fund; 
Outlays: $72; 
Obligated balance: $6,081; 
Unobligated balance: ($277). 

Federal Pension Insurance Account: 

U.S. Department of Labor: Pension Benefit Guaranty Corporation Fund; 
Outlays: $2,529; 
Obligated balance: $12,219; 
Unobligated balance: $98. 

Source: Appendix, Budget of the United States Government, Fiscal Year 
2005. 

[End of table]

Federal Loan Guarantees:

Federal loan guarantees are intended to reduce the price and increase 
the availability of credit for particular uses. These agreements 
involve three parties--a lender, a borrower, and the federal government 
as guarantor. The lender agrees to provide a loan to the borrower if 
the federal government agrees to repay a portion or all of the loan 
should the borrower default. Federal loan guarantees are often funded 
by fees collected from borrowers and lenders, although many are also 
funded fully or partially by appropriations. According to the 
Congressional Budget Office, more than two-thirds of the $365 billion 
in new loans the federal government guaranteed in fiscal year 2003 were 
for home mortgages. Other loan guarantees went to companies in specific 
sectors, such as the airline, steel, oil, and gas industries. 

We identified 59 federally guaranteed loan activities with aggregate 
federally guaranteed amounts outstanding of at least $834 billion at 
the end of fiscal year 2003 (table 73). Many of these activities have 
up to three accounts associated with them--a liquidating, financing, 
and/or program account. Government cash flows for loan guarantees may 
be recorded either in liquidating accounts or financing accounts, 
depending on whether the guarantees were made before, or on or after 
October 1, 1991, respectively. Program accounts are used to record 
federal administrative and subsidy costs associated with loan 
guarantees made after 1991. In the table below, we did not separately 
list each of the accounts associated with the 59 activities. Rather, 
when more than one account existed, we listed the activity itself and 
presented the aggregated financial data as appropriate. 

Table 73: Federal Guaranteed Loan Activity:

Federal Entity: U.S. Agency for International Development: 

Name of the Federal Guaranteed Loan Activity: 1. Development Credit 
Authority Guaranteed Loan Accounts; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $28. 

Name of the Federal Guaranteed Loan Activity: 2. Housing and Other 
Credit Guaranty Programs; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $1,361. 

Name of the Federal Guaranteed Loan Activity: 3. U.S. Agency for 
International Development: Loan Guarantees to Israel Accounts; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $10,789. 

Name of the Federal Guaranteed Loan Activity: 4. Microenterprise and 
Small Enterprise Development Guaranteed Loans; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $25. 

Name of the Federal Guaranteed Loan Activity: 5. Urban and 
Environmental Credit Program Guaranteed Loans; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $540. 

Federal Entity: Export-Import Bank of the United States: 

Name of the Federal Guaranteed Loan Activity: 6. Export-Import Bank 
Guaranteed Loan Accounts; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $33,502. 

Federal Entity: International Security Assistance: 

Name of the Federal Guaranteed Loan Activity: 7. Foreign Military Loan 
Liquidating Account; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $3,146. 

Name of the Federal Guaranteed Loan Activity: 8. International Security 
Assistance Economic Support Fund; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): N.A.[A]. 

Federal Entity: Overseas Private Investment Corporation: 

Name of the Federal Guaranteed Loan Activity: 9. Overseas Private 
Investment Corporation Guaranteed Loan Accounts; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $3,119. 

Federal Entity: Presidio Trust: 

Name of the Federal Guaranteed Loan Activity: 10. Presidio Trust Fund; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): N.A.[A]. 

Name of the Federal Guaranteed Loan Activity: 11. Presidio Trust 
Guaranteed Loan Accounts; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $0. 

Federal Entity: U.S. Small Business Administration: 

Name of the Federal Guaranteed Loan Activity: 12. Business Guaranteed 
Loan Accounts; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $51,525. 

Name of the Federal Guaranteed Loan Activity: 13. Business Loan Fund 
Liquidating Account; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $666. 

Name of the Federal Guaranteed Loan Activity: 14. Disaster Loan Fund 
Liquidating Account; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): N.A.[A]. 

Name of the Federal Guaranteed Loan Activity: 15. Pollution Control 
Equipment Fund; 
Federal Entity: Federally guaranteed amount outstanding at fiscal year-
end 2003 (dollars in millions): U.S. Agency for International 
Development: $8. 

Federal Entity: U.S. Department of Agriculture: 

Name of the Federal Guaranteed Loan Activity: 16. Agricultural Credit 
Insurance Fund Guaranteed Loan Accounts; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $9,301. 

Name of the Federal Guaranteed Loan Activity: 17. Agricultural Resource 
Conservation Demonstration Guaranteed Loan Accounts; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $12. 

Name of the Federal Guaranteed Loan Activity: 18. Commodity Credit 
Corporation Export Guaranteed Loan Accounts; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $3,656. 

Name of the Federal Guaranteed Loan Activity: 19. Local Television Loan 
Guarantee Accounts; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $0. 

Name of the Federal Guaranteed Loan Activity: 20. Rural Business and 
Industry Guaranteed Loan Accounts; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $3,226. 

Name of the Federal Guaranteed Loan Activity: 21. Rural Business 
Investment Program Guarantee Accounts; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): N.A.[A]. 

Name of the Federal Guaranteed Loan Activity: 22. Rural Communication 
Development Fund Liquidating Account; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $4. 

Name of the Federal Guaranteed Loan Activity: 23. Rural Community 
Advancement Program; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): N.A.[A]. 

Name of the Federal Guaranteed Loan Activity: 24. Rural Community 
Facility Guaranteed Loan Accounts; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $373. 

Name of the Federal Guaranteed Loan Activity: 25. Rural Development 
Insurance Fund Liquidating Account; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $46. 

Name of the Federal Guaranteed Loan Activity: 26. Rural Electrification 
and Telecommunication Guaranteed Loan Accounts; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $516. 

Name of the Federal Guaranteed Loan Activity: 27. Rural Housing 
Insurance Fund Guaranteed Loan Accounts; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $12,088. 

Name of the Federal Guaranteed Loan Activity: 28. Rural Water and Waste 
Disposal Guaranteed Loan Accounts; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $29. 

Federal Entity: U.S. Department of Commerce: 

Name of the Federal Guaranteed Loan Activity: 29. Economic Development 
Revolving Fund Liquidating Account; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): N.A.[A]. 

Name of the Federal Guaranteed Loan Activity: 30. Emergency Oil and Gas 
Guaranteed Loan Accounts; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $2. 

Name of the Federal Guaranteed Loan Activity: 31. Emergency Steel 
Guaranteed Loan Accounts; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $156. 

Name of the Federal Guaranteed Loan Activity: 32. Federal Ship 
Financing Fund Fishing Vessels Liquidating Account; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $23. 

Name of the Federal Guaranteed Loan Activity: 33. Fisheries Finance 
Guaranteed Loan Accounts; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $32. 

Federal Entity: U.S. Department of Defense: 

Name of the Federal Guaranteed Loan Activity: 34. Arms Initiative 
Guaranteed Loan Account; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $24. 

Name of the Federal Guaranteed Loan Activity: 35. Defense Export Loan 
Guarantee Accounts; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $0. 

Name of the Federal Guaranteed Loan Activity: 36. Family Housing 
Improvement Guaranteed Loan Accounts; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $389. 

Federal Entity: U.S. Department of Education: 

Name of the Federal Guaranteed Loan Activity: 37. Federal Family 
Education Loan Accounts; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $81,448. 

Name of the Federal Guaranteed Loan Activity: 38. Federal Student Loan 
Reserve Fund; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $0. 

Federal Entity: U.S. Department of Health and Human Services: 

Name of the Federal Guaranteed Loan Activity: 39. Health Center 
Guaranteed Loan Accounts; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $8. 

Name of the Federal Guaranteed Loan Activity: 40. Health Education 
Assistance Loan Accounts; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $2,345. 

Name of the Federal Guaranteed Loan Activity: 41. Health Maintenance 
Organization Loan and Loan Guarantee Fund; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $0. 

Name of the Federal Guaranteed Loan Activity: 42. Medical Facilities 
Guarantee and Loan Fund; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $13. 

Federal Entity: U.S. Department of Housing and Urban Development: 

Name of the Federal Guaranteed Loan Activity: 43. Community Development 
Loan Guarantees Accounts; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $2,230. 

Name of the Federal Guaranteed Loan Activity: 44. FHA General and 
Special Risk Guaranteed Loan Accounts; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $72,048. 

Name of the Federal Guaranteed Loan Activity: 45. FHA General and 
Special Risk Insurance Funds Liquidating Account; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $17,070. 

Name of the Federal Guaranteed Loan Activity: 46. FHA-Loan Guarantee 
Recovery Fund Accounts; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $5. 

Name of the Federal Guaranteed Loan Activity: 47. FHA Mutual Mortgage 
and Cooperative Housing Insurance Funds Liquidating Account; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $24,952. 

Name of the Federal Guaranteed Loan Activity: 48. FHA Mutual Mortgage 
Insurance Guaranteed Loan Accounts; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $382,234. 

Name of the Federal Guaranteed Loan Activity: 49. Indian Federal 
Guarantees Accounts; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $71. 

Name of the Federal Guaranteed Loan Activity: 50. Indian Housing Loan 
Guarantee Fund Accounts; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $61. 

Name of the Federal Guaranteed Loan Activity: 51. Low-Rent Public 
Housing--Loans; 
Federal Entity: Federally guaranteed amount outstanding at fiscal year-
end 2003 (dollars in millions): U.S. Agency for International 
Development: $1,916. 

Name of the Federal Guaranteed Loan Activity: 52. Native Hawaiian 
Housing Loan Guarantee Fund; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $0. 

Federal Entity: U.S. Department of the Interior: 

Name of the Federal Guaranteed Loan Activity: 53. Indian Guaranteed 
Loan Accounts; 
Federal Entity: Federally guaranteed amount outstanding at fiscal year-
end 2003 (dollars in millions): U.S. Agency for International 
Development: $274. 

Name of the Federal Guaranteed Loan Activity: 54. Indian Loan Guaranty 
and Insurance Fund Liquidating Account; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $13. 

Federal Entity: U.S. Department of Transportation: 

Name of the Federal Guaranteed Loan Activity: 55. Federal Ship 
Financing Fund Liquidating Account; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $78. 

Name of the Federal Guaranteed Loan Activity: 56. Maritime Guaranteed 
Loan Title XI Accounts; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $3,465. 

Name of the Federal Guaranteed Loan Activity: 57. Minority Business 
Resource Center Guaranteed Loan Accounts; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $7. 

Federal Entity: U.S. Department of the Treasury: 

Name of the Federal Guaranteed Loan Activity: 58. Air Transportation 
Stabilization Guaranteed Loan Accounts; 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $1,473. 

Federal Entity: U.S. Department of Veterans Affairs: 

Name of the Federal Guaranteed Loan Activity: 59. Housing Guaranteed 
Loan Accounts (Veterans); 
Federally guaranteed amount outstanding at fiscal year-end 2003 
(dollars in millions): $110,109. 

Totals (dollars in millions): $834,406. 

Source: Appendix, Budget of the United States Government, Fiscal Year 
2005. 

[A] Data are not available:

[End of table]

[End of section]

Enclosure IV: Description of Accounts With Federal Self-Insurance 
Activity:

This enclosure describes 22 federal self-insurance activities with 
outlays in fiscal year 2003. The activities involve expenditures for 
damages to government property and losses associated with litigation 
and claims, including compensation for employment discrimination. As we 
have noted, less information is generally available for these 
activities than for others we identified because the federal budget 
does not generally report them separately from activities related to 
the agency's overall mission or operations. 

We identify the activities in this enclosure by the name of the budget 
account that funds them. The information is from budget documents, 
agency officials, agency annual reports, and agency Websites. However, 
given the lack of detailed information in the budget, we obtained most 
of the quantitative data from agency officials. These data are for 
fiscal year 2003, unless otherwise indicated. 

The self-insurance activities in this enclosure are presented 
alphabetically by administering organization and include the following 
information: (1) administering organization(s), (2) insurance 
description, (3) outlays, and (4) number of full-time equivalent (FTE) 
employees. 

Agency for International Development (Table 74):

[End of table] 

Table 74: Operating Expenses of the United States Agency for 
International Development:

Administering organization: U.S. Agency for International Development. 

Insurance description: In addition to the account's primary purpose of 
funding the operations and salaries of the agency, the account pays 
insurance claims and legal settlements related to personal property 
loss or damage caused by foreign service personnel. For personal 
property claims, the federal government is liable for up to $40,000 per 
claim or up to $100,000 if the loss or damage occurred under emergency 
circumstances. The Secretary of State may waive the limitations under 
exceptional circumstances. 

Outlays: 
* Less than $1 million. 

Number of FTE employees: 
* Not available. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 72-1000-0-1-151, p. 1001; and U.S. 
Agency for International Development. 

Securities and Exchange Commission (Table 75):

[End of table] 

Table 75: Securities and Exchange Commission, Salaries and Expenses:

Administering organization: U.S. Securities and Exchange Commission. 

Insurance description: In addition to its primary purpose of funding 
the administration and enforcement of federal securities laws and 
maintaining fair, honest, and efficient markets, this account pays for 
insurance claims and indemnities, including claims filed against the 
Securities and Exchange Commission by its employees for damages from 
auto accidents and lawsuits. 

Outlays: 
* $948,000. 

Number of FTE employees: 
* 1-2. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 50-0100-0-1-376, pp. 1182-1183; and 
U.S. Securities and Exchange Commission. 

[End of table] 

Social Security Administration (Table 76):

Table 76: Social Security Administration, Limitation on Administrative 
Expenses:

Administering organization: U.S. Social Security Administration. 

Insurance description: In addition to its primary purpose of paying the 
expenses to administer benefit programs, including the Old Age and 
Survivors Insurance, Disability Insurance, and Supplemental Security 
Income programs, the account funds insurance claims and indemnities. 
These include annual payments to the Department of Labor for 
administering workers compensation claims for Social Security 
Administration employees and payment of attorney fees under the Equal 
Access to Justice Act.[A]. 

Outlays: 
* $20 million. 

Number of FTE employees: 
* Not available. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 28-8704-0-7-651, p. 1083; and U.S. 
Social Security Administration. 

[A] Codified at 5 U.S.C. § 504. 

[End of table] 

U.S. Department of Agriculture (Tables 77-79):

Table 77: Capital Improvement and Maintenance:

Administering organization: Forest Service, U.S. Department of 
Agriculture. 

Insurance description: In addition to its primary purpose of funding 
the construction, reconstruction, maintenance, and acquisition of 
Forest Service facilities, the account funds insurance claims and 
indemnities covering personal injuries to Forest Service employees, 
damage to or destruction of Forest Service vehicles or other property, 
and equal employment opportunity claims. 

Outlays: 
* Approximately $700,000 for insurance claims and indemnities. 

Number of FTE employees: 
* Approximately 20 for 3 accounts[A]. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 12-1103-0-1-302, pp. 180-182; and 
U.S. Department of Agriculture. 

[A] The Department of Agriculture could not separately report the FTEs 
for the self-insurance activities of three accounts: (1) Forest 
Service, Capital Improvement and Maintenance; (2) Wildland Fire 
Management; and (3) National Forest System. 

[End of table] 

Table 78: Wildland Fire Management:

Administering organization: Forest Service, U.S. Department of 
Agriculture. 

Insurance description: In addition to its primary purpose of funding 
U.S. Forest Service fire management and suppression efforts, the 
account funds insurance claims and indemnities covering personal 
injuries to Forest Service employees, damage to or destruction of 
Forest Service vehicles or other property, and equal employment 
opportunity claims. 

Outlays: 
* Approximately $700,000 for insurance claims and indemnities. 

Number of FTE employees: 
* Approximately 20 for 3 accounts[A]. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 12-1115-0-1-302, pp. 184-186; and 
U.S. Department of Agriculture. 

[A] The Department of Agriculture could not separately report the FTEs 
for the self-insurance activities of three accounts: (1) Forest 
Service, Capital Improvement and Maintenance; (2) Wildland Fire 
Management; and (3) National Forest System. 

[End of table] 

Table 79: National Forest System:

Administering organization: Forest Service, U.S. Department of 
Agriculture. 

Insurance description: In addition to its primary purpose of funding 
the Forest Service's expenses for managing, protecting, improving, and 
utilizing the national forest system, the account funds insurance 
claims and indemnities for personal injuries to Forest Service 
employees, damage to or destruction of Forest Service vehicles or other 
property, and equal employment opportunity claims. 

Outlays: 
* $1.7 million. 

Number of FTE employees: 
* Approximately 20 for 3 accounts[A]. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 12-1106-0-1-302, pp. 179-180; and 
U.S. Department of Agriculture. 

[A] The Department of Agriculture could not separately report the FTEs 
for the self-insurance activities of three accounts: (1) Forest 
Service, Capital Improvement and Maintenance; (2) Wildland Fire 
Management; and (3) National Forest System. 

[End of table] 

U.S. Department of Defense (Table 80):

Table 80: Revolving Fund:

Administering organization: U.S. Army Corps of Engineers, U.S. 
Department of Defense. 

Insurance description: In addition to its primary purpose of funding 
the acquisition, operation, and maintenance of plant and equipment used 
in Corps of Engineers civil works projects, the account provides 
resources for insurance claim and indemnity activities that cover, 
among other things, damage to and by Corps of Engineers' plant and 
equipment. The insurance is funded by premiums paid by users of the 
fund's assets. Fund users include civil works projects such as flood 
control and navigation projects that are serviced by fund assets. 
Assets include buildings, cranes, boats, and various types of vehicles. 

Outlays: 
* Approximately $633,000 for insurance claim and indemnity activities. 

Number of FTE employees: 
* Approximately 1. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 96-4902-0-4-301, pp. 917-918; and 
U.S. Department of Defense. 

[End of table] 

U.S. Department of Health and Human Services (Tables 81-82):

Table 81: Food and Drug Administration, Salaries and Expenses:

Administering organization: Food and Drug Administration, U.S. 
Department of Health and Human Services. 

Insurance description: In addition to its primary purpose of paying the 
salaries and operating expenses of the Food and Drug Administration, 
the account pays (1) claims submitted by Food and Drug Administration 
civilian employees for injuries, deaths, and property loss or damage 
associated with work-related duties and (2) settlements of claims under 
equal employment opportunity laws. The Food and Drug Administration had 
9,691 civilian employees in fiscal year 2004. 

Outlays: 
* $2.8 million for claims and settlements. 

Number of FTE employees: 
* 2. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 75-9911-0-1-554, p. 422; and U.S. 
Department of Health and Human Services. 

[End of table] 

Table 82: Substance Abuse and Mental Health Services Administration:

Administering organization: Substance Abuse and Mental Health Services 
Administration, Department of Health and Human Services. 

Insurance description: In addition to funding the account's primary 
purpose of helping people recover from substance abuse and mental 
illnesses, the account pays insurance claims and indemnities that 
include compensation for personal injury or death and attorney fees for 
claims under the Equal Access to Justice Act.[A] The fund paid about 76 
claims in fiscal year 2003. 

Outlays: 
* $1.8 million for workers compensation, Equal Access to Justice Act, 
and other claims. 

Number of FTE employees: 
* Less than 1. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 75-1362-0-1-551, p. 440; and U.S. 
Department of Health and Human Services. 

[A] 5 U.S.C. § 504. 

[End of table] 

U.S. Department of Homeland Security (Tables 83-86):

Table 83: Customs and Border Protection:

Administering organization: Customs and Border Protection, U.S. 
Department of Homeland Security. 

Insurance description: U.S. Customs and Border Protection self-insures 
for obligations resulting from property damage that occurs during 
customs inspections. The agency pays up to $1,000 for each incident for 
which it is determined to be negligent or otherwise liable, subject to 
the provisions of the Federal Tort Claims Act[.A] Negligence would not 
be attributed to damages that are the necessary or unavoidable result 
of conducting an inspection but could be attributed to damages that are 
incidental to an inspection. For example, the agency would not be 
liable for damages to a car's gasoline tank that resulted from 
dismantling it to determine whether contraband was inside, but could be 
liable for damages to the car's brakes that occurred during the 
dismantling of the gas tank. About two hundred self-insurance payments 
were made in fiscal year 2003. The payments accounted for 0.1 percent 
of the account's total outlays (gross) of $5,294 million in fiscal year 
2003. 

Outlays: 
* $600,000. 

Number of FTE employees: 
* Not available. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 70-0350-0-1-999, pp. 478-479; and 
U.S. Department of Homeland Security. 

[A] Ch. 753, Title IV, 60 Stat. 842 (Aug. 2, 1946) (current version 
codified in scattered sections of title 28, United States Code). 

[End of table] 

Table 84: Citizenship and Immigration Services:

Administering organization: Citizenship and Immigration Services, U.S. 
Department of Homeland Security. 

Insurance description: In addition to its primary purpose of funding 
activities related to the legal immigration of people seeking to enter, 
reside, and/or work in the United States, the account funds insurance 
claim and indemnity activities that consist of paying equal employment 
opportunity and contractor claim settlements and related attorney fees. 
In fiscal year 2003, 3 equal employment opportunity claims, and 11 
attorney fee awards were paid. 

Outlays: 
* $600,000 in fee payments. 

Number of FTE employees: 
* Not available. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 70-0300-0-1-751, pp. 474-475; and 
U.S. Department of Homeland Security. 

[End of table] 

Table 85: Federal Protective Service:

Administering organization: Federal Protective Service, U.S. Department 
of Homeland Security. 

Insurance description: In addition to its primary purpose of providing 
funding for policing, securing, and insuring a safe environment for 
over 8,800 federal facilities nationwide, the account funds insurance 
claim and indemnity activity that consists of paying tort claims for 
damages caused by Federal Protective Service employees or equipment. 
The account provides coverage for all 1,453 Federal Protective Service 
employees. 

Outlays: 
* $115,047 for damage claims. 

Number of FTE employees: 
* Approximately 1. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 70-0542-0-1-804, pp. 482-483; and 
U.S. Department of Homeland Security. 

[End of table] 

Table 86: United States Coast Guard Operating Expenses:

Administering organization: U.S. Coast Guard, U.S. Department of 
Homeland Security. 

Insurance description: In addition to its primary purpose of funding 
U.S. Coast Guard general operating and maintenance expenses, the 
account funds benefit payments to eligible military and civilian Coast 
Guard employees from the social insurance and federal retirement trust 
funds. The account also pays for settlements of equal employment 
opportunity claims. All 39,219 Coast Guard employees in fiscal year 
2003 were covered by the insurance. 

Outlays: 
* $1.6 million in claims. 

Number of FTE employees: 
* Not available. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 70-0610-0-1-999, pp. 488-489; and 
U.S. Department of Homeland Security. 

[End of table] 

U.S. Department of Interior (Tables 87-88):

Table 87: Resource Management:

Administering organization: Fish and Wildlife Service, U.S. Department 
of the Interior. 

Insurance description: In addition to its primary purpose of funding 
the operations of the U.S. Fish and Wildlife Service, the account funds 
insurance claim and indemnity activities including vehicle tort, equal 
employment opportunity, and human resource claim settlements. In fiscal 
year 2003, 31 individuals received professional liability payments, 11 
individuals or firms received indemnity or settlement claim payments, 
and about 35 individuals or insurance companies received vehicle tort 
claim payments. 

Outlays: 
* $533,048 for professional liability and indemnity or settlement 
claims. 

Number of FTE employees: 
* Not available. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 14-1611-0-1-302, pp. 602-603; and 
U.S. Department of the Interior. 

[End of table] 

Table 88: Natural Resource Damage Assessment Fund:

Administering organization: Natural Resource Damage Assessment and 
Restoration Program Office, U.S. Department of the Interior. 

Insurance description: The account funds the restoration of natural 
resources entrusted to the Department of the Interior that have been 
injured as a result of oil spills or hazardous substance releases. 
Account activities include assessing the injury to natural resources 
and negotiating legal settlements or taking other legal actions against 
the responsible parties. Settlement funds are used to restore the 
injured resources at no expense to taxpayers. 

Outlays: 
* Not available. 

Number of FTE employees: 
* 4. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 14-1618-0-1-302, pp. 641-642; and 
U.S. Department of the Interior. 

[End of table] 

U.S. Department of Justice (Tables 89-90):

Table 89: Drug Enforcement Administration, Salaries and Expenses:

Administering organization: Drug Enforcement Administration, U.S. 
Department of Justice. 

Insurance description: In addition to its primary purpose of funding 
necessary expenses of the Drug Enforcement Administration, including 
salaries, training, and data processing and communications equipment, 
this account pays for property damages, agency adjudicated awards, 
litigated awards, and settlements. Examples include awards for cases 
filed under the Equal Access to Justice Act,[A] automobile repair 
expenses, and automobile collision damages. Claims of $2,500 or less 
are paid by the Drug Enforcement Administration, and claims of over 
$2,500 are paid by the Department of Treasury Judgment Fund. In fiscal 
year 2003, 235 claims were paid. 

Outlays: 
* $734,743 for Equal Access to Justice Act awards and property, auto 
repair, and auto collision damages. 

Number of FTE employees: 
* 11 employees spend part of their time on the account's insurance 
activities. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 15-110-0-1-751, p. 687; and U.S. 
Department of Justice. 

[A] 5 U.S.C. § 504. 

[End of table] 

Table 90: Federal Prison System:

Administering organization: Federal Prison System, U.S. Department of 
Justice. 

Insurance description: In addition to its primary purpose of funding 
the administration, operation, and maintenance of federal penal and 
correctional institutions, this account pays insurance claims and 
indemnities, including those related to property damage, personal 
injury or death, attorney fees, and settlements and awards. 

Outlays: 
* Not available[A]. 

Number of FTE employees: 
* Not available. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 15-1060-0-1-753, pp. 689-691; and 
U.S. Department of Justice. 

[A] The account had $1.4 million in fiscal year 2003 obligations. 

[End of table] 

U.S. Department of Transportation (Table 91):

Table 91: Vessel Operations Revolving Fund:

Administering organization: Maritime Administration, U.S. Department of 
Transportation. 

Insurance description: In addition to its primary purpose of funding 
the operations and maintenance of Department of Transportation-owned 
merchant ships to meet shipping needs during national emergencies, the 
department self-insures the ships through this account. The account 
also pays claims resulting from sickness and/or personal injuries of 
the crew while serving on the vessels. 

Outlays: 
* Approximately $724,000 for 12 sickness and injury claims. 

Number of FTE employees: 
* Approximately 1. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 69-4303-0-3-403, p. 814; and U.S. 
Department of Transportation. 

[End of table] 

U.S. Department of the Treasury (Tables 92-95):

Table 92: Claims, Judgments, and Relief Acts (Judgment Fund):

Administering organization: Financial Management Service, U.S. 
Department of the Treasury. 

Insurance description: This fund was established to pay large 
judgments, awards or settlements for violations of certain federal laws 
by other federal agencies. The account exists to make prompt payments 
when federal agencies generally cannot finance large payments in the 
year that the judgments, awards, or settlements are required. The 
account also serves to reduce interest or other costs to the government 
that would otherwise accrue if payments were delayed until agency 
appropriations were available. Agencies are required to reimburse the 
judgment fund from their available appropriations. During fiscal years 
2003, the fund incurred expenses of $1,010 million that included $718 
million in court judgments and $290 million for claims in contract 
disputes that were administratively adjudicated. The fund also incurred 
claims for damages of about $2 million. 

Funding source(s): 
* Permanent indefinite appropriation. 

Outlays: 
* $1,091 million. 

Number of FTE employees: 
* 20. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 20-1895-0-1-808, p. 845: and U.S. 
Department of the Treasury. 

[End of table] 

Table 93: Processing, Assistance, and Management:

Administering organization: Internal Revenue Service, U.S. Department 
of the Treasury. 

Insurance description: In addition to its primary purpose of providing 
funds for such activities as processing tax returns, assisting 
taxpayers, and issuing technical rulings, the account funds insurance 
claim and indemnity activities that consist of, among other things, 
indemnity payments; awards, judgments, and settlements, including those 
related to equal employment opportunity; attorney fees; and 
administrative relief of loss which represents authority to resolve a 
physical loss or deficiency. About 100-300 tort claims are paid 
annually. 

Outlays: 
* $1 million. 

Number of FTE employees: 
* Approximately 1. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 20-0912-0-1-803, pp. 856-857; and 
U.S. Department of the Treasury. 

[End of table] 

Table 94: Tax Law Enforcement:

Administering organization: Internal Revenue Service, U.S. Department 
of the Treasury. 

Insurance description: In addition to its primary purpose of funding 
activities such as establishing tax liabilities, providing departmental 
litigation support, and conducting enforcement activities, the account 
funds insurance claim and indemnity activities that consist of, among 
other things, indemnity payments; awards, judgments and settlements, 
including those related to equal employment opportunity; attorney fees; 
and administrative relief of loss, which represents authority to 
resolve a physical loss or deficiency. About 100-300 tort claims are 
paid annually. 

Outlays: 
* $1 million. 

Number of FTE employees: 
* Approximately 1. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 20-0913-0-1-999, pp. 857-859; and 
U.S. Department of the Treasury. 

[End of table] 

Table 95: Payment of Government Losses in Shipment:

Administering organization: U.S. Department of the Treasury. 

Insurance description: This account self-insures the federal government 
against losses that occur during shipments of valuable U.S. Government 
property such as coins, currency, and securities, and losses in 
connection with the redemption of U.S. savings bonds. The account also 
insures against certain losses regarding lost, damaged, or destroyed 
stamps, securities, obligations, or money incurred by the U.S. Postal 
Service while acting on behalf of the Treasury Department. The account 
pays approximately 150 claims annually. 

Funding source(s): 
* Appropriations. 

Outlays: 
* $1 million. 

Number of FTE employees: 
* Not available. 

Sources: Appendix, Budget of the United States Government, Fiscal Year 
2005, account identification code 20-1710-0-1-803, p. 855; and U.S. 
Department of the Treasury. 

[End of table]

[End of section]

Enclosure V: Listing of All Accounts with Federal Insurance Activity:

This enclosure lists the 157 federal insurance activities that are 
presented in enclosures II, III, and IV. The list is organized 
alphabetically by administering organization. Its purpose is to provide 
a perspective on the diversity of insurance activities that we 
identified and the 30 federal organizations that administer them. 

Administrative Office of the U.S. Courts:

Judicial Officers' Retirement Fund: 
Judicial Survivors' Annuities Fund: 
United States Court of Federal Claims Judges' Retirement Fund:

U.S. Agency for International Development:

Development Credit Authority Guaranteed Loan Accounts: 
Housing and Other Credit Guaranty Programs: 
Loan Guarantees to Israel Accounts: 
Microenterprise and Small Enterprise Development Guaranteed Loans: 
Operating Expenses of the Agency for International Development (self-
insurance): 
Urban and Environmental Credit Program Guaranteed Loans:

U.S. Central Intelligence Agency:

Central Intelligence Agency Retirement and Disability System Fund:

Export-Import Bank of the United States:

Export-Import Bank Guaranteed Loan Accounts:

Federal Council on the Arts and Humanities:

National Endowment for the Arts (Arts and Artifacts Indemnity Program):

Federal Deposit Insurance Corporation:

Bank Insurance Fund: 
FSLIC Resolution Fund: 
Savings Association Insurance Fund:

International Security Assistance:

Foreign Military Loan Liquidating Account: 
International Security Assistance Economic Support Fund:

National Credit Union Administration:

National Credit Union Share Insurance Fund:

U.S. Office of Personnel Management:

Civil Service Retirement and Disability Fund: 
Employees and Retired Employees Health Benefit Funds:

Overseas Private Investment Corporation:

Overseas Private Investment Corporation Guaranteed Loan Accounts: 
Overseas Private Investment Corporation Noncredit Account:

Presidio Trust:

Presidio Trust Fund: 
Presidio Trust Guaranteed Loan Accounts:

U.S. Railroad Retirement Board:

Railroad Industry Pension Fund: 
Railroad Unemployment Insurance Trust Fund:

U.S. Securities and Exchange Commission:

Securities and Exchange Commission, Salaries and Expenses (self-
insurance):

U.S. Small Business Administration:

Business Guaranteed Loan Accounts: 
Business Loan Fund Liquidating Account: 
Disaster Loan Fund Liquidating Account: 
Pollution Control Equipment Fund: 
Surety Bond Guarantees Revolving Fund:

U.S. Social Security Administration:

Federal Disability Insurance Trust Fund: 
Federal Old Age and Survivors Insurance (Social Security): 
Social Security Administration, Limitation on Administrative Expenses 
(self-insurance): 
Special Benefits for Certain World War II Veterans:

U.S. Department of Agriculture:

Agricultural Credit Insurance Fund Guaranteed Loan Accounts: 
Agricultural Credit Insurance Program Account (Dairy Indemnity 
Program): 
Agricultural Resource Conservation Demonstration Guaranteed Loan 
Accounts: 
Animal and Plant Health Inspection Service (disease control 
compensation): 
Capital Improvement and Maintenance (self-insurance): 
Commodity Credit Corporation Export Guaranteed Loan Accounts Farm 
Service Agency Salaries and Expenses (Non-Insured Crop Disaster 
Assistance Program): 
Federal Crop Insurance Corporation Fund: 
Local Television Loan Guarantee Accounts: 
National Forest System (self-insurance): 
Rural Business and Industry Guaranteed Loan Accounts: 
Rural Business Investment Program Guarantee Accounts: 
Rural Communication Development Fund Liquidating Account: 
Rural Community Advancement Program: 
Rural Community Facility Guaranteed Loan Accounts: 
Rural Development Insurance Fund Liquidating Account: 
Rural Electrification and Telecommunication Guaranteed Loan Accounts: 
Rural Housing Insurance Fund Guaranteed Loan Accounts: 
Rural Water and Waste Disposal Guaranteed Loan Accounts: 
Wildland Fire Management (self-insurance):

U.S. Department of Commerce:

Economic Development Revolving Fund Liquidating Account: 
Emergency Oil and Gas Guaranteed Loan Accounts: 
Emergency Steel Guaranteed Loan Accounts: 
Federal Ship Financing Fund Fishing Vessels Liquidating Account: 
Fisheries Finance Guaranteed Loan Accounts: 
Fishermen's Contingency Fund:

U.S. Department of Defense:

Arms Initiative Guaranteed Loan Account: 
Defense Export Loan Guarantee Accounts: 
Family Housing Improvement Guaranteed Loan Accounts: 
Homeowners Assistance Fund: 
Military Personnel, Air Force (death gratuity): 
Military Personnel, Army (death gratuity): 
Military Personnel, Marine Corps (death gratuity): 
Military Personnel, Navy (death gratuity): 
Military Retirement Fund: 
National Guard Personnel, Air Force (death gratuity): 
National Guard Personnel, Army (death gratuity): 
Reserve Personnel, Air Force (death gratuity): 
Reserve Personnel, Army (death gratuity): 
Reserve Personnel, Marine Corps (death gratuity): 
Reserve Personnel, Navy (death gratuity): 
Revolving Fund (self-insurance): 
Uniformed Services Retiree Health Care Fund:

U.S. Department of Education:

Federal Family Education Loan Accounts: 
Federal Student Loan Reserve Fund:

U.S. Department of Health and Human Services:

Federal Hospital Insurance Trust Fund (Medicare Part A): 
Federal Supplementary Medical Insurance Trust Fund (Medicare Part B): 
Food and Drug Administration, Salaries and Expenses (self-insurance): 
Health Center Guaranteed Loan Accounts: 
Health Education Assistance Loan Accounts: 
Health Maintenance Organization Loan and Loan Guarantee Fund: 
Health Resources and Services General and Special Funds (Medical 
Malpractice Claims Fund): 
Medical Facilities Guarantee and Loan Fund: 
Payments to Health Care Trust Funds: 
Public Health and Social Services Emergency Fund (Smallpox Injury 
Compensation): 
Retirement Pay and Medical Benefits for Commissioned Officers (Public 
Health Service): 
State Children's Health Insurance Fund:
Substance Abuse and Mental Health Services Administration (self-
insurance): 
Transitional Drug Assistance, Federal Supplementary Medical Assistance 
Trust Fund: 
Vaccine Injury Compensation: 
Vaccine Injury Compensation Program Trust Fund:

U.S. Department of Homeland Security:

Customs and Border Protection (self-insurance): 
Citizenship and Immigration Services (self-insurance): 
Federal Protective Service (self-insurance): 
National Flood Insurance Fund: 
Oil Spill Liability Trust Fund: 
United States Coast Guard Operating Expenses (self-insurance): 
Retired Pay (U.S. Coast Guard):

U.S. Department of Housing and Urban Development:

Community Development Loan Guarantees Accounts: 
FHA General and Special Risk Guaranteed Loan Accounts: 
FHA General and Special Risk Insurance Funds Liquidating Account: 
FHA-Loan Guarantee Recovery Fund Accounts: 
FHA Mutual Mortgage and Cooperative Housing Insurance Funds Liquidating 
Account: 
FHA Mutual Mortgage Insurance Guaranteed Loan Accounts: 
Indian Federal Guarantees Accounts: 
Indian Housing Loan Guarantee Fund Accounts: 
Low-Rent Public Housing--Loans: 
Native Hawaiian Housing Loan Guarantee Fund:

U.S. Department of the Interior:

Indian Guaranteed Loan Accounts: 
Indian Loan Guaranty and Insurance Fund Liquidating Account: 
Natural Resource and Damage Assessment Fund (self-insurance): 
Resource Management (self-insurance):

U.S. Department of Justice:

Drug Enforcement Administration, Salaries and Expenses (self-
insurance): 
Federal Prison System (self-insurance): 
Public Safety Officers' Benefits:

U.S. Department of Labor:

Black Lung Disability Trust Fund: 
Energy Employees Occupational Illness Compensation Fund: 
Pension Benefit Guaranty Corporation Fund--Multi-and Single-Employer 
Program: 
Special Benefits (Federal Employees): 
Special Benefits for Disabled Coal Miners: 
Special Workers' Compensation Expenses: 
Unemployment Trust Fund:

U.S. Department of State:

Fishermen's Guaranty Fund: 
Fishermen's Protective Fund: 
Foreign Service Retirement and Disability Fund:

U.S. Department of Transportation:

Aviation Insurance Revolving Fund: 
Federal Ship Financing Fund Liquidating Account: 
Maritime Guaranteed Loan Title XI Accounts: 
Minority Business Resource Center Guaranteed Loan Accounts: 
Vessel Operations Revolving Fund (self-insurance): 
War Risk Insurance Revolving Fund (maritime):

U.S. Department of the Treasury:

Air Transportation Stabilization Guaranteed Loan Accounts: 
Check Forgery Insurance Fund: 
Claims, Judgments, and Relief Acts (Judgment Fund, self-insurance): 
District of Columbia Federal Pension Liability Trust Fund (and Federal 
Supplemental District of Columbia Fund): 
District of Columbia Judicial Retirement and Survivors Annuity Fund: 
Processing, Assistance, and Management (self-insurance): 
Tax Law Enforcement (self-insurance): 
Payment of Government Losses in Shipment (self-insurance): 
Terrorism Insurance Program:

U.S. Department of Veterans Affairs:

Burial Benefits (Veterans): 
Disability Compensation Benefits (Veterans): 
Housing Guaranteed Loan Accounts: 
(Veterans) Insurance Benefits (Veterans Mortgage Life Insurance): 
National Service Life Insurance Fund (Veterans): 
Pension Benefits (Veterans): 
Service-Disabled Veterans Insurance Fund: 
United States Government Life Insurance Fund (Veterans): 
Veterans Reopened Insurance Fund: 
Veterans Special Life Insurance Fund:

U.S. Postal Service:

Postal Service Fund (Domestic and Foreign Mail Indemnity Claim Fund):

[End of section]

Enclosure VI: GAO Contacts and Staff Acknowledgments:

GAO Contacts:

Richard J. Hillman, (202) 512-9073; 
Lawrence D. Cluff, (202) 512-8023:

Staff Acknowledgments:

In addition to the individuals named above, Chris Bonham, Emily 
Chalmers, Marc Molino, Angela Pun, Carl Ramirez, Linda Rego, Steve 
Ruszczyk, Melvin Thomas, and Cecile Trop made key contributions to this 
report. 

FOOTNOTES

[1] Insurance risk, as used in this report, is the exposure to 
potential net financial loss resulting from being required to make 
payments under the terms of an insurance program or activity. 

[2] The government's protection and obligation may extend to past 
events having potential adverse effects that are not immediately known. 
For example, coal miners exposed to coal dust and adverse mining 
conditions, whether before or after the creation of the Black Lung 
Disability program, are covered if they eventually develop black lung 
disease. 

[3] Insurance premiums are collected to cover the insurer's cost of 
providing insurance coverage. The premium is calculated by dividing the 
estimated potential loss associated with the activity during the period 
of coverage by the estimated size of the insured population, or risk 
pool. Therefore, the risk of loss to the insurer when a premium is 
charged is the risk of under-pricing the insurance premium. However, 
when a premium is not charged--as in the case of some federal 
insurance--the risk of loss is the entire potential loss associated 
with the insured activity. 

[4] Unlike the federal government, private insurers must determine 
whether the pool of potential policyholders is sufficiently large and 
diverse for pricing risk when deciding whether to offer insurance in a 
market. But unlike private insurers, the federal government typically 
considers not only financial profitability, but also the benefit to the 
public when deciding whether to offer federal insurance. Since the 
government has determined that providing insurance represents a "social 
good" the decision not to charge a full premium to insureds (or indeed 
any premium in some cases) can be viewed as a decision to spread the 
risk of loss across the entire population through the tax revenue. 

[5] Codified at 42 U.S.C. § 2210. 

[6] The Annual Financial Statement Instructions provide insurance 
companies guidance for preparing the statements that they submit to 
NAIC each year. 

[7] Codified at 15 U.S.C. § 6712(c).