TABLE 2.-Estimated progress of the fund under proposed financing, assuming current benefit and pay levels (Dec. 31, 1966)

1 Special appropriations required to continue benefits provided by Public Law 87-793. Presumes legislative action removing this requirement from and after fiscal year 1968.

TABLE 3.-Estimated progress of the fund under proposed financing, assuming liberalizations that increase normal costs by 2 percent of payroll and the unfunded liability by $5,000,000,000

1 Including transfer-of-credit payments to OASDI trust fund.

2 Special appropriations required to continue benefits provided by Public Law 87-793. Presumes legislative action removing this requirement from and after fiscal year 1969.

RETIREMENT FUNDING

AND FINANCING

U.S. CIVIL SERVICE COMMISSION

BUREAU OF RETIREMENT AND INSURANCE

JANUARY 20, 1967

PURPOSES

Full recognition of retirement costs

• Orderly advance preparation to meet them

• Control of "Unfunded Liability

• Fund balance sufficient to assure prompt, full benefit payments

PROPOSAL IN BRIEF

1. Employees and agencies share "Normal Costs" of present benefits and future liberalizations

2. Government identify and make advance plans to cover other costs of future changes

3. Government "peg "trust fund at adequate predetermined level