-2 Our cost projections for salary and benefits in fiscal year 1999 reflect actual increases effective in January 1998, and an estimated 3.1 percent increase expected in January 1999. After providing for essential noncompensation expenses, the total proposed funding will result in an agency staffing level which is about 85 FTE's less than the RRB currently expects to use in fiscal year 1998. In order to achieve this reduced staffing level without resorting to a reduction-in-force, we will need to realize a challenging net attrition rate of 3 employees a month, be able to offer voluntary separation incentives (buyouts) to current staff, and have 35 employees accept such offers at the beginning of the fiscal year. For this reason, our budget includes proposed legislation to provide the RRB buyout authority through December 1998. It is, however, unlikely that we will be able to achieve that high a level of buyout interest at the start of the fiscal year. Accordingly, the need for a reduction-in-force is a real possibility. That, in turn, would further negatively impact our level of performance. This budget earmarks $1.8 million to continue or expand uses of information technology for improved agency operations. For example, this amount will help the RRB provide all of our employees with Year 2000-compliant desktop computers. This represents a crucial step as we strive to implement our customer service philosophy of "one and done." in which we minimize hand-offs and maximize the amount of service provided at the point of initial contact. Use of desktop computing will play a key role in meeting this goal. In our Strategic Information Resources Management Plan we also identified other key automation initiatives which are not funded in the proposed fiscal year 1999 budget. We plan to begin these initiatives in the coming years as funding becomes available. For example, we plan to integrate "imaging" technology into our key claims processing activities. This is the means by which we will progress to processing claims in a paperless environment. In addition, we would like to expand our interactive voice response system to fully include the railroad retirement system. This service, which has proven extremely popular with claimants of railroad unemployment/sickness insurance benefits, would allow recipients of retirement or survivor benefits to obtain information and transact certain types of business over an automated phone system. We also need to contract with a consulting firm to develop options for an integrated information technology architecture. This initiative will provide the foundation for the agency's long-term information technology strategy, as required under the recently enacted Information Technology Management Reform Act. It is also important to note that this budget does not reflect the cost impact of additional employee benefit costs associated with conversions from the Civil Service Retirement System to the Federal Employees Retirement System. -3 occupational disability applications are adjudicated. These adjudicative improvements. contained in final rules being published in early February, will result in an increase in cost for medical examinations used in the determination process. Those increased costs are also not reflected in this submission. In addition to the requests for administrative expenses, this budget includes $191 million to fund the continuing phase-out costs for vested dual benefits. This amount is without margin for actuarial uncertainties. However, the President's budget provides for an additional 2 percent ($3.820.000) which would become available proportional to the amount by which the product of recipients and the average benefit received exceeds $191 million. Also requested is $150,000 to reflect our latest estimate for interest related to uncashed railroad retirement checks. The $150,000 is being requested for 2 years and would be available through September 30, 2000. TABLE OF CONTENTS Page Programs Administered by the Railroad Retirement Board.. Financing of Railroad Retirement Benefits..... Railroad Retirement Board Organization Chart.. Proposed Appropriation Language.. Explanation of Proposed Appropriation Language. a/ b/ d/ e/ 1/ g/ 62 $ 5.794,000 61 $ 5.400.000 g/ Represents a single administrative account to fund the administration of the railroad retirement/survivor and unemployment/sickness insurance benefit programs. Excludes an estimated 44 full-time equivalent staff years (FTE's) financed by the Represents the total number of FTE's we estimate can be funded in fiscal year 1999. excluding an estimated 44 FTE's financed by the Health Care Financing Administration. After providing for essential non-compensation expenses, the total proposed funding will result in an agency staffing level which is about 85 FTE's less than the RRB currently expects to use in fiscal year 1998, and 90 FTE's less than our fiscal year 1999 staff ceiling of 1.235 FTE's. In order to achieve this reduced staffing level without a reduction-in-force. we will need to realize a challenging net attrition rate. be able to offer voluntary separation incentives to current staff, and achieve a high level of participation. Public Law 105-78 provides $205.500.000 to fund vested dual benefits from general revenues of which $11,000,000 is expected from income taxes on vested dual benefits. The appropriation language provides for an additional 2 percent reserve ($4.110.000) which would become available proportional to the amount by which the product of recipients and the average benefit received exceeds $205.500.000. The appropriation language provides for $191.000.000 to fund vested dual benefits from general revenues of which $11.000.000 is expected from income taxes on vested dual benefits. The appropriation language provides for an additional 2 percent reserve ($3.820.000) which would become available proportional to the amount by which the product of recipients and the average benefit received exceeds $191.000.000. This amount reflects our latest estimate for interest related to uncashed railroad retirement checks and will remain available through September 30, 2000. This limitation is for the Railroad Retirement Board's Office of Inspector General. which submits a separate budget justification document and annual performance plan. |