INCREASED PAY COSTS FOR FISCAL YEAR 1983

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84M00395R000100020002-7
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 12
• Document Creation Date: December 20, 2016
• Document Release Date: March 5, 2007
• Sequence Number: 2
• Publication Date: November 15, 1982
• Content Type: REGULATION

EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
November.15, 1982
BULLETIN NO. 83-7
2 2 N OV 1982
Ru 0
TO THE HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS
SUBJECT: Increased Pay Costs for Fiscal Year 1983
1. Purpose. This Bulletin provides policies and procedures for
absorbing the cost of the October 1982 pay raise and related
costs, including the employer's portion of the Medicare Hospital
Insurance payment (HI tax), preparing the analysis of these
increased costs, and requesting related supplemental
appropriations for fiscal year 1983.
2. Authority.
P.L. 97-276, Resolution for Continuing Appropriations
for 1983, provides continuing appropriations for
activities of the Federal Government through December
17, 1982. Section 109 of that law provides for a 4% cap
on wage board pay increases during fiscal year 1983.
-- Executive Order No. 12387 dated October 8, 1982, pro-
vides for a 4% pay cap on civilian and military pay.,
increases during fiscal year 1983.
Section 278(a) of P.L. 97-248, the Tax Equity and Fiscal
Responsibility Act of 1982 requires application of the
Medicare Hospital Insurance tax to Federal employment.
3. Background. Office of Management and Budget (OMB) Circular
No. A-1 (sections 13.3(b) and 32.6(b)) instructed agencies to
include amounts for the October 1982 pay raise in their 1983 and
1984 budget estimates, if the new pay rates were known at the
time of submission. If the new pay rates were not known at. the
time of submission, agencies were instructed to include in,their
budget schedules the additional 1983 and 1984 amounts required
for the October 1982 pay raise when they are informed by OMB of
their 1984 budget allowances.
Under P.L. 97-248, Federal agencies are required to pay the
employer's share of the Medicare Hospital Insurance tax for
Federal employees not currently under social security, effective
beginning on January 1, 1983. Amounts for the employer's share
of the HI tax for 1983 were not included in agency budget
estimates for 1983.
The information submitted pursuant to this Bulletin will provide
the basis for requests to the Congress in.the 1984 Budget for
the 1983 pay supplementals to cover these costs.
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4. Coverage. These instructions apply to the fiscal year 1983
cost of the 4% October 1982 pay ra,is:e and re ated costs,
including the cost of the employer's share of the HI tax.
5. Policies.
a. Calculation of Increased Pay "Cos:ts.
-- Since the pay increase is effective with. the first. pay
period beginning on or after October 1 , 1982 and the pay
periods vary from agency to agency, computations shall
be based on the actual number of workdays in fiscal : year
1983 that are subject to the pay ? increase., Agencies will
include in their submissions. to OMB information showing
their assumptions on the number of workdays-subject to the
raise and providing calculations. showing how.... these
assumptions were used in preparing the estimates.
-- No pay increase should be included for employees who are
already paid the maximum under law. The number '6f'-such
employees, and their related salary costs,,?:,will be shown
in the agency submissions.
-- In some cases, employees will receive effective pay raises
less than the full raise because? the full.. raise would
increase their salaries to levels above the maximum under
law. The agency submissions will contain a 'list . of :' . (a)
each of the base salaries of such employees; (b) the
number of employees" in each such base salary- 'category and
the total number of employees in all such categories; (c)
the allowable pay increment to reach the maximum-level for
each of these base salary categories';-and (.d) the total
allowable pay increment in all ` such' categories.
-- No pay increase 'shall be' included to cover costs of
unemployment compensation (OMB Bulletin No. 81-18).'
The use of current average salary levels above, those
reflected in the President'"s 1983 Budget must be
explicitly justified.
For each indirect pay cost-increase (such as retirement
benefits and other Government 'payments that are based '~on
employee salaries), agencies shall, specify separately
the relationship of that 'increase 'to increases in direct
pay costs and provide 'the calculations' that support
estimated indirect cost 'increases.
Since the -HI tax is based on wages (as defined by 26
U.S.C. 3121(a)) paid to Federal employees on or after
January 1, 1983, computations shall",be based on the amount
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of these payments that are subject to the HI tax.
Specifically, the employer's share of the HI tax should be
estimated as 1 .3% of wages to be paid in fiscal year 1983
up to $35,700. Agencies will include in their submissions
information showing their assumptions on the number of
workdays beginning January 1, 1983 subject to the tax and
providing calculations showing how the estimate of tax was
computed.
Agencies shall compute the amount of the 1983 pay increase
costs specified above on the basis of the latest approved
1983 program and FTE employment levels. Pay increases
connected with added 1983 FTE employment levels requested
in the 1984 budget process should be treated as part of
the program supplemental request, rather than as part of
this pay raise supplemental request.
Agencies will base their computations on the fiscal year
1983 program and FTE employment levels as they will be
reflected in the 1983 (current year) column of the 1984
Budget. As above, pay increases connected with additional
1983 employment levels should be treated as part of the
supplemental request for the program, should the program
supplemental be approved.
b. Absorption of Increased Pay Costs.
(1) Generally, agencies are expected to absorb the maximum
amount possible of the increased pay coats, including
the employer's portion of the Medicare Hospital
Insurance. Because the First Concurrent Budget
Resolution for fiscal year 1983 assumes that 50% of the
pay raise will be absorbed, proposed absorption of less
than this rate will require specific justification.
(2) Agencies are expected to absorb these increased pay
costs as follows:
(a) Use all available resources within the account to
cover these increased pay costs. This shall include
savings and revenues resulting from:
-- Lower than previously anticipated personnel levels
(including savings in personnel compensation,
benefits, and related expenses such as travel,
supplies, equipment, etc.);
-- Continuing efforts to minimize and reduce other
operating costs, e.g., in the use of consulting and
related services or in the production of periodi-
cals, pamphlets, and audiovisual products;
-- Economies achieved through cost reduction, position
management, and other management improvement pro-
grams as set forth in 0MB Circulars No. A-64 and
A-117;
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-- Savings that may result from lower than expected
prices for purchases financed from the account;
and
-- Any other unanticipated amounts that are
available in the account.
(b) Use existing transfer authority when resources
within an account are insufficient to meet costs.
(c) Seek additional transfer authority between
appropriation accounts within the same agency.
c. Application of Available Resources. Agencies shall
apply available resources in the following order of priority:
(1) To program increases for uncontrollable items that
qualify for deficiency apportionment, when the total
amount of these program increases can be absorbed. When
the total amount of these program increases cannot be
absorbed, a separate program supplemental should be
requested.
(2) To the various types. of increased pay costs (e.g.,
civilian. statutory pay systems, military pay systems,
wage board, administrative action) in the following
order of priority:
(a) Any type of increased reimbursements to other
accounts due to increased pay costs (including
payments to revolving funds).
(b) Any type of increased pay cost that can be absorbed
in full.
(c) Any type of increased pay cost that cannot be
absorbed in full.
6. Action Requirements.
a. By November 29, 1982, each agency shall submit to 0MB
the following:
(1) Analysis of Increased Pay Costs. The analysis will be
prepared in accordance with the instructions in
Attachment A and submitted in the format of the related
Exhibit.
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(2) Information Sheets. Information sheets showing the
methods and numbers used to make the calculations will
accompany the analysis of increased pay costs. The
calculation of increased pay costs will be prepared in
accordance with paragraph 5.a. of this Bulletin. An
estimate of the Medicare Hospital Insurance costs will
also be included.
(3) Narrative Explanation. Increases in pay costs that are
disproportionately high in relation to the base for any
account or the use in the calculations of average salary
levels above those reflected in the President's 1983
Budget must be fully justified in a narrative explana-
tion accompanying the analysis. The explanation will
include information on the programmatic effect and the
effect on FTE employment resulting from the absorption
policy. In those cases where agencies believe that they
are unable to achieve 50% or more absorption of pay
costs, including the cost of the employer's share of the
HI tax, the narrative will include a specific
justification.
(4) Proposed Appropriation Language. Guidelines to be used
in drafting proposed appropriation language are
presented in Attachment B. Proposed appropriation
language for funds that are to be transferred to
multiple and no-year accounts should also extend the
availability of the amounts consistent with the
availability of the accounts to which they are to be
transferred.
b. Upon approval of a pay supplemental, submit the
following information to OMB:
(1) Apportionment/Reapportionment Requests.
(a) Each agency that requests apportionment or reappor-
tionment to reflect increased pay costs (including
HI tax) for fiscal year 1983 shall submit its
request in accordance with section 43.2 of 0MB
Circular No. A-34. Upon enactment of appropria-
tions, agency heads shall submit reapportionment
requests to apportion any previously deferred funds
(line 10 of S.F. 132) or unapportioned balances of
revolving funds (line 11 of S.F. 132) that may now
be needed to meet increased pay costs.
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Deficiency apportionments under a continuing
resolution are not required unless the account
involved would actually run short of funding
while the resolution is in effect. In such a
case, the deficiency is the amount needed for pay
only during the period of the resolution.
(b) Agency heads requesting "deficiency" apportion-
ments for pay supplementals shall also submit
three copies of the agency head's statement of
necessity, as required by 31 U.S.C. 665(e)(1).
The agency head's statement shall be worded as
follows:
"I hereby determine that it is necessary to
request apportionment (or reapportionment) of the
appropriation '(appropriation title)' on a basis
that indicates the necessity for a supplemental
estimate of appropriations for pay increases in
accordance with section 105 of P.L. 97-276."
(Note: When a group of such requests is
transmitted at one time, a single statement may
be used for all requests.)
All reapportionment requests for increased pay
costs and the statements of necessity shall be
submitted to 0MB within 10 days of final 0MB
approval of any supplemental appropriations for
increased costs of pay to be requested in the
1984 Budget.
(2) Deferral and Rescission Proposals. If an agency is
seeking a pay supplemental to be derived by transfer
between appropriation accounts that involves:
(a) no withholding or delaying of the availability of
funds, no deferral report is required. (In these
cases, available resources should be apportioned
in the losing accounts so that the funds to be
transferred are available in the last half of the
fiscal year.)
(b) withholding or delaying the availability of funds
(in order to preserve the funds for transfer), a
deferral report (see 0MB Bulletin No. 75-15) is
required and should be submitted, as appropriate,
with the supplemental request.
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(c) funds that cannot be used in the losing account,
regardless of whether the Congress accepts the
transfer request, a rescission proposal is to be
submitted once a definite amount of excess funds
is known.
7. 0MB Responsibilities. The Office of Management and
Budget is response [-for reviewing information submitted by
the agency and for final preparation of the pay supplementals
that the President transmits to the Congress.
8. Information Contact. For further information, contact
the 0MB representative responsible for reviewing the agency's
budget estimates.
9. Sunset Date. This Bulletin will expire as soon as action
is complete
.
David A. Stockman
Director
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ATTACHMENT A
Bulletin No. 83-7
Instructions for Preparing the
Analysis of Increased Pay Costs for
Fiscal Year 1983
Each agency shall submit by November 29, 1982, an analysis of
increased pay costs for fiscal year 1983 resulting from the pay
raises specified in this Bulletin and related costs, including
the required payment of the employer's portion of the Medicare
Hospital Insurance tax (HI tax). An original and two copies of
this analysis shall be prepared for fiscal year 1983 in the
format illustrated by the Exhibit.
General Instructions
Treatment of Multiple Types of Pay Increases.
Where more than one type of pay increase is involved (i.e.,
civilian statutory pay systems, military pay systems, wage
board, administrative action) the amounts applicable to each
will be reported separately in columns 2 through 4 of each
analysis. In columns 5 through 8, the amounts for each account
will be reported in total (i.e., without separately identifying
the amount associated with each type of pay increase or
allocation account).
Treatment of Advances and Reimbursements.
Advances or reimbursements between Government accounts should be
treated in the following way:
-- The agency that is performing the work shall include the
related increased pay costs (including the cost of the
HI tax) in columns 2 and 3 of their analysis -- since
these costs relate to the employees of this agency.
These costs shall be included in column 5, and treated
as part of the performing agency's absorption. (See
instructions for entries under column 5.)
-- The ordering agency shall consider these increased pay
costs as a part of ordinary expenses and shall not
include them in columns 2 and 3 of their analysis. The
ordering agency shall absorb, through administrative
actions, payments to other accounts or agencies for the
increased pay costs to the maximum extent possible. The
ordering agency shall report the portion of the payment
for increased pay costs that cannot be absorbed through
administrative action in column the analysis. (See
instructions for entries under column 4.)
Treatment of Allocation Accounts.
For purposes of this analysis, amounts for allocation accounts
(transfer appropriation accounts) shall be incorporated in the
amounts shown for the parent account, rather than in the amounts
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shown for the receiving agency. Each agency that receives an
allocation shall furnish to the agency responsible for the
parent account that data necessary to prepare the analysis
(including justifications) for submission to OMB by November 22,
1982, unless other arrangements have been made by the agencies
concerned. Allocation accounts shall be considered a source of
transfer only by the parent agency.
Format of the Analysis
The analysis will be prepared on 8 1/2" x 14" paper, as
described below:
Column 1. Organizational unit and account title. List
each bureau or organizational unit to which separate appropria-
tions or funds are available. List, under the organizational
unit, the title of each account (other than allocation accounts)
out of which any increased pay costs, including the HI tax, are
directly paid. These shall include revolving and management
funds (excluding consolidated working funds) and trust funds.
Account titles will be listed in the order in which they appear
in the Budget. At least one line should be left between account
titles.
Increased pay costs under civilian statutory pay systems
will be entered without further identification. Other types of
pay increases (wage board, administrative action, and military
pay systems) will be identified in the stub column under each
account where appropriate.
Column 2. Increase in direct pay and other related costs
of this agency -- direct pay* Enter t e direct cost of pay
raises for employees paid from the reporting account, whether or
not the costs are reimbursable. Agencies should be careful to
include any additional payments that are normally associated
with object class 11, such as overtime, Sunday premium pay, etc.
If the increased pay cost is disproportionately high in relation
to the base for any account, the reasons should be fully set
forth in a narrative explanation.
Do not report in this column advances or reimbursements to
other accounts for work or services. (To the extent they cannot
be absorbed through currently authorized agency administrative
action, they are to be reported in column 4.)
Column 3. Increase in direct a and other related costs
of this agency -- related costs. For each listed account,
report the added costs that are indirectl related to the pay
raise, whether or not the costs are reimbursable. For this
purpose, the related costs include such items as Government
retirement contributions, employer FICA taxes, Government
contributions to employee life insurance premiums, payment of the
employer's share of the Medicare Hospital Insurance tax, and
other payments that are based on employees' salaries. Other
payments that are not based on employees' salaries, such as
Federal workers' compensation (billed from prior year charges),
should be excluded from the calculations of added indirect
costs.
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Do not report in this column advances or reimbursements
paid to other accounts for work or services. (To the extent
they cannot be absorbed through currently authorized agency
administrative action, they are to be reported in column 4.)
Column 4. Amounts to be paid to other accounts that are
not absorbed administratively. Enter the portion of the
increased pay costs to be paid as advances and reimbursements to
other accounts that cannot be absorbed through administrative
action. In most cases this column should be blank, since
payments to other accounts will be considered for a sorption
ahead of the increased pay cost of the reporting account.
Column 5. Net absorption -- possible by administrative
action. Report, in total for each account, the portion of t e
increases shown in columns 2 and 3 that can be absorbed through
currently authorized agency administrative action. Following
the policies set forth in section 5.b. of this Bulletin, this
will include absorptions through existing transfer authority
from other accounts and amounts to be covered by reimbursements
from other accounts.
Column 6. Net absorption -- requiring Congressional
action. Report, in total for eac account, the portion of the
increased costs in columns 2, 3, and 4 that could be absorbed if
the Congress provides new transfer authority to transfer funds
from one account to another. Proposals to increase the limitation
on administrative expenses are not to be included in this column;
rather they should be included in column 8.
Column 7. Net absorption -- total. Total of columns 5 and
Column 8. Additional appropriation required. This column
shoul a-the sum of columns 3, and minus column 7, and
will represent the additional appropriations and increases in
limitations on administrative expenses considered necessary for
the account as a result of the pay raises reported. Increases in
limitations on administrative expenses are to be identified using
a footnote.
The final entry in each table will be labeled "Total, all pay
increases" and will show the total amounts for the agency for each
of the columns 2 through 8.
If Congressional action is not completed, a footnote to the
name of the agency should be provided explaining the basis for the
request.
The Analysis shall be accompanied by the information
sheets, narrative explanation, and appropriation language as
required in sections 5 and 6 of this Bulletin.
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b. Actual size of this form
is 8-1/2 x 14 inches.
ANALYSIS OF 1983 INCREASED PAY ODSTS
Organizational unit
and account title
(1)
Department of Government 1/
Increase in direct Amounts to be Net Absorption
pay and other related paid to other ssi a Requiring
costs of this agenc accounts that by admin- Congressional
Direct Related are not absorbed istrative Action
pay costs administratively action Total
(2) (3) (4) (5) (6) (7)
Office of the Secretary:
Salaries and expenses............ 197,420
Wage board ..................... 31,500
Bureau of Economic Development:
18,700
2,950
Salaries and expenses............ 949,160. 89,220
Inspection Services .............. 176,000 16,540
Development Trust Fund........... 1,240,000 111,600
Government Corporation:
. ? .)
. . .)
Additional
apropria-
tion
required
(8)
79,700 2/ 170,870 250,570 0
. ..) 723,500 723,500 314,880 1
21,050 . . . 213,590 213,590
.. 21,600 1,330,000 1,351,600 0
ABC Revolving Fund (adm. action). 1,065,000 100,110 . . . 865,110 300,000 1,165,110 0
Total :
Civ. stat. pay systems........... 9,336,400 872,660 42,310)
Wage board ....................... 142,500 13,250
Adm. action ...................... 1,065,000 100,110
Total, all pay increases........... 10,543,900 986,020 42,310 5,246,660 5,679,290 10,925,950 646,280
The 1983 appropr at o-n-9-have not been enacted. The basis for these estimates is specifyj
I/ Includes $15,000 to be transferred from "Salaries and Expenses, Bureau of Safety" under . (Cite
existing authority)
3/ This amount pertains to the increase in the limitation on administrative expenses for this account.
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ATTACHMENT B
Bulletin No. 83-7
Guidelines for Drafting Proposed Appropriation Language
for Pay Supplementals for Fiscal Year 1983
Indentation, punctuation, and capitalization will conform with
the presentation used in Part III, Section II of the 1983 Budget
Appendix (pp. 111-41-42).
Organization titles and breaks, including the appropriation
account title will generally conform to the fiscal year 1983
appropriation bills as enacted.
All new items not included in the 1983 appropriation bills
(e.g., chapter, organizations, accounts, or appropriation
language phrases) will be underscored.
Sample formats illustrating the above guidelines follow:
DEPARTMENT OF GOVERNMENT
Office of the Secretary: "Salaries and expenses", $170,000;
Bureau of Economic Development:
"Salaries and expenses", $314,000;
"Inspection services", $213,000 to remain available until
March 30, 1984;
Development Trust Fund: "Limitation on general operating
expenses" (increase of $1,330,000 in the limitation on general
operating expenses).