by Calculated Risk on 3/10/2005 03:02:00 PM

With all of the attention on Social Security (OASI), perhaps we should also look at some of the other trust funds. As an example, the CSRS (Civil Service Retirement System) is similar to OASI program. CSRS is a defined benefit plan that uses contributions from today's employees to pay today's retirees. And like OASI, CSRS is running annual surpluses; $28 Billion in fiscal 2003. SOURCE: Monthly Treasury Statement.

But unlike OASI, CSRS is on-budget and is included in the President's budget report. In fact, with the exception of OASI and the Postal Service, all of the other trust funds (150+ in all) are included on-budget. This means that the surpluses from these programs are used to directly offset any deficit spending by the Federal Government. Of course, even Fed Chairman Greenspan talks about the "unified" budget that includes the OASI surplus as part of the budget - so the distinction between on-budget and off-budget is being lost.




This graph shows the growth of both OASI and the other trust funds. SOURCE: Treasury Dept.

Trust Fund reserves in Billions.

Click on Graph for larger image.





Many of these programs will suffer similar demographic issues as OASI. So when someone like victor at the Dead Parrot questions the existence of the OASI Trust Fund, he is also speaking to our military, Federal employees, Civil Service workers and many others who are paying into similar retirement insurance plans. Thanks to pgl at Angry Bear and William Polley for reminding me of this issue.