435 -44,774 5,492 84,814 119,369 780 1,225 -78,543 -110,536 93 Gross expenditures.. 94 Applicable receipts. 15,352 -42,864 -44,172 17,024 18,661 -46,849 This fund finances the payment of claims on nonparticipating insurance policies issued before January 1, 1957, to veterans who served in the Armed Forces subsequent to April 1951 (38 U.S.C. 723). Policyholders were given the right (72 Stat. 1716) to convert to a permanent plan of insurance or to a new form of term insurance which may not be renewed beyond age 50 but which costs less than the unlimited term insurance. Policyholders under all plans of VSTI may purchase total disability income coverage with the payment of an additional premium. Administrative expenses are paid from the appropriation, General operating expenses. Budget program.-1. Death claims.-Payments to surviving beneficiaries continue to increase as deaths occur among policyholders. 2. Disability claims.-Payments to individuals who have purchased total disability coverage and who subsequently become totally disabled began in 1960. 3. Cash surrenders.-A policyholder may terminate his insurance by cashing in his policy for its cash value. 5. Policy loans made.-The policyholders who converted their insurance from term to permanent plan were subsequently entitled to borrow up to 94% of the cash value of the new policy. The following table reflects the decrease in the number of policies and the amount of insurance in force (dollars in thousands): 6. Policy loans made. 7. Policy liens established. Total capital outlay. $5,595,952 $5,552,042 $5,508,000 $5,420,000 Financing.-Payments from this fund are financed 18.745 primarily from premium receipts and interest on invest ments. Operating results and financial condition.-Favorable mortality experience on insurance written against this fund has kept death claim payments well below the amount of premium and interest receipts, thereby producing an annual increase in the retained earnings of the fund. The retained earnings have been reduced by payments of a special dividend and payments to the Veterans insurance and indemnities appropriation and the Veterans reopened insurance fund. Receipts and reimbursements from: Procurement, distribution and services program: Revenue.... -105,082 -116,452 -119,300 Applicable receipts... This fund finances the payment of group life insurance premiums to private insurance companies under the Servicemen's Group Life Insurance Act of 1965 (38 U.S.C. 765-776) and any expenses incurred by the Veterans Administration in administration of this act. Budget program.-1. Premium payments. The payment of premiums to private insurance companies in 1968 and 1969 is expected to be about 50% more than in 1967. This is due to the increase in contributions for the extra hazards of service. 2. Payment to General operating expenses appropriation. The 1967 administration cost to the Veterans Administration was $183 thousand. This was attributable mostly to printing and reproduction of required forms and publications. The total costs should decrease through the budget year. Financing.-Premium costs are met by withholding from the salaries of insured members their share of the cost of the insurance and by contributions of amounts representing the extra hazard costs from appropriations of the departments involved. The extra hazards contributions will be about 100% more in 1968 and 1969 over 1967. This is due to the increased death claims resulting from the extra hazards of service. Object Classification (in thousands of dollars) 90 1 Balances of selected resources are identified on the statement of financial condition. The Supply Fund finances, on a reimbursable basis, warehouse inventories and procurement of recurring need supplies and centrally acquired equipment throughout the Veterans Administration in accordance with the provisions of 38 U.S.C. 5011, and items and services to other Government agencies when agencies request such support. 1967 actual 1968 est. 1969 est. 230,850 230,940 Budget program.-The fund provides financial support for the procurement of supplies and equipment, the maintenance and operation of two supply depots and one subdepot, located at Hines, Ill., Somerville, N.J., and Wilmington, Calif., respectively, the operation of service and reclamation program from each supply depot and subdepot, a centralized periodical procurement activity, printing service to VA installations on a centralized basis, and a marketing center located at Hines, Ill. The publications and reproduction program provides printing service to VA installations. Printed matter is acquired in accordance with the rules of the Joint Committee on Printing from the Government Printing Office, the General Services Administration, a VA-operated plant in Arlington, Va., and from commercial sources. The marketing center is responsible for determining the level of inventories at the three supply depots and to acquire stocks to maintain such levels as well as the central procurement of items not available from Government sources for VA installations and other Government agencies as may be determined economical, Personal services and other costs incident to the operation and administration of supply activities in the Veterans Administration central office and field organizations are charged directly to applicable appropriations and are not an operating expense of the Supply Fund. Financing. Consuming appropriations reimburse the fund for the cost of supplies and equipment provided and services rendered. Operating costs are recovered from the appropriations receiving supplies, equipment and services at time of reimbursement. Operating results and financial condition.-The fund operated at a $35 thousand deficit during 1967. It is anticipated that this deficit will be eliminated in 1968. Revenue, Expense, and Retained Earnings (in thousands of dollars) |