OMB COST ESTIMATE
FOR PAY-AS-YOU-GO CALCULATIONS

Report No: 549
Date: 01/12/01

1. LAW NUMBER: P.L.106-571 (H.R. 207)
2. BILL TITLE: Federal Physicians Comparability Allowance Amendments of 2000
3. BILL PURPOSE: Permanently extends the authority for the physician comparability allowance (PCA) program and provides that the allowances be treated as basic pay for retirement purposes.
4. OMB ESTIMATE: P.L. 106-571 allows certain physicians to count PCA allowances as basic pay for calculating certain retirement benefits. OMB estimates that additional employee contributions associated with the PCA allowances will increase Governmental receipts by $6 million over the 2001-2005 period.

	(Fiscal years; in millions of dollars)
	2000	2001	2002	2003	2004	2005
Net costs....................................	0	-1	-1	-1	-1	-1

 

5. CBO ESTIMATE:

	(Fiscal years; in millions of dollars)
	2000	2001	2002	2003	2004	2005
Net costs....................................	0	-4	-1	-1	-1	-1

 

6. EXPLANATION OF DIFFERENCES BETWEEN OMB AND CBO ESTIMATES:

For FY 2001, CBO scores savings for additional agency retirement contributions on the PCA allowances. OMB does not consider this impact to be subject to pay-as-you-go.

7. CUMULATIVE EFFECT OF DIRECT SPENDING AND REVENUE LEGISLATION ENACTED TO DATE:

	(Fiscal years; in millions of dollars)
	2000	2001	2002	2003	2004	2005
Outlay effect..............	34	7,887	12,198	14,552	15,747	16,863
Receipt effect............	-8	-1,777	-2,986	-3,412	-3,452	-3,788
Net costs....................	42	9,664	15,184	17,964	19,199	20,651

NOTE: Pursuant to P.L. 106-554, the pay-as-you-go balances that would result in a sequester for FY 2001 will be set to zero in OMB's final sequestration report.