United States DEPARTMENT of Commerce

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
NOAA Corps Retirement System: Active-duty officers of the NOAA Corps are covered by the NOAA Corps Retirement System, an
unfunded, pay-as-you-go, defined-benefit plan administered by the Department. Participants do not contribute to this plan. Plan
benefits are based primarily on years of service and compensation. Participants, as of September 30, 2007, included 291 active
duty officers, 331 nondisability retiree annuitants, 20 disability retiree annuitants, and 47 surviving families. Key provisions include
voluntary nondisability retirement after 20 years of active service, disability retirement, optional survivor benefits, Consumer Price
Index (CPI) optional survivor benefits, and CPI adjustments for benefits.
Foreign Service Retirement and Disability System, and the Foreign Service Pension System: Foreign Commercial Officers are covered
by the Foreign Service Retirement and Disability System and the Foreign Service Pension System. ITA makes contributions to the
systems based on a percentage of an employee’s pay. Both systems are multi-employer plans administered by the U.S. Department
of State. The Department is not responsible for and does not report plan assets, accumulated plan benefits, or liabilities applicable
to its employees. The U.S. Department of State, which administers the plan, is responsible for and reports these amounts.
Thrift Savings Plan (TSP): Employees covered by CSRS and FERS are eligible to contribute to the U.S. government’s TSP, administered
by the Federal Retirement Thrift Investment Board. A TSP account is automatically established for FERS-covered employees, and
the Department makes a mandatory contribution of one percent of basic pay. Beginning in January 2007, FERS and CSRS covered
employees have no limit on the percentage of pay contributed to their TSP account. However, the total contribution for 2007
may not exceed the IRS limit of $15.5 thousand. The Department makes no matching contributions for CSRS-covered employees.
TSP participants age 50 or older who are already contributing the maximum amount of contributions for which they are eligible may
also make catch-up contributions, subject to the IRS dollar amount limits.
Federal Employees Health Benefit (FEHB) Program: Most Departmental employees are enrolled in the FEHB Program, which provides
post-retirement health benefits. OPM administers this program and is responsible for the reporting of liabilities. Employer
agencies and covered employees are not required to make any contributions for post-retirement health benefits. OPM calculates
the U.S. government’s service cost for covered employees each fiscal year. The Department has recognized the entire service
cost of these post-retirement benefits for covered employees as an Imputed Cost and an Imputed Financing Source From Costs
Absorbed by Others.
NOAA Corps Post-retirement Health Benefits: Active-duty officers of the NOAA Corps are covered by the health benefits program for
the NOAA Corps, which provides post-retirement health benefits. This is a pay-as-you-go plan administered by the Department.
Participants do not make any contributions to this plan.
Federal Employees Group Life Insurance (FEGLI) Program: Most Department employees are entitled to participate in the FEGLI
Program. Participating employees can obtain basic term life insurance, with the employee paying two-thirds of the cost and the
Department paying one-third. Additional coverage is optional, to be paid fully by the employee. The basic life coverage may be
continued into retirement if certain requirements are met. OPM administers this program and is responsible for the reporting
of liabilities. For each fiscal year, OPM calculates the U.S. government’s service cost for the post-retirement portion of basic life
coverage. Because the Department’s contributions to the basic life coverage are fully allocated by OPM to the pre-retirement
portion of coverage, the Department has recognized the entire service cost of the post-retirement portion of basic life coverage as
an Imputed Cost and an Imputed Financing Source From Costs Absorbed by Others.
R Use of Estimates
The preparation of financial statements requires the Department to make estimates and assumptions that affect these financial
statements. Actual results may differ from those estimates.
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