Department of the Treasury

Financial Stability Oversight 

Council

Congressional Budget

Justification and Annual 

Performance Plan and Report

FY 2021
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Table of Contents

Section I – Budget Request........................................................................................................... 3

A – Mission Statement................................................................................................................ 3

B – Summary of the Request ...................................................................................................... 3

1.1 – Appropriations Detail Table .............................................................................................. 3

1.2 – Budget Adjustments Table................................................................................................. 4

C – Budget Increases and Decreases Description....................................................................... 4

1.3 Object Classification (Schedule O) Obligations................................................................... 5

D – Appropriations Language and Explanation of Changes ...................................................... 5

E – Legislative Proposals............................................................................................................ 5

Section II – Annual Performance Plan and Report................................................................... 6

A – Strategic Alignment ............................................................................................................. 6

B – Budget and Performance by Budget Activity ...................................................................... 7

2.1.1 – Financial Stability Oversight Council Resources and Measures.................................... 7

Financial Stability Oversight Council......................................................................................... 7

2.1.2 – FDIC Reimbursement Resources and Measures............................................................. 7

FDIC Reimbursement ................................................................................................................. 7

C – Changes in Performance Measures...................................................................................... 7

D – Evidence-Building Activity ................................................................................................. 8

Section III – Additional Information .......................................................................................... 8

A – Summary of Capital Investments......................................................................................... 8
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Section I – Budget Request

A – Mission Statement

To identify risks to the financial stability of the United States, to promote market discipline, and 

to respond to emerging threats to the stability of the U.S. financial system.

B – Summary of the Request

The Financial Stability Oversight Council (FSOC or Council) is estimating a fiscal year 

(FY) 2021 funding level of $10.439 million, which is an increase of $1.410 million from the

FY 2020 estimated funding level. This request includes $6.138 million for the FSOC Secretariat 

and the Office of the Independent Member with Insurance Expertise, and $4.301 million to 

reimburse the Federal Deposit Insurance Corporation (FDIC) for certain expenses as required by 

law. This is a projected increase of $1.308 million in FDIC reimbursable activity when 

compared to FY 2019. On December 4, 2019, the Council approved new interpretive guidance 

regarding FSOC’s nonbank financial company determinations. The guidance implements an 

activities-based approach for identifying and addressing potential risks to financial stability and 

enhances the analytical rigor and transparency of the Council’s process for designating nonbank 

financial companies. The FY 2021 Budget also proposes to impose appropriate Congressional 

oversight of Council functions by subjecting its activities to the annual appropriations process 

beginning in FY 2022.

1.1 – Appropriations Detail Table

1) The FSOC is financed through assessments on certain bank holding companies and nonbank financial companies. See Treasury’s final rule and 

interim final rule governing the Assessments process: https://www.financialresearch.gov/strategy-budget/files/final_rule_interim_final_rule.pdf

2) The funding for the first six months of operating expenses and 12 months of capital expenses are reflected in Unobligated Balances from Prior 

Years. This is because the first assessment covering the fiscal year beginning October 1 is collected on September 15 of the prior fiscal year. 

Dollars in Thousands

Budgetary Resources

FTE AMO UNT FTE AMO UNT FTE AMO UNT FTE AMO UNT

Revenue/O ffsetting Collections 

Assessments 0 $8,957 0 $10,001 0 $9,438 NA -5.6%

Interest 0 $236 0 $171 0 $171 NA 0.0%

Recoveries 0 $194 0 $195 0 $195 NA 0.0%

Restoration of Sequestration Rescission 0 $531 0 $567 0 $600 NA 5.8%

Unobligated Balances from Prior Years 0 $7,777 0 $7,581 0 $8,886 NA 17.2%

Total Revenue/O ffsetting Collections 0 $17,695 0 $18,515 0 $19,290 NA 4.2%

Expenses/O bligations 

FSOC 14 $5,246 18 $6,036 18 $6,138 0.0% 1.7%

FDIC 0 $4,301 0 $2,993 0 $4,301 NA 43.7%

Total Expenses/O bligations 14 $9,547 18 $9,029 18 $10,439 0.0% 15.6%

Sequestration Reduction 0 ($567) ($600) $0 

Net Results 14 $7,581 18 $8,886 18 $8,851 0.0% -0.4%

FY 2019 FY 2020 FY 2021 FY 2020 to FY 2021

Actual Estimated Estimated % Change
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1.2 – Budget Adjustments Table

Dollars in Thousands

FTE Amount 

FY 2020 Estimate 18 $9,029 

Changes to Base:

Maintaining Current Levels (MCLs): 0 $102 

Pay Annualization (2020 3.1% average pay raise) 0 $18 

Pay-Raise (1.0% average pay raise) 0 $35 

FERS Contribution Increase $17 

Non-Pay 0 $32 

Subtotal Changes to Base 0 $102 

FY 2021 Current Services 18 $9,131 

Program Changes:

Program Increases: 0 $1,308 

FDIC Cost Adjustment 0 $1,308 

Subtotal Changes to Base 0 $1,308 

FY 2021 Estimate 18 $10,439 

C – Budget Increases and Decreases Description

Maintaining Current Levels (MCLs) ..........................................................+$102,000 / +0 FTE

Pay Annualization (3.1%) +$18,000 / +0 FTE

Funds are requested for annualization of the January 2020 3.1% average pay raise.

Pay Raise (1.0% in 2021) +$35,000 / +0 FTE

Funds are requested for a 1.0% average pay raise in January 2021.

FERS Contribution Increase +$17,000 / +0 FTE

Funds are requested for the Federal Employee Retirement System (FERS) contribution rates 

effective FY 2021.

Non-Pay +$32,000 / +0 FTE

Funds are requested for non-labor expenses such as travel, contracts, rent, supplies, 

and equipment.

Program Increases ......................................................................................+$1,308,000 / +0 FTE

FDIC Cost Adjustment +$1,308,000 / +0 FTE

Cost increase for FDIC reimbursable expenses based on indications from FDIC that reimbursable 

activities will increase during fiscal year 2020.
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1.3 Object Classification (Schedule O) Obligations

D – Appropriations Language and Explanation of Changes

The FSOC receives no appropriations from Congress.

E – Legislative Proposals

Consistent with previous budget proposals the FY 2021 Budget proposes to impose appropriate 

Congressional oversight of Council functions by subjecting its activities to the annual 

appropriations process beginning in FY 2022.

Dollars in Thousands

FY 2019 FY 2020 FY 2021

O bject Classification

Actual 

O bligations

Estimated 

O bligations

Estimated

O bligations

11.1 - Full-time permanent 1,789 2,578 2,648

11.3 - Other than full-time permanent 168 175 175

11.5 - Other personnel compensation 15 0 0

11.9 - Personnel Compensation (Total) 1,972 2,753 2,823

12.0 - Personnel benefits 567 793 813

Total Personnel and Compensation Benefits $2,539 $3,546 $3,636

21.0 - Travel and transportation of persons 44 45 48

25.1 - Advisory and assistance services 145 291 296

25.2 - Other services from non-Federal sources 17 16 16

25.3 - Other goods and services from Federal sources 6,351 4,594 5,901

25.4 - Operation and maintenance of facilities 2 0 0

26.0 - Supplies and materials 307 527 532

31.0 - Equipment 72 10 10

32.0 - Land and structures 70 0 0

Total Non-Personnel 7,008 5,483 6,803

Total Budgetary Resources $9,547 $9,029 $10,439

Full-time Equivalents (FTE) 14 18 18
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Section II – Annual Performance Plan and Report

A – Strategic Alignment

The FSOC supports the Department of the Treasury’s Strategic Plan for FY 2018-2022 as 

follows: 

• Goal 1: Boost U.S. Economic Growth

o Objective 1.2 – Strong Economic Fundamentals

• Goal 2: Promote Financial Stability

o Objective 2.4 – Financial Sector Critical Infrastructure & Cybersecurity 

The Council is chaired by the Secretary of the Treasury and consists of 10 voting members and 

five nonvoting members who serve in an advisory capacity. The Council brings together the 

expertise of the federal financial regulators, an insurance expert appointed by the President, and 

state regulators.

The Council’s three statutory purposes are to: 

1) identify risks to the financial stability of the United States that could arise from the material 

financial distress or failure, or ongoing activities, of large, interconnected bank holding 

companies or nonbank financial companies, or that could arise outside the financial services 

marketplace; 

2) promote market discipline, by eliminating expectations on the part of shareholders, creditors, 

and counterparties of such companies that the Government will shield them from losses in 

the event of failure; and 

3) respond to emerging threats to the stability of the U.S. financial system. 

The Council has a statutory duty to facilitate information sharing and coordination among the 

member agencies regarding domestic financial services policy development, rulemaking, 

examinations, reporting requirements, and enforcement actions. 

Over the next year, the Council will continue to: monitor the financial system for emerging risks; 

facilitate interagency cooperation to identify and analyze emerging threats; and facilitate 

information sharing and interagency coordination with respect to various regulatory initiatives.

Over the last year, the Council continued to identify and monitor potential risks to U.S. financial 

stability; fulfilled its statutory requirements, including transmission of its ninth annual report to 

Congress; and served as a forum for coordination among member agencies. On December 4, 

2019, the Council issued final guidance regarding nonbank financial company designations. The 

guidance implements an activities-based approach for identifying and addressing potential risks 

to financial stability, and enhances the analytical rigor and transparency of the Council’s process 

for designating nonbank financial companies.

By law, the Council is required to convene no less than quarterly, but the Council has convened 

on a more frequent basis to share information on key financial developments, coordinate 

regulatory implementation, and monitor progress on recommendations from the Council’s annual 

reports. In FY 2019, the Council convened five times. The Council will continue to remain 

focused on identifying near-term threats and addressing structural vulnerabilities in the financial 
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system. Transparency into Council work has routinely been provided through an annual report to 

Congress, periodic Congressional testimony on Council activities and emerging threats to 

financial stability, and regular communications with the public about Council activities and 

decisions. 

The Council is an executive agency and is not an office or bureau of the Department of the 

Treasury (Treasury). However, by law, the Council’s expenses (and, indirectly, FDIC 

reimbursements) are considered expenses of the Office of Financial Research, an office within 

Treasury.

B – Budget and Performance by Budget Activity

2.1.1 – Financial Stability Oversight Council Resources and Measures 

The FY 2015 - FY 2019 columns represent realized resources for full-time equivalents, reimbursables, and user fees.

Financial Stability Oversight Council 

($6,138,000 from Assessments): 

There are no measures specified for managing Council performance. The FSOC’s annual reports 

and other public documents, as well as individual Council member agencies’ performance 

documents, provide information to the public relevant to the Council’s performance. 

Information on the Council is provided on www.treasury.gov, www.fsoc.gov, and member 

agency websites to provide transparency and accountability.

2.1.2 – FDIC Reimbursement Resources and Measures

The FY 2015 - FY 2019 columns represent realized resources for full-time equivalents, reimbursables, and user fees.

FDIC Reimbursement 

($4,301,000 from Assessments):

Certain FDIC expenses are treated as expenses of the Council. By law, the Council’s expenses 

include reimbursement of certain reasonable implementation expenses incurred by the FDIC in 

implementing Orderly Liquidation Authority. The FDIC must periodically submit requests for 

reimbursement to the Chairperson of the Council, who shall arrange for prompt reimbursement 

to the FDIC. FDIC expenses are for rule writing and resolution planning.

C – Changes in Performance Measures

FSOC has no changes in performance measures.

Dollars in Thousands

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Actual Actual Actual Actual Actual Estimated Estimated

Appropriated Resources $6,236 $7,157 $5,655 $4,966 $5,246 $6,036 $6,138

$6,236 $7,157 $5,655 $4,966 $5,246 $6,036 $6,138

22 22 17 13 14 18 18

 Resource Level 

Budget Activity Total

Full-time Equivalents (FTE)

Dollars in Thousands

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Actual Actual Actual Actual Actual Estimated Estimated

Appropriated Resources $7,628 $6,571 $5,126 $4,162 $4,301 $2,993 $4,301

$7,628 $6,571 $5,126 $4,162 $4,301 $2,993 $4,301

0 0 0 0 0 0 0

 Resource Level 

Budget Activity Total

Full-time Equivalents (FTE)
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D – Evidence-Building Activity

To ensure all research, recommendations, and decisions of the Council are evidence-based, the 

Council routinely uses a variety of data sources obtained independently or in conjunction with 

the Office of Financial Research (OFR). These include commercially available products widely 

used throughout the financial services and markets, publically available data from U.S. federal 

and state agencies, international governments, trade associations, academic and public policy 

groups, and non-public data from financial regulatory agencies. At the direction of the Council, 

member agency staff may also produce original research and analysis on specific financial and 

economic topics.

Section III – Additional Information

A – Summary of Capital Investments

The FSOC has no capital investments. Capital investments that support the FSOC are included in 

the Treasury Franchise Fund Plan.

A summary of capital investments, including major information technology and non-technology 

investments, can be accessed at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx.