Updating a postal retirement

The OPM retirement figures include postal workers, because though they are paid separately by the Postal Service, they participate in CSRS or FERS.The Postal Service is a quasi-government agency that is funded only by mail-related revenues.For more than a year Idealliance and its Coalition for a 21st Century Postal Service (C-21 Coalition) partners have been working to develop the structure of a bill that could prevent the worst case scenario from happening.Update: See: Trump Budget Proposal Would Cost Federal Employees, Retirees Big Bucks Changes in federal retirement policies included in President Trump’s budget proposal would impose substantial new costs to active employees to fund their future benefits while reducing the value of benefits for both current and future retirees.In what would be another difference by retirement system and another change from past proposals, the newspaper said the budget will seek to deny COLAs for FERS retirees, both current and future, while shaving 0.5 percentage points off the indicated COLA for CSRS retirees.It said that those officials said the fully indexed Social Security benefits for FERS employees would balance out the two.Without passage the Postal Regulatory Commission may change its postal rate process resulting in drastically increased rates.

Federal and postal employees pay into either the Civil Service Retirement System or the newer Federal Employees Retirement System, which is used by workers who were hired in 1984 or after.

This overly aggressive pre-funding schedule resulted in annual payments of more than .5 Billion — which the Postal Service has been unable to pay for the past several years.

The inability to pay has contributed to mounting debt and a current balance sheet that would require most businesses to declare bankruptcy.

That would mean an eventual increase of about five or six percent of salary for most FERS employees, although those hired 2013 and afterward already pay in more than those hired before.

The newspaper reported that administration officials said the increase would only apply under FERS because they consider contributions by CSRS employees already equal to government contributions–a change in direction from prior Republican proposals, which would have required an increase by both groups.

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