Wednesday, July 7, 2010

Postal regulatory commission issues pension overpayment report

Last week, the Postal Regulatory Commission submitted an independent report on the overpayment of Civil Service Retirement System (CSRS) benefits paid to former Post Office Department employees.

The report was given to Congress, the Office of Personnel Management and the United States Postal Service.
The PRC report finds that an adjustment of $50-$55 billion in favor of the Postal Service would be "equitable."  The USPS Office of the Inspector General reported in January that the overpayment was $75 billion.
It comes down to the costs of retirees who served under the old Postal Department, which ceased to exist on July 1, 1971. Under the reorganziation, those costs were to be born totally by the federal government. A complicated, but apparently flawed system of compensation was constructed and it looks like the new Postal Service has been paying too much.
So, what do you think?
Here are some questions to ask:
Is the premise by the OIG and now the PRC valid?
What are the chances of USPS getting any adjustment?
Should USPS continue with downsizing efforts?
Comment here


Anonymous said...

Yes, we've paid in too much.
No, Congress will not give us the money back with their budget in such poor shape.
Yes. I am civil service. Downsize me with a buyout!

Anonymous said...

Obviously, the money is gone and will not be there to prepay any retirements.

Anonymous said...

Since nearly all monetary transactions are done in cyberspace, whether the money is there or not, there could still be a credit given to the USPS.

Anonymous said...

I agree - there is no "real" money to refund the USPS. That is NOT going to happen. They should just not require ANY payments from us until the books are balanced. That would give us at least 10 years to get back on our feet financially.

joan said...

The OIG is probably right. OPM may adjust what we owe by the 5B-maybe not-depends on what their costs are. The USPS should contine to downsize (retirements - no layoffs)

Anonymous said...

The postal service may have over paid but getting anything back is like getting blood from a turnip. Downsizing has to continue if the work isn't there. I would love for someone to offer me a reasonable sum to retire. I am FERS with 26 years and the $$$$/yr cut I'd have to take puts my income at way below the poverty level, even with SS.

Merk said...

I agree USPS should be given credit for this amount toward what we are expected to pay into the retiree health benefits fund. We will still need to downsize but should do it more gradually than they are currently proposing; delay the 5-day delivery plan, develop new revenue sources, reduce the workforce through attrition and elimination of unneccessary admin positions, reduce duties not directly related to delivering the mail and selling postal products.

grannybunny said...

Whether the amount is $50B or $75B, Congress will not require a refund to USPS, because they have been using the onerous payments they have imposed on us to balance out -- make "revenue neutral" -- other spending. We will be lucky to get them to eliminate our future obligations to pre-fund retiree health premiums. The downsizing -- which is partially-based on reduced mail volume -- will continue, hopefully, only by attrition.