Explanation of CSRS Inequity to USPS

Many employees have asked your blog editor to explain the inequities of the Civil Service Retirement System (CSRS) to the USPS.  Please see below for response.  

CurrentlyUSPS is responsible for meeting CSRS for employees who started after 1971.  When the Post Office Department became thePostal Service on July 1, 1971, there was no change to postal employees’retirement benefits.  Employees whoserved prior to 1971 and continue to serve are covered by both the federalgovernment and USPS.  The current methodologyused to allocate CSRS obligations for employees with service prior to July 1,1971, is not based on years of service and is inequitable to USPS.

USPS hasasked Congress to take the following steps:

• Resolve the Retiree Health Benefits pre-funding requirement (both long and short term)
• Solve the inequities present in the current CSRS pension methodology.
• Repay the FERS overfunding of $6.9 billion.
• Eliminate the requirement to maintain six-day delivery.
• Allow USPS to make decisions more quickly and in a more business-like fashion regarding its retail facility and mail processing networks.