Congressman Stephen Lynch Introduces Legislation To Correct USPS CSRS Retirement Overpayments

Congressman Stephen Lynch introduced legislation yesterday to correct methodology which overcharges USPS for its CSRS retirement obligations.  The legislation amends the provisions of title 5, United States Code, relating to the methodology for calculating the amount of any Postal surplus or supplemental liability under the Civil Service Retirement System.

This is a bill in the U.S. Congress originating in the House of Representatives . A bill must be passed by both the House and Senate and then be signed by the President before it becomes law.

SPEECH OF HON. STEPHEN F. LYNCH
OF MASSACHUSETTS
IN THE HOUSE OF REPRESENTATIVES
THURSDAY, JULY 15, 2010

Mr. LYNCH. Madam Speaker, the United States Postal Service’s CSRS Obligation Modification Act of 2010, is intended to remedy a unfair and inequitable methodology for allocating the Postal Service’s share of Civil Service Retirement System, CSRS, retirement benefit liabilities for employees that provided service to this country under both the Post Office Department and the independent United States Postal Service.

According to a January 2010 report by the United States Postal Service’s Office of Inspector General, USPS-OIG, the Postal Service paid more into the Civil Service Retirement and Disability Trust Fund that it would have paid if a more equitable methodology were used to allocate CSRS retirement benefit liabilities between the Federal government and the United States Postal Service.

As a result of the USPS-OIG report’s findings, the Postmaster General of the United  States Postal Service submitted a request, in accordance with section 802(c) of the Postal Accountability and Enhancement Act, to the Postal Regulatory Commission, PRC, calling for an independent and objective review of the methods used to allocate benefit liabilities between the Postal Service and the Federal government under generally accepted actuarial practices and principles.

The independent actuarial firm hired by the PRC, The Segal Company, determined that the current methodology used by the Office of Personnel Management, OPM, for allocating such retirement benefits between the United States Postal Service and the Federal government follows an antiquated methodology that fails to incorporate current actuarial best practices and accounting standards as recognized and codified by the Financial Accounting Standard Board.

Accordingly, to remedy this unjust treatment, this legislation I am introducing today directs OPM to update and modernize the actuarial methodology to be used in allocating CSRS retirement benefit liabilities between the United States Postal Service and the Federal government in accordance with The Segal Company’s recommendation. Under this approach, the Federal government’s portion of an individual’s CSRS annuity will be based on the CSRS benefit accrual formula and the conventional individual’s “high-3” average salary. By utilizing this methodology, this legislation will ensure that OPM is using modern actuarial practices and accounting standards to apportion the benefit liabilities that are codified by the independent Financial Accounting Standard Board under FASB ASC 715.

9 thoughts on “Congressman Stephen Lynch Introduces Legislation To Correct USPS CSRS Retirement Overpayments

  1. Stephen is the man. He has been and always will be a good friend of working families.SEIU is mad at him for NOT voting for health care reform. I suggest they read the fine print. If he didn’t vote in the affirmative..it wasn’t good for working families.PERIOD! Thank you Representaive Lynch…I’ll be out there campaigning my arse off for you!

  2. I would like too help the USPS help save some money . I’m a CSRS member . If You can find $15,000.00 for me , I’ll take the out. Right Now

  3. Congressman Lynch’s bill is exactly what the Post Office needs and should have been introduced last fiscal year. However, will Congress get off their collective butts and act on it ? They have been doing to the Post Office what they did to Social Security, taking money that they shouldn’t and using it where they they want to.
    This is exactly the reason that Social Security has trouble now. Congress took the money from Peter to pay Paul. Congress needs to act more responsibly on an every day basis when voting where and how much to spend of the country’s money.
    I feel we need to take care of our needs and NOT be running around the world spending money we do nto have.
    Take care of America first, the look to help others!!!

  4. Early out now… Save money and have money to spare.
    Goodbye CSRS employees been nice knowing you..

  5. lynchy GETS MY VOTE EVERY TIME. hE ALSO GETS ALL MY FRIENDS’ VOTES, MY FAMILY’S VOTES AND MY CO WORKERS’ VOTES GREAT JOB LYNCHY

  6. Sounds like he’s talking about future payouts. What about the monies already foregone?

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