Statement by U.S. Office of Personnel Management On Postal Service’s Decision to Suspend FERS Annuity Contributions
The US Postal Service is facing serious challenges. OPM is sympathetic to the situation in which the Postal Service finds itself, and we stand ready to help the Postal Service in whatever way we can, consistent with our legal obligations and role as the fiduciary for the Retirement and Disability Trust Fund (the Fund).
There is currently a surplus in the portion of the Fund covering Postal Service employees. The Postal Service’s position is that, in light of this surplus, it should be permitted to suspend making Federal Employees’ Retirement System (FERS) annuity contributions. We understand that, based on this position, the Postal Service intends to cease making further FERS annuity contributions effective June 24, 2011.
Both the Postal Service and OPM have agreed to seek a resolution of the important legal issues surrounding the Postal Services’ decisions by submitting a request for a legal opinion to the Office of Legal Counsel (OLC) at the Department of Justice.
Our aim is to protect the Postal Service employees to the greatest extent possible under the law. We have thus determined that while these issues are pending with OLC, we will be able to continue to give employees who retire credit for service rendered after the Postal Service ceases making FERS annuity contributions on June 24.
This determination is supported by the Postal Service’s assurance it will make the FERS annuity contributions it is now ceasing if OLC disagrees with its position. This means that there will be no negative impact on future postal employees’ retirement. Current postal retirees will not be impacted at all. It is our most fervent hope that the issue is resolved as quickly as the law allows.
The US Postal Service is facing serious challenges. OPM is sympathetic to the situation in which the Postal Service finds itself, and we stand ready to help the Postal Service in whatever way we can, consistent with our legal obligations and role as the fiduciary for the Retirement and Disability Trust Fund (the Fund).
There is currently a surplus in the portion of the Fund covering Postal Service employees. The Postal Service’s position is that, in light of this surplus, it should be permitted to suspend making Federal Employees’ Retirement System (FERS) annuity contributions. We understand that, based on this position, the Postal Service intends to cease making further FERS annuity contributions effective June 24, 2011.
Both the Postal Service and OPM have agreed to seek a resolution of the important legal issues surrounding the Postal Services’ decisions by submitting a request for a legal opinion to the Office of Legal Counsel (OLC) at the Department of Justice.
Our aim is to protect the Postal Service employees to the greatest extent possible under the law. We have thus determined that while these issues are pending with OLC, we will be able to continue to give employees who retire credit for service rendered after the Postal Service ceases making FERS annuity contributions on June 24.
This determination is supported by the Postal Service’s assurance it will make the FERS annuity contributions it is now ceasing if OLC disagrees with its position. This means that there will be no negative impact on future postal employees’ retirement. Current postal retirees will not be impacted at all. It is our most fervent hope that the issue is resolved as quickly as the law allows.
source: OPM Press Release
Someone ask where is the overpayment that was suppose to be return back to the USPS?
The overpayment is in the pockets of members of congress,lobbyists and big corporations and in the accounts of the 2% of Americans that owns majority of the wealth in America.
I don’t know what to expect next…it’s not like Congress did not know the USPS situation. It’s not about raising prices right now, its about righting a wrong and getting to the bottom of the single biggest contributor to the USPS financial crisis. The over payment. Obama had proposed refunding the USPS over a 30 year period and reducing the USPS obligation. I saw it on Federal times website a few months ago. Where is the outcome on that? Republicans got a hold of it and chewed it up. Where’s the money???
Loosers….haha
How about…
Raise the price of the stamp by at least .10 cents. Every thing else goes up, and the stamp increase is way over due. The PRC shot it down last time, as I assume they didn’t want to lose any votes. Wake up you idiots, raise all the rates. It’s not like we have any real competition!
…but then again, this is still a fairly stupid argument!
Don’t you hate when someone posts a comment calling others idiots, but the post is misspelled AND improperly punctuated!!!
“I guess the didn’t”
“loose any votes”
At least proof read your post before calling others idiots!!!
raise the price of the stamp at least $ 0.10 .every thing else goes up. The stamp is way over due. the board of idiots shot it down last time, i guess the didn’t want to loose any votes. wake up idiots, raise all the rates. it’s not like we have any real competition