According to USPS:
Compensation and benefits costs represent approximately 65% to 71% of total operating costs. However, when workers’ compensation and retiree health benefits, including the legally mandated prefunding of the retiree health benefits, are added, total personnel costs increase to approximately 77% to 80%. Although many significant steps have been taken to decrease compensation and benefits costs in response to declining mail volume, many of these costs remain fixed and beyond the Postal Service’s control due to its participation in federal programs. Contracts with postal unions are negotiated for a fixed period of time, usually three to five years. They cannot be modified during the contract period
except by mutual consent. Retirement benefits are not determined by management but rather by the federal government, and healthcare benefit costs mandated by law or contract continue to rise well above the rate of inflation. In addition, the Postal Service’s ability to adjust its workforce and network infrastructure is limited by contractual, statutory, regulatory and political obstacles.
Employer contributions, as a percentage of employee basic pay for FERS will increase to 11.9% in 2012. Employee contributions for the past three years, as a percentage of employee basic pay were 7.0% for CSRS and 0.8% for Dual CSRS and FERS.
The number of employees enrolled in each of the retirement plans at the end of 2011, 2010, and 2009 is as follows:
Retirement Enrollment by Program
(Actual numbers) 2011|2010| 2009
CSRS- 79,014| 90,480 |110,024
Dual CSRS- 4,551|5,206 |5,947
FERS- 473,686| 488,222| 507,157
Total Enrollment -557,251| 583,908 |623,128