Letter Carriers mobilize to oppose FERS bill
Feb. 6, 2012 — On Jan. 24, Rep. Dennis Ross, the chairman of the House Subcommittee on the Federal Workforce, U.S. Postal Service, and Labor Policy, introduced H.R. 3813, the Securing Annuities for Federal Employees Act. But it probably comes as little surprise that Ross’ measure, were it to become law, would in fact threaten the retirement benefits of federal workers—including postal workers.
Ross’ proposal calls for entirely eliminating the defined benefit component government workers receive under the Federal Employees Retirement System (FERS). Instead, under the Ross plan, FERS annuitants would be entitled only to the benefits earned through both Social Security and the Thrift Savings Plan (TSP). Read more
Rep. Lynch: Hearing On Reducing Retirement Benefits is Really Attack On Federal Workers
Rep. Dennis Ross, R-Fla., on Wednesday introduced a bill that would increase how much federal employees pay toward their retirement and steeply reduce pensions for new employees.
HR 3813, the Securing Annuities for Federal Employees Act, would raise contributions for current Civil Service Retirement System (CSRS) and Federal Employees Retirement System (FERS) employees by 0.5 percentage points per year for three years, beginning in 2013. This would make FERS employees contribute 2.3 percent of each paycheck toward their pensions, and require an 8.5 percent contribution from CSRS employees.
The bill would eliminate the so-called FERS annuity supplement for new retirees beginning in 2013, except for employees facing mandatory retirement such as air traffic controllers. Today, FERS employees who retire before reaching age 62 receive a supplement equal to the Social Security benefit they will be eligible for once they reach age 62. Read more
Editorial: FERS & CSRS Disability Retirement – Defending a Necessary Benefit
Filed under: Articles, Benefits, CSRS, FERS, postal, postal news
An exclusive article to PostalReporter.com written by Attorney Robert R. McGill
Does the Emperor receive his standing because of his hereditary anointment by the gods, or because of his superior governance abilities? Or, by giving generously to the lords and vassals and currying favor among them, does he retain power? Or, by giving lifetime gifts to the masses? Fear the emperor who consolidates power by doing the latter; for mob rule knows no boundaries, laws, or heavenly dictates. Power by lawlessness is indeed the origin of the reign of terror. – From, The Shadows of Machiavelli
Article 1, Section Eight, Clause 7 of the U.S. Constitution specifically empowers Congress to “establish Post Offices”, and to that extent, it is always important to recognize that the U.S. Postal Service is not merely a convenience or a Federal mandate which merely exists because some Senator or Congressman decided that it would please his or her constituents; rather, the Founding Fathers recognized the necessity of establishing a network of interstate commerce and communication between the various states, and the importance thereof.
As a Constitutional creation, the Postal Service deserves a special place in the budgetary process and decision-making deliberations during these times of debt-reduction efforts, of political conversations and debates. Where it is a Constitutional creation, the employees of such an entity should be provided with a compensation package which is commensurate with its status as a recognized and vital part of the Federal government. Federal Disability Retirement should remain a part of every Postal Worker’s compensation package, for reasons which are Constitutional, pragmatically justifiable, and because it is a progressive paradigm of cost-savings. Read more
Statement Of NAPS President On USPS Suspension Of FERS Contributions
Statement of National Association of Postal Supervisors (NAPS) President Louis M. Atkins on USPS Suspension of FERS Contributions, 06-23-11
June 22, 2011 — The U.S. Postal Service announced on June 22 that it immediately will suspend its bi-weekly contributions to the Office of Personnel Management (OPM) for Federal Employees Retirement System (FERS) benefits, citing overpayment of its FERS obligations by enough of a margin to where a nearly $7 billion surplus currently exists.
For months the Postal Service has indicated that its worsening financial condition will put at risk its ability to satisfy a series of financial obligations, including a statutorily-required advance payment of $5.5 billion in late September for future retiree health benefits along with fulfilling other basic operating expenditures. The termination of the FERS payments is the first in a series of last-ditch efforts by the USPS to remain financially solvent.
The National Association of Postal Service believes the Postal Service’s actions underscore the critical need for Congress to address the Postal Service’s pension surpluses in both CRS and FERS. Surpluses as large as $75 billion in CSRS and $7 billion in FERS may exist.
While the legality of the Postal Service’s action is unclear, USPS and OPM have agreed to seek legal review through the Office of Legal Counsel at the Department of Justice. If the Postal Service has erred, it will make the necessary catch-up payments.
In the meantime, OPM and USPS will continue to award full service credit for employees retiring from the Postal Service, regardless of the state of USPS-employer contributions to FERS. NAPS will continue to work to assure that the interests of its members and their retirement benefits are fully protected.
source:NAPS.org
PMG says suspension of FERS payment won’t affect employees
Yesterday, USPS said it’s suspending the employer’s contributions for the defined benefit portion of the Federal Employees Retirement System, or FERS. The Postal Service said it was taking this step to conserve cash and preserve liquidity.
Today, PMG Pat Donahoe — in a video message to employees — says the suspension will not affect them. Noting that USPS has a surplus of $6.9 billion in payments to FERS, he says “We simply are stopping this ongoing overpayment toward the annuity FERS retirees receive because we have already met that obligation.”
Donahoe says the suspension is “only a stop-gap measure,” adding Congress must approve legislation that can help the Postal Service return to profitability. As he has in the past, the PMG urges Congress to eliminate the requirement for pre-payments to the retiree health benefits fund; grant USPS access to the FERS overpayment; and give the Postal Service flexibility to determine the frequency of mail delivery.
Congressmen Cummings and Lynch Issue Statement On USPS Cash Conservation Plan
Washington, DC – Ranking Member Elijah E. Cummings and Stephen F. Lynch, Ranking Member of the Subcommittee on Federal Workforce, U.S. Postal Service and Labor Policy, issued the following statement on the U.S. Postal Service’s decision to suspend its employer’s contributions for the defined benefit portion of the Federal Employees Retirement System (FERS).
“Today, the Postal Service announced its intention of suspending its payments to the Federal Employees Retirement System (FERS) to address its budgetary shortfalls. This emergency measure only underscores the immediacy of the agency’s financial situation and the need for legislative action. Given the seriousness of this matter, we urge the Department of Justice to take a swift but thorough examination of this proposed move and, additionally, we ask that the Postal Service ensure that any decision will not adversely impact its current retirees or active employees. While a suspension of FERS payments may help now, the Postal Service will be unlikely to regain financial stability absent legislative action. H.R. 1351 would correct the Postal Service’s overpayment to the federal government of both its Civil Service Retirement System and Federal Employee Retirement System obligations, which is collectively in the range of $60 to $80 billion, providing the Postal Service with an opportunity to find long-term solutions. In light of today’s announcement, we call on our Republican colleagues on the Oversight Committee to give this legislation prompt consideration.”
NALC reacts to USPS statement regarding 2011 FERS contributions
June 22, 2011 — The Postal Service announced on June 22 that it is suspending its bi-weekly contributions to the Office of Personnel Management (OPM) for Federal Employees Retirement System (FERS) benefits (11.7% of basic pay), because its FERS account within the government-wide pension plan has a large surplus, and because it would like to preserve its cash reserves in the face of worsening economic conditions. Earlier this year, the Postmaster General announced that the USPS would not be able to make the $5.5 billion retiree health pre-funding payment scheduled for Sept. 30, 2011, and called on Congress to enact postal reform to avert a funding crisis that will occur when the USPS exhausts its $15 billion debt limit early next year. Read more
USPS, OPM Request Legal Opinion From Department Of Justice on FERS Payments
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
APWU President: ‘We Will Take Every Step Necessary To Ensure Retirement Benefits Are Protected’
The American Postal Workers Union is working fervently to make certain that the Postal Service’s decision to suspend employer contributions to FERS does not negatively affect the nation’s postal employees, President Cliff Guffey said on June 22. “We will take every step necessary to ensure that retirement benefits are protected. We are currently evaluating the best course of action.”
There is a solution to the Postal Service’s financial crisis, he noted:
- The USPS has overfunded its FERS and CSRS retirement accounts by billions of dollars;
- It is the only employer — public or private — that is required to pre-fund the healthcare benefits of future retirees. This obligation drains more than $5 billion annually from the USPS budget, and is the principal cause of the Postal Service’s dire financial circumstances.
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“Congress must act now to correct these inequities,” Guffey said. “It can start by passing H.R. 1351, which would allow the Postal Service to apply pension overpayments to the pre-funding obligation. This bill would provide the USPS relief from its financial crisis at no cost to taxpayers.
The Postal Service’s financial predicament is the result of flawed legislation (the Postal Accountability and Enhancement Act of 2006) that Congress can and must correct, the union president added.
“Postal workers did not cause USPS financial problems and their retirement benefits should not be jeopardized to solve them.”
source: APWU
USPS Notifies OPM of Its Intention to Suspend Employer’s Contributions To FERS
Filed under: FERS, opm, postal, postal news, press releases, usps
U.S. Postal Service Institutes Cash Conservation Plan- FERS account surplus valued at $6.9 billion
WASHINGTON — The U.S. Postal Service has informed the Office of Personnel Management (OPM) of its intention to suspend its employer’s contributions for the defined benefit portion of the Federal Employees Retirement System (FERS) to conserve cash and preserve liquidity. The Postal Service has a FERS account surplus valued at $6.9 billion. Read more