Retired Postal Worker Fights To Get More than Half Of Pension
OPM backlog affecting recent postal retiree.
Mt. Vernon, OH –
A Mt. Vernon veteran who devoted three decades to the U.S. Postal Service as a mail carrier says he is now receiving only about half his pension check from the federal government.
Jon Minard served in Vietnam, losing an eye to a grenade, before returning home and working at the U.S.P.S. delivering mail for thirty years. He worked in Dublin before eventually moving to Mt. Vernon.
When Minard retired last August, he expected his pension check to be there. Instead, he says he is only receiving a little more than half of the $2500 he is owed.
Minard says it is a frustrating chapter to an agency he had always been able to rely on.
source: Veteran Fights Federal Government For Pension Check | NBC 4i.
OPM Announce Changes in Life Insurance Premiums
The Office of Personnel Management (OPM) is announcing changes in premiums for certain Federal Employees’ Group Life Insurance (FEGLI) categories. These include changes to premiums for Option B (most age bands), Option C (all age bands), and Post-Retirement Basic Insurance (for annuitants only).
There will be no change in premiums for Basic Employee or Option A coverage.
New Premiums
OPM has completed a study of funding and claims experience within the FEGLI Program. Based on this updated actuarial analysis of actual claims experience, OPM has determined that changes are required to Option B, Option C, and Post-Retirement Basic premiums.
Experience in all Option B age groups, other than the oldest groups (ages 75-79 and 80 and over), shows we should make a slight decrease in premiums. We are reducing premiums for the following age bands for Option B: Under 35, 35-39, 40-44, 45-49, 50-54, 55-59, 60-64, 65-69, and 70-74. The last premium change to Option B was implemented in 2005.
We are also reducing Option C premiums for enrollees under age 45, and increasing premiums for age groups age 45 and over. We are decreasing premiums for the following age bands: Under 35, 35-39, and 40-44. We are increasing premiums for the following age bands: 45-49, 50-54, 55-59, 60-64, 65-69, 70-74, 75-79, and 80 and over. The last premium change to Option C was implemented in 2005.
The extra premium for Post-Retirement Basic FEGLI will increase for those enrollees who elected the 50% Reduction and No Reduction at retirement. The extra premium for the 50% Reduction election for Basic insurance is $0.64 per $1,000 of coverage; and the extra premium for the No Reduction election for Basic insurance is $1.94 per $1,000 of coverage. The last premium change to Post-Retirement Basic FEGLI was implemented in 2003.
Effective Date
The effective date for the new premiums is January 1, 2012. Payroll offices must apply the new premiums the first pay period beginning on or after that date.
Payroll Office Notification
OPM’s Financial Reporting and Analysis Staff will notify payroll offices of the new premiums through a BAL in the 300 series.
source: Office of Personnel Management
VIDEO: OPM Introduction to Open Season 2011 Webcast
OPM’s Healthcare and Insurance staff will be hosting five informational webcasts for the 2011 Federal Benefits Open Season. In these webcasts, OPM explains the basics of Open Season and the benefit programs involved. Read more
OPM Announces 2012 FEHBP Premium Rates
Washington, DC - The U.S. Office of Personnel Management (OPM) announced today that the average premium for the 8 million people enrolled in the Federal Employees Health Benefits program (FEHBP) will increase by 3.8 percent for non-postal employees and all annuitants in 2012, which is approximately half of last year’s increase of 7.3 percent. Read more
Congressman Issa’s Bill Would First Layoff Retirement Eligible Postal Employees
Filed under: politics, postal, postal news, retirement, usps
Congressmen Darrell Issa and Dennis Ross’ amendment to its Postal Reform bill will require USPS to “separate” all retirement eligible employees prior to laying off any workers not yet eligible for a pension, and to “separate” the most senior of them first: Read more
MSPB Accepting Amicus Briefs in Postal Workers’ National Reassessment Process Cases
Thanks to a PostalReporter.com reader for alerting us to this notice.
The Merit System Protection Board (MSPB) has announced an opportunity for interested parties to file amicus briefs (Literally, friend of the court. A person with strong interest in or views on the subject matter of an action, but not a party to the action) in cases pertaining to USPS’ National Reassessment Process (NRP). The amicus brief will pertain to OPM’s regulation 5 C.F.R. § 353.301(d) requiring USPS to “make every effort” to restore a partially recovered employee to limited duty within the local commuting area.” Read more
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
Senator Carper Statement on USPS Decision to Suspend FERS Payments
WASHINGTON – Today, Sen. Tom Carper (D-Del.), chairman of the subcommittee with jurisdiction over the U.S. Postal Service, released the following statement reacting to the Postal Service’s decision to suspend its Federal Employees Retirement Systems (FERS) payments:
“Today’s drastic action by the U.S. Postal Service underscores the urgent need for Congress and the Administration to act quickly to address the serious financial problems facing the Postal Service. In essence, this is the canary in the coal mine moment for the Postal Service. If we don’t heed this warning and act quickly, the Postal Service as we know it will cease to exist in the very near future, possibly by the end of this fiscal year. This would effectively shut down the U.S. mailing industry that depends on the Postal Service. A shutdown of an industry of its magnitude, with some 7 million employees and more than $1 trillion in revenue every year, would be catastrophic to our fragile economic recovery.
“It’s estimated that the Postal Service has overfunded its obligations to the Federal Employees Retirement Systems (FERS) by about $7 billion. The Postal Service’s decision to suspend payments to FERS is just one painful step of many that may be necessary to help keep the Postal Service solvent in the short term. It will not, however, fix all that ails the Postal Service.
“Earlier this year I introduced comprehensive legislation, the POST Act, to address the significant challenges facing the Postal Service and to put the Service back on a solid financial path. We need to move quickly on this effective and comprehensive legislation before it’s too late. My bill requires all parties – postal management, employees, customers, and the Postal Service’s competitors – to make sacrifices to ensure the solvency of the Postal Service over the long term.
“It also gets Congress out of the way by providing the flexibility and tools necessary to address the problems plaguing the Postal Service in an effective way. One of the reasons why the Postal Service finds itself in this precarious financial state is that for decades it’s overpaid into not only FERS, but also to the older Civil Service Retirement System (CSRS), totaling between $50 billion and $75 billion. Currently, it is unlawful for the Postal Service to use these overpayments to meet other overall Postal Service expenses. My bill would change that.
“I’d like to thank the Obama Administration for working with the Postal Service to take this difficult short-term action without threatening postal employees’ pension eligibility. I urge the Administration to deepen its cooperation with the Postal Service and Congress in the coming days to help us find a long-term solution to ensure the Postal Service’s survival. Despite the dire fiscal outlook, there is hope for the Postal Service’s future. We can turn things around by quickly passing comprehensive legislation, such as the one I’ve proposed, that would give the Postal Service the room it needs to manage itself and avoid it becoming the latest victim of Congressional gridlock.”
source: http://carper.senate.gov/public/index.cfm/2011/6/sen
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
Issa Says USPS Needs Reform To Protect Taxpayers From Expensive Bailout
Issa Statement on Postal Service Decision to Stop Making Retirement Contributions
Today, in response to the United States Postal Service (USPS) announcement that they will stop making employer’s contributions for the defined benefit portion of the Federal Employees Retirement System (FERS) for their employees, House Committee on Oversight and Government Reform Chairman Darrell Issa, R-Calif. issued the following statement:
“The United States Postal Service, our nation’s second largest employer, is now past the brink of insolvency. This would not be tolerated in a private company. Incredibly, the unprecedented action to suspend these payments will only offer USPS an additional $800 million through the end of the year in liquidity, not even 10 percent of their projected deficit of $8.3 billion. USPS needs fundamental structural and financial reforms to cut costs and protect taxpayers from an expensive bailout.”