Does USPS Prepay Retiree Health Benefits?
The USPS is an organization that offers their career employees a wide range of benefits including ample vacation days, sick days and a retirement plan. Part of this retirement plan includes retiree health benefits.
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USPS Retiree Health Benefits in the Past
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USPS is the only agency in both the public and private sector that has been required to prefund retiree health benefits at the level the organization does. This high amount of prefunding helped create a $75 million dollar overpayment from USPS within the Civil Service Retirement System.
USPS Retiree Health Benefits in the Present
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USPS currently prepays retiree health benefits. These payments are prepaid on an annual basis for employees who are not even eligible for retirement yet, according to USPS. USPS believes that this prepayments have helped contribute to their projected $115 billion budget shortfall.
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USPS Retiree Health Benefits in the Future
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In early 2010, USPS announced that part of its action plan for a profitable future included asking Congress for the elimination of prefunding retiree health benefits. USPS maintains that this elimination would not reduce their commitment to current retirees as these obligations have already been paid in full. As of September 2010, this plan had not yet been addressed by Congress.
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It's too bad news channels aren't reporting this...Then maybe people will begin understanding what the employees really have to go through.
