P. 1
OPM IG report on USPS Financial Relief

OPM IG report on USPS Financial Relief

Ratings: (0)|Views: 1,131 |Likes:
Published by bsheehan

More info:

Published by: bsheehan on Mar 01, 2011
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

03/01/2011

pdf

text

original

 
u.s.
OFFICEOFPERSONNELMANAGEMENT
OFFICEOFTHEINSPECTORGENERAl
AStudyoftheRisksandConsequencesoftheUSPS
OIG's
ProposalstoChangeUSPS'sFundingofRetireeBenefits
ShiftingCostsfromUSPSRatepayerstoTaxpayers
 
PageIntentionallyLeftBlank
 
OPMOFFICEOFTHEINSPECTORGENERAL
FEBRUARY2011
EXECUTIVE
SUMMARY
A
STUDYOFTHERISKSANDCONSEQ1JENCESOFTHEUSPSOIG'sPROPOSALSTOCHANGEUSPS'SFUNDINGOFRETIREEBENEFITS
SHIFTINGCOSTSFROMUSPS
RATEPAYERS
TOTAxPAYERSOneoftheprincipalresponsibilitiesoftheU.S.OfficeofPersonnelManagement(OPM)istheadministrationofthebenefitsprogramsforFederalcivilianemployeesandretirees.Aspartofthatduty,itmanagesandoverseestheCivilServiceRetirementandDisability(CSRD)Fund,thePostalServiceRetireeHealthBenefits(PSRHB)Fund,andtheEmployeesHealthBenefits(EHB)Fund.TheUnitedStatesPostalService(USPS)wasestablishedin1971,replacingtheformerU.S.PostOfficeDepartment(POD).Unlikeitspredecessor,theUSPSisanindependentestablishmentoftheExecutiveBranchratherthanaFederalagency.ThisdecisiontotransformthePODwasinfluencedbythefactthatitofferedwhatwereessentiallycommercialservicesandthuscouldbeexpectedtoproducetherevenuestocoveritsowncostsratherthanrelyinguponannualGovemmentappropriations.In2009and2010,theUSPSOfficeofInspectorGeneral(USPSDIG)issuedaseriesofreportscontainingproposalsthatwouldreduce,modify,oreliminatethelegally-mandatedpaymentsthattheUSPScurrentlymakesintotheOPM-administeredtrustfunds.Thesereportsmakethegeneralargumentthatthebasicgoalofeachoftheseproposalsistwo-fold:(1)toremedyanallegedinequityinthecurrentmethodbywhichtheUSPSfundsitsretireeobligations(bothannuityandretireehealthbenefits)and(2)toobtainoperatingcapitalfortheUSPS,atleastonatemporarybasis.
TheUSPSDIG'sProposalProposal1:TreatmentofFERSSurplus.
Thisproposalwouldchangethelawregardinganagency's
(in
thiscase,theUSPS's)contributionstotheCSRDFundmadeundertheFederalEmployeesRetirementSystem(FERS)sothatwhentheagencyhaspaidanamountinexcessofitscurrentliabilities,itmayeitherreceivearebateorbeexcusedfrommakingcontributionsuntiltheexcessisexhausted.

Activity (3)

You've already reviewed this. Edit your review.
1 thousand reads
1 hundred reads

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->