Section 1 establishes the title of the legislation as the “21st Century Postal Service Act of 2012.”
Table of Contents
Section 2 sets forth the table of contents for the four titles in the Act.
Title I: Postal Workforce Matters
Treatment of Surplus Contributions to Federal Employees Retirement System(FERS)
This section requires a calculation of the Postal Service’s FERS balance each year, and directs
any overpayment of these ratepayer dollars, contributed into FERS by the Postal Servicecompared to liabilities paid out, to be transferred to the Postal Service, upon request of thePostmaster General. For fiscal years 2011 through 2013, the section directs a portion of thisoverpayment to be used for retirement incentives, including buyouts (up to the existing cap forfederal workers of $25,000 for any one individual) or additional service credits under section102. If additional funds remain, these may be used by the Postal Service for certain other items
such as repaying debt, workers’ compensation payments, paying down the retiree health liability
and pension obligations.
Additional Service Credit
This section allows the Postal Service (through OPM) to offer up to one year of credited servicefor individuals in the CSRS pension system and up to two years for individuals in FERS as anincentive to encourage retirement. Thus, an individual who needed 30 years of service to retireand had 29 years of service could be offered an additional year
so as to be eligible forfull retirement. This section further provides that an individual who receives additional servicecredit as a retirement incentive may not also receive a cash buyout.
Restructuring of Payments for Retiree Health Benefits
This section would restructure the Postal Service’s pre
-funding requirements for retiree healthbenefits. The bill would immediately begin a 40-year amortized payment schedule for the PostalService to
fund retirees’ health benefits (previously scheduled to begin in fiscal year 2017). It
would also reduce the pre-funding goal for retiree health benefits to 80 percent of the projectedliability, a percentage closer to the 60-80 percent range used by private sector companies.
Postal Service Health Benefits Program