What you need to know about the U.S. Postal Service’s $9.5 billion pension plan
Posted February 12, 2019 05:01:51 The Postal Service will make $9 billion in pension payments to retirees in 2018 and 2019.
The retirement plan is designed to help the Postal Service meet the needs of its 2.6 million employees as well as the postal community.
In 2018, the Postal Accountability and Enhancement Act of 2019, which was passed by Congress in late March, increased pension contributions to $12.5 million a year.
Under the 2018 plan, the Postmaster General will also make $2 billion in contributions to the Postal Retirement System (PRS) and other federal agencies.
“These are modest contributions for the Postal service, but the Postal employees are a vital part of the Postal system,” USPS Secretary Robert Higgs said in a statement.
“They are among our nation’s most loyal and dedicated employees, and they will be well-represented by the postmaster general and our Board of Governors in the years ahead.”
The Postal Accountability & Enhancement Act also provides that the Post Office Retirement System will receive an additional $4 billion in future retirement funds.
As of 2018, it will receive $4.9 billion from the Federal Employees Retirement System and the Postal Regulatory Commission.
The PRS is a federal agency that helps cover costs for retirees, as well a nonprofit that oversees federal pensions.
The USPS has about 12,000 employees, including postal employees and retirees.
The Postmaster has more than 1.3 million employees, according to the USPS.
As part of its plan, employees will receive retirement benefits that include the following: $15,000 for every dollar that a USPS employee earns above the federal poverty level.
$3,000 per month for each employee’s share of the cost of living and health care expenses, up to a maximum of $18,000.