USPS pension surplus looks much smaller than originally thought

Postmaster General Patrick Donahoe Postmaster General Patrick Donahoe J. Scott Applewhite/AP File Photo

The U.S. Postal Service has repeatedly pointed to an $11 billion surplus in its pension funds as a key to returning the agency to solvency.

As it turns out, the surplus might be much smaller than projected.

The Office of Personnel Management Direct John Berry said in a letter to Postmaster General Patrick Donahue that the surplus is closer to $2.6 billion due to lower interest rates, Bloomberg Businessweek has reported.

The surplus comes from the USPS payments into the Federal Employee Retirement System. The projected excess was reduced after actuaries recommended cutting long-term interest rates from 5.75 percent to 5.25 percent.

The USPS inspector general found in a recent report the surplus was created due to the growing gap between the salary of the average postal worker and the salaries of other federal employees.

The National Association of Letter Carriers has previously said the Postal Service should use its surplus -- then estimated at $11 billion -- to pay for changes needed at the agency.  
Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Sponsored by G Suite

    Cross-Agency Teamwork, Anytime and Anywhere

    Dan McCrae, director of IT service delivery division, National Oceanic and Atmospheric Administration (NOAA)

    Download
  • Data-Centric Security vs. Database-Level Security

    Database-level encryption had its origins in the 1990s and early 2000s in response to very basic risks which largely revolved around the theft of servers, backup tapes and other physical-layer assets. As noted in Verizon’s 2014, Data Breach Investigations Report (DBIR)1, threats today are far more advanced and dangerous.

    Download
  • Federal IT Applications: Assessing Government's Core Drivers

    In order to better understand the current state of external and internal-facing agency workplace applications, Government Business Council (GBC) and Riverbed undertook an in-depth research study of federal employees. Overall, survey findings indicate that federal IT applications still face a gamut of challenges with regard to quality, reliability, and performance management.

    Download
  • PIV- I And Multifactor Authentication: The Best Defense for Federal Government Contractors

    This white paper explores NIST SP 800-171 and why compliance is critical to federal government contractors, especially those that work with the Department of Defense, as well as how leveraging PIV-I credentialing with multifactor authentication can be used as a defense against cyberattacks

    Download
  • Toward A More Innovative Government

    This research study aims to understand how state and local leaders regard their agency’s innovation efforts and what they are doing to overcome the challenges they face in successfully implementing these efforts.

    Download
  • From Volume to Value: UK’s NHS Digital Provides U.S. Healthcare Agencies A Roadmap For Value-Based Payment Models

    The U.S. healthcare industry is rapidly moving away from traditional fee-for-service models and towards value-based purchasing that reimburses physicians for quality of care in place of frequency of care.

    Download
  • GBC Flash Poll: Is Your Agency Safe?

    Federal leaders weigh in on the state of information security

    Download

When you download a report, your information may be shared with the underwriters of that document.