Most of the Postal Service’s pension surplus is in the Federal Employee’ Retirement System and results from differences between inaccurate benefits assumptions about USPS versus the rest of the federal government, the USPS inspector general has said.
It cited an analysis by an actuarial firm that it hired – the Hay Group – recommending that the use of Postal Service-specific assumptions to measure the FERS liability.
When Postal Service-specific assumptions are used, the fiscal 2011 surplus increases from $11.4 billion to $24 billion, according to the analysis.
The IG noted there is currently no mechanism under current law for returning a FERS surplus once it has occurred.
Various legislative proposals are under consideration that would address the surplus as part of broader postal reform legislation, an issue that will be before Congress after the elections.
