Fedweek

Removing postal employees and retirees from the FEHB risk and premium pool would have unknown effects on the remainder of the FEHB-eligible population. If the premise underlying the bill is correct that the postal portion overall is a more favorable risk, the effect could be to force up premiums for those remaining in FEHB by removing the postal contingent from the broader pool used now. It also carries a government-wide provision—again, with some exceptions—that would reduce FECA program injury compensation benefits for those totally disabled to 50 percent of the salary rate upon hitting Social Security full retirement age, currently 66. For those partially disabled, the benefit would be reduced to 50 percent of the difference between that salary rate and the person’s earning capacity. In addition, a special allowance for dependents generally would be ended after three years. The bill now moves to a Senate vote. In the last Congress, the Senate passed a somewhat similar bill that died when the House did not take up its own bill. The House version in this Congress similarly has cleared committee but has been hung up for a variety of reasons, including disputes over six-day mail delivery, potential closings of post offices and processing facilities and relief from an existing requirement to pre-fund retiree health insurance costs.