Does Moving From The Pay
This does occur during the transition. As a result of prior pay-as-you-go financing, there are legacy costs from past production that must be paid. In the case of the Postal Services retiree health benefit obligations, these unfunded liabilities had built to $74.8 billion by the time PAEA was enacted. With the switch to the funded approach, those obligations from the past must be paid and, in addition, the full costs of the future retiree health benefits pledged each year in return for current labor services must be reported and paid.
Are You Planning To Retire
While the Office of Personnel Management makes all decisions regarding retirement entitlement, current employees are required to apply for retirement through the USPS Human Resources Shared Services . Learn more.
Dont forget to act to maintain your NALC membership when you retire to continue to receive the many benefits of membership. Learn more.
Retirees are an essential part of NALCs political and legislative advocacy efforts. Learn more.
for other useful documents and resources.
Director Of Retired Members
Dan Toth was elected NALC director of retired members in 2018 through an election conducted by mail. Full bio
NALCs Retirement Department serves the members, active and retired, with advice and assistance regarding pre-retirement and post-retirement issues. These issues primarily involve the Office of Personnel Management and its administration of the Civil Service Retirement System and the Federal Employees Retirement System . But the issues also at times intersect with other agencies and programs, including the Thrift Savings Plan , Medicare, Social Security, Federal Employees Group Life Insurance and Federal Employees Health Benefits .
Retirement resources
This NALC booklet covers Civil Service Retirement System retirement eligibility, credit for service, types of retirement, survivor elections, the Thrift Savings Plan, health and life insurance, and more.
for more resources.
2023 Retiree COLAs Projection: 8.9% as of July 2022
The 2023 COLAs for CSRS and FERS benefits are based on the increase in the average CPI-W between the 3rd quarter of 2021 and the 3rd quarter of 2022 .
Based on the July 2022 CPI-W of 292.219, the 2023 CSRS and FERS COLAs are currently projected to be 8.9%. The 2023 retiree COLA calculation will be finalized in October 2022 with the release of the CPI-W for September 2022.
General contact information
More information:
- Director Toths workshop PowerPoint presentation, CSRS and FERS: A Guide for Employees Approaching Retirement.
Also Check: Bfi Retirement Plan Pension Center
Law Requires Postal Retirees To Enroll In Medicare
The landmark Postal Service Reform Act Congress passed this week ends the mandate that the Postal Service pre-fund its retiree health benefit costs and requires postal workers to enroll in Medicare Parts A and B when they turn 65. The latter provision could end up affecting all federal employees.
All current federal retirees, including current postal retirees, can choose whether or not to enroll in Medicare Part B. Plans in the Federal Employee Health Benefits program cover retirees whether they enroll in Medicare or choose to maintain coverage under FEHB only.
In the private sector, very few Americans have a choice of whether or not to enroll in original Medicare at age 65 if they want to maintain their employer-sponsored health insurance in retirement. Some companies offer retiree health benefits exclusively through Medicare Advantage plans.
Of course, many employees lose their employer-sponsored health insurance entirely when they retire. They can enroll in either a Medicare supplement plan or a Medicare Advantage plan. Both are available to people who have Medicare Part A and Part B. Most private sector retiree health plans are designed to supplement Medicare, and might not pay your medical costs during any period you were eligible for Medicare but did not sign up for coverage. Military retirees also must prove they are enrolled in Medicare Parts A and B if they want to continue coverage under TRICARE, which is then called TRICARE for Life.
Fegli Living Benefit Option
We all hope we will never need to use this option but if you do you can elect to receive a lump sum FEGLI insurance payout if you are diagnosed to be terminally ill and have a documented medical prognosis showing a life expectancy of no more than nine months. Employees, annuitants, or compensationers enrolled in the FEGLI Program are eligible to elect a Living Benefit. /p>
Employees can choose a full or partial Living Benefit while annuitants and compensationers are limited to electing a full Living Benefit. Living Benefits are equal to theBasic Life insurance amount, plus any extra benefit for persons under age 45, that would be in effect nine months after the date of the Office of Federal Employees’ Group Life Insurance receives a completed claim for Living Benefits form. The OFEGLI is a private entity that has a contract with the Federal Government to process and pays claims under this program.
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How The 50 Percent Reduction Works
With the 50percent reduction option for BIA, the retiring employees BIA on the day ofretirement is reduced by 1 percent of the original BIA per month starting themonth after the retiree becomes age 65 until it reaches 50 percent of the BIA onthe day of retirement. This will take 50 months, or 4 years and 2 months tohappen. Unlike the 75 percent reduction option, the 50 percent reduction is notfree. The cost is $1.035 per $1,000 of coverage per month until age 65 and $0.71 per $1,000 of coverage per monthstarting the month after the annuitant becomes age 65 .
With the No Reduction of BIA option, there is no reduction to the amount of BIA on the day of retirement. The annuitant keeps the full BIA amount throughout retirement, but a significantly higher premium cost compared to the BIA cost as an employee. The cost for the No Reduction BIA is $2.455 per $1,000 of coverage per month until the annuitant becomes age 65 and $2.13 per $1,000 of coverage per month starting the month after the annuitant becomes age 65 .
Does The Postal Service Provide Health Coverage To Its Workers After They Retire
Yes. The Postal Service is part of the Federal Government, and that means postal workers are federal employees. As a result, career postal workers are generally eligible to receive health coverage through the Federal Employees Health Benefits Program. Some noncareer postal employees can also receive health benefits through the program. Following their retirement, postal employees who enrolled in the FEHB Program during their working years have the option of remaining in the program. Retiree health coverage is a valuable fringe benefit for postal workers but a major expense for the Service.
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Why It May Make Sense To Keep The Full Basic
Electing to keep coverage into retirement becomes more of a business decision. What I mean by business decision is that it can be a smart move financially to keep 100% of basic coverage. I have seen scenarios where a person is retiring at the age of 79. He has to pay the same premiums of a federal employee that retires at the age of 57. When we ran numbers out to age 90, the return on investment looked very good for his beneficiaries.
I have worked with other people whose health had declined by the time they were retiring. In a situation like this, you would want to look at different life expectancies and the return on investment to your beneficiaries. It may be a very good return on investment if you keep basic at 100%.
Keep in mind that the amount you are paying for is actually 75% of your Basic because the 25% coverage is free after the age of 65 or retirement).
What Will Be The Maximum Social Security Benefit In 2022
In 2022, the maximum Social Security benefit will be $ 4,194 per month. However, most people wont come close to maximizing their benefits. If youre still working and hoping to get the highest social security check you can get, youll need to earn more in 2022 than in 2021 to be on track to do so.
Will Social Security get a raise in 2022?
The $ 47 increase will particularly benefit the nearly 3 million Americans who receive both Social Security and SSI benefits. If you receive both SSI and regular Social Security payments in 2022, that could mean close to $ 2,500 per month.
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In 2003 Congress Allowed The Postal Service To Reduce Its Future Pension Contributions And In 2006 Congress Established The Rhbf How Were The Two Actions Related
In 2002, at the request of the General Accounting Office , the U.S. Office of Personnel Management examined the adequacy of the Postal Services pension funding. Contrary to expectations, OPM discovered that the Service would overfund its pension liabilities by billions of dollars unless it contributed less in the future. In response, the Bush Administration called for legislation to head off the pension overfunding, and Congress promptly enacted the Postal Civil Service Retirement Systems Funding Reform Act of 2003 . The law permitted the Service to lower its pension contributions and directed that some of the Services savings be used to pay down debt, some go toward delaying a rate increase, and some be held in an escrow account while Congress developed postal reform legislation.
The 2003 Act also expressed the sense of Congress that because the Postal Service still faces substantial obligations related to postretirement health benefits for its current and former employees, some portion of the savings should be used to address those unfunded obligations. Congress was aware and concerned that the Service had put aside nothing to fund its billions of dollars of retiree health care liabilities. In 2006, Congress and the Administration remembered the pension relief and recognized the opportunity it provided. While PAEAs centerpiece was a new system of postal rate regulation, the act also established the RHBF.
How To Cancel Basic Or Optional Life Insurance Coverage
Federal retirees, unless they haveassigned their life insurance, may cancel Basic or Optional life insurance coverage at any time. Any cancellation or reduction of life insurance coverage must be in writing and have an original signature by the insured retiree. Be sure to include your retirement claim number or social security number and specify what action you want taken.
Please note that you cannot increase your coverage after retirement, or reinstate any coverage that you cancel.
Write to: U.S. Office of Personnel Management Retirement Operations Center P.O. Box 45 Boyers, PA 16017-0045 The FEGLI election form is usually for employees, but I would complete it and send it with your written request for the reduction.
Also Check: Federal Government Employee Retirement Benefits
Termination Of Insurance After Retirement
Your federal life insurance will terminate if your entitlement to annuity benefits ends. For example, if you are a disability retiree under age 60 and you are found recovered or restored to earning capacity, your disability annuity and life insurance coverage will end. You do not have the 31-day extension of coverage and may not convert the life insurance to an individual policy.
Would The Proposal Impose Any Costs On Medicare
Clearly it would. That is a concern because Medicares long-term finances are even worse than those of the Service, with Medicare Part A projected to go broke in 2028. Although the Postal Service emphasizes that the extra costs on the Medicare program would be small relative to Medicares total current costs, the percentage is small only because Medicares total costs are so large.
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Health Benefits & Life Insurance
The Federal Employees Group Life Insurance program is available to all employees. The FEGLI program offers low cost term life insurance for the employee and basic coverage for the family. FEGLI offers up to five times the employees salary in death benefits.
Other insurance benefits include:
- Federal Employees Long Term Care
- Federal Employees Dental Vision Care
- Federal Flexible Spending Account Program
One of the primary benefits of Postal Service employment is the satisfaction you experience from working in a challenging and rewarding position. Positions are available with the level of responsibility and authority that you desire.
Fegli Options For Usps Life Insurance And Lite Blue
FEGLI options include FEGLI Option A, Option B and Option C. FEGLI Option A Standard provides additional coverage of $10,000. FEGLI Option B allows Postal Service employees to add coverage equaling up to five units or multiples of your annual rate of basic pay.
FEGLI Option C provides coverage to family members of Postal Service employees. When you elect for Option C, all eligible family members are automatically enrolled. Coverage for the USPS employees spouse is limited to a maximum of five units of $5,000 each, and up to five units of $2,500 each for every eligible child.
You can choose one or more of the FEGLI options in addition to Basic life insurance. The options are only available to those who are enrolled for FEGLI Basic.
It is not possible for existing USPS Life Insurance employees who have waived FEGLI Basic or want to change or add options to do so at any time they want. They must either wait for a FEGLI open season , or provide evidence of a qualifying life event that makes them eligible to modify their FEGLI coverage and options. USPS Lite Blue is a part of the USPS portal for getting your own employment position, growth and more.
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How Much Did The Service Pay In Health Benefit Premiums In Fiscal Year 2015
Health coverage is an expensive fringe benefit. The Service reported that approximately 492,000 active employees received health benefits in 2015, at a cost to the Service of $4.8 billion. In addition, roughly 490,000 annuitants and survivors were enrolled in the FEHB Program, and the Service spent $3.1 billion on their premiums in 2015.
Is The Postal Service Which Officially Lost $568 Billion During The Years 2007
As an example of this position, Ralph Nader said in 2011, The deep hole of debt that is currently facing the U.S. Postal Service is entirely due to the burdensome prepayments for future retiree health care benefits imposed by Congress in the PAEA. If the prepayments required under PAEA were never enacted into law, the USPS would not have a net deficiency but instead be in the black. More recently, the American Postal Workers Union asserted, The USPS financial crisis is a manufactured one. If not for that requirement, the Postal Service would have done quite well financially over the last few years. The basic flaw in these arguments is that they try to wish away the Services retiree health care obligations. If those obligations did not exist, the Postal Service would indeed be close to profitable and the RHBF would be unjustified. As explained earlier, however, the Services retiree health care promises, and the costs associated with them, are very real and very large.
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Postal Employee Benefits Post Office Jobs
The Postal Service retirement system is the same as the federal civil service. Annuitants receive 1% of their high three earning years average salary for each
The Postal Service offers coverage through the Federal Employees Group Life Insurance Program. The cost of basic coverage is fully paid by the Postal
Federal Employees Group Life Insurance · You may decrease FEGLI coverage at any time · To make a change to FEGLI coverage you must complete an SF 2817,
Fegli Program Booklet For Postal Employees Opm
PDF The FEGLI Program offers group rates and convenient payroll deductions. The U.S. Postal Service pays the entire cost of USPS employees Basic life insurance.
The FEGLI Program offers group rates and convenient payroll deductions. The U.S. Postal Service pays the entire cost of USPS employees Basic life insurance.
The Federal Employees Group Life Insurance covers more than 4 million postal and federal employees and retirees, as well as many of their family
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When The Service Defaults On Statutory Funding Contributions How Is That Recorded
The required contribution amount is reported as a cost, and it reduces profits or widens losses. Because no contribution is actually made, there is no addition to fund assets. For instance, the Postal Services statutory RHBF contribution in 2015 was $5.7 billion. Together with other costs, that obligation contributed to the Services $5.1 billion net loss in 2015. However, because the Service defaulted on the payment, it obviously did not reduce cash on hand, did not add to RHBF assets, and did not reduce the unfunded retiree health benefits liability.
The Postal Service Also Offers Most Of Its Workers Pension Benefits Are The Two Programs Related
No, they are separate fringe benefits. Three similarities, though, are that both are forms of deferred compensation they are expensive and they are increasingly uncommon outside the government sector. s, are rapidly replacing defined benefit pensions in the business and nonprofit sectors. And, as mentioned above, fewer and fewer employers outside the government sector offer retiree health benefits.)
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Postal Fegli Code Explanations
Postal FEGLI Code Explanations. Numeric Codes: Definitions Basic Life & Option A-Standard. E. **Option C Family insurance withholdings an employee.
Mar 9, 2022 About 90% of Postal Service retirees and survivors now have Medicare Part A hospitalization coverage, and about 80% of Medicare Part B
You can keep your existing life insurance when you retire, but you must submit questions or claims directly to the Office of Federal Employees Group Life
