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Postal Service IG: Agency Overfunded FERS Program by $11B

A Postal Service inspector general analysis has recommended the Office of Personnel Management calculate the USPS’ obligations to the federal employees retirement system differently next time, Federal Times reports.

According to Sean Reilly’s report, OPM calculated FERS funding under the assumption that the governmentwide salary growth was 4.11 percent between 2001 and 2010.

An actuarial firm found that Postal Service has overfunded its obligations by $11.4 billion.

The firm said that from 2001 to 2010, the Postal Service’s unionized salary growth was between 2.77 percent and 3.41 percent annually and many employees have already reached the maximum pay scales.

Postal Service spokesman Dave Partenheimer said the excess FERS funding is a source of the agency’s funding problems, adding OPM should adjust the USPS’ contribution rate, Reilly reports.

However, Jan Foley, OPM’s director of planning and policy analysis, told Federal Times the law mandates that FERS contributions must be estimated based on governmentwide data.

In June, the Postal Service’s IG released an audit saying the agency overfunded a federal pension fund by nearly $13 billion.

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