The following payroll deductions are subtracted from postal employees’ gross earnings for federal income tax computations:
- Federal Employees Health Benefits (FEHB), unless employee declined the pretax benefit.
- USPS Noncareer Health Benefits (USPS HB), only if employee opted for pretax contributions.
- Federal Employees Dental and Vision Insurance Program (FEDVIP).
- Flexible Spending Accounts (FSAFEDS).
- Health Savings Account (HSA).
- Traditional Thrift Savings Plan (TSP).
- Commuter Benefit Program (CBP), up to $255 per month.
- Basic life insurance (FEGLI) is tax-free.
The Postal Service changed vendors a few months ago for
Flexible Spending Accounts (FSAs) (dependent care and health care expenses) and the Commuter Benefit Program (CBP). Discover more about your benefits at the USPS Benefits page. PSEs and CCAs are eligible for some immediately or after one year. In most cases, if you missed Open Season, you have 60 days to enroll after a Qualified Life Event.
For postal retirees, no deductions from your annuity are tax-free. Sorry.
First Name: Donald
Last Name: Cheney
Email: doncheney@live.com
Union/Local: APWU – Auburn WA Local
Office held if any: Retired President
Union and NAME of Local/Branch
American Postal Workers Union, AFL-CIO. Flint MI Area Local Retiree Chapter.
Office held, if any
Past President Michigan State Retiree Chapter & Former Central Region National Retiree Representative (a.k.a. Delegate)
Bro. Cheney. You took the words right out of my (mouth) keyboard. Retirees. Those who need it most are taxed the most! FEHB non-postal (meaning retirees) premiums, considerably higher than for active postal workers, do not have the benefit of deduction from pre-taxed earnings. We’re taxed on every penny!