The usual suspects in Congress are at it again, with a “reform” bill that contains a pre funding section, in addition to a number of poison pills that we are expected to swallow. Speaks for itself and should be stopped dead in it’s tracks.
Postal Service Health Benefits Program
• Establishes separately rated postal plans within the Federal Employees Health Benefits Program (FEHBP) beginning in January 2018.
FEHBP carriers currently insuring at least 1,500 postal employees and retirees, as well as any other carriers may offer postal plans.
Almost all postal employees and retirees who elect coverage through FEHBP must enroll in one of the postal FEHBP plans.
• Medicare eligible Postal Service retirees and family members are automatically enrolled in Medicare Part A and B.
The Postal Service will cover a decreasing portion of the Medicare Part B premium for current retirees transitioned into Medicare as a result of the legislation over a 4-year transition period: 75% in the first year; 50% in the second year; 25% in the third year; and 0% in the fourth year.
Postal Service Retiree Health Care Benefit Funding Reform
• Requires the Postal Service to make actuarial based Retiree Health Benefit (RHB) prefunding payments to cover 100% of the cost of the Postal Service’s RHB liability within 40 years.
• Addresses the prefunding schedule established in the Postal Accountability and Enhancement Act of 2006.
Postal Service Pension Funding Reform
• Calculates the Postal Service’s pension costs and liabilities using the salary growth and demographic assumptions that are specific to the Postal Service population instead of the government-wide population, as in current law.
• Any surplus within the Postal Service’s Civil Service Retirement System or Federal Employees Retirement System accounts must be amortized over 30 years and returned to the Postal Service.
Summary of Postal Service Reform Act of 2016:
First Name: Dan
Last Name: Kuralt
Union/Local: Springfield, MA Area Local 497
Office held if any: Retiree member