USPS: New law will effect employee health and retirement benefits.

The Postal Service Reform Act, signed into law on April 6, will affect employees’ health and retirement benefits.

April 12, 2022
The Postal Service reform legislation that President Biden signed into law on April 6 will involve changes to employees’ health and retirement benefits.

USPS understands that employees have many questions, so here are a few things to know:

The law establishes the Postal Service Health Benefits (PSHB) Program, which will provide health insurance to USPS career employees, retirees and their dependents, beginning Jan. 1, 2025.

The PSHB program, to be administered by the U.S. Office of Personnel Management, will be structured similarly to the Federal Employees Health Benefits (FEHB) Program. The employer/employee cost-sharing contributions for premiums will be determined by the Postal Service’s collective bargaining and pay consultation processes.

USPS employees and retirees can make their PSHB plan selections during the open season benefits enrollment period that occurs in November and December 2024.

Beginning in January 2025, the new law will require all newly Medicare-eligible USPS annuitants and their Medicare-eligible covered family members to enroll in Medicare Part B to maintain their postal health coverage.

The Postal Service will provide employees and retirees with more detailed information about the PSHB program in the months to come.

Source: USPS

H.R.3076 – Postal Service Reform Act of 2022

3 thoughts on “USPS: New law will effect employee health and retirement benefits.

  1. Email Address
    rslitz@bellsouth.net

    I’m 86 years old – My husband was a postal service employee, retiring in 1989, and we have had NALC high Option Plan for over 20 years – My husband died in 2020 – I still have this insurance – Will I be forced to go into the NALC High Option Plan, Aetna Medicare Advantage in November 2024? I don’t want to give up my Original Medicare – I want it to be in control – Can I go into Blue Cross or another insurance option in November 24 in order to keep my Original Medicare?

  2. Union and NAME of Local/Branch
    APWU - Philadelphia, retired
    Email Address
    Roland444@aol.com

    Anytime new legislation has the word “reform” or is sponsored “bipartisan” you know you’re “screwed.”

  3. Union and NAME of Local/Branch
    APWU - Philadelphia, PA Area Local
    Office held, if any
    Retiree Activist and Advocate
    Email Address
    RZelznick@aol.com

    “Beginning in January 2025, the new law will require all newly Medicare-eligible USPS annuitants and their Medicare-eligible covered family members to enroll in Medicare Part B to maintain their postal health coverage.”

    “Medicare-Eligible” also includes those employees who have taken Disability Retirements from the agency, no matter what their age. Why, for example, should a 40 year old disabled retiree on a fixed income have to pay an additional $2000/year to maintain FEHB?

    The ideal of “an injury to one is an injury to all” is dead in the postal unions and in others who supported this postal reform legislation.

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