Postal Employees Again Targeted in White House Budget

Drastic cuts to postal employees’ wages and benefits are included within the White House’s fiscal year 2021 budget released on Monday, February 10. While the White House estimates its budget would save the Postal Service $97 billion over the next 11 years, it would be done so at the expense of its employees.

The FY21 budget takes direction from the 2018 Postal Task Force Report by calling for utilizing the private sector for mail sorting and processing, taking away jobs from union members. Impacting the mission of the Postal Service directly, the budget and the Task Force propose changing universal service obligations by reducing delivery frequency and providing access to the mailbox. The budget and the Task Force also attack union rights, calling for aligning the Postal Service with the rest of the federal workforce, which would mean moving away from collective bargaining rights over pay.

Current and retired employees would see negative impacts to both Civil Service Retirement System (CSRS) and Federal Employee Retirement System (FERS) benefits. Similar to language seen in previous White House budgets, the FY21 plan calls for changes to FERS and CSRS benefits. FERS employees would see an increase of contributions by 1% every year until it is equal to the contributions of the federal government; an elimination of the FERS supplement for those who retire before the age of 62; and elimination of cost of living adjustments (COLAs). CSRS retirees would face a reduction of COLAs by 0.5%. Further damaging to retirees, the FY21 budget utilizes a “high 5” instead of a “high 3,” using the highest five salary years to calculate annuities instead of the current highest three salary years. Finally, the budget calls to reduce the TSP G Fund interest rate, a change which has been decried as it creates a G Fund that is ineffective for investors and does not generate the budgetary savings promised.


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I drove by the Dallas BMC a few weeks ago. It looked like a ghost town. That’s a lot of building space. I’m sure the volume has decreased significantly over the years. I wonder if the staffing has decreased accordingly?

It has at the Kck BMC. We still have volume but not as much. Not as many people, too.

Vote out Trump in November. He’s probably got special interest in the private sector just waiting to privatize.

this is coming from the president who has ran up the national debt faster than any other president ! been bankrupt more than once cheated banks and employees out pay ! show the world your tax returns sir and I will gladly take a pay cut !

Well spoken psouth. Yes, he still owes many cites thousands of dollars from his campaign trail, too. Will they ever see their money… Probably not.

The President does what is good for the country as a whole not just for Postal employees. These are just suggestions. If the union does there job instead of hindering the PO we should be just fine. GO TRUMP>>>

Before we privatize the USPS, why don’t we try letting the postmaster have some autonomy over the cost of mail? 55 cents is ridiculous for the service. We need to raise prices to update infrastructure, pay and benefits to retain employees. What do you think would happen if we privatize? Once a week delivery, fighting for mailbox space, everyone parttime with no benefits, huge turnover and terrible customer service. We should be part of the federal government like the military.