Retirement liabilities continue to play a starring role in the short- and long-term financial health of the U.S. Postal Service.
The Postal Service provides pension and health insurance benefits to its retirees through the Civil Service Retirement System (CSRS) and Federal Employees Retirement System (FERS) pension programs. It also provides health benefits for retirees through the Postal Service Retiree Health Benefits Fund (RHB). But last September, the U.S. Office of Personnel Management, which administers the program, calculated that CSRS and FERS were only 85 percent funded, and the RHB only 39 percent.
Our recent audit report examined a number of options to address the funding shortfall. The infographic below illustrates the current state of the postal funds and options available to reduce the shortfall, especially the RHB.