NAPS: Trump Budget Would Reduce Postal Paychecks, Retirement Benefits

National Association of Postal Supervisors (NAPS) Leg/Reg Update :

napsmasthead

naps-logo5/25/17 The Fiscal Year 2018 budget sent to Congress by President Trump earlier this week proposes legislative changes that would impose dramatic cuts in federal retirement benefits for current and future retirees and potentially erode the current size of postal employee paychecks.  It also would provide a modest set of reforms to the Postal Service, but rely chiefly on employee compensation cuts to restore financial solvency.

Cuts in Retirement Benefits, Increases in Employee Contributions

For all postal and federal employees and retirees, the Trump budget proposals would:

  • Use a high-5 average salary instead of a high-3 in the computation of new Federal Employee Retirement System (FERS) annuities;
  • Eliminate the “Social Security supplement” for all future FERS retirees. (The Social Security supplement covers the gap for FERS workers who retire before they qualify for Social Security benefits at age 62.);
  • Eliminate the Cost of Living Adjustment (COLA) for all new FERS retirees and reduce the COLA for Civil Service Retirement System (CSRS) retirees by 0.5 percent; and
  • Equalize the employee and government employer share of the FERS contribution rate to a 50/50 split through a phased-in approach spanning six years.

The Trump budget proposal does not cut Social Security or Medicare benefits, fulfilling the President’s campaign promise not to hurt those retirement programs.

Postal Service “Reforms”

In addition, the Trump budget proposes a series of “reforms” for the Postal Service, many that coincide with the key elements of H.R. 756, the foremost postal reform measure pending in Congress, but without reliance on the integration of Medicare health benefits to achieve savings.

Instead, the Trump budget seeks savings through proposed service reductions and greater flexibility in USPS rate-setting authority.  Overall, the Trump budget claims to achieve $46 billion in Postal Service and general treasury savings over the next 10 years. More than half of that amount ($27 billion) would arise through hikes in postal employee contributions toward pension and health benefits, as well as cuts in retiree pension benefits themselves, consistent with government-wide proposals for all federal employees.

For postal employees and USPS, the Trump budget specifically proposes:

  • The same cuts in retirement benefits, COLAS, and increases in employee contributions for USPS employees, as proposed for civil servants.   This would save USPS $33 billion over 10 years.
  • Increasing USPS employees’ contributions toward their health and life insurance, achieving $1 billion in savings.
  • Increasing USPS innovation collaboration with state and local governments;
  • Reducing door delivery “where appropriate”;
  • Changing the BOG governance structure;
  • Use of postal-specific assumptions about the demographics of the USPS workforce to prevent possible overpayment into the agency’s Federal Employees Retirement System account; and
  • More USPS flexibility in setting its prices.

Long, Complicated Process Lies Ahead
 
Some Congressional lawmakers on both sides of the aisle characterized the Trump budget as “dead on arrival” and pointed to Republican intra-party differences on Federal spending that are likely to complicate the budget picture and the final outcome.

Observers also expressed concern that Congressionally-imposed budget reductions in “mandatory” government spending, including cuts in federal retirement benefits, could occur through the legislative “budget reconciliation” process, requiring only a bare-majority of approval in both Congressional chambers.

“One thing is clear,” NAPS President Brian Wagner said.  “Throughout the months ahead, NAPS will resist attempts by Congress to adopt measures proposed by the Trump budget that unfairly target the Postal Service, its employees or its retirees.”

NAPS

21 thoughts on “NAPS: Trump Budget Would Reduce Postal Paychecks, Retirement Benefits

  1. Make sure you know what you’re talking about wtodd before you go blowing off your mouth. Tread lightly when you talk about farm subsidies. Farmers only get a subsidy when the cost of production is greater than what they can sell the product for. Currently they are getting $0, even though they are only breaking even. Without a subsidy when they are given one, the price of food would sky rocket. This is a postal website. I suggest you stick to that.

  2. Glen Divonte needs to understand that we can’t afford the wall , he needs to understand we can’t afford more military toys, he needs to understand we can’t afford, nor should we pay for more corporate wealthfare! If the national debt is so bad how can we pay for big tax cuts? If the tax dollars are given to the big time operators that doesn’t add to the debt. Only if the common citizen is given anything. Cut FEMA, farm price subsidies, aid to Israel, and aid to depend business. Time for the rich to be self reliant!

    • And not pay billions in US$$$ to defend Europe when they can pony up to defend themselves.

  3. Well Randy I’m glad you voted for President Dump, I only hope you still bless him when you face the cuts! And I hope you still bless him when the rich suck more off the tax payers. Better the rich prosper off you.

  4. I can barely get by now on my
    CSRS pension.
    The gov’t actuaries did a good job of keeping me planted in my chair.
    What a bunch of crap.
    The whole system is a con game to the finish line.
    The health care benefits for reduction are supported by all postal worker unions head honchos. Give me a break.
    If I could go back I would of skipped this postal job, between attitudes and always being in debt as a worker, I said worker, not a high paid supervisor.
    Pay and benefits is just one constant tweak of being screwed all your life by millionaires.
    Not to leave out all the mental giants you have to deal with.

  5. Everyone needs to understand that the current spending for retirement pay and benefits for the retired Federal workforce in not sustainable. The same is true for Social Security and Medicare. Unless we agree as a nation to bring spending in line with revenue, we will be in the same boat as Venezuela and Greece. Do we really want to continue as we are and wait for the U.S. financial system to collapse? Then how much will your USPS retirement be worth? We currently have a national debt of 20 trillion dollars which is growing at a rate of approximately 1.2 trillion per year, Unsustainable. For every dollar spent by the federal government, 40 cents of it is borrowed, Unsustainable. Therefore, we must allow our elected representatives to make the cuts necessary to balance the budget. Thank you, President Trump for at least making the attempt to correct this spending fiasco. Wake up you folks who are not looking at the big picture.

  6. Everyone needs to understand that the current spending for retirement pay and benefits for the retired Federal workforce in not sustainable. The same is true for Social Security and Medicare. Unless we agree as a nation to bring spending in line with revenue, we will be in the same boat as Venezuela and Greece. Do we really want to continue as we are and wait for the U.S. financial system to collapse? Then how much will your USPS retirement be worth? We currently have a national debt of 20 trillion dollars which is growing at a rate of approximately 1.2 trillion per year, Unsustainable. For every dollar spent by the federal government, 40 cents of it is borrowed, Unsustainable. Therefore, we must allow our elected representatives to make the cuts necessary to balance the budget. Thank you, President Trump for at least making the attempt to correct this spending fiasco. Wake up you folks who are not looking at the big picture.

  7. Trump won because #1 Illegal aliens,#2Blacl
    k lives matter thugs#3 Gay agenda end of story.I would rather pay more than have these Democrat supported groups calling the shots..Good things cost money

  8. So you don’t like Hillary but you want to take home less pay and also pay more on Health care and retirement is a good thing while the Democrats are the one’s who helped stop the closing of more Plants and P.O . Are you off your meds ?

    • Why didn’t Obama solve this problem? He had 8 years. Why did the DNC offer up a loser like Hillary to vote for? That’s the best they have? I think not.

  9. So does Congress take the same cut ? I think not , but they government workers as well ? Will do the same on their Health Care I think not . Special rules for so called special people. This while taxpayers take care of Congress .

    • The average pension for someone in congress is substantial compared to the ones that put in the time as a lifetime postal worker. Reaching more than double $ in numbers as to a postal worker. Congress retiree’s are seeing the world, we retired postal workers are seeing our chairs

  10. This shouldn’t really bother NAPS, most supervisors work well beyond retirement age because they never do any physical work. Their in heat in the winter and a/c in the summer and never have to carry weight that wears down carriers, mail handlers, and clerks bodies. They make more money per check and do less to earn it. About the hardest thing they do every day is get up and go to the coffee machine or bath room. So all this really doesn’t make much of a difference to NAPS.

  11. Someone thinks Hilary is Hitler. What of the actions and words of President Dump? He pushes people out of the way, has people work for him then files for bankruptcy and cheats them out of pay, treats women like dirt, tells his followers to punch fellow citizens, tells his supporters that he could shoot someone on Times Square and his followers they would still vote for him. He is such a winner.! You know how to pick them. As Herbert Spencer once said “Survival Of The Fittest”. If you fall to the wayside, tough! You are on your own.

  12. If you work for the USPS and you voted for Trump and support him, then you’re a special kind of stupid.

  13. Regardless what the proposal is, we are better off with President Trump than HITLERY.

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