The U.S. Postal Service Office of Inspector General intends to award a firm-fixed price contract to a Supplier who possesses specific subject matter expertise in the area of retirement benefits. The purpose of this contract is to compare the U.S. Postal Service’s retirement benefits program to retirement benefits programs offered by major private sector companies.
Under the Postal Reorganization Act, the Postal Service is obligated to provide wages and benefits comparable to those provided in the private sector. However, Postal Service management believes that the FERS system is more costly and does not compare to retirement benefits provided in the private sector. The private sector has the ability to adjust to market conditions through changes in plan design, portability, investment strategy and other factors that reflect “best practices” in compensation and benefit policies.
Postal Service management is proposing a new retirement system, which it feels would benefit both new employees coming on board and the Postal Service. Management believes that by shifting to a Postal Service-administered retirement system, the Postal Service can more fully reflect the private sector trend and incorporate private sector best practices. This change would not impact existing retirement systems for current employees.
source: Federal Business Opportunities
Project Title: Retirement Benefits
Agency: United States Postal Service OIG
Office: Supplies and Services Purchasing