NOTE 11 — RETIREMENT PROGRAMS
Our employees participate in one of three pension programs based upon the starting date of their employment with the federal government. Employee and employer contributions are made to the Civil Service Retirement System (CSRS), the Dual Civil Service Retirement System/Social Security (Dual CSRS), or the Federal Employees Retirement System (FERS), all of which are administered by the Office of Personnel Management. Employees may also participate in the Thrift Savings Plan (TSP), which is a defined contribution retirement savings and investment plan. Postal Service employees are authorized to participate in the TSP by the Federal Employees Retirement System Act of 1986. The TSP is administered by the Federal Retirement Thrift Investment Board.
CSRS — Under the Postal Reorganization Act, officers and career employees hired prior to January 1, 1984, are covered by the Civil Service Retirement System, which provides a basic annuity toward which we and the employee contribute at rates prescribed by law. Effective October 14, 2006, P.L. 109-435 suspends the obligation of making employer contributions for CSRS employees’ retirement until 2017. At that time, OPM will perform an actuarial valuation and determine whether additional payments are necessary. We do not match TSP contributions for employees who participate in CSRS.
Dual CSRS — Employees with prior U.S. government service who were hired between January 1, 1984 and January 1, 1987, are covered by Dual CSRS, which consists of a basic annuity and Social Security. We and the employee contribute to Social Security and the basic annuity at rates prescribed by law. We do not match TSP contributions for employees who participate in Dual CSRS.
FERS — Effective January 1, 1987, officers and career employees hired since December 31, 1983, are covered by the Federal Employees Retirement System Act of 1986, except for those covered by Dual CSRS. Also included are employees formerly covered by CSRS who elected in 1987, 1988 and 1998 to participate in FERS.
FERS consists of Social Security, a basic annuity plan and TSP. We and the employee contribute to Social Security and the basic annuity plan at the rate prescribed by law. In addition, we are required to contribute to TSP a minimum of 1% per year of the basic pay of employees covered by this system. We also match a voluntary employee contribution up to 3% of the employee’s basic pay, and 50% of a contribution between 3% and 5% of basic pay.
