Bill Would Address Federal and Postal Retirement Snafus

The longstanding problems of inaccurate pension estimates and slow pension payments for Postal Service and federal employees may finally be addressed by Congress.

Sen. Mark Warner

Sen. Mark Warner (D-VA) has proposed an amendment to the postal-reform bill in the Senate that would require monthly reports on the accuracy and timeliness of pension estimates, the backlog of retirement applications, and the status of the retirement systems modernization project.

He would also set Jan. 31, 2013 as the date “by which all Federal payroll processing entities will electronically transmit all personnel data to the Office of Personnel Management.”

Warner’s proposal is one of 39 amendments to S.1789, the 21st Century Postal Service Act, on which the Senate is scheduled to vote Tuesday (April 24). Update: Warner's amendment was included in the version of S.1789 the Senate approved on April 25 and sent to the House.

It’s no coincidence that Warner wants to make his proposal part of a law intended to improve the U.S. Postal Service’s finances. Dead Tree Edition and others have long contended that low-ball pension estimates and the months-long waits for retirees to receive benefits are major hindrances to USPS’s cost-cutting efforts. (See, for example, How Does the Postal Service Discourage Early Retirement? Let Me Count the Ways.)

Downsizing via attrition, mostly from retirements, is a major factor in the Postal Service’s plan to reduce costs in response to declining mail volumes.

Text of amendment
Below is the text of Warner’s proposal, which is known as S.AMDT.2071:

(a) Definition.--In this section, the term ``agency'' has the meaning given that term in section 551 of title 5, United States Code. 

(b) Reports.--Not later than June 1, 2012, and every month thereafter, the Director of the Office of Personnel Management shall submit to Congress, the Comptroller General of the United States, and issue publicly (including on the website of the Office of Personnel Management) a report that-- 

(1) for each agency, evaluates the timeliness, completeness, and accuracy of information submitted by the agency relating to employees of the agency who are retiring; 

(2) indicates-- (A) the total number of applications for retirement benefits that are pending action by the Office of Personnel Management; and (B) the number of months each such application has been pending; and 

(3) provides a timetable for completion of each component of the retirement systems modernization project of the Office of Personnel Management, including all data elements required for accurate completion of adjudication and the date (which shall be not later than January 31, 2013) by which all Federal payroll processing entities will electronically transmit all personnel data to the Office of Personnel Management. 

(c) Budget Request.--The Office of Personnel Management shall include a detailed statement regarding the progress of the Office of Personnel Management in completing the retirement systems modernization project of the Office of Personnel Management in each budget request of the Office of Personnel Management submitted as part of the preparation of the budget of the President submitted to Congress under section 1105(a) of title 31, United States Code.

Related articles:

• How Does the Postal Service Discourage Early Retirement? Let Me Count the Ways
• USPS Seeks 'Soft Landing' For Downsized Employees, Donahoe Says 
• USPS Planning Retirement Incentives To Help Downsizing, Donahoe Testifies