The Federal Employees’ Retirement System (FERS) is one of the
retirement programs of the U.S. government, and benefits are
extended to U.S. Postal Service employees. FERS is administered
by the Office of Personnel Management (OPM). Congress
established the guidelines for OPM to set contribution rates and
can alter them by passing new law or amending an existing law.
Postal Service employees who began their careers after December
31, 1983, are automatically enrolled in the FERS. For Postal
Service employees, a majority of FERS funding is accomplished
through Postal Service contributions. The rest is paid by postal
employees. During fiscal year 2009, the Postal Service
contributed $3 billion to FERS or 11.2 percent of the salaries
for FERS employees. As of September 30, 2009, the Postal Service
reported a fully funded FERS pension plan that exceeds
liabilities by $6.8 billion. It’s no secret the Postal Service
is in a financial crisis after a $3.8 billion loss in 2009, and
a projected $7 billion loss for 2010 a