Independent Report to OPM – Employee Benefits, Withholdings, Contributions, Supplemental Semiannual Headcount Reporting

Objective

We performed procedures agreed upon by the U.S. Office of Personnel Management’s (OPM) Inspector General and the OPM’s Chief Financial Officer. This attestation engagement is an annual requirement of the U.S. Office of Management and Budget.

Our objective was to assist the OPM in assessing the reasonableness of U.S. Postal Service employee health benefits, life insurance, and retirement withholdings; Postal Service benefit contributions; and enrollment information submitted via the headcount report.

This report is not suitable for any other purpose.

Findings

We performed the procedures agreed upon by the OPM’s Inspector General and the Chief Financial Officer to assist the OPM in assessing the reasonableness of health benefits, life insurance, and retirement withholdings; Postal Service benefit contributions; and enrollment information submitted via the headcount report.

We identified issues related to life insurance elections, aggregate base salary, and life insurance reporting.

Specifically:

  • The life insurance election for one of 25 employees reviewed was erroneously processed by the Postal Service.
  • The difference between our recalculated aggregate base salary for Federal Employee Retirement System (FERS)-Revised Annuity Employees and that reported by the Postal Service for one of two headcount reports was 2.23 percent. The OPM requires we report any differences greater than 2 percent.
  •  The difference between our recalculated aggregate base salary for FERS-Further Revised Annuity Employees and FERS Law Enforcement employees and that reported by the Postal Service for both headcount reports was 29.77 percent. The OPM requires we report any differences greater than 2 percent.
  • The difference between our recalculated withholdings for Option C – Family Life Insurance and withholdings reported by the Postal Service for two of three selected pay periods was 4.08 percent. The OPM requires we report any differences greater than 2 percent.

As a result of our engagement, the Postal Service took corrective action on two of the four findings identified in this report related to Life Insurance Coverage and Aggregate Base Salary – Manual Error.

The aggregate base salary for FERS Revised Annuity Employees and optional life insurance withholdings findings are result of methodology differences recognized by the OPM. Neither of these findings require Postal Service action.

We were not engaged to perform, and did not perform, an examination or review, the objective of which would have been the expression of an opinion or conclusion, respectively, on the withholdings and contributions for health benefits, life insurance, and retirement, or enrollment information. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, we might have found other matters that we would have reported.

Recommendations

This report is provided for information only, and we offered no recommendations. Accordingly, no management action is required.

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