February 13, 2018
The White House suggested USPS bring its retirement benefits in line with the same changes proposed for the rest of the federal workforce, which would save the agency $35 billion over the next decade. Under Trump’s plan, the postal service also would increase employees’ contributions toward their health and life insurance.
Similar to reform legislation in Congress, Trump suggested USPS increase collaboration with state and local governments, reduce to-the-door mail delivery “where appropriate,” change its governance structure and create postal-specific assumptions about the demographics of the USPS workforce to prevent possible overpayment into the agency’s Federal Employees Retirement System account. The proposal said the Postal Service should institute a one-time price hike and have more flexibility in setting its rates, something postal management has also advocated.
The operational changes to the Postal Service would improve the agency’s financial position $45 billion over 10 years, according to the budget, while the benefits changes would reduce costs by an additional $35 billion. The total unified budget impact would be just $44 billion over the next decade.
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