Showing posts with label CSRS. Show all posts
Showing posts with label CSRS. Show all posts
Tuesday, October 16, 2012
Wednesday, January 20, 2010
OIG Says USPS Overpaid Federal Government $75 Billion
A Stunning Announcement:
Burrus Update 03-2010, Jan. 20, 2010
The Office of the Inspector General (OIG) has issued a stunning announcement [PDF]:
The USPS has been overcharged $75 billion in contributions to the Civil Service Retirement System (CSRS) pension fund.
After an in-depth investigation, the OIG has concluded that an inequitable system for computing the Postal Service’s CSRS pension responsibility has caused the dramatic overpayment. The OIG study [PDF] was conducted in conjunction with the Hay Group, a well-known economic consulting firm.
The funding error follows two previous findings that the Postal Service had been required to overfund its pension obligations. In 2002 it was determined that the Postal Service was on track to overfund CSRS by $78 billion, and in 2003 the USPS was overcharged $27 billion for CSRS military service credits. The earlier overpayments were corrected by legislation adopted in 2003 and 2006, respectively.
The newest overfunding debacle, if corrected, would more than offset the Postal Service’s deficit from Fiscal Year 2009 and the expected shortfalls in FY 2010 and 2011. The doomsday predictors of the imminent demise of the Postal Service must now find a new rationale for their efforts to dismantle postal services.
The cry for a new business model and legislative relief ring hollow when USPS financial difficulties could be fully resolved by returning to the Postal Service the overpayments made to date. Realigning the network, reducing employee compensation and benefits, and transferring the cost of universal service to individual mailers can now be exposed for the fraudulent exercises they represent. Instead, we can engage in a meaningful dialogue about the future of hard-copy communication and the role of postal services in the 21st century — without the looming threat of bankruptcy.
This report is good news for a beleaguered government service. USPS service standards and productivity have remained at high levels; the economy is recovering, and the black cloud of fiscal insolvency could be removed. All parties in the postal community who wish to be of assistance must join in an effort to correct the inequity and relieve the Postal Service of the unjustified funding requirement.
In the meantime, we can take a deep breath and stop the momentum for another round of harmful postal “reform.” And after the attrition of 115,000 APWU-represented positions since 2002, we would appreciate a public recognition that our members have contributed their share.
William Burrus
President
Burrus Update 03-2010, Jan. 20, 2010
The Office of the Inspector General (OIG) has issued a stunning announcement [PDF]:
The USPS has been overcharged $75 billion in contributions to the Civil Service Retirement System (CSRS) pension fund.
After an in-depth investigation, the OIG has concluded that an inequitable system for computing the Postal Service’s CSRS pension responsibility has caused the dramatic overpayment. The OIG study [PDF] was conducted in conjunction with the Hay Group, a well-known economic consulting firm.
The funding error follows two previous findings that the Postal Service had been required to overfund its pension obligations. In 2002 it was determined that the Postal Service was on track to overfund CSRS by $78 billion, and in 2003 the USPS was overcharged $27 billion for CSRS military service credits. The earlier overpayments were corrected by legislation adopted in 2003 and 2006, respectively.
The newest overfunding debacle, if corrected, would more than offset the Postal Service’s deficit from Fiscal Year 2009 and the expected shortfalls in FY 2010 and 2011. The doomsday predictors of the imminent demise of the Postal Service must now find a new rationale for their efforts to dismantle postal services.
The cry for a new business model and legislative relief ring hollow when USPS financial difficulties could be fully resolved by returning to the Postal Service the overpayments made to date. Realigning the network, reducing employee compensation and benefits, and transferring the cost of universal service to individual mailers can now be exposed for the fraudulent exercises they represent. Instead, we can engage in a meaningful dialogue about the future of hard-copy communication and the role of postal services in the 21st century — without the looming threat of bankruptcy.
This report is good news for a beleaguered government service. USPS service standards and productivity have remained at high levels; the economy is recovering, and the black cloud of fiscal insolvency could be removed. All parties in the postal community who wish to be of assistance must join in an effort to correct the inequity and relieve the Postal Service of the unjustified funding requirement.
In the meantime, we can take a deep breath and stop the momentum for another round of harmful postal “reform.” And after the attrition of 115,000 APWU-represented positions since 2002, we would appreciate a public recognition that our members have contributed their share.
William Burrus
President
Wednesday, October 28, 2009
NARFE Thanks President Obama for Signing into Law Re-Employed Annuitant and FERS Sick Leave Bills; Association’s Persistence Results In Victory
National Active and Retired Federal Employees Association (NARFE) President Margaret L. Baptiste today commended President Obama for signing into law the Fiscal Year 2010 Defense Authorization bill, which includes several civil service improvements long sought by NARFE.
“Enactment of this legislation to eliminate inequities, increase productivity and address the skills shortage in the civil service is a great victory for active and retired federal employees — and something that NARFE has worked for behind the scenes for a long time,” said NARFE President Baptiste. “We are happy the president has signed this important bill into law, and we are grateful to our friends in Congress who moved heaven and earth to include the civil service improvements in the final legislation.”
Baptiste praised Reps. Steny H. Hoyer, D-MD; Chris Van Hollen, D-MD; Frank R. Wolf, R-VA; James P. Moran, D-VA; Eleanor Holmes Norton, D-DC; Gerry E. Connolly, D-VA; John P. Sarbanes, D-MD; Donna F. Edwards, D-MD; Elijah E. Cummings, D-MD; and C.A. “Dutch” Ruppersberger, D-MD, for the significant role they played in this victory on behalf of NARFE and the federal/postal community. In addition, she thanked Reps. Edolphus Towns, D-NY; Stephen F. Lynch, D-MA; and Sens. Joseph I. Lieberman, I-CT; Susan M. Collins, R-ME; Daniel K. Akaka, D-HI; and Jim Webb, D-VA, who served as the Defense bill conferees, for helping to persuade their colleagues, particularly Senate Armed Services Committee Chairman Carl Levin, D-MI, and House Armed Services Committee Chairman Ike Skelton, D-MO, to include the civil service provisions.
The new law allows federal agencies to re-employ federal retirees on a limited, part-time basis without offset of annuity; permits Federal Employees Retirement System (FERS) workers to initially credit half, and in 2014 all, of their unused sick leave toward retirement; provides for retirement equity for federal employees in Hawaii, Alaska and the U.S. Territories; ends the Department of Defense’s pay-for-performance personnel system, the National Security Personnel System or NSPS, restoring employees to the federal General Schedule pay system; and includes other civil service provisions.
“During the past several years, NARFE has played a leading role, along with other federal and postal employee organizations, in overcoming many obstacles to achieve passage of these needed civil service improvements,” Baptiste said. “For example, absent NARFE’s persistence, legislation sponsored by Collins; Sen. Herb Kohl, D-WI; and Sen. George V. Voinovich, R-OH, (S. 629) to allow federal retirees to be re-employed by the government would not have been included in the final Defense bill. Many federal retirees continue to make critical contributions to our safety and well-being during this time of national need, when work force shortages have deprived some agencies of employees with critical and specialized skills,” Baptiste said.
Baptiste was particularly pleased that a compromise was reached on the FERS sick leave legislation by phasing in the allowance. “We recognize that the inequity in the treatment of accrued sick leave between FERS and CSRS has hurt productivity and increased agency costs,” Baptiste said. “For that reason, we have strongly supported the concept that all federal civilian retirement programs credit unused sick leave toward retirement.” The NARFE president specifically lauded Moran for being a long-time champion of this issue.
* * *
NARFE, one of America’s oldest and largest associations, was founded in 1921 with the mission of protecting the earned rights and benefits of America’s active and retired federal workers. The largest federal employee/retiree organization, NARFE represents the retirement interests of nearly 5 million current and future federal annuitants, spouses, and survivors.
Note: APWU of Wisconsin members (especially those under FERS) may want to write letters to Senator Herb Kohl and thank him for his support.
“Enactment of this legislation to eliminate inequities, increase productivity and address the skills shortage in the civil service is a great victory for active and retired federal employees — and something that NARFE has worked for behind the scenes for a long time,” said NARFE President Baptiste. “We are happy the president has signed this important bill into law, and we are grateful to our friends in Congress who moved heaven and earth to include the civil service improvements in the final legislation.”
Baptiste praised Reps. Steny H. Hoyer, D-MD; Chris Van Hollen, D-MD; Frank R. Wolf, R-VA; James P. Moran, D-VA; Eleanor Holmes Norton, D-DC; Gerry E. Connolly, D-VA; John P. Sarbanes, D-MD; Donna F. Edwards, D-MD; Elijah E. Cummings, D-MD; and C.A. “Dutch” Ruppersberger, D-MD, for the significant role they played in this victory on behalf of NARFE and the federal/postal community. In addition, she thanked Reps. Edolphus Towns, D-NY; Stephen F. Lynch, D-MA; and Sens. Joseph I. Lieberman, I-CT; Susan M. Collins, R-ME; Daniel K. Akaka, D-HI; and Jim Webb, D-VA, who served as the Defense bill conferees, for helping to persuade their colleagues, particularly Senate Armed Services Committee Chairman Carl Levin, D-MI, and House Armed Services Committee Chairman Ike Skelton, D-MO, to include the civil service provisions.
The new law allows federal agencies to re-employ federal retirees on a limited, part-time basis without offset of annuity; permits Federal Employees Retirement System (FERS) workers to initially credit half, and in 2014 all, of their unused sick leave toward retirement; provides for retirement equity for federal employees in Hawaii, Alaska and the U.S. Territories; ends the Department of Defense’s pay-for-performance personnel system, the National Security Personnel System or NSPS, restoring employees to the federal General Schedule pay system; and includes other civil service provisions.
“During the past several years, NARFE has played a leading role, along with other federal and postal employee organizations, in overcoming many obstacles to achieve passage of these needed civil service improvements,” Baptiste said. “For example, absent NARFE’s persistence, legislation sponsored by Collins; Sen. Herb Kohl, D-WI; and Sen. George V. Voinovich, R-OH, (S. 629) to allow federal retirees to be re-employed by the government would not have been included in the final Defense bill. Many federal retirees continue to make critical contributions to our safety and well-being during this time of national need, when work force shortages have deprived some agencies of employees with critical and specialized skills,” Baptiste said.
Baptiste was particularly pleased that a compromise was reached on the FERS sick leave legislation by phasing in the allowance. “We recognize that the inequity in the treatment of accrued sick leave between FERS and CSRS has hurt productivity and increased agency costs,” Baptiste said. “For that reason, we have strongly supported the concept that all federal civilian retirement programs credit unused sick leave toward retirement.” The NARFE president specifically lauded Moran for being a long-time champion of this issue.
* * *
NARFE, one of America’s oldest and largest associations, was founded in 1921 with the mission of protecting the earned rights and benefits of America’s active and retired federal workers. The largest federal employee/retiree organization, NARFE represents the retirement interests of nearly 5 million current and future federal annuitants, spouses, and survivors.
Note: APWU of Wisconsin members (especially those under FERS) may want to write letters to Senator Herb Kohl and thank him for his support.
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