Why An Actuarial Methodology Amendment is Needed for the
Postal Accountability & Enhancement Act S.662?

 

·    Congress did the right thing by acting quickly once the CSRS overpayments were discovered. However, we now know that the calculations made by OPM were erroneous. 

·    In October 2004, on challenge from USPS, the Board of Actuaries of the US Civil Service Retirement System sided with the Office of Personnel Management in determining the amount of Postal Service obligation to the CSRS. 

·    This is not an objective or transparent process. 

·    House postal reform bill – HR22 – calls for an independent third-party review of OPM’s calculations to make sure they are accurate and to ensure that Congress knows the true financial condition of the USPS.  ($4.8B vs. $81B)! 

·    We would propose that the Senate bill include a similar provision to require an “non-discriminatory” evaluation. 

·     At a time when many parties are calling for more transparency of USPS finances, why not calculate the real pension obligation without prejudice. 

·    A true independent third-party “audit” would give lawmakers an accurate base to build future pension formula and settle among all parties involved, the true state of USPS pension liabilities. 

·    Why have the wolf guard the henhouse? Again?