United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 2001-12-31 monographic deposited born digital 34 p. GA 1.13:GAO-02-170 https://www.govinfo.gov/app/details/GAOREPORTS-GAO-02-170 P0b002ee18038919d f:d02170 DGPO 2010-08-12 2011-03-24 GAOREPORTS-GAO-02-170 machine generated eng fdlp REPORT GAOREPORTS-GAO-02-170 GAO-02-170 Postal service Budget obligations Financial analysis Losses Future budget projections Retirement benefits Cost of living Cost analysis Civil Service Retirement and Disability Fund Civil Service Retirement System Consumer Price Index for Urban Wage Earners and Clerical Workers Federal Employees Health Benefits Program Federal Employees Retirement System Thrift Savings Plan USPS Post-Retirement Health Benefit Program CSRS Offset Plan Social Security Program USPS Integrated Financial Plan Other Written Product A02615 This report responds to a March 2001 letter which identified long-term structural or operational issues that may affect the U. S. Postal Services's (USPS) ability to provide affordable universal postal service on a break-even basis. One key operational issue involves the Service's retirement costs and future liabilities. The Service had a net loss of $199 million in fiscal year 2000 and recently announced a $1.7 billion net loss for fiscal year 2001. However, it is unknown what the impact of the events of September 11, 2001 and the subsequent delivery of anthrax spores through the mail system will have on the volume or the cost of future mail service. According to USPS officials, its annual retirement plan costs are projected to increase significantly in the next ten years from $8.5 billion in fiscal year 2000 to $14 billion in fiscal year 2010. Contributing to the Service's increasing annual retirement costs is a mounting debt due to pay increases resulting from new labor contracts and annual cost-of-living adjustments for retirees, which were prescribed by law. The Service pays for these costs on an installment basis with related interest charges. Consequently, the Service reported to the Office of Personnel Management (OPM) an outstanding liability for future retirement benefits an obligation of $32.2 billion as of September 2000, and anticipates paying an additional $16.5 billion in future interest charges on this retirement liability over a 30-year period. Although not part of the retirement plan, the Post-Retirement Health Benefit Program is an additional benefit available to USPS retirees. The cost of this benefit was $744 million in fiscal year 2000. When this benefit cost is added to the retirement plan it raises the total retirement-related cost for fiscal year 2000 is $9.3 billion. The Service projects the cost of this additional post-retirement health benefit to be $2 billion in fiscal year 2010. When this is added to the $14 billion of retirement plan expenses, the Service may be faced with a total retirement-related cost of $16 billion in fiscal year 2010. https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-02-170/html/GAOREPORTS-GAO-02-170.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-02-170/pdf/GAOREPORTS-GAO-02-170.pdf GAO-02-170 https://www.govinfo.gov/app/details/GAOREPORTS-GAO-02-170 Other Written Product GAO-02-170; United States Postal Service: Information on Retirement Plans; Postal service Budget obligations Financial analysis Losses Future budget projections Retirement benefits Cost of living Cost analysis Civil Service Retirement and Disability Fund Civil Service Retirement System Consumer Price Index for Urban Wage Earners and Clerical Workers Federal Employees Health Benefits Program Federal Employees Retirement System Thrift Savings Plan USPS Post-Retirement Health Benefit Program CSRS Offset Plan Social Security Program USPS Integrated Financial Plan Public Law 91-375 Public Law 98-21 Public Law 99-335 Public Law 101-508