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2000 Annual Report
- page 61 of 70
6 Retirement Programs
With certain exceptions, employees participate in one of the following
three retirement programs based upon the starting date of their
employment with the Postal Service. Employee and employer contributions
are made to the Civil Service Retirement and Disability Fund (CSRDF),
which is administered by the Office of Personnel Management. Employees
may also participate in the Thrift Savings Plan, which is a defined
contribution retirement savings and investment plan. Postal Service
employees are authorized to participate in the Thrift Savings Plan
by the Federal Employees Retirement System Act of 1986. The Plan
is administered by the Federal Retirement Thrift Investment Board.
Civil Service Retirement System (CSRS)
Under the Postal Reorganization Act, officers and career employees
are covered by the Civil Service Retirement System, which provides
a basic annuity and Medicare coverage. The CSRS fund covers substantially
all employees hired prior to January 1, 1984. Effective January
1, 2000, participating employees contribute 7.4% of their basic
pay to the CSRDF. Effective January 1, 1999, participating employees
contributed 7.25% of their basic pay. Prior to January 1, 1999,
participating employees contributed 7% of their basic pay. We contribute
an amount equal to 7% of each employee's basic pay to the CSRDF.
We and the employee also contribute to Medicare at the rate prescribed
by law. We do not match contributions to the Thrift Savings Plan
for employees who participate in the CSRS.
Dual Civil Service Retirement System
(Dual CSRS)/Social Security System
Employees with prior U.S. government service who were hired between
January 1, 1984 and January 1, 1987 are covered by the Dual Civil
Service Retirement System/Social Security System. We contribute
7% of the employee's basic pay to the CSRDF. Effective January 1,
2000, participating employees contribute 1.20% of their basic pay.
Effective January 1, 1999, participating employees contributed 1.05%
of their basic pay. Prior to January 1, 1999, participating employees
contributed 0.8% of their basic pay. We and the employee also contribute
to Social Security and Medicare at the rates prescribed by law.
We do not match contributions to the Thrift Savings Plan for employees
who participate in the Dual System.
Federal Employees Retirement System
(FERS)
Effective January 1, 1987, officers and career employees hired since
December 31, 1983, except for those covered by the Dual System,
are covered by the Federal Employees Retirement System Act of 1986.
In addition, employees hired before January 1, 1984 could choose
during certain periods in 1987, 1988 and 1998 to participate in
the FERS. This System consists of Social Security, a basic annuity
plan, and a Thrift Savings Plan.
We contributed to the basic annuity plan 10.7% of each employee's
basic pay in 2000, 1999 and 1998. Effective January 1, 2000, participating
employees contribute 1.20% of their basic pay. Effective January
1, 1999, participating employees contributed 1.05% of their basic
pay. Prior to January 1, 1999, participating employees contributed
0.8% of their basic pay. We and the employee also contribute to
Social Security and Medicare at the rates prescribed by law. In
addition, we are required to contribute to the Thrift Savings Plan
a minimum of 1% per year of the basic pay of employees covered by
this System. We also match a voluntary employee contribution up
to 3% of the employee's basic pay, and 50% of a contribution between
3 and 5% of basic pay.
The number of employees enrolled in each of the retirement plans
at the end of 2000, 1999 and 1998 is as follows:
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CSRS |
263,383
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281,062
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298,827
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Dual
CSRS/
Social Security |
12,021
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12,598
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13,418
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FERS |
510,509
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503,233
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479,069
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*From July 1998 to December 1998 workers
covered by CSRS were allowed to switch to FERS. During this
period only 3,436, or less than 1.2%, of our employees chose
to change plans.
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