The Senate on Tuesday began debating ways to rescue the financially strapped United States Postal Service, including funding an early retirement buyout program from previous and ongoing overpayments to the $377 billion Federal Employees Retirement System, Washington.
At press time, the Senate began considering the 21st Century Postal Service Act, which would allow for cash buyouts up to $25,000 among incentives to get as many as 100,000 postal employees to retire early.
The previous pension overpayment is because of a federal law requiring it to prefund 10 years' worth of pension benefits.
Earlier Tuesday, a strategic business plan released by Lazard on behalf of the National Association of Letter Carriers echoes the call for the FERS overpayment credit, along with as much as $75 billion in surplus pension payments made to the retirement system's precursor, the Civil Service Retirement System.
The CSRS payment proposal is not part of the Senate bill being considered.
The USPS said in a statement that it “urgently requires” comprehensive legislation to address profitability and long-term financial stability.
