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1 1 (February 11, 2022)

handle is hein.crs/govefgn0001 and id is 1 raw text is: SCongressional a Research Service Funding of Postal Retiree Health Benefits in the USPS Fairness Act (Section 102 of Postal Service Reform Act of 2022) February 11, 2022 The Postal Accountability and Enhancement Act of 2006 (PAEA; P.L. 109-435) required USPS to make annual payments into the Postal Service Retiree Health Benefit Fund (RHBF) for 10 years (from FY2007 to FY2016). The PAEA also established a series of payments, starting in FY2017, to cover USPS's unfunded liability for retiree health costs through 2056. The intent of the prefunding requirement was to protect future retiree benefits, recognizing that future postal revenues might be insufficient to cover them. This Insight provides information on the status of these payments and describes changes to the RHBF that the USPS Fairness Act (Section 102 of Postal Service Reform Act of 2022, H.R. 3076) would make. H.R. 3076 was reported out by the House Committee on Oversight and Government Reform in July 2021, and passed by the House on February 8, 2022. USPS Prefunding Payments In FY2007, two deposits were made into the fund per the PAEA and the Postal Civil Service Retirement System Funding Reform Act of 2003 (PCSRS; P.L. 108-18). First, the PAEA required the Office of Personnel Management (OPM) to calculate USPS's surplus contributions to the Civil Service Retirement and Disability Fund and transfer the surplus into the RHBF. OPM determined USPS's surplus was $17.1 billion and that amount was transferred to the RHBF. Additionally, per the PCSRS, USPS transferred $2.958 billion into the RHBF from an existing USPS escrow account. USPS has made four prefunding payments to the RHBF, which total $17.9 billion. USPS defaulted on the remaining $33.9 billion in payments. USPS's payments to the RHFB are listed in Table 1 below. Table I. Payments to the U.S. Postal Service Retiree Health Benefit Fund, FY2007-FY20 16 (in billions of dollars) Fiscal Year Payments Made Payments Missed FY2007 $5.40 $0.00 Congressional Research Service https://crsreports.congress.gov IN11855 CRS INSIGHT Prepared for Members and Committees of Congress

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