21st Century Postal Service Act (P-21) Summary
??The P21 Act saves money with critical workforce-related reforms.
Buyouts and Retirement Incentives
The bill would give the Postmaster General access to the money the United States Postal Service (the Postal Service or USPS) has overpaid into one of its pension funds (FERS) and use it to offer buyouts or retirement incentives to reduce the active postal workforce by 100,000 or more employees over the next several years. The incentives could include either a cash buyout of up to $25,000 (the cap for federal worker buyouts) or credited service years toward retirement annuity: up to one year for Civil Service Retirement System (CSRS) employees and up to two for FERS employees. Any funds remaining after the Postal Service has completed this incentive program may be used to repay debt and meet obligations related to workers’ compensation, pensions, and retiree health. USPS has estimated that reducing its workforce by 100,000 would save up to $8 billion annually.
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