A few weeks ago, I wrote about the potential changes to federal retirement benefits that are included in proposed legislation that is moving through Congress. The key word is “proposed” because since that column, there have been some changes in the bill.   Little by little, the proposals have become somewhat less devastating and a little more fair to employees who have been planning for retirement and were worried about the rules changing at the last minute. 

     One of the most disturbing things that have been haunting pre-retirees was the proposal to change the basis of the FERS retirement benefit from the “high-three average salary” to the “high-five.” Thankfully, that is gone and there is no longer anything to worry about for now on that topic.    However, the elimination of the FERS supplement is still there, though it has been made less onerous... read the rest of the article

Tammy Flanagan has spent 30 years helping federal employees take charge of their retirement by understanding their benefits. She runs her own consulting business at www.retirefederal.com and provides individual counseling as well as online training for the National Active and Retired Federal Employees Association, Plan Your Federal Retirement and the Federal Long Term Care insurance Program. She also serves as the senior benefits director for the National Institute of Transition Planning Inc., which conducts federal retirement planning workshops and seminars.

     On May 22, House Republicans passed H.R. 1, the One Big Beautiful Bill Act, which would give $4.5 trillion in tax cuts to the ultra-wealthy on the backs of the working class. This not-so-beautiful bill pays for these massive tax breaks through cuts to vital government programs, including the elimination of the Federal Employees Retirement System (FERS) annuity supplement for many postal and federal employees.

           If signed into law, H.R. 1 would eliminate the FERS annuity supplement for many postal employees, which “...shall begin to apply on January 1, 2028...” The FERS annuity supplement is an earned benefit that helps postal workers retire before age 62, which is when Social Security benefits begin. This monthly supplement helps bridge the gap between an employee’s retirement and Social Security eligibility. While postal workers, labor unions, and other allies placed pressure on Congress to remove two other harmful provisions in the original version of this tax-cut bill, our fight now moves to the Senate!

Call our Legislative Hotline at 844-402-1001 or go to apwu.org/call and urge both of your senators to OPPOSE any cuts to federal and postal pensions and to protect the FERS annuity supplement. 

    In a document circulated within the banking industry, Wells Fargo equity analysts argue that postal privatization could be a huge money-maker for investors. They advise the Trump administration to sell off the most profitable parts of the service – primarily packages and parcels, while putting taxpayers on the hook for the rest.

   The report touts that privatizing  the USPS could be a huge money-maker for investors, calling the Postal Service “an obvious source of value.” Wells Fargo suggests that the Postal Service should sell off the most profitable parts of its service (packages and parcels).  The report says that “Parcel[s] could be carved out and sold or IPO'ed” to Wall Street investors. They also suggest raising prices by as much as 140 percent, which would drive customers away from the USPS and towards our competitors FedEX and UPS. 

    Wells Fargo also recommends selling-off, leasing, or otherwise monetizing our community Post Offices, which occupy prime real estate locations and are worth an estimated $85 billion. The report outlines a postal real estate portfolio that includes around 7,200 “smaller post office facilities” and 20,700 acres of land.” “We believe value can be harvested to help underpin the financial burden of separation,” write the authors. It would mean that six-day delivery would be shifted to a mail-only service that is either subsidized by taxpayers or paid for by cashing in on local Post Offices.

          Read the whole report here