OIG: $75 billion over-charge for pension liabilities

In a special report, the USPS Office of Inspector General strengthens the case NALC has made over the past three years that the Office of Personnel Management badly miscalculated the postal surplus in the Civil Service Retirement Fund. The OIG’s investigative research unit report shows USPS was overcharged an astounding $75 billion for pension liabilities that should have been paid for by the U.S. Treasury, since they relate to service performed before USPS was created in 1971. This means the onerous prefunding schedule included in the 2006 Postal Accountability and Enhancement Act is grossly inflated, since OPM shortchanged the Postal Service Retiree Health Fund in 2007, when the agency transferred the surplus into the fund. Fact Sheet

Sixth Contract COLA: 0%

There was no projected accumulation toward the sixth cost-of-living adjustment (COLA) for letter carriers, based on the Bureau of Labor Statistics' (BLS) January 15 release of December Consumer Price Index (CPI) figures.

The next COLA, under the terms of the 2006-2011 National Agreement, will be based on any increase in CPI from July 2009 to January 2010.

There are eight COLAs included in the Agreement.

2010 Retiree COLA: 0%

There was no projected accumulation toward the 2011 COLA for retirees following the January release of the December figures. The 2011 COLA will be based on the increase in the CPI between the third quarter of 2008 and the third quarter of 2010. Click here for further details on the retiree COLA

2010 FECA COLA: 3.3%

Following the release of the December 2009 CPI, the the 2010 Federal Employees Compensation Act (FECA) COLA is set at at 3.3 percent.

The 2010 FECA COLA is based on the increase in the CPI between December 2008 and December 2009. The increase becomes effective March 1.

FECA COLAs are applicable only in cases where death or disability occurred more than one year prior to the adjustment’s effective date.