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Postal executives have long managed operations that are equivalent to the size and complexity of a Fortune 500 company. For example, these executives effectively balance service to customers, manage tens of thousands employees, and oversee operating budgets and revenue goals often in excess of a billion dollars, while receiving compensation below private sector levels.
The Postal Service will continue to work with other agencies to explore potential modifications to other compensation components to achieve the current statutory comparability mandate. Retirement plans, injury compensation, unemployment compensation, territorial cost of living allowances, and the salary cap are all linked by law to federal sector practices, but do not necessarily reflect private sector levels of compensation. Any modification would require action on the part of Congress.
Expand Employee Participation in Pre-Tax Benefit Programs
The Postal Service will continue to encourage employee enrollment in programs that allow pre-tax payroll contributions as permitted under the Internal Revenue Code. These programs are widely used in the private sector. Current Postal Service pre-tax offerings include health insurance premiums, flexible spending accounts, and the Commuter Program.
In 2004 the Postal Service sponsored a pilot Commuter Program through an interagency agreement with the Department of Transportation, administered by WageWorks. This program allows employees to save money on eligible public transportation and parking commuting expenses through pre-tax payroll purchases. The Postal Service's objective is a 20 percent increase in the rate of participation in pre-tax programs by career employees by 2010. This excludes the Federal Employee Health Benefits (FEHBP) pre-tax premiums since enrollment is automatic for career employees.