Postal employees are eligible to participate in the Thrift Savings Plan (TSP), which offers a tax-deferred (not pre-tax) savings opportunity. Employees covered under the Federal Employees Retirement System (FERS) receive automatic and matching contributions from the Postal Service of as much as 5 percent of pay. The Postal Service will continue to work with the Federal Retirement Thrift Investment Board, which administers TSP, to publicize this program and encourage employee participation.

Explore Benefit Options

The Postal Service will work with the Office of Personnel Management to explore the possibility of applying private sector best practices to the FEHBP program for current employees and the over 440,000 postal retirees and survivors receiving benefits. Options include having a single program provider for pharmaceuticals or mental health services, diverting high-cost cases to centers of excellence with lower costs and medical expertise, and expanding the number of coverage tiers. The Postal Service will continue to pursue the possibility for applying for the Medicare Part D (prescription drug) rebates for eligible retirees enrolled in FEHBP. Finally, the Postal Service will continue to explore alternatives to the current health benefits programs for future employees, including wellness programs.

Aggressively Manage Workers' Compensation

The focus of the workers' compensation program has been to ensure that postal employees receive the appropriate medical care for on-the-job-injuries while managing the associated cost. The First Health program has been successful in reducing medical costs through their medical network. This program has resulted in gain share payments and additional savings through cost avoidance. The Outplacement Rehabilitation Program has been successful as over 500 former employees have either been placed with a new employer, retired, or had a compensation reduction. Successes of these and other programs are tied to the close working relationship and common goals with the Department of Labor. The Postal Service will improve the First Health process to capture greater savings. The Postal Service is also exploring a prescription drug card program and is currently obtaining bids from major prescription drug networks to reduce costs.

Manage Employee Availability

Employee absences from work as a result of on- and off-the-job injuries and illnesses also represent a significant cost for the Postal Service. Employee absences from work will be managed by expanding the Resource Management system from a sick leave tracking system to a comprehensive tool to manage and increase employee availability. By the end of 2007, this comprehensive approach to resource management, which includes a national wellness program, will be measured by the percentage of employees available for duty.