Retiree Benefits

Employees are eligible to participate in the federal government sponsored pension and retiree health benefits programs. The Postal Service is required to provide funding for these plans as determined by the administrator of the plans, the OPM. The Postal Service cannot direct the costs, benefits, or funding requirements of the plans. Accordingly, the plans are accounted for using multiemployer plan accounting rules and expense is recorded in the period the contribution is due and payable. These amounts can fluctuate significantly from year to year if changes in funding requirements are made. See Note 7, Health Benefit Programs, and Note 8, Retirement Programs, for additional information.