Effective January 1, 1987, officers and career employees hired since December 31, 1983, are covered by the Federal Employees Retirement System Act of 1986, except for those covered by Dual CSRS. Also included are employees formerly covered by CSRS who elected in either 1987, 1988, or 1998 to participate in FERS.

FERS consists of Social Security, a basic annuity plan, and TSP. The Postal Service and the employee contribute to Social Security and the basic annuity plan at the rates prescribed by law. The Postal Service is required to contribute to TSP a minimum of 1% per year of the basic pay of employees covered by this system. It also matches a voluntary employee contribution up to 3% of the employee’s basic pay, and 50% of an employee’s contribution of between 3% and 5% of basic pay.