The top U.S. Postal Service benefits manager has a solution to that organization’s retiree health benefits funding problem: “full Medicare integration.”
Jeffrey Williamson, the chief human resources officer at the Postal Service, presented that idea today at a postal benefits liabilities hearing organized by a U.S. House Oversight & Government Reform subcommittee.
The Postal Service has about 1 million employees and retirees.
Federal law now requires the Postal Service to pre-fund “other post-employment benefits” rather than covering the OPEB costs as the bills come in.
Few other public or private employers face similar OPEB funding requirements.
Frank Todisco, an actuary at the U.S. Government Accountability Office, offered written testimony at the hearing that showed that the Postal Service has funded just $47 billion of its $96 billion in retiree health liability.