Proposed Benefit Changes
The current administration in Washington recently proposed changes to Federal Workers Retirement Packages that if approved would severally reduce compensation for those Federal workers including Postal workers by making the following chances.
1) Do away with the Social security supplement payment that FERS Employees get if they retire before qualifying for Social Security at age 62. Note: If this was enacted it could cost Letter Carriers who a retiring before the age of 62 thousand of dollars causing a major financial blow. Such a hit would cause many Letter Carriers to continue working beyond their Minimum Retirement Age in an already more physical, stressful occupation then ever before.
2) Require current FERS employees to contribute an additionally one percent a year, each year up to six years or until such time they were paying half their retirement cost. NOTE: If this wasn’t enough of a concern, then also consider at the same time a Letter Carriers future annuity would be reduced because they would lose even partial inflation-protection. This requirement could reduce a Letter Carriers take home pay if enacted and reduce or possible negate any future negotiated pay increases.
3) Eliminate cost of Living Adjustments for current and Future FERS retires starting in 2019. Note: Without regular inflation catch ups, Letter Carrier retirees would lose thousands of dollars over time as prices go up, but the annuity stays the same. Many of the Lawmakers who are championing this position may point out that private sector retirement plans have no COLA protection. However, it must also be noted that unlike the Federal programs (CSRS and FERS), most private sector workers do not contribute anything to their company plan.
4) Change the Formula of a Letter Carriers defined benefit annuity payments from their highest 3 years of salary to their highest five years. NOTE: This of course needs no commentary. But in short by averaging out over 5 years a Letter Carriers high salary instead of 3 it will reduce the monthly annuity payments one would receive.
Make no mistake about it. The above proposals are a “war on working people” including Letter Carriers. In addition to the retirement cuts, the current administration in Washington DC in it’s fiscal budget for 2019 request a pay freeze for all federal civilian workers next year, as well as a plan to significantly reduce the rate of return on the Thrift Savings G Fund. While Letter Carriers salaries are not necessarily tied to other federal civilian workers if such a pay freeze was enacted it would complicate future contract negations for wage increases.
Ever active and retired Letter Carrier and their families should make sure that their voices are heard by writing your lawmakers (Senators and Congressperson) and let them know that these proposals are unfair and jeopardize the ability for them to raise a family, in particularly living here on Long Island. Likewise, retired Letter Carriers should also make sure that their voices are heard because as every retire knows it is already a struggle to make ends meet with the retirement benefits one receives. In short, the budget should not be balanced on Hard Working Federal Workers including Letter Carriers who are struggling just to stay in the middle class of American earn wages and benefits. In addition to writing your law makers in Washington every Active and Retired Letter Carrier should consider contributing to the Letter Carriers Political Fund in order to help delivery this message and other important issues concerning Letter Carriers and the Postal service to are lawmakers in Washington. To find out more about the Letter Carriers Political Fund visit NALC.ORG or call the Branch 6000 office to speak to someone who could help you.
Every Letter Carrier and their Family should propose the aforementioned proposes that was recently put forth by the current administration in Washington to protect what you have worked for regardless if you are an active or retired Letter Carrier. To remain silent on this issue would be the same as consenting to these proposals.
