NARFE Expresses Concern Over Latest U.S. Postal Service Reform Proposal from Senator Carper

Alexandria, VA – The National Active and Retired Federal Employees Association (NARFE) opposes provisions in a just-introduced postal reform bill that would increase health care costs for postal retirees and reduce workers’ compensation benefits of injured federal and postal employees. However, NARFE said the bill, the Improving Postal Operations, Service and Transparency Act (iPost), which was introduced by Sen. Tom Carper, D-DE, in other respects, represents a “significant improvement” over the similar bill he introduced in the last Congress.

Identical to last year’s bill, the new legislation would require postal retirees to enroll in Medicare Part B in order to continue receiving their current health insurance coverage through the Federal Employees Health Benefits Program (FEHBP). This provision would increase total health insurance premiums paid by postal retirees, who would have to pay both full Medicare Part B premiums and FEHBP premiums.
 
“Postal retirees earned their health benefits throughout long careers of service,” said NARFE President Richard G. Thissen. “They should not be required to pay for additional health insurance coverage as a condition of continuing to receive those benefits.”

“NARFE is continuing to work with members of the Senate to substantially amend or remove this provision from the legislation,” Thissen stated.

Regarding the proposal to reduce compensation for federal and postal employees disabled by an on-the-job injury or illness, Thissen stated: “While federal workers’ compensation is modest, it will never be able to reverse the permanent damage from a debilitating injury or illness. The federal prison guard or the federal law enforcement officer who suffers a severe injury should not be short-changed in an attempt to reform our national mail delivery system and its finances. We ask many federal employees to work in dangerous environments, protecting us from domestic and foreign threats. We ought to take care of them when they have suffered injuries carrying out their duties to our nation.”

The Federal Employees’ Compensation Act (FECA) provides basic compensation to federal and postal employees disabled by work-related injuries and illnesses. For example, FECA provides compensation to an FBI agent shot on the job. In exchange for their benefits, FECA recipients lose their right to sue the government.

The bill introduced by Carper would reduce the basic federal workers’ compensation benefit by 25-33 percent for federal workers at retirement age and eliminate the supplemental benefit for injured workers with children or other dependents. These provisions would apply to injuries that occurred after the date of enactment of the legislation; this is a change from last year’s legislation, which impacted current FECA recipients.

If the bill passes, injured employees would not be afforded the level of income security they would have earned had they been able to continue working. According to the Government Accountability Office, federal workers disabled as part of their service would receive up to 35 percent less in retirement income than if they were not injured and retired after 30 years.

“Changing the workers’ compensation system for the entire federal workforce has no place in a controversial postal reform bill,” Thissen added.

While NARFE strongly opposes mandatory Medicare Part B enrollment for postal retirees, and reductions in federal workers’ compensation, it supports other provisions in the bill. Notably, NARFE supports improved service standards and the maintenance of six-day and to-the-door delivery where it exists today.

NARFE was also pleased by two improvements in the bill, compared to legislation that was approved by the Senate Homeland Security and Governmental Affairs Committee in the last Congress. The current bill no longer includes a provision to allow bargaining over retirement benefits for new postal employees, and it only applies the FECA provisions prospectively to those employees injured in the future, and not to those currently receiving benefits.

“The U.S. Postal Service is in need of reform and, in particular, relief from its overly burdensome prefunding requirement. Fixing the financial security of this vital institution should not, however, rest with those men and women who deliver our mail, or who are injured in the line of duty. While this legislation makes strides in addressing some of the problems the Postal Service faces, federal and postal employees and retirees would pay too high a price to return it to financial stability,” concluded Thissen.

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The National Active and Retired Federal Employees Association (NARFE), one of America’s oldest and largest associations, was founded in 1921 with the mission of protecting the earned rights and benefits of America’s active and retired federal workers. The largest federal employee/retiree organization, NARFE represents the interests of nearly five million current and future federal annuitants, spouses and survivors.