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Postal Retiree Health Benefits: Unsustainable Finances Need to Be Addressed

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Report Type Reports and Testimonies
Report Date Aug. 31, 2018
Release Date Oct. 1, 2018
Report No. GAO-18-602
Summary:

About 500,000 postal retirees receive retiree health benefits. The Postal Service Retiree Health Benefits Fund pays most of the costs.

The Postal Service has not made $38.2 billion in required payments to this fund through fiscal year 2017. If it makes no more payments, the Office of Personnel Management projects the fund will be depleted in fiscal year 2030.

We highlighted several approaches to address this shortfall, such as requiring most eligible retirees to participate in Medicare, increasing cost-sharing, or reducing benefits.

Congress should consider legislation to put postal retiree health benefits on a more sustainable footing.

Scenarios for the Postal Service Retiree Health Benefits Fund

This graphic shows scenarios ranging from depletion by fiscal 2030 without additional funding to lasting to 2035 with added funds.

This graphic shows scenarios ranging from depletion by fiscal 2030 without additional funding to lasting to 2035 with added funds.

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