Postal Service plan includes pulling out of TSP
August 15th, 2011 | Postal Service | Posted by Stephen Losey
UPDATE, 11:30 a.m. Aug. 17: Or maybe not.
ORIGINAL POST: The U.S. Postal Service’s plan to pull out of the current health and retirement plans and create their own systems has certainly caused a stir. One of their proposals is to drop the defined benefit pension plan for new employees, and only provide a defined contribution plan “which incorporates private sector best practices concerning employer contributions, portability, investment options, eligibility, designated providers, and overall administration.”
But the federal government already has a defined contribution plan that’s not far off from a 401(k) plan, and a pretty good one at that — the Thrift Savings Plan. And as I read the USPS proposal, it wasn’t entirely clear whether they planned to have future employees rely solely on the TSP for their retirement, or drop out of TSP entirely and come up with their own system.
But according to a statement the Postal Service sent us, it’s the latter. “Under our proposal we would not participate in the TSP,” spokesman David Partenheimer wrote. “We would move to a 401(k) plan like the private sector.”
TSP Legislative Director Tom Trabucco today said the Postal Service hasn’t contacted them about their plans. He wouldn’t comment on what losing hundreds of thousands of postal employees and retirees might mean for TSP.
“What I can say is that we have been pleased to serve the retirement savings needs of Postal Service employees and hope to continue doing so,” Trabucco wrote in an e-mail. “TSP eligibility is a matter of federal statute. Historically we have deferred to Congress and the Administration regarding who is eligible to participate in the TSP.”
Tags: pension, TSP, U.S. Postal Service
Comments
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mailhandler al Says:
August 16th, 2011 at 3:20 amThe bottom line is this: PRIVATIZATION and we do not care who gets in the way or who we hurt.The only thing we want to participate in is: PROFITS.
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Diego Says:
August 16th, 2011 at 3:27 amIronically, the federal government has been “borrowing” money from the G Fund of the TSP in order to pay it’s own bills. Congressional leaders will have to think long and hard before they let the USPS take this gravy train resource away from them.
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me Says:
August 16th, 2011 at 7:48 amthey are trying to throw us to the wolves to fend for ourselves. It’s their fault they put idiots in charge, they knew this a long time ago that those they promoted were worthless. Yet they never corrected their mistakes. Toss out the upper management and top administrative and put someone in there that knows what they are doing. Quit trying to screw the real hard working people that actually do the job.
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James Wood Says:
August 16th, 2011 at 8:36 amPlease dear GOD, do not let the Postal Service get their incompetent hands on MY retirement or MY healthcare.
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Don Says:
August 16th, 2011 at 9:02 amALL management needs to get the boot, not just upper management. Incompetence goes all the way from top to bottom.
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Schmooly Says:
August 16th, 2011 at 9:09 amThe USPS has already dropped out of the Mail delivery business so this wouldn’t surprise me.
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mvser Says:
August 16th, 2011 at 9:36 amCongress is the problem with the postal service. If we were not required to pay 5-6 billion dollars for furture retirees health care benefits, the usps since 2007 would have a profit of 611 million dollars. Why do we keep talking about all this other bs. There would not be all of these other problems if elemenated. Then this money is deposited with the treasury. My understanding is the treasurey then lends it back to the usps. Is this like robbing from someone their mortgage payment and then lending it back to them? Oh! by the way, no other company or government agency is required to do this. Time for a change in congress. Vote out everyone!
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Worker in Colorado Says:
August 16th, 2011 at 9:49 amThis is a plan on how to deconstruct the lives of blue collar postal workers. It must have come through the Board of Governors and some consultants they hired that also work at conservative think tanks. They hate the working class and the thought that they might be able to live less than a serf’s lifestyle. I worked hard for 36 years and planned for my retirement. No. I will not stand for any attempt to take it away from me. Damn the Republican policies that are ruining the nation I fought for when I served in the military.
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Cookie Monster Says:
August 16th, 2011 at 10:35 amThe USPS is a big ole cookie jar. All this talk will put a lid on said jar. Not gonna happen.
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ExPOguy Says:
August 16th, 2011 at 11:09 amI walked away from that horrible company 5 years ago…best decision ever !!! I know that it was the most poorly managed business back then, can’t even imagine how bad it is working there now !!!
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Wilber Says:
August 16th, 2011 at 11:10 amIt’s just a matter of time(Election time) before all the yahoos are voted out of office. Job destruction is not the way to uplift the American people, nor do the rich deserve the larger piece of the American dream. It either a voting slip or like history repeating it’s self, the people will say enough a will rise up with a roar.
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Joseph Breckenridge Says:
August 16th, 2011 at 11:23 amThe Board of Governors is likely driving this and management is simply doing what it’s told. Efforts to oppose this breach of faith should likely focus on the Governors.
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Unforgiven Says:
August 16th, 2011 at 11:30 amI find the criticism of postal management unsurprising albeit wrong in this case. But we see the same union thuggery involved in their constant mantra of republican bad, democrat good. So if any of the thugs get past the first few lines, let me first of all say I am a very proud union member and am proud of living in a country where I can be a union member. I also value the union’s protection against the morons and fools in management. However this current crisis is not one created primarily by management, this is a case of Congress stealing the USPS blind. When President Obama was elected, he was also given a House and Senate majority for his first two years in office. I don’t know how many of the thugs here can remember that far back, but we were already in a downward spiral which anyone with common sense, saw would end up right where we’re at. Management has attempted to engage congress and make them aware of the problem. But a democrat House, Senate and White House ignored the pleas of the Unions and management. Our current crisis is clearly the fault of congress, both democrat and republican parties. You morons need to quit whining about management for a few minutes and go after the real culprits and criminals in this matter, the House, Senate, and White House. They have been stealing us blind and have it in their power to fix the problem in a matter of hours or days and instead continued extorting and stealing from the USPS and now are going to use us as a political football. So try and get your small minds off of management and deal with the true problem, congress.
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Harry Balzac Says:
August 16th, 2011 at 11:39 am“Under our proposal we would not participate in the TSP,” spokesman David Partenheimer wrote. “We would move to a 401(k) plan like the private sector.”
Yeah, a plan like Enron had, rigged so that the participants won’t be able to withdraw or transfer their funds when the value plummets….
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Beverly Says:
August 16th, 2011 at 11:51 amThe last people I want controlling any of my money (TSP) retirement or Health benefits is the USPS! Poor management is who has put us in this position – and poor management will rob us blind & leave us in worse shape – (after they all line their pockets & get their own good retirements) Stop the insanity! And the Government probably wants to take us over – or privatize – then they can raise prices – mark my words – we will be paying over $1 for postage & they will be taking money from us.
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rocko Says:
August 16th, 2011 at 5:03 pmWhen I worked there i tried to to tell the upper crust , you want to be in the black ,fine. Do the following put ads on stamps($$).Cut the dumb OIC program let a clerk fill in. Stop all these dumb audits.Stop all sponorships,Stop chasing pennies with dollars (EX. Express mail deadlines and Sunday del.Cut these monthly( national martian month)and every other culture month Hey were Americans.Stop rural mail count and give a fair average pay per box.Told them 15 yrs ago ,I bet no change next 15 yrs.
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Dave Says:
August 16th, 2011 at 5:50 pmThey want to take care of our retirement? They can not even get the overtime list right or the holiday schedule right???????
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MSR Says:
August 16th, 2011 at 5:53 pmI like what Rocko said. The ads on the stamps is a great idea. A fair pay average pay for each box sounds great. I would love to get rid of the mail count. I am so sick of all the crap that goes on at the PO, getting ready for another mail count…UGH!!! I wish I could mentally step away during this time, it is soooooo frustrating knowing that they control all the mail volume during this count, knowing that they WILL hide the catalogs during this count. ALL I WANT, IS TO COME IN AND DO A GOOD JOB AND NOT BE CHEATED OUT OF MY PAY. IS THAT TOO MUCH TO ASK FOR.
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rw Says:
August 16th, 2011 at 7:21 pmDoes anyone else have supervisors that shop on Craigslist during the day and do personal errands and grocery shopping? Is this against the law or is it just common practice? Just wondering if this is done everywhere.
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Hah Says:
August 16th, 2011 at 8:00 pmMail Count? Try being a city carrier with DOIS. You rural carriers are sitting ridiculously pretty. Rural carriers here in Upstate NY, work 4.5 hours a day, get paid for almost 9. City carriers are having their throats slit for a measly 5 minutes difference of street time. I’d gladly take a count any day then work on the city side.
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Doc Says:
August 16th, 2011 at 8:10 pmTruth, The Congress will not release the 6 Billion paid thru OPM every year for prepaid Healthcare(Congress relies on those monies). second, TSP GFund which the Treasury has rights to tap, holds Trillions “T”. Congress will not let that go. Congress MUST allow the USPS to change, and it ain’t happining! Let us be real~ Postal management has been giving themselves Bonuses in the billions while they fail each year; They are now asking congress to nulify their Labor contracts.Neither congress, labor nr the taxpaers can trust the USPS to spend monies collected
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Retiree Says:
August 16th, 2011 at 10:44 pmAds on stamps? What a concept! Ever heard of PC postage? The company can print anything they want on their stamps. Ever heard of the IJC on the AFCS? It can print whatever is programmed in on the cancellation. No one seems to be buying it. We reprogram the cancellations for Xmas greeting messages and Postal promotions, but not too many takers for ads.
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Polite Observer Says:
August 17th, 2011 at 6:06 pmUnforgiven,
Educate yourself on how government works, Democrats only had majority vote in the house the first two years of Obama”s term. The Senate needs a 60 man vote to get anything done. They Never (Democrats) had a 60 man vote. So everything was blocked or just say “no” in the Congress. There was never 60 democrats to pass the working mans agenda. So what I say to you Democrat or Republican, vote for someone who cares about you. And as I see it All the Republicans care about are their big business, millionaire buddies and probably 2/3 of Democrats feel the same. I say honestly look at what your politician does instead of what he says. All of the Republicans have voted against the working class. Obama doesn’t make any laws or bills, Congress does.
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hello Says:
August 17th, 2011 at 6:22 pmThe usps may stop requiring s/l notes if it keeps driving up the hbp costs, or maybe they willrequire you to use a company Dr. like the coal miners had in the 30′s