The purpose of solicitation is to compare the U.S. Postal Service’s (“Postal Service”) retirement benefits program to retirement benefits programs offered by major private sector companies. The Supplier shall produce a report with findings and recommendations that will reveal ways in which the Postal Service could benefit from adopting the identified best practices for its retirement benefits program.
Under the Postal Reorganization Act, the Postal Service is obligated to provide wages and benefits comparable to those provided in the private sector. However, Postal Service management believes that the FERS system is more costly and does not compare to retirement benefits provided in the private sector. The private sector has the ability to adjust to market conditions through changes in plan design, portability, investment strategy and other factors that reflect “best practices” in compensation and benefit policies.
Postal Service management is proposing a new retirement system, which it feels would benefit both new employees coming on board and the Postal Service. Management believes that by shifting to a Postal Service-administered retirement system, the Postal Service can more fully reflect the private sector trend and incorporate private sector best practices. This change would not impact existing retirement systems for current employees.