Is FedEx Saving You From The Pension Crisis?
The US Postal Service (USPS) has announced it will be retiring the old-fashioned postal envelope, and is introducing a new digital service.
But the change has prompted some employees to worry about their pension.
The USPS will begin offering a new option for USPS retirees in January.
The service will allow them to pay their pension with a credit card and online.
Instead of using old-style paper envelopes, USPS employees will be able to print out their current postal pension and use the credit card to pay it.
The new service will be available to USPS retirees starting January 15, 2018.
But it won’t be the only postal pension program to get the new feature.USPS has a separate retirement plan called the USPS Employee Retirement Account.
It allows USPS employees to invest their retirement savings in a 401(k) or other retirement plan, rather than the traditional pension plan.
This plan has some perks, such as automatic contribution to the plan, a higher tax rate, and a tax deduction for certain distributions.
The Postal Service also offers a separate program called the Employee Retirement System (ERSA).
This is a separate 401(m) and also has some of the same benefits, including a tax-free withdrawal of contributions to the account.
ERSA has a lower tax rate and a lower deduction.
But USPS employees have a few more advantages, such like the ability to access an IRA, which allows them to make withdrawals of up to $1,500 a year.
This is typically the maximum amount that employers can offer employees for an IRA contribution.
But postal workers are already struggling with the cost of a pension and an employer-sponsored retirement plan.
They also worry about the potential fallout if they decide to sell their homes.
As NPR’s Steve Inskeep reports, one employee in Florida told The Associated Press that he was considering selling his house.
His wife, meanwhile, says her father’s insurance company was already considering his retirement savings.
“I just think they’re just trying to get away from it,” she told Inskeep.
“They’re just hoping to move on.”
The USPS says the new retirement service is just one part of the Postal Service’s plans to modernize its pension and retirement programs.