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Monday, June 28, 2010

Postal Service finds $75B dollar overpayment

In what could be the best game of Monopoly™ ever, Postmaster General John Potter may have just drawn a card that reads "Inspector General finds error in your favor. Collect $75 billion dollars."

The Inspector General for USPS took a closer look at the Civil Service Retirement System and found massive overpayments dating back decades.

Michael Thompson, Director of Capital Investments for the Postal Service Office of Inspector General, explained for Federal News Radio, "the Postal Service, since 1972, has overfunded by $75 billion its share of civil service retirement and the reason for that is because the methodology that's used is not comparable to the methodolgies that's used for all the other federal retirement funds."

Thompson said the Office of Personnel Management, in deciding how much the Postal Service should pay into the CSRS, is currently using a different method developed in 1974. They've said they aren't going to change unless Congress tells them to, according to Thomson.

"The money is sitting in the civil service retirement fund. It's not as though the money is not there. It is there. It's just that the Postal Service has continually paid more than it should have paid."

All it would take, according to Thompson, is for either the OPM to make the change or for Congress to legislate it. That might seem simple enough, but with so much money involved, no one's getting off the dime, literally.

-Suzanne Kubota, FederalNewsRadio.com
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