Sec. 103. Postal Service pension funding reform
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Section 8348(h) of title 5, United States Code, is amended— in paragraph (2), by striking subparagraphs
(B)and
(C)and inserting the following: The Office shall redetermine the postal surplus or supplemental liability as of the close of the fiscal year, for each fiscal year beginning after September 30, 2016. Subject to subparagraph (C), beginning June 15, 2019, if the result is a surplus or a supplemental liability the Office shall establish an amortization schedule, including a series of annual installments commencing on September 30 of the subsequent fiscal year, which provides for the liquidation of such surplus or liability to the Postal Service or the Fund (as the case may be) by September 30, 2043. No later than June 30, 2033, the Office shall determine, and thereafter redetermine as necessary, but not more frequently than once per year, the appropriate date to complete the liquidation of any remaining surplus or liability determined under this paragraph. The determination under this subparagraph shall be set in accordance with generally accepted actuarial practices and principles and shall not be longer than a period of 15 years from the date on which the determination is made. ; and by adding at the end the following: For the purpose of carrying out paragraph (1), for fiscal year 2017 and each fiscal year thereafter, the Office shall use— demographic factors specific to current and former employees of the United States Postal Service, unless such data cannot be generated; and economic assumptions regarding wage and salary growth that reflect the specific past, and likely future, pay for current employees of the United States Postal Service. . Section 8423 of title 5, United States Code, is amended— in subsection (a)— in paragraph (1)— in subparagraph (A)— in clause (i), by striking subparagraph (B)), and inserting subparagraph
(B)or (C)), ; and in clause (ii), by striking and at the end; in subparagraph (B)(ii), by striking the period at the end and inserting ; and ; and by adding at the end the following: the product of— the normal-cost percentage, as determined for employees (other than employees covered by subparagraph (B)) of the United States Postal Service under paragraph (5), multiplied by the aggregate amount of basic pay payable by the United States Postal Service, for the period involved, to employees of the United States Postal Service. ; and by adding at the end the following: In determining the normal-cost percentage for employees of the United States Postal Service for purposes of paragraph (1)(C), the Office shall use— demographic factors specific to such employees, unless such data cannot be generated; and economic assumptions regarding wage and salary growth that reflect the specific past, and likely future, pay for such employees. The United States Postal Service shall provide any data or projections the Office requires in order to determine the normal-cost percentage for employees of the United States Postal Service, consistent with subparagraph (A). The Office shall review the determination of the normal-cost percentage for employees of the United States Postal Service and make such adjustments as the Office considers necessary— upon request of the United States Postal Service, but not more frequently than once each fiscal year; and at such other times as the Office considers appropriate. For the purpose of carrying out subsection (b)(1)(B), and consistent with paragraph (5), for fiscal year 2017, and each fiscal year thereafter, the Office shall use— demographic factors specific to current and former employees of the United States Postal Service, unless such data cannot be generated; and economic assumptions regarding wage and salary growth that reflect the specific past, and likely future, pay for current employees of the United States Postal Service. ; and in subsection (b)— by redesignating paragraph
(5)as paragraph (6); and by inserting after paragraph
(4)the following: In this paragraph, the term postal funding surplus means the amount by which the amount of the supplemental liability computed under paragraph (1)(B) is less than zero. If the amount of supplemental liability computed under paragraph (1)(B) as of the close of any fiscal year after the date of enactment of the Postal Service Reform Act of 2018 is less than zero, the Office shall establish an amortization schedule, including a series of equal annual installments that— provide for the liquidation of the postal funding surplus in 30 years, commencing on September 30 of the subsequent fiscal year; and shall be transferred to the Postal Service Fund. .