PRC to hold August 16 Briefing on $50 Billion Discrepancy Identified In Postal Service Pension Payments

Washington, DC –The Postal Regulatory Commission invites press and interested parties to a briefing on the actuarial report of The Segal Company regarding calculation of U.S. Postal Service pension liability for former Post Office Department employees. Questions will be entertained following the briefing.

What: Public briefing on the actuarial analysis of liability related to funding of Postal Service pensions. The Commission report finds that an adjustment of roughly $50-$55 billion in favor of the Postal Service would be equitable.

Who: Commissioners and Commission staff The Segal Company representatives

When: 10:00 a.m. Monday, August 16, 2010

Where: Hearing Room, Postal Regulatory Commission – 901 New York Avenue, NW, Suite 200 – Washington DC 20268

Background: On June 30, 2010, the Commission released an independent actuarial report, prepared by The Segal Company, on the allocation of the costs of Civil Service Retirement System (CSRS) benefits paid to former Post Office Department (POD) employees. Segal finds that the current allocation overstates U.S. Postal Service responsibility for CSRS payments to former POD employees, and estimates assets currently allocated for that purpose fall short of an equitable allocation by roughly $50 to $55 billion.

The Commission finds that the Segal Report provides a persuasive statement of the relevant generally accepted actuarial practices and principles and how they should be used to develop the current postal surplus or liability.