US Postal Service 2012 Annual Report Download - page 68

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2012 Report on Form 10-K United States Postal Service- 67 -
the S&P 500, the Dow Jones U.S. Completion TSM Index, and the Morgan Stanley Capital International EAFE (Europe,
Australasia, Far East) stock index; and lifecycle funds.
SUPPLEMENTAL NON-QUALIFIED DEFERRED COMPENSATION
Where appropriate and on a highly selective basis, the Postal Service offers supplemental non-qualified deferred
compensation as a recruitment or retention tool.
LIFE INSURANCE
Officers are entitled to basic group life insurance coverage under the Federal Employees Group Life Insurance (FEGLI)
Program in the amount of their annual basic salary, rounded up to the next $1,000, plus $2,000. If basic coverage is held,
an officer will also receive an additional $10,000 coverage (Option A) and Option B coverage up to three times their
salary. All premiums for Option A, Option B, and basic coverage are paid by the USPS. At their own expense, officers
may elect additional Option B coverage in an amount equal to two times their salary. Also at their own expense, officers
may elect Option C, family optional insurance coverage, of up to 5 multiples of $5,000 for their spouse and $2,500 for
each eligible dependent child. Officers continuously covered under FEGLI for the 5 years immediately preceding
retirement, or since the first opportunity, may continue coverage during retirement (if entitled to an immediate annuity).
USPS pays former officers an actuarially determined lump sum to cover the cost of Option A premiums during retirement
to retiring officers.
HEALTH BENEFITS
The Postal Service participates in the Federal Employees Health Benefits (“FEHB”) program, which allows all career
employees to enroll in one of a number of self only or self and family health benefit plans offered as part of this program.
The Postal Service pays a portion of the cost of the premium for its officers and executives. Beginning in January 2012
and continuing over a three-year period, the Postal Service is increasing the percentage its officers and executives pay
until the percentage matches the percentage paid by employees in the rest of the federal government. In 2012, the Postal
Service’s share of the premium was reduced from 100 percent to 91 percent. In 2013, the Postal Service’s share of the
premium will be reduced to 82 percent of the federal weighted average premium, limited to not more than 85.5 percent of
the total premium for any given plan, and enrolled officers and executives will pay the balance of the premium for the plan
they select.
Employees who retire with immediate entitlement to an annuity are eligible to continue FEHB coverage into retirement as
long as they have participated in an FEHB plan for the five years preceding their retirement or since their first opportunity.
Officers are under the same cost sharing formula as other Postal Service and Federal retirees—the Postal Service pays
according to the federal premium formula, which is 72 percent of the federal weighted average premium, limited to not
more than 75 percent of the total premium for any given plan, with the retiree paying the balance of the premium for the
plan they select.
OTHER BENEFITS
To remain competitive with the comparator marketplace, the Postal Service also offers the following additional benefits to
its executive officers: periodic physical examinations, parking, financial counseling services, employer-paid life insurance
premiums, and membership in up to two airline clubs per year.