US Postal Service 2014 Annual Report Download - page 78

2014 Report on Form 10-K United States Postal Service 74
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 Program (“FEHBP”), 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 was 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. In 2014, the Postal
Service’s share of the premium was further reduced to 72 percent of the federal weighted average premium, limited to not more
than 75.0 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. This is the same benefit provided to employees of other federal agencies.
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.