OPEB Challenges: Learning from the U.S. Postal Service

Estimates suggest the U.S. Postal Service would need to contribute as much as $3.7 billion annually until fiscal year (FY) 2021 to address its unfunded other post-employment benefits (OPEB). Like most states and most of the federal government, the Postal Service traditionally funded OPEB on a pay-as-you-go basis, paying expenses in the year incurred. This changed in 2006 when Congress passed the Postal Accountability and Enhancement Act to prefund the Postal Service’s growing OPEB...