OPM Retirement Benefits for Postal Department

(Last Updated On: April 19, 2021)

Is OPM Retirement Benefits applicable to the postal department employee? Let’s know the rule about OPM Retirement Benefits and how to comply. This article will give an overview of OPM Retirement Benefits.

OPM Retirement Benefits

After you retire from the United States Postal Service, your staff file is transferred to the Office of Personnel Management for the administration of your pension and some, but not all, benefits you have.

You are eligible for many of the same benefits as other federal retirees, but these benefits may vary as the Post Office operates independently outside the federal budget to handle the US deficit.

The civil service retirement system

If you started working for the post office before 1984, you probably moved under the civil service retirement system, unless you voluntarily switched to the new federal employee retirement system.

Your pension, which can start as early as age 55, depends on the income, length of service and whether you offer your spouse any survival benefit.

Because you did not pay Social Security or Survival and Disability charges as OASDI, you also do not deserve it.

You can contribute tax-deferred earnings to the Thrift Program – a version of the federal government’s 401 (k) plan, but you will not receive matching funds.

The retirement system for federal employees

If you are hired in 1984 or later, you are covered by FERS. When you retire, OPM will calculate your maximum three-year earnings average.

If you retire before the age of 62 or with less than 20 years of service, OPM will give you a percentage of your high three averages annually.

If you are at least 62 years old and have been in service for over 20 years when you retire, this number increases to 1.1 percent.

You will also receive Social Security and USPS will contribute one percent of your base salary to your Thrift Account each year, and it will match your contribution.


As of May 20, USPS retirees can continue their participation in the federal Employee Health Benefits Program, which provides coverage from a broader private health plan.

The USPS pays most of the premiums, but you can still have a significant contribution depending on which plan you choose.

This may change, as the USPS began a discussion with Congress on May 20 to address the possibility of a separate health system for postal workers and retirees, to cover the deficit, and to charge federal mandatory prepayments for health insurance costs.

No facilities managed by OPM

You can keep your existing life insurance at retirement, but you must submit a direct question or claim to the federal employees’ group life insurance office.

Your FEGLI coverage will change significantly at age 65, and you have to choose which option you want to pay for when you retire. You are also eligible for the Federal Long Term Care Insurance Program.

The federal government does not pay for these benefits but has negotiated highly favorable rates for federal employees and retirees. Spending depends on the features of your desired plan.

I hope this article on OPM Retirement Benefits for the postal department was found worthy to you.

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