USPS loses billions of dollars due to excessive pension contributions

Government Executive reports:

The U.S. Postal Service overfunded its pension accounts by $50 billion, because of the way in which its obligations have been calculated, according to a new audit.

The report submitted to Congress on Wednesday and conducted by the Segal Co. on behalf of the Postal Regulatory Commission, found the agency overpaid between $50 billion and $55 billion to its Civil Service Retirement System account. The overpayment was the result of unclear guidance on how increases in postal salaries affected pension contributions after USPS absorbed the Post Office Department in 1971.

Overfunded pensions: a man bites dog story.