The U.S. Postal Service participates in three retirement plans: the Civil Service Retirement System (CSRS), the Federal Employee Retirement System (FERS), and the Postal Service Retiree Health Benefits Fund (PSRHBF). These plans are restricted to government trust funds invested solely in U.S. Treasury securities. They are often regarded as riskless in the sense that there is virtually no possibility of loss of principal. However, the trade-off for this safety is a low rate of return that has a high probability of not generating adequate investment income to meet all the future obligations of the funds. The OIG retained Segal Consulting (Segal), experts in actuarial science and pension plan management, to explore options to improve the funding situation on the assets side. Segal identified six alternative investment strategies. All of Segal’s proposed portfolios outperform the current strategy.
Report File
Date Issued
Submitting OIG
U.S. Postal Service OIG
Other Participating OIGs
U.S. Postal Service OIG
Agencies Reviewed/Investigated
U.S. Postal Service
Report Number
FT-WP-17-001
Report Description
Report Type
Other
Agency Wide
Yes
