The Postal Service participates in the federal retirement program, which provides a defined benefit (pension), as well as disability coverage. Career postal employees may contribute to the Thrift Savings Plan (TSP), which is similar to 401(k) retirement savings plans offered by private sector employers.

Are post office employees considered federal employees?

As a postal worker, you must follow federal rules, and you receive federal benefits. However, the U.S. Bureau of Labor Statistics doesn’t consider postal workers federal employees because the postal service is a quasi-federal agency.

How do I retire from USPS?

While the Office of Personnel Management (OPM) makes all decisions regarding retirement entitlement, current employees are required to apply for retirement through the USPS Human Resources Shared Services (HRSSC). HRSSC can be reached by calling 877-477-3273, option 5.

How much is a postal workers pension?

The amount of money a postal worker makes in retirement depends on their age and how long they worked as a postal worker or government employee. A postal worker who retired in 2020 with 25 years of service would make a monthly basic annuity between $1,308-$1,335.

How is FERS calculated for a retired postal worker?

Multiply your three-year average by 1 percent for each year of service if you are retiring after less than 20 years. So, if you worked for 10 years and your three-year high average was $30,000 a year, then your FERS earnings will be 10 percent (1 percent x 10 years) of that average–$3,000 a year.

How much money can a postal worker make in retirement?

For example, if a postal worker takes up retirement under CSRS, he/she can have a high three of the average of around $60,000, and if that person puts in about 20 years of service, they can earn around $22,000 per year without any deductions, which is around $1,824 per month.

How is FERS calculated if you retire at age 62?

At a basic level, your FERS retirement benefit is calculated as 1% of your high-3 average pay multiplied by your years of service. If you are retiring at age 62 or older with 20+ years of service, you would use a factor of 1.1% instead of 1%. Can I collect FERS and Social Security at the same time?

Are there any retirement plans for post office employees?

Nevertheless, at time of publication, retirees from the post office still have all retirement programs in place, and postal workers have various possible sources of retirement income available. Annuities for postal workers depend on age and the number of years worked.