What Are the Post Office Retirement Benefits?


Quick Answer

Post office workers with at least five years of service are eligible to receive an annuity retirement benefit and a Social Security benefit, according to PostalMag.com. Annuity benefits for workers employed before January 1,1984, are determined by the Civil Service Retirement System, or CSRS. Annuity benefits for workers employed after January 1, 1984, are determined by the Federal Employees Retirement System, or FERS. Social Security benefits are based on the amount each worker contributed to Social Security.

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Full Answer

A post office worker's "high-3" is defined as the highest average pay earned during three consecutive years, explains PostalMag.com. The annuity benefit under CSRS is 1.5 percent of the high-3 for each year of service up to five years; plus 1.75 percent of the high-3 for each year of service from six to 10 years; plus 2 percent of the high-3 for each year of service over 10. The annuity benefit under FERS is a percentage of the high-3 times the number of years of creditable service. The percentage is 1.1 percent for a worker who retires at age 62 or later with at least 20 years of service, and 1 percent for all other workers.

Under both systems, the annuity is reduced if a worker retires early and to provide a survivor benefit if the worker is married, notes PostalMag.com. Retirees who are covered by FERS can also take distributions from their Thrift Savings Plan accounts, which includes their contributions and the government's matching contributions.

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