usps requested the opinion on the fairness and equity of the opm method.er taking competitive bids the segal company was selected to analyze and make recommendations. we met with stakeholders and reviewed the actuarial and accounting standards, and we concluded that the most relevant benchmark was the accounting standard applicable to private companies. this was the only one that had as the primary objective the matching of revenues in the postal service's case, selling postage, with the labor cost to produce those revenues. that was our assessment of the appropriate basis for evaluating the fairness of the csrs cost allocation. the accounting standard provides clear and not discretionary direction with regard to plans such as csrs that provide non uniform benefit accruals, in this case higher accruals in later years of employment. the expense charge requires following the plan cycle formula as opium was doing. it also requires the cost allocation for a final average salary plan like csrs must reflect the anticipated future salary at termination or retirem

i've gone back and forth with opm on this.rote the provision of the 2006 act that gives you the authority in section 802.c-2. it says that the postal regulatory commission can hire an actuary. that's what they did to take a look at it. and it gives you complete authority to then change the formulas. so i just don't understand why the administration continues to say that it doesn't have the authority. >> senators, i'm not an attorney and i have to defer to my general counsel, my inspector general and my board of actuaries and in their reading of the law, and i know there is a disagreement in this, but with due respect, they advise me i do not have the authority to determine fair and equitable as mr. levy testified. that authority rests with you and you alone. with the congress. and what i am not here testifying against the siegel report. in fact we find a lot of value in the siegel report and believe might be a good basis for the committee, for the postal service and for us, to have our actuaries and staff to work with you to h

usps requested the opinion on the fairness and equity of the opm method.er taking competitive bids the segal company was selected to analyze and make recommendations. we met with stakeholders and reviewed the actuarial and accounting standards, and we concluded that the most relevant benchmark was the accounting standard applicable to private companies. this was the only one that had as the primary objective the matching of revenues in the postal service's case, selling postage, with the labor cost to produce those revenues. that was our assessment of the appropriate basis for evaluating the fairness of the csrs cost allocation. the accounting standard provides clear and not discretionary direction with regard to plans such as csrs that provide non uniform benefit accruals, in this case higher accruals in later years of employment. the expense charge requires following the plan cycle formula as opium was doing. it also requires the cost allocation for a final average salary plan like csrs must reflect the anticipated future salary at termination or retirem

usps requested the opinion on the fairness and equity of the opm method.g competitive bids the segal company was selected to analyze and make recommendations. we met with stakeholders and reviewed the actuarial and accounting standards, and we concluded that the most relevant benchmark was the accounting standard applicable to private companies. this was the only one that had as the primary objective the matching of revenues in the postal service's case, selling postage, with the labor cost to produce those revenues. that was our assessment of the appropriate basis for evaluating the fairness of the csrs cost allocation. the accounting standard provides clear and not discretionary direction with regard to plans such as csrs that provide non uniform benefit accruals, in this case higher accruals in later years of employment. the expense charge requires following the plan cycle formula as opium was doing. it also requires the cost allocation for a final average salary plan like csrs must reflect the anticipated future salary at termination or retirement and

would you take a look and see the work the group has done and the auditors within opm. >> that is an offer we might want to take advantage of. >> have you had the chance to meet with the folks to understand what their assumptions are? >> i know ever staff has and there has been communication not only with them the the other studies done and we welcome the gao's participation in the sand with the committee staff in helping the committee decide what that fair and equitable standard should be. >> i'm over. let me stop there and say thanks for giving me a few extra seconds and thanks for the response. >> cementer mccaskill. >> we were in the middle of hearing the 167 post office closings being proposed in my state 85% of those are in the counties of less than 50,000 residents. i spent a lot of time in my state going around outside of the urban area the last month i worry that the transparency of the process and the last time you testified before us senator pryor asked the question to my knowledge that question hasn't been fully answered has there been time places have been removed from t

office of personnel management directly to testify as to the subject matter as it relates to opm.le to speak on behalf of the administration as well. >> thank you, mr. chairman, for the opportunity to testify regarding the financial challenges facing the united states postal service. i have met with the postmaster general several times recently, and the administration is committed to exploring ways that can be helpful to the postal service. both the president and i know of the critical importance to our nation's economy that the postal service provides, and we are grateful to the men and women of the postal service for the important work they do for our country. the president's fiscal year 2012 budget proposed ways to provide postal service financial relief, but since those proposals were offered the financial situation of the postal service has deteriorated further. in response to this situation the administration plans to release a proposal in the few coming weeks that will ensure a sustainable future for the postal service. this proposal will be included as part of the broader

about it since 2005, issued another report in 2008, made suggestions on how to fix the problem, and opm, by the way, is not even the worst offender -- offender out of all federal agencies in making improper payments or making payments that shouldn't be made and would never be made by another organization. bill: who's worse, tom? >> med cay, medicare,o medicaid, medicare, social security does an interesting job because they have those social security numbers, they know when people are deceased, they send a note to the bank and say cut this off, but apparently they're not talking to the office of personnel management on a regular basis. bill: so social security does a fairer job? but in the age of the internet, there are so many who do not. >> that's the whole point. >> bill: there's a bigger issue here, too. the families of the deceased who receive the checks are apparently still cashing it. >> that's right. bill: and that is fraud, tom. >> i agree, there's tpra*ud on the other side. the people should be prosecuted, the people should get penalized, and perhaps this will stop. there's one

would you take a look and see the work the group has done and the auditors within opm. >> that is an to take advantage of. >> have you had the chance to meet with the folks to understand what their assumptions are? >> i know ever staff has and there has been communication not only with them the the other studies done and we welcome the gao's participation in the sand with the committee staff in helping the committee decide what that fair and equitable standard should be. >> i'm over. let me stop there and say thanks for giving me a few extra seconds and thanks for the response. >> cementer mccaskill. >> we were in the middle of hearing the 167 post office closings being proposed in my state 85% of those are in the counties of less than 50,000 residents. i spent a lot of time in my state going around outside of the urban area the last month i worry that the transparency of the process and the last time you testified before us senator pryor asked the question to my knowledge that question hasn't been fully answered has there been time places have been removed from the list following th

postal service its surplus in the retirement fund estimated by opm at 6.9 billion dollars.so proposes a restructuring retirement benefits at an estimated cost savings of $4 billion in temporary relief. additionally, the president's budget proposes streamlining fehbp pharmacy purchasing benefits, and we believe this could save the postal service an additional $300 million over the next five years. lastly, i would like to address a number of reports questioning whether the postal service has overpaid its obligations. moreover, i would like to clarify the term overpayment has been used by those who implied that there should be a change to the current allocation that is mandated and the law. opm applies the method established in tech current law for apportioning responsibility for ses are as cost between the postal service and the treasury. after careful review by the office of personnel management general counsel, our inspector general, and our board of actuaries, they have all concluded opm does not have the administrative authority to make a reallocation of the cms rs cost b