Wendy Ginsberg
Analyst in American National Government
Jaclyn Petruzzelli
Research Associate
Media reports and some Members of Congress have expressed concerns that the pay of U.S. Postal Service (USPS) executives is too high and should be reduced. USPS and others have argued that current compensation rates are needed to attract talented employees to a Postal Service that delivers mail and packages to homes and businesses throughout the United States without taxpayer assistance.
The 112th Congress has taken action on two bills that would limit USPS executive compensation or benefits. S. 1789 would remove certain “fringe benefits” and cap pay at Level I of the Executive Schedule ($199,700 in 2012). H.R. 2309 would prohibit Postal Service executives from receiving bonuses in years when USPS expenses eclipsed revenues and cap pay at Executive Schedule Level I in certain years.
This report examines the authorities governing executive compensation at USPS. It examines pay rates for other public-sector employees as well as certain private-sector employees to analyze how the pay of the Postmaster General and other Postal Service executives might compare.
At the end of FY2011, USPS employed 645,950 people. Within that total is a cadre of Postal Career Executive Service (PCES) employees. As of May 18, 2012, USPS had 640 PCES employees. The cadre is divided into two categories: executives and officers. Executives, of which there were 604, perform duties such as district manager or bulk-mail center manager. Officers, of which there were 36, serve at the pleasure of the Postmaster General (PMG) and include senior-level positions like area vice presidents and the Deputy Postmaster General.
PCES employees and the Postmaster General are paid pursuant to specific statutory authorities. Pay for PCES employees is capped at $276,840 in FY2012. A Postal Executive may earn more than that statutory cap if he or she qualifies for a performance-based pay bonus. Pay earned in excess of the pay cap may be deferred and collected upon retirement. Three USPS officers currently receive deferred pay.
PCES officers and the PMG receive certain benefits that are not provided to other federal employees, like free life insurance, financial counseling, and parking. Additionally, PCES employees have no cap on the number of annual leave days they can accrue. Federal employees in the Senior Executive Service (outside of the Postal Service) cannot accrue more than 90 days of annual leave. Further, the PMG is provided a driver and security services pursuant to certain statutory provisions.
Date of Report: July 23, 2012
Number of Pages: 15
Order Number: R42623
Price: $29.95
Document available via e-mail as a pdf file or in paper form.
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