Do USPS Employees Get a Pension? (All You Need to Know)

As far as jobs go, working for the United States Postal Service is considered a good one, whether you’re a rural carrier, mail handler assistant, or even an automotive technician.

That’s because USPS employees receive extremely fair pay, on top of the same Federal benefits that other government employees receive. But what about pensions? Do USPS employees get a pension? I have the answer you need, so keep reading!

Do USPS Employees Get a Pension in 2022?

The United States Postal Service participates in the federal retirement plan, and as such, Postal workers who meet age and service requirements do receive a pension in 2022. The Federal Employment Retirement System (FERS) pays 1 to 1.1 percent of the average of the three highest-paying years of employment, times the number of years of service.

Let’s dive deeper into when you can get a pension from the USPS, if Postal workers get social security, what benefits mail carriers get, and so much more!

When Can You Get a Pension From USPS?

The question of when USPS employees can receive their pensions is a bit complicated but is outlined by the Federal Employment Retirement System (FERS).

First, employees can receive their pension at age 62, with five years of creditable civilian service.

Second, employees can receive their pension at age 60 with 20 years of creditable service, including five years of creditable civilian service.

Or, third, employees can receive their pension at their minimum retirement age (MRA), with 30 years of creditable service, including five years of creditable civilian service.

The MRA is determined by the chart seen here; anyone born after 1970 will meet the MRA at age 57.

How Is USPS Pension Calculated?

The USPS pension follows FERS guidelines.

If the retiree is under age 62 or is 62 years of age or older but with less than 20 years of service:

Their pension is calculated as 1 percent of the 3-high average salary, times the number of years of service.

If the retiree is 62 years of age or older and has 20 or more years of service:

Their pension is calculated as 1.1 percent of the 3-high average salary, times the number of years of service.

Now, the FERS computation is less than the previous system’s, CSRS – in some cases, with FERS, retirees receive half the amount they would have with CSRS.

However, that is forgetting that USPS retirees are also eligible for Social Security.

Can You Retire From USPS After 20 Years?

You can retire from USPS after 20 years if you are at least age 60, and you will still receive your immediate unreduced annuity.

In order to retire under the age of 60 (or by your MRA), you must have at least 30 years of service.

Also, postal workers are eligible for reduced annuities if they meet the MRA and if they have at least 10 years of service.

In that case, the annuity is reduced by five percent every year the retiree is under the age of 62.

Do Postal Workers Get Social Security?

Do Postal Workers Get Social Security?

Postal workers do get Social Security, which helps prop up their monthly payments from FERS.

If the retiree is under the age of 62 and not yet able to receive Social Security, they may be eligible to receive a Special Retirement Supplement.

Finally, FERS also covers the Thrift Savings Plan, which allows employees to contribute up to 10 percent of their salaries, with the Government matching up to five percent.

What Benefits Do Mail Carriers Get?

Mail carriers, and indeed all USPS employees, receive considerable benefits during their employment.

These include the following:

  • Thirteen days of vacation leave for the first three years of employment, 20 days per year after three years, and 26 days after 15 years
  • Sick leave
  • Ten annual holidays (paid)
  • Competitive compensation, usually well above the minimum wage
  • Federal Employee Health Benefits Program
  • Flexible spending accounts
  • Long-term care insurance

Further, USPS employees are entitled to certain benefits and discounts from retailers, including:

  • Deals on 24 Hour Fitness gym memberships
  • Pet insurance
  • HP products and devices
  • Cell phone plans
  • Discounts on higher education

All of the above is provided, in addition to the pension that USPS employees can look forward to when they retire.

Is Working for the USPS Worth It?

In general, working for the USPS is worth the sometimes-hard labor employees must undertake in their day-to-day.

You receive competitive pay, excellent benefits, job security, and to top it all off, a pension upon retirement – and all this for a job that doesn’t require a college degree.

Overall, employees give USPS a 3.3 out of five stars when it comes to job satisfaction, citing pay and benefits, and job security and advancement as their top reasons to stay.

To learn more, you can also read our posts on USPS attendance policy, USPS termination policy, and do USPS employees get discounts.

Conclusion

USPS employees do receive a pension, as part of the FERS program, though the amount varies based on their age and the time they have spent in service. Additionally, all FERS-eligible employees are also eligible for Social Security, which kicks in at age 62.

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Cara Suppa

Cara Suppa has been freelance writing for over a decade and holds a BA in English and an MS in Integrated Marketing Communications. Outside of work, she is an avid cook, gardener, and discount shopper.

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