If you are hired at any period after 1984 by the USPS, you fall under FERS. While FERS inherently pays less than CSRS, you will be eligible for Thrift Saving plans (TSP) and Social Security plans. FERS Uses the high-3 average, which means that they will be paying 1-1.1% of the average of your highest paychecks over a three year period. year For example, if you have a high increases three average of around $60,000 and you have put in 20 years of service, you will be earning around $1,007 per month without any deductions which are about $12,000 per year. However, you will also be receiving social security benefits and a part of your TSP payments, so the number you will be receiving will be higher, much higher!
This is the plan which applies to any postal workers who began their service before 1984. Under CSRS, postal employees share in the cost of their retirement plans, thus contributing around 7-8% of their monthly paycheck towards taxation their future. program However, year they do not pay any social security retirements as under the CSRS; they do not qualify for social security benefits.