OIG says USPS executive pay practices are legal
TweetThe USPS Office of the Inspector General issued the following report:
This report presents the results of our audit of compensation paid or deferred to officers1 based on the limits established in the Postal Accountability and Enhancement Act of 2006 (Postal Act of 2006) and U.S. Postal Service policies and guidelines (Project Number 10BM001FT001). Initially we performed this work in fiscal year (FY) 2008, in response to an inquiry from the Board of Governors (Board) regarding the audit coverage we provide for officer compensation. We will continue to provide a report
annually as part of our ongoing financial statement audit work.Background
The passage of the Postal Act of 2006 amended Title 39, imposing guidelines on total compensation2 for the Postal Service. Under this provision, the total compensation payable to any employee is established at three levels:
- Level I of the Executive Schedule or $196,700 for calendar year 2009.
- With the approval of the Board, total annual compensation not to exceed the total annual compensation payable to the vice president of the United States, or $227,300 for calendar year 2009.
- For up to 12 officers or critical employees, compensation up to 120 percent of the total annual compensation payable to the vice president of the United States, or $272,760 for calendar year 2009.
Further, Postal Service officers receive additional benefits and other perquisites not subject to the compensation cap.
Conclusion
The Postal Service complied with the compensation limits stated in the Postal Act of 2006. Further, while we reviewed deferred compensation as a part of the overall scope, it does not apply to compensation caps. We noted that six of 44 officers were allocated a total of $502,395 in deferred compensation3 during calendar year 2009. Officers may be granted deferred compensation that is distributed after employment ends, or in a year when the payment of previously deferred compensation does not exceed the cap.
Title 39 does not limit the Postal Service from devising and implementing deferred compensation provided it does not conflict with either the Federal Employees’
Retirement System or Civil Service Retirement System.
April 18th, 2010 11:51
The OIG’s office was established in the middle 90′s to root out fraud waist and corruption at the post office.In 2002 Carla Corcoran was forced to resign as Inspector General after announcing that she was going to investigate the contracts between the equipment manufacturers and the Postal Service.In 2004 it was reported to the Homeland Security Committee that 28% of the mail that is processed by the independent mail processors is not delivered.All mail is prepaid mail.2006 was the most productive year in Postal history because of the irrational exuberance of the unregulated public urged on by unregulated financial institutions.In 2007, 102 new mail processing machine were introduced.Each machine generates $800,000 in revenue per hour.28% of $2 million per hour is not accounted for.The OIG’s office should be abolished.Postal managers and officials should be put on contracts tied to performance.Performance being that all mail be delivered all the time on time.No more storing the mail.I get prepaid mail that is addressed to my mother who died in 1994.Abolish the OIG’s office.