COLAs, Elections, Insurance—Oh My!

November 14, 2024

COLAs, Elections, Insurance—Oh My!
By Bob Levi
NAPS Director of Legislative & Political Affairs

In mid-October, the Bureau of Labor Statistics published the September inflation index (CPI-W) that is used to calculate Social Security, CSRS and FERS COLAs. The CPI-W totaled 2.5%, meaning that, starting January 2025, the Social Security and CSRS COLAs will be 2.5% and the FERS COLA will be 2%.

Under current law, CSRS annuitants receive the same COLA as Social Security beneficiaries; however, FERS annuitants receive a 2% COLA if the Social Security/FERS COLA falls between 2% and 3%. As our legislative activists know, NAPS strongly supports H.R. 866 and its companion S. 3194, the Equal COLA Act, that would eliminate the difference between CSRS and FERS COLAs.

Three consequential events are taking place in November—counting presidential and congressional general election ballots, Postal Regulatory Commission (PRC) activity regarding the Postal Service’s October request for an advisory opinion relating to its “Delivering for America” (DFA) plan and the inaugural open season of the Postal Service Health Benefits (PSHB) program. All three events will impact NAPS members.

The partisan composition of the next Congress and the individual sitting in the White House Oval Office will determine how legislative and regulatory issues will be decided and who will fill vacancies on the Postal Board of Governors, PRC and key cabinet level posts. SPAC, NAPS’ political action fund, has been actively engaged in pivotal congressional campaigns.

Afterall, those elected to the 119th Congress will decide the legislative and oversight agenda for the next two years, as well as the trajectory of bills important to EAS-level postal employees and retirees. NAPS has been aggressively promoting our projected legislative agenda for next year to congressional incumbents seeking re-election and credible candidates seeking election to vacant seats and running against unfriendly incumbents.

An important aspect of this election in determining the outcome is vote by mail. This method of voting has continued to play a major role in sustaining our democracy. Log onto the Sept. 27 installment of NAPS Chat posted to the NAPS website to understand the importance of mailed-in U.S. elections since the Civil War. Smithsonian Postal Museum curator Carrie Villar is your guide.

Congress recognizes the status of mailed ballots and is concerned about the transit of these ballots throughout the mail stream. In late September, the House Appropriations Committee demonstrated its keen interest in vote by mail with a hearing on USPS election activities and on how postal performance could affect the transit of election ballots. The hearing took place the day after the House’s last vote before returning home to campaign.

Members of the committee stayed in Washington for the hearing at which Postmaster General Louis DeJoy testified. During the hearing, Chairman David Joyce (R-OH) voiced concerns about Cleveland operations and its past handling of ballots. Rep. Mark Pocan (D-WI) articulated deep distress over the rollout of the Local Transportation Optimization initiative pilot that adversely impacted Wisconsin on-time performance.

Committee members expressed concern about how the agency’s facility realignments and consolidations would impact the timeliness of ballot receipt and return. DeJoy attempted to reassure the committee that the Postal Service was ready for the election and would exercise “heroic efforts” to ensure all ballots are expeditiously processed and returned to the respective election authorities to be tabulated. You can be sure if there are any vote-by-mail hiccups attributable to USPS operational changes, the wrath of Congress, the PRC and, potentially, the White House, will descend on L’Enfant Plaza.

On Oct. 4, the Postal Service finally gave in to overwhelming public and congressional pressure and requested the PRC to issue an advisory opinion relating to the DFA plan. Much of the examination is taking place in November. Ordinarily, the process from beginning to end lasts 90 days, but the PRC, in its order outlining the procedural schedule, extended its duration to 120 days. The complexity of the DFA, combined with its painful roll-out, compelled the PRC to permit impacted stakeholders, including the American public, more time to examine, question and comment on the plan.

The USPS, in its request for the opinion, submitted written testimony of six senior postal officials in support of different aspects of the DFA. These officials may be subjected to cross-examination by PRC commissioners, as well as interested stakeholders, at a public hearing scheduled for early December. After the hearings, stakeholders may file written comments; the USPS likely will file rebuttals, stakeholders may submit rebuttal comments.

The PRC intends to file its advisory opinion by the end of January. It’s important to note the PRC advisory opinion is just that—advisory. In case you are wondering, on Oct. 21, NAPS filed as an “intervenor” in the PRC process, meaning the management association representing the interests of postal supervisors, managers and postmasters intends to fully participate in the PRC process.

Finally, Nov. 11 will usher in the first PSHB program open season, which will end Dec. 9. There are many similarities between the Federal Employees Health Benefits (FEHB) and Postal Service Health Benefits (PSHB) programs. For example, the Office of Personnel Management will continue to administer both FEHB and PSHB programs. Multiple plan options are available in each program. And many of the plans will be common to both programs; open seasons are being conducted simultaneously.

Those plans common to both programs will have similar benefit packages, although the premiums may differ, with most plans with PSHB options having less expensive premiums than their FEHB analogue. In fact, the average PSHB premium is 3.4% less than FEHB premiums. Nevertheless, there are a number of notable exceptions, including Blue Cross Standard.

So, as with any open season, it will be important to be a prudent health-plan shopper. There will be two NAPS Chat episodes posted over a four-week period to examine the new postal program and open season. The first was posted in mid-October, with the USPS’ PSHB expert Karla Kirby.

You may access NAPS Chat episode 215 through the NAPS Chat menu for 2024. OPM’s Open Season coordinator Jay Fritz will join me for the second NAPS Chat, which will be posted the second week of November.