GAO listed three points in the USPS proposal that could lead to less money being available for employee and retiree health care.
?The Postal Service plan to invest health-plan funds in something other than U.S. Treasury securities increases risk. Investments “may experience losses in a market downturn and would thus have reduced assets available for health care.”
?It “is not fiscally prudent” for USPS officials to spend health-fund money for other purposes when the fund has more money than is needed, as they have suggested. “If USPS were to consistently exercise this option to help maintain its financial solvency, it could result in an unfunded liability for retiree health benefits.”
?“Overly optimistic assumptions” about the liability USPS would face under an internally operated health insurance plan “could lead to inadequate funding for the health plan over time.”
GAO said postal employees and retirees would have similar coverage, but some might have to change doctors or lose certain protections, such as the USPS contribution to the cost of retiree health benefits, which now is set by law. Also, “some employees could have higher total costs” under a USPS plan, GAO said.
