Estimate of Interest on Selected Benefits Received by Postal Service Retirees
AIMD-93-11: Published: Jul 29, 1993. Publicly Released: Aug 31, 1993.
- Full Report:
Pursuant to a congressional request, GAO prepared estimates of interest on the amounts the U.S. Postal Service (USPS) was required to pay for certain cost-of-living adjustments and health benefits USPS retirees received during fiscal years 1972 through 1990 and compared the estimates with the amounts contained in the President's 1994 budget proposal.
GAO found that: (1) the estimated total interest was $1.728 billion, which exceeds the amounts contained in the President's 1994 budget proposal by $782.5 million; (2) the estimates differed because of the interest rates and principal balances used in the calculations; (3) interest rates averaged 9 percent annually for cost-of-living adjustments and 8 percent annually for health benefits; and (4) the principal amounts used in calculating the President's budget proposal were higher.