Prefunding the employer’s share of future premiums for retiree health benefits while continuing to pay health care premiums for current retirees was established by the Postal Accountability and Enhancement Act of 2006 (the Act). The Act established a specific payment schedule ranging from $5.4 billion to $5.8 billion over the ten-year period from fiscal years (FYs) 2007 through 2016. These payments have added a crippling burden to the Postal Service’s deteriorating financial position. The Office of Inspector General (OIG) for the United States Postal Service contracted the services of the Hay Group to review the assumptions used to estimate the Postal Service’s liability for retiree health care benefits.

Fraudulent workers’ compensation claims make up a small percentage of the total claims submitted by Postal Service employees. But they can cost the Postal Service thousands of dollars in long-term costs. So, when a tip on a suspect claim is reported to the OIG, our Special Agents investigate.

This was the case when a postal supervisor observed one of his employees, a Sales and Service Associate, working as a cashier at a home improvement store. Second jobs are not uncommon, especially in these economic times. But this employee was unable to work her postal job due to a claimed on-the-job injury to her right knee in March 2008. So, while gathering a home improvement store paycheck starting in April 2008, she was also receiving workers’ compensation payments – – 75% of her postal salary – tax-free!

OIG Special Agents found that the postal employee deceived her treating physician about her work capabilities and told the doctor the Postal Service had no "limited duty" work available. When the true information was provide to the physician, he immediately returned the employee to work full duty without medical restrictions. The Department of Labor terminated her benefits and the Postal Service avoided the potential cost of $1,103,149 in future OWCP compensation payments. The postal employee’s story doesn’t end there. She was fired from her job. A federal Grand Jury indicted her and a jury convicted her of making false statements and mail fraud. She is facing up to 25 years in prison at sentencing. She has got to be asking herself, "Was it worth it?"

If you suspect workers’ compensation fraud by a Postal Service employee, contact us at 1-888-USPS-OIG.

In 2007, the Cardiss Collins Processing & Distribution Center (P&DC) in Chicago was in the spotlight, but not in a good way.

The P&DC was plagued by negative media reports, numerous customer complaints and congressional inquiries concerning delayed mail. This led to an OIG Audit team’s review in 2007 and several recommendations that would streamline the P&DC’s processes and delivery.

During a follow-up review in FY 2008, the Audit Team determined management at the P&DC had implemented sweeping changes to streamline processing and mail delivery. Customer complaints dropped by more than 46 percent, delayed mail was reduced by 87 percent and delivery capacity improved. Thanks to management’s responsiveness, in FY 2008, the P&DC improved in all four service score categories in comparison with the scores attained in FY 2007 for the same categories.

Want to learn more? Click here to read the OIG Audit Team’s report in its entirety