Background

Each year the Postal Service is required to report on compensation in the annual Comprehensive Statement of Postal Operations. For calendar year (CY) 2021, the annual salary of each Postal Service employee was limited to $221,400. Two exceptions granted under the Postal Accountability and Enhancement Act of 2006 (PAEA) allow the Postal Service to exceed this limit. The first exception provides for bonuses or other rewards such that the employee’s total compensation does not exceed $255,800 (the salary of the U.S Vice President). The second exception allows the Postal Service to exceed the salary of the U.S. Vice President by 20 percent ($306,960) for up to 12 critical senior executives.

What We Did

Our objective was to determine whether the Postal Service complied with applicable maximum total compensation provisions of the PAEA and related Postal Service policies and guidelines for CY 2021. We reviewed Postal Service policies, procedures, and guidelines regarding compensation, benefits, and bonuses; payroll, bonus, and award information from Postal Service systems; and employment agreements applicable to the compensation limits for the project scope. We also conducted interviews with Postal Service employees.

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