Postal Employee Benefits You Can Count On

Are you getting the most out of your postal employee benefits? If you work for the U.S. Postal Service, you’re part of a benefits system that can protect your health, your family’s security, and your future. But changes over the last few years — especially to health coverage — mean it pays to understand exactly what you’re entitled to and how to use it. Let’s spell it out in plain language, so you feel confident about your benefits and how they work for you.

What “Postal Employee Benefits” Really Means

Postal employee benefits are the insurance, pay, leave, retirement programs, and savings plans USPS workers and retirees get as part of their total compensation package. These benefits often go beyond what people expect in the private sector, with strong health coverage, paid time off, retirement income, life insurance, and tax‑friendly savings options.

Here’s a clear real‑world look at the major categories:

1. Health Insurance That Works for You and Your Family

One of the biggest parts of your benefits is health insurance.

Postal Service Health Benefits (PSHB) Program

As of 2025, Postal Service employees enroll in the Postal Service Health Benefits (PSHB) Program, a special health plan group just for USPS workers and retirees. It works similar to the older Federal Employees Health Benefits (FEHB) plans many postal workers have used for years.

Key points to know:

• PSHB offers a range of health plans so you can pick coverage that fits you and your family.

• Coverage includes doctor visits, hospital care, preventive care, and more — just like under FEHB.

• If you or a family member plan to retire and are eligible for Medicare, you may be required to enroll in Medicare Part B to keep PSHB coverage.

• You can adjust plans during Open Season, usually late fall each year.

Dental & Vision: You also have access to Federal Employees Dental and Vision Insurance Program (FEDVIP) plans — tax‑favored insurance that helps cover dental and eye care costs you might otherwise pay out of pocket.

2. Retirement Benefits That Add Up

Postal employees earn retirement benefits that stack over time — and that’s a major reason many workers stay long term.

Pension & Social Security

If you’re enrolled under FERS (Federal Employees Retirement System), you earn a monthly pension once you retire based on your years of service and salary history. All FERS employees also get Social Security benefits on top of that.

Some long‑time workers are under the older CSRS (Civil Service Retirement System), which pays a different pension formula and does not include Social Security for the employee portion.

Thrift Savings Plan (TSP)

The TSP is like a 401(k) for federal workers. You put in pre‑tax dollars from your paycheck and watch it grow. The Postal Service often matches part of your contributions — free money that turns into bigger retirement funds over time.

Together, your pension, Social Security, and TSP can become a solid retirement foundation if you contribute consistently and plan ahead.

3. Life & Disability Insurance

Your benefits package includes options for life and disability coverage:

• Federal Employees’ Group Life Insurance (FEGLI) gives a basic life policy at no cost and optional additional coverage for you and your loved ones.

• Disability coverage can replace some of your income if you become unable to work due to illness or injury.

These don’t just protect you — they protect your family’s financial future.

4. Paid Time Off — More Than You Might Think

You accrue paid annual leave (vacation) and sick leave from your very first day. Over time, that builds into real time off you can use for rest, health appointments, or family needs — without losing pay.

Most career employees earn:

• 13 days of leave per year for less than 3 years of service

• 20 days per year after 3 years

• 26 days per year after 15 years

And you earn sick leave every pay period with no cap on how much you can carry forward.

5. Flexible Spending & Other Tax‑Friendly Benefits

You have access to programs that let you set aside money before taxes for health care and dependent care expenses. That can mean serious savings when routine or unexpected medical bills hit.

Flexible Spending Accounts (FSA)

Put money aside to cover doctor visits, prescriptions, or daycare costs — and reduce your taxable income at the same time.

6. What Matters Most: How to Use Your Benefits

Here’s what smart federal and postal employees do to make benefits count:

✔ Review Health Plans Every Year

Even if you like your current plan, new options or premiums change annually. Using tools like OPM’s official plan guides helps you pick the best fit.

✔ Track Your Leave Balances

Don’t lose earned leave — use it for rest, family time, or emergencies.

✔ Max Out TSP Contributions When You Can

Start early. Taxes favorable to retirement investing give you compounded growth over decades.

✔ Understand Medicare Rules Before You Retire

If you plan to retire and are Medicare‑eligible, know the rules about Part B and PSHB — missteps can cost you money and coverage.

You’re Covered — Now Make It Work for You

Your postal employee benefits aren’t just perks — they’re part of your total compensation and financial security. Learn what you have, check your options each year, and use benefits like health plans, retirement savings, and leave to make your career and retirement more secure and stress‑free.

Want Help Understanding Your Benefits in Detail?

Visit The Benefit Coordinators for personalized support. We help USPS and federal employees compare plans, calculate retirement outcomes, and make decisions that match your life goals.