Privacy Act of 1974; System of Records, 77900-77904 [2024-21660]

Agencies

• Postal Service

[Federal Register Volume 89, Number 185 (Tuesday, September 24, 2024)]
[Notices]
[Pages 77900-77904]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-21660]


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POSTAL SERVICE


Privacy Act of 1974; System of Records

AGENCY: Postal Service[supreg].

ACTION: Notice of modified systems of records.

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SUMMARY: The United States Postal Service[supreg] (USPS or Postal 
Service) is proposing to modify one General Privacy Act System of 
Records (SOR) to support the implementation of the Postal Service 
Health Benefits (PSHB) program as required by the Postal Service Reform 
Act of 2022 and the USPS Flexible Spending Account (FSA) Program. The 
PSHB program is a new, separate program within the Federal Employees 
Health Benefits (FEHB)

[[Page 77901]]

Program, administered by the Office of Personnel Management (OPM). 
Modifications to this SOR are also being proposed to provide added 
transparency to an existing health benefits program for USPS non-career 
employees. The USPS Non-Career Employee Health Benefits Program is 
separate and distinct from the PSHB. Finally, SOR 100.400 is being 
modified to document the Office of Personnel Management (OPM) 
requirement to verify eligibility of dependents to receive health 
benefits under PSHB or FEHB.

DATES: These revisions will become effective without further notice on 
October 24, 2024 unless response to comments received on or before that 
date result in a contrary determination.

ADDRESSES: Comments may be submitted via email to the Privacy and 
Records Management Office, United States Postal Service Headquarters 
([email protected]). To facilitate public inspection, 
arrangements to view copies of any written comments received will be 
made upon request.

FOR FURTHER INFORMATION CONTACT: Janine Castorina, Chief Privacy and 
Records Management Officer, Privacy and Records Management Office, 202-
268-2000 or [email protected].

SUPPLEMENTARY INFORMATION: 
    As stated above, the Postal Service is implementing the Postal 
Service Health Benefits (PSHB) program to meet the requirements of the 
Postal Service Reform Act of 2022.
    The Postal Service continuously strives to improve the 
comprehensive benefits that are offered to employees. The FSA program 
is a valuable benefit to postal employees. As a pre-tax cafeteria plan, 
employees can set pre-tax monies aside to pay for routine and customary 
medical, dental, vision, and dependent care related expenses that meet 
eligibility requirements. In conjunction with the implementation of 
PSHB, the Postal Service has contracted with a private sector vendor to 
administer the FSA program, which is separate and distinct from the OPM 
affiliated vendor for the PSHB Program.
    Modifications to this SOR are also being proposed to provide added 
transparency to an existing health benefits program for USPS non-career 
employees. The USPS Non-Career Employee Health Benefits Program is 
separate and distinct from the PSHB. The Postal Service maintains a 
contract with a healthcare provider to manage the medical and pharmacy 
benefits provided through the Non-Career Employee Health Benefits 
Program. The Postal Service does not request Personal Health 
Information (PHI) from the healthcare provider for non-career 
employees. The Postal Service does not receive itemized invoices to 
reimburse the healthcare provider for claims but does receive 
aggregated invoices that do not list individual services provided to 
employees or family members by name or other personal identifiers.
    This notice is in accordance with the Privacy Act requirement that 
agencies publish their systems of records in the Federal Register when 
there is a revision, change, or addition, or when the agency 
establishes a new system of records. The Postal Service is proposing 
revisions to an existing system of records (SOR) to support the 
implementation of the PSHB and USPS FSA programs. In addition, 
revisions are proposed to document and promote transparency for an 
existing healthcare benefits program for non-career employees and to 
document OPM requirements to verify eligibility of dependents for 
healthcare benefits.

I. Background

    The new PSHB Program will provide health insurance to eligible 
Postal Service employees, Postal Service annuitants and their eligible 
family members starting in 2025. The PSHB Program coverage will replace 
Federal Employees Health Benefit (FEHB) Program coverage for these 
groups. The new PSHB program takes effect January 1, 2025. Enrollment 
opportunities for USPS employees, annuitants (retirees) and their 
eligible family members will be made available during Open Season 
between November and December of 2024.
    The Postal Service has participated in the Flexible Spending 
Account (FSA) Program administered by the Office of Personnel 
Management (OPM) since 2017. Currently, career employees of the United 
States Postal Service and non-career employees with more than one year 
of career postal employment are eligible for the FSA program. There is 
no employer (Postal Service) FSA contribution, nor is there an 
administrative fee charged for employees to participate. Participation 
is voluntary and re-enrollment is required each year to continue 
participation. The plan year is the calendar year. The annual open 
season is held for approximately four weeks aligned with the Federal 
benefits Open Season period that begins on the 2nd Monday in November 
and continues thru the 2nd Monday in December each year. The Postal 
Service Health Benefits (PSHB) Program and the new Postal Service FSA 
Program is being implemented simultaneously.
    The private sector vendor for the FSA Program will utilize an 
Explanation of Benefits (EOB) statement to process claims. The employee 
may voluntarily consent to have their PSHB summary information 
transferred to the FSA vendor to provide ease of use when processing 
their FSA claims. The FSA EOB will contain information describing the 
out-of-pocket cost for employees such as, co-insurance, copays, 
deductibles, and eligible dependent care expenses. The EOB will include 
summary information from the medical benefits plan for type of visit or 
general service received (office visit, outpatient service, lab 
diagnostic, etc.), the billed amount, the amount the plan allows, the 
amount the plan will pay (or has paid) and the patients' out-of-pocket 
responsibility.
    The EOB does not include any medical diagnosis, medical procedures 
or other Personal Health Information (PHI) but is limited to a listing 
of FSA eligible expenses for FSA claim filing purposes. FSA claims are 
paid to participants and providers based on employee preferences. The 
Postal Service will not request, collect or maintain any PHI data. The 
Postal Service will receive an aggregate bill invoice file that will 
include the amount of claims paid out on a periodic basis. The 
aggregate invoice will be used to assure accurate reimbursement to the 
private sector vendor for claims paid during a period of time.
    The Postal Service currently offers non-career employees a 
healthcare plan with a Postal subsidy. This healthcare benefits program 
has been offered to meet the requirements of the Affordable Care Act of 
2010. This program is separate and apart from the PSHB and FEHB 
Programs for career employees. A career employee is defined as one who 
is in a position covered by the Civil Service Retirement System (CSRS) 
or Federal Employees Retirement System (FERS). A non-career employee is 
not eligible to participate in either CSRS or FERS. The Postal Service 
intends to continue providing its non-career employees with a health 
benefit plan outside of PSHB.
    USPS SOR 100.400 is also being modified to reflect the OPM 
requirement to verify eligibility of dependents to receive health 
benefits under PSHB or FEHB.

II. Rationale for Changes to USPS Privacy Act Systems of Records

    The Postal Service is proposing modifications to USPS SOR 100.400, 
Personnel Compensation and Payroll

[[Page 77902]]

Records to support the implementation of the Postal Service Health 
Benefits (PSHB) Program and the new USPS Flexible Spending Account 
(FSA) Program. In addition, modifications to SOR 100.400 are being 
proposed to provide transparency for an existing health benefits 
program for non-career employees and to document OPM requirements to 
determine dependent eligibility for health benefits. Summary of Changes 
to USPS SOR 100.400:
     Purpose(s) of the System: Added new Purposes # 16 through 
22.
     Categories of Individuals Covered by the System: Added 
annuitants to category # 2; Added new categories of individuals # 4 and 
5.
     Categories of Records in the System: Added health benefits 
enrollment code and payroll deduction to category # 1; Added new 
Categories of Records 4 through 6.
     Record Source Categories: Added annuitants to category # 1 
and added new category # 3 for Employees who voluntarily participate in 
the USPS FSA program.
     Policies and Practices for Retention and Disposal of 
Records: Added new retention and disposal of records #12 through 14.

III. Description of the Modified Systems of Records

    Pursuant to 5 U.S.C. 552a(e)(11), interested persons are invited to 
submit written data, views, or arguments on this proposal. A report of 
the proposed revisions to these SORs has been sent to Congress and to 
the Office of Management and Budget for their evaluations. The Postal 
Service does not expect that this modified system of records will have 
any adverse effect on individual privacy rights. Accordingly, for the 
reasons stated above, the Postal Service proposes revisions to SOR 
100.400 presented below in its entirety:

SYSTEM NAME AND NUMBER:
    USPS 100.400 Personnel Compensation and Payroll Records.

SECURITY CLASSIFICATION:
    None.

SYSTEM LOCATION:
    USPS Area and District Human Resources offices, the Human Resources 
Shared Services Center, Integrated Business Solutions Services Centers, 
Computer Operations Services Centers, Accounting Services Centers, 
other area and district facilities, USPS Headquarters, contractor 
sites, and all organizational units.

SYSTEM MANAGER(S):
    Deputy Postmaster General and Chief Human Resources Officer, United 
States Postal Service, 475 L'Enfant Plaza SW, Washington, DC 20260.
    Vice President, Human Resources, United States Postal Service, 475 
L'Enfant Plaza SW, Washington, DC 20260.
    Vice President, Controller, United States Postal Service, 475 
L'Enfant Plaza SW, Washington, DC 20260.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    39 U.S.C. 401, 409, 410, 1001, 1003, 1004, 1005, and 1206; 5 U.S.C 
8903c; and 29 U.S.C. 2601 et seq.

PURPOSE(S) OF THE SYSTEM:
    1. To support all necessary compensation and payroll activities and 
related management functions.
    2. To generate lists of employee information for home mailings, 
dues membership, and other personnel support functions.
    3. To generate retirement eligibility information and analysis of 
employees in various salary ranges.
    4. To administer the purchase of uniforms.
    5. To administer monetary awards programs and employee contests.
    6. To detect improper payment related to injury compensation 
claims.
    7. To adjudicate employee claims for loss or damage to their 
personal property in connection with or incident to their postal 
duties.
    8. To process garnishment of employee wages.
    9. To support statistical research and reporting.
    10. To generate W-2 and 1095-C information for use with external 
third-party tax preparation services at the request of the individual 
employee.
    11. To administer the USPS fleet card program used to purchase 
commercial fuel and oil, maintenance repair, polishing and washing, 
servicing, shuttling, and towing.
    12. To develop and administer voluntary wellness challenges and 
programs to support individual employee wellness goals.
    13. To track and summarize voluntary wellness challenge activities 
during each program cycle for individual employees and employee team 
participants.
    14. To facilitate communication between the Postal Service and 
current and former employees.
    15. To share relevant information and topics about the Postal 
Service with current and former employees.
    16. To facilitate enrollment of Postal Service career employee and 
annuitants for healthcare plans offered under the Postal Service Health 
Benefit (PSHB) Program.
    17. To administer payroll deductions for PSHB participants for 
employee healthcare premium contributions.
    18. To facilitate enrollment in, and to administer the USPS 
Flexible Spending Account (FSA) Program and claims processing.
    19. To administer payroll deductions for employees participating in 
the USPS FSA program.
    20. To facilitate enrollment in, and to administer the USPS Non-
Career Employee Health Benefits Program and claims processing.
    21. To administer payroll deductions for USPS Non-Career Health 
Benefits Program participants for employee healthcare premium 
contributions.
    22. To meet the Office of Personnel Management (OPM) requirements 
for verification of eligibility of dependents for healthcare benefit 
programs.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    1. Current and former USPS employees and postmaster relief/leave 
replacement employees.
    2. Current and former employees, annuitants, and their family 
members, beneficiaries, and former spouses who apply and qualify for 
benefits.
    3. An agent or survivor of an employee who makes a claim for loss 
or damage to personal property.
    4. Non-career employees eligible to participate in the USPS Non-
Career Employee Health Benefits Program.
    5. Career employees of the United States Postal Service and non-
career employees with more than one year of career postal employment.

CATEGORIES OF RECORDS IN THE SYSTEM:
    1. Employee and family member information: Name(s), Social Security 
Number(s), Employee Identification Number, ACE ID, date(s) of birth, 
postal assignment information, work contact information, home 
address(es) and phone number(s), SMS text message number, personal 
email address, finance number(s), occupation code, occupation title, 
duty location, and pay location, health benefits enrollment code, 
health benefits payroll deduction and Fuel Purchase Fleet Card Personal 
Identification Number (PIN).
    2. Compensation and payroll information: Records related to 
payroll, annual salary, hourly rate, Rate Schedule Code (RSC) or pay 
type, payments, deductions, compensation, and benefits; uniform items 
purchased; proposals and decisions under monetary awards; suggestion 
programs and

[[Page 77903]]

contests; injury compensation; monetary claims for personal property 
loss or damage; and garnishment of wages.
    3. Voluntary Employee Wellness Participant Challenge and Program 
Tracking and Reporting Activities: Type of wellness activity or 
program, wellness activities and points tracked and reported, self-
selected alias names for participants, department or team name, work 
duty location, gender, weight, reporting of top tier final results and/
or prize winners by wellness challenge or program with employee 
permission.
    4. FSA Program records: Name(s) of participating employees and 
their eligible family members, Employee Identification Number, home 
address(es) and phone number(s), plan year election date, account type 
and election amount(s).
    5. USPS Non-Career Employee Health Benefits Program records: 
Name(s), Social Security Number(s), Employee Identification Number, ACE 
ID, date(s) of birth, postal assignment information, work contact 
information, home address(es) and phone number(s), SMS text message 
number, personal email address, finance number(s), occupation code, 
occupation title, duty location, and pay location.
    6. Eligible Dependents for Health Benefits: Validation of dependent 
eligibility for healthcare benefits during enrollment.

RECORD SOURCE CATEGORIES:
    1. Employees, annuitants, employees' supervisor or manager; other 
systems of records; claimants or their survivors or agents who make 
monetary claims; witnesses; investigative sources; courts; and 
insurance companies.
    2. Voluntary employee wellness participant challenge and program 
initiative records.
    3. Employees who voluntarily participate in the USPS FSA program.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSES OF SUCH USES:
    Standard routine uses 1. through 9. apply.
    In addition:
    (a) Records pertaining to financial institutions and to nonfederal 
insurance carriers and benefits providers elected by an employee may be 
disclosed for the purposes of salary payment or allotments, eligibility 
determination, claims, and payment of benefits.
    (b) Records pertaining to supervisors and postmasters may be 
disclosed to supervisory and other managerial organizations recognized 
by USPS.
    (c) Records pertaining to recipients of monetary awards may be 
disclosed to the news media when the information is of news interest 
and consistent with the public's right to know.
    (d) Disclosure of records about current or former Postal Service 
employees may be made to requesting states under an approved computer 
matching program to determine employee participation in, and 
eligibility under, unemployment insurance programs administered by the 
states (and by those states to local governments), to improve program 
integrity, and to collect debts and overpayments owed to those 
governments and their components.
    (e) Disclosure of records about current or former Postal Service 
employees may be made to requesting federal agencies or nonfederal 
entities under approved computer matching programs to make a 
determination of employee participation in, and eligibility under, 
particular benefit programs administered by those agencies or entities 
or by USPS; to improve program integrity; to collect debts and 
overpayments owed under those programs and to provide employees with 
due process rights prior to initiating any salary offset; and to 
identify those employees who are absent parents owing child support 
obligations and to collect debts owed as a result.
    (f) Disclosure of records about current or former Postal Service 
employees may be made, upon request, to the Department of Defense (DoD) 
under approved computer matching programs to identify Postal Service 
employees who are ready reservists for the purposes of updating DoD's 
listings of ready reservists and to report reserve status information 
to USPS and the Congress; and to identify retired military employees 
who are subject to restrictions under the Dual Compensation Act and to 
take subsequent actions to reduce military retired pay or collect debts 
and overpayments.
    (g) Disclosure of records may be made to the Internal Revenue 
Service under approved computer matching programs to identify current 
or former Postal Service employees who owe delinquent federal taxes or 
returns and to collect the unpaid taxes by levy on the salary of those 
individuals pursuant to Internal Revenue Code; and to make a 
determination as to the proper reporting of income tax purposes of an 
employee's wages, expenses, compensation, reimbursement, and taxes 
withheld and to take corrective action as warranted.
    (h) Disclosure of the records about current or recently terminated 
Postal Service employees may be made to the Department of 
Transportation (DOT) under an approved computer matching program to 
identify individuals who appear in DOT's National Driver Register 
Problem Driver Pointer System. The matching results are used only to 
determine as a general matter whether commercial license suspension 
information within the pointer system would be beneficial in making 
selections of USPS motor vehicle and tractor-trailer operator personnel 
and will not be used for actual selection decisions.
    (i) Disclosure of records about current or former Postal Service 
employees may be made to the Department of Health and Human Services 
under an approved computer matching program for further release to 
state child support enforcement agencies when needed to locate 
noncustodial parents, to establish and/or enforce child support 
obligations, and to locate parents who may be involved in parental 
kidnapping or child custody cases.
    (j) Disclosure of records about current or former Postal Service 
employees may be made to the Department of the Treasury under Treasury 
Offset Program computer matching to establish the identity of the 
employee as an individual owing a delinquent debt to another federal 
agency and to offset the salary of the employee to repay that debt.
    (k) Disclosure of employment and wage data records about current 
Postal Service employees may be made to the Bureau of Labor Statistics 
for use in their Occupational Employment Statistics program for the 
purpose of developing estimates of the number of jobs in certain 
occupations, and estimates of the wages paid to them.
    (l) Disclosure of W-2 and 1095-C tax information records to 
external third-party tax preparation services.

POLICIES AND PRACTICES FOR STORAGE OF RECORDS:
    Automated database, computer storage media, digital files, and 
paper files.

POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:
    By employee name, Social Security Number, Employee Identification 
Number, Fuel Purchase Fleet Card Personal Identification Number (PIN), 
or duty or pay location.

POLICIES AND PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS:
    1. Leave application and unauthorized overtime records are retained 
3 years. Time and attendance records (other than payroll) and local 
payroll records are retained 3 years. Automated payroll records are 
retained 10 years.

[[Page 77904]]

    2. Uniform allowance case files are retained 3 years; and automated 
records are retained 6 years.
    3. Records of monetary awards with a status that they have been 
processed, failed processing, cancelled, or reported (Service Award 
Pins, Retirement Service Awards, Posthumous Service Awards) are 
retained 7 years, as payroll records would have been affected/
processed. Records of award submissions with the status approved, 
deleted, or as a draft are retained 31 days, as payroll records would 
not have been affected/processed.
    4. Records of employee-submitted ideas are maintained for 90 days 
after being closed.
    5. Injury compensation records are retained 5 years. Records 
resulting in affirmative identifications become part of a research case 
file, which if research determines applicability, become either part of 
an investigative case record or a remuneration case record that is 
retained 2 years beyond the determination.
    6. Monetary claims records are retained 3 years.
    7. Automated records of garnishment cases are retained 6 months. 
Records located at a Post Office are retained 3 years.
    8. Overtime administrative records are retained for 7 years.
    9. Tax preparation records are limited to an employee's previous 
year's wages, tax documentation, and health insurance coverage as 
required by the Affordable Care Act.
    10. Records pertaining to the USPS fuel fleet card purchase program 
are retained for 10 years.
    11. Records related to voluntary wellness challenges and programs 
will be retained for 30 days after the conclusion of each challenge or 
program cycle.
    12. Records related to the PSHB Program will be retained for 
duration of the employee's career.
    13. Records related to the USPS Non-Career Employee Health Benefits 
Program will be retained for duration of the employee's career.
    14. Records related to the USPS FSA program will be retained for 7 
years.
    Records existing on paper are destroyed by burning, pulping, or 
shredding. Records existing on computer storage media are destroyed 
according to the applicable USPS media sanitization practice.

ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:
    Paper records, computers, and computer storage media are located in 
controlled-access areas under supervision of program personnel. Access 
to these areas is limited to authorized personnel, who must be 
identified with a badge. Access to records is limited to individuals 
whose official duties require such access. Contractors and licensees 
are subject to contract controls and unannounced on-site audits and 
inspections.
    Computers are protected by mechanical locks, card key systems, or 
other physical access control methods. The use of computer systems is 
regulated with installed security software, computer logon 
identifications, and operating system controls including access 
controls, terminal and transaction logging, and file management 
software.
    For the voluntary employee wellness initiative, employees will 
create their own profile and enter their own challenge activity 
progress. Employees without access to U.S. Postal Service computers and 
employees voluntarily participating in the weight loss challenges may 
opt-in to a manual process to have their profile created and entries 
updated by a designated wellness challenge coordinator for their 
geographic location. Participant alias names will be used in all 
wellness program dashboard participant input and activity reporting to 
protect the privacy of individuals. In addition, weight loss challenge 
dashboards will only display the percentage of weight loss for the 
employee by alias names, rather than actual weights.

RECORD ACCESS PROCEDURES:
    Requests for access must be made in accordance with the 
Notification Procedure above and USPS Privacy Act regulations regarding 
access to records and verification of identity under 39 CFR 266.5.

CONTESTING RECORD PROCEDURES:
    See Notification Procedure and Record Access Procedures above.

NOTIFICATION PROCEDURES:
    Individuals wanting to know if information about them is maintained 
in this system must address inquiries to the facility head where 
currently or last employed. Headquarters employees must submit 
inquiries to Corporate Personnel Management, 475 L'Enfant Plaza SW, 
Washington, DC 20260. Inquiries must include full name, Social Security 
Number or Employee Identification Number, name and address of facility 
where last employed, and dates of USPS employment.

EXEMPTIONS PROMULGATED FOR THE SYSTEM:
    Records in this system relating to injury compensation that have 
been compiled in reasonable anticipation of a civil action or 
proceeding are exempt from individual access as permitted by 5 U.S.C. 
552a(d)(5). The USPS has also claimed exemption from certain provisions 
of the Act for several of its other systems of records at 39 CFR 266.9. 
To the extent that copies of exempted records from those other systems 
are incorporated into this system, the exemptions applicable to the 
original primary system continue to apply to the incorporated records.

HISTORY:
    August 18, 2021, 86 FR 46281; June 15, 2020, 85 FR 29492; February 
25, 2019, 84 FR 6022; February 23, 2017, 82 FR 11489; March 2, 2015, 80 
FR 11241; June 17, 2011, 76 FR 35483; April 29, 2005, 70 FR 22516.

Christopher Doyle,
Attorney, Ethics & Legal Compliance.
[FR Doc. 2024-21660 Filed 9-23-24; 8:45 am]
BILLING CODE 7710-12-P