Section 890.1613 - Postal Service contract year beginning date, Medicare late enrollment penalty, calculations for the Postal Service Retiree Health Benefits Fund, and clarification of statutory terms(a)In general. The calculations for contributions and withholdings for coverage under this subpart will be made in the same manner as 5 U.S.C. 8906 and subpart E of this part. For purposes of this subpart, the subscription charge and the Government contribution under 5 U.S.C. 8906(b) will begin on January 1 of each year for Postal Service employees and Postal Service annuitants.(b)Postal Service contribution. The Government contribution with respect to the Postal Service for health benefits plans under this subpart shall be determined annually in accordance with § 890.501 commencing 2024 using the weighted average of rates offered by PSHB plans for the following year with respect to self only, self plus one, and self and family enrollments. For the initial contract year, the weighted average applicable for determining the Government contribution by the Postal Service will be determined using the calculation at 5 U.S.C. 8903c(i) , except that OPM will use available data with respect to Postal Service enrollment for 2024, taking into account 2023 data.(c)Medicare late enrollment penalty. Upon request by the Postal Service, and only until the Postal Service Retiree Health Benefits Fund established under 5 U.S.C. 8909a is depleted, OPM will pay out of such Fund any late enrollment penalties required under section 1839(e)(1) of the Social Security Act for individuals who enrolled during the Special Enrollment Period established under section 1837(o) of the Social Security Act (42 U.S.C. 1395p ). If at any time the PSRHBF is depleted, USPS shall pay late enrollment penalties out of its funds established under 39 U.S.C. 2003 . In making such late enrollment penalty payments, OPM, as administrator of the Fund under 5 U.S.C. 8909a(a) , will prioritize the payment of health benefit premiums for individuals described in 5 U.S.C. 8906(g)(2)(A) , over the late enrollment penalties.(d)Calculations for the Postal Service Retiree Health Benefits Fund. As directed by 5 U.S.C. 8909a OPM shall make annual computations with respect to the cost of claims attributable to Postal Service annuitants and their covered family members, and the United States Postal Service shall pay into the Fund annually according to those computations.(e)Clarification of statutory terms.(1) OPM has determined that "net claims costs" in the calculation in 5 U.S.C. 8909a(e)(1) is equivalent to "estimated net claims costs" as defined in 5 U.S.C. 8909a(g) .(2) The computations for post-retirement health obligations computed under 39 U.S.C. 3654(b) shall be performed using an aggregate entry-age normal cost method described in 5 U.S.C. 8331(17) and in accordance with 8348(h).(3) In accordance with 5 U.S.C. 8348(h) , for purposes of computing the amounts described in 39 U.S.C. 3654(b) , this includes: (i) Current annuitants as described in 5 U.S.C. 8909a(e)(1)(A) means individuals who are Postal Service annuitants on September 30 of the relevant reporting year described in 5 U.S.C. 8909a(d) ; and(ii) Current employees as described in 5 U.S.C. 8909a(e)(1)(B) means individuals who are Postal Service employees on September 30 of that year. 88 FR 20403 , Apr. 6, 2023, as amended at 89 FR 85031 , Oct. 24, 2024 88 FR 20403 , 6/5/2023; as amended at 89 FR 85031 , 10/24/2024