Two Postal Service Reform Bills Introduced in Congress

Two legislators have introduced postal reform bills designed to restore stability to the cash-strapped agency and help it survive tough times.

Rep. Stephen Lynch (D-MA) introduced H.R. 1351, which would correct the overfunding of the Postal Service’s pension accounts. Rep. Gerry Connolly (D-VA) introduced H.R. 1262, which would modernize the Postal Service business model.

Lynch’s bill, “The USPS Pension Obligation Recalculation and Restoration Act of 2011,” instructs the Office of Personnel Management (OPM) to recalculate the Postal Service’s payments to the Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS) using updated methodology. Independent actuarial studies have concluded that as a result of improper funding formulas, the USPS has overpaid CSRS by $50 billion to $75 billion. FERS overpayments are estimated at $6.9 billion.

The measure says that if overpayments are found during OPM’s recalculation, any surplus would be transferred to the USPS. OPM also would be required to immediately repay the USPS money it overpaid into its FERS account. The Postal Service could use these funds to meet its retiree health benefits funding obligations.

APWU President Cliff Guffey applauded the legislation. “This bill would get the Postal Service on track toward fiscal solvency,” he said.

Connolly’s bill, “The Reform the Postal Service for the 21st Century Act,” would modernize the Postal Service’s business model and enable it to continue to provide universal service to the American public, improve efficiency, and foster postal economic growth.

Among other proposals, H.R. 1262 would require the Postal Service to submit a plan to Congress for the “co-location” of post offices at retail establishments. The bill stipulates that all services provided at “co-located” facilities must be performed by USPS employees. Furthermore, the plan must ensure the same level of service currently in existence, and communities must be given an opportunity for input before establishing such locations. Follow up reports on the facilities must be made to Congress once every two years.

H.R. 1262 also would require the creation of a “Forever Box” for mailing parcels, similar to the “Forever Stamp,” and would establish a simplified rate structure for Vote by Mail programs in states and local communities.

The union president encouraged locals to contact their members of Congress and urge them to co-sponsor these important bills.

“These bills are critical to strengthening the Postal Service for the future,” Guffey said. “Urge your legislators to support these measures in order to protect the USPS.”