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Bush May Borrow Federal Retiree Funds
APWU News Service Bulletin #6-02, March 15, 2002 | PDF
The Bush administration may borrow billions of dollars from federal employee retirement funds to avoid hitting the government's debt ceiling, according to published reports this week. Treasury Secretary Paul O'Neill, who has the authority to tap federal retirement reserves to meet federal obligations, is expected to do so. The money would have to be repaid, with interest.
The move would let Republicans temporarily avoid raising the debt ceiling, and help them sidestep a thorny public relations problem. Late last month, the Treasury Department demanded that Congress take immediate action to increase the $5.95 trillion debt ceiling, which it said could be reached "in just the next few weeks," according to a report in the National Journal. House Republicans refused to pass a stand-alone increase in the debt limit, however, insisting that Treasury come up with other plans, the publication reported.
Increasing the debt limit would expose the GOP to criticism from Democrats who would be sure to charge that Republicans squandered the budget surplus by passing President Bush's tax cut last year, Republicans leaders feared. Republicans are expected to attach a debt increase provision to a wartime spending measure, which Democrats would find difficult to oppose.
The Treasury Department is expected to borrow up to $40 billion from one federal retirement account, the so-called "G Fund." The Clinton administration borrowed $39.8 billion from the Civil Service Retirement Fund and $21.5 billion from the G Fund in November 1995, during its infamous budget battle with congressional Republicans. Republicans denounced the move at the time.
USPS to Present Vision of Future
Congress to Get 'Transformation Plan' April 4
The Postal Service will submit a document detailing its vision of the future to Congress on April 4, 2002, Robert F. Rider, chairman of the Board of Governors, announced at its meeting March 6. The document known as the transformation plan "will provide the framework for how the Postal Service of the future will be reformed and revitalized to meet the changing needs of our customers, the American people, over the next 10 to 20 years. It is clear to all of us that the time for debating the need for reform is past," he said.
Congress and the General Accounting Office requested that the Postal Service create a comprehensive plan outlining how it intends to function in the wake of changing markets, new technologies and the need to deliver mail to an ever-increasing number of addresses.
The transformation plan will call for pricing flexibility, Rider said. The Postal Service is expected to ask the Postal Rate Commission for more frequent and predictable rate increases and to offer more discounts to big mailers who presort their mail.
Universal service will survive, Rider told the board of governors, but might be "redefined by mail volume." He urged the mailing community to support the plan, saying it would reduce costs, enhance service, grow revenues and keep rates affordable.
Postmaster General John Potter said the plan would seek "modest legislative change that would bring modern management tools to postal operations," but added that the Postal Service would continue efforts permitted under the current legal framework to reduce costs and employee complements. Post office closings may be included in the proposals.
"The APWU is firmly committed to universal service at a uniform price," said President Bill Burrus. He will meet with Postmaster General Potter next week to discuss the plan.
Connecticut Convention Rescheduled
The Connecticut APWU convention has been rescheduled to June 21 and 22 so that more New England and Northeast region officers will be able to attend. The convention will remain at the Holiday Inn in Bridgeport, CT.
Secretary-Treasurer Seminars Set
Western Region April 21-23; Central May 16-18
Secretary-Treasurer Seminars have been scheduled for Seattle April 21-23, and Cincinnati May 16-18.
To register for a seminar, complete the registration form and mail it to the national secretary-treasurer's office at the address given. The registration fee is $25 for the basic and advanced courses and $75 for the computerized course. The registration fee should accompany the completed registration form or should be received in the APWU Secretary-Treasurer's office no later than 15 days prior to the opening date of the selected seminar.
Registration fees are refundable for cancellations received up to 15 days prior to opening date of the selected seminars. Registration fees are non-refundable for cancellations received 15 days or less or for no-shows at the seminar.
In Seattle, sessions will begin at 3 p.m. on Sunday, April 21, and end at 5 p.m. on Tuesday, April 23, 2002.
In Cincinnati, sessions will begin at 8:30 a.m. on Thursday, May 16, and end at 2 p.m. on Saturday, May 18, 2002.
Hotel Information
To make hotel reservations, contact the hotel directly at the telephone number shown and identify yourself as a participant of the American Postal Workers Union group. The APWU has a limited number of rooms; therefore, we suggest you make your hotel reservation early to guarantee the negotiated rate.
Each hotel requires an advance deposit equal to one night's room and tax charges to hold all reservations. Deposits can be made by check, money order or any credit card accepted by the hotel.
If it becomes necessary to cancel a reservation, the deposit is refundable if the hotel receives notice of the cancellation at least 72 hours prior to the scheduled arrival and a cancellation number is obtained from the hotel at the time of cancellation.
Check-in time is 4 p.m. Checkout time is noon. A late departure charge may apply for any room occupied after the checkout time.
If you have any questions, please contact the secretary-treasurer's office at (202) 842-4215.
Western Region, April 21-23, 2002 - Seattle, WA
(Basic, Advanced and Computerized)
Doubletree Hotel (Seattle Airport)
$89 single/double, plus tax (currently 12.4%)
Tel: (206) 246-8600
Cut-off date: April 2, 2002
Central Region, May 16-18, 2002 - Cincinnati, OH
(Basic, Advanced, Computerized)
Millennium Hotel
$99 single/double, plus tax (currently 10.5%)
Tel: (513) 352-2100
Cut-off date: April 15, 2002
USPS Reneges on COLA Payment
For Full-Time Union Officers
The Postal Service notified the union on March 11 that it will not pay the $499 lump-sum cost-of-living allowance to union officers who were in a leave-without-pay status for the entire period from Nov. 20, 2000, through Dec. 18, 2001. This contradicted information management had previously provided the union, Executive Vice President Cliff Guffey said.
Any full-time union officer whose leave-without-pay period began after Nov. 20, 2000, should receive the $499 from the Postal Service. Any full-time union officer whose leave-without-pay period ended prior to Dec. 18, 2001, should receive the $499 from the Postal Service, as well.
The national APWU will compensate full-time national union officers who were in a leave-without-pay period for the entire period. Locals should adhere to their local constitutions when deciding whether to compensate officers who do not receive the $499 from the Postal Service.
