Legislation Calls to Repeal Prefunding Mandate

May 2, 2019

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On Monday, Apr. 29, members of Congress introduced H.R. 2382, the USPS Fairness Act. This legislation would repeal, in full, the onerous prefunding of retiree health care benefits mandate Congress put in place in 2006. The mandate requires the Postal Service to prefund its retiree health care benefits 75 years in advance, paying for retirement health care for individuals who haven’t been born yet, let alone enter the workforce. The mandate is accountable for 92 percent of the Postal Service’s net losses since 2007 and is a constant threat to the financial sustainability of the Postal Service.

Representatives Peter DeFazio (D-OR-04), Tom Reed (R-NY-23), Xochitl Torres Small (D-NM-03), and Brian Fitzpatrick (R-PA-01) sponsored the bill.  

APWU fully supports this legislation. The Postal Accountability and Enhancement Act (PAEA), which created the congressionally manufactured prefunding burden, has not only drained the Postal Service’s funds, but also limits its ability to make vital innovations and expand services.

“This legislation is a necessary step to solving the disastrous prefunding mandate that is dragging down the Postal Service,” said APWU President Mark Dimondstein.

H.R. 2382 would return the Postal Service to the procedures in place prior to the PAEA, utilizing a pay-as-you-go method for retiree benefits, the standard practice across federal agencies and private businesses. “Ending the prefunding mandate is essential to postal jobs and benefits,” said Legislative & Political Director Judy Beard. “We are asking our members to contact their Representatives to cosponsor this important bill.”

Call 844-402-1001 to contact your member of Congress and ask them to cosponsor H.R. 2382, the USPS Fairness Act. Be sure to also promote H.R. 2382 on social media using #repealprefunding #HR2382 #peoplebeforeprofit and/or #unfairburden.

Reach out to your family, friends, and neighbors and ask them to call their representatives as well. This legislation affects every American household. 

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