Senators Announce Postal Bill

Four U.S. senators unveiled postal legislation on Nov. 2 that will have important implications for APWU members. Sens. Joseph I. Lieberman (I-CT), Susan Collins (R-ME), Thomas Carper (D-DE) and Scott Brown (R-MA) outlined major provisions of the 21st Century Postal Service Act, which combines features of earlier legislation sponsored by Sen. Carper and Sen. Collins.

Legislative and Political Director Myke Reid said the union is analyzing the legislation (S. 1789).

[Click here to read a section-by-section summary.] [Click here to read a general summary.]

The bill would:

• Return to the USPS approximately $7 billion in overpayments the agency made to the Federal Employees Retirement System (FERS). A portion of the returned FERS funds could be used to incentivize 100,000 employees to retiree over the next three years. Payments of up to $25,000 would be allowed.
• Provide relief from the obligation to pre-fund the healthcare benefits of future retirees by immediately re-amortizing the payments over a 40-year period. (Current law requires the USPS to pay the 75-year obligation in 10 years, a burden no other government agency or private company bears.)
• Reduce the pre-funding goal to 80 percent. (Current law requires the USPS to pre-fund at 100 percent.)
• Require postal arbitrators in labor negotiations to consider the financial health of the USPS and to compare postal wages and benefits to federal employees.
• Authorize the Postal Service to enter into negotiations with the unions to develop a USPS healthcare plan inside or outside of the Federal Employee Health Benefits Program (FEHBP). The plan would be implemented only if all the unions and the Postal Service agree.
• Establish a process for closing mail-processing facilities, which will include a complete, published study that examines the feasibility of downsizing rather than closing; provides advance notice to the public, and a comment period.
• Continue Saturday mail delivery for two years. The Government Accountability Office (GAO) would conduct a study to determine the “true savings” that could be realized by eliminating the six-day service requirement. The Postal Regulatory Commission (PRC) also will review the requirement and make a recommendation for further action.
• Require the Postal Service to, where feasible, deliver to curbside, sidewalk or centralized mailboxes rather than to door delivery points no later than 2015.
• Change workers compensation rules for injured postal and federal employees to “transition” workers who are above retirement age into pensions.
• Require Medicare-eligible retirees to enroll in Medicare Parts A and B and require the Postal Service to work with the Office of Personnel Management (OPM) to develop Medigap-like plans that offer comparable benefits within the Federal Employee Health Benefits Program for retirees and their dependents.

The bill would not:

• Provide for a commission to decide facility closures.
• Establish a “solvency authority” with the power to change provisions of collective bargaining agreements.
• Override or breach collective bargaining agreements.
• Return overpayments the USPS made to the Civil Service Retirement System (CSRS). Unlike the FERS overpayments, the CSRS overpayments are in dispute.