Crucial Postal Bill Clears First Hurdle

Legislation to restore financial stability to the Postal Service cleared its first hurdle July 21 when the House postal oversight subcommittee approved H.R. 5746. The bill, which was introduced by Rep. Stephen Lynch (D-MA) on July 15, would alter the methodology for allocating the Postal Service’s share of pension costs for employees whose careers spanned the former Post Office Department and the USPS.

“It is imperative that APWU members build support for this legislation by contacting their U.S. representatives and asking them to sign on as co-sponsors,” Reid said. The bill currently has six co-sponsors.

“This is an important first step,” said Myke Reid, APWU Legislative and Political Director, “but we still have a long way to go.” The bill must be considered by the full Oversight and Government Reform Committee before it can be voted on in the House.

The bill passed the subcommittee 8-1. Voting yes were Lynch, the subcommittee chair, and Reps. Danny Davis (D-IL), Elijah Cummings (D-MD), Dennis Kucinich (D-OH), William Lacy Clay (D-MO), Gerry Connolly (D-VA), Brian Bilbray (R-CA), and Del. Eleanor Holmes Norton (D-DC). The sole no vote was cast by Rep. Jason Chaffetz (R-UT), the ranking Republican on the subcommittee.

The legislation is considered a vital step toward restoring the USPS to solvency. The Postal Service’s financial difficulties have garnered headlines in recent months, but two recent reports concluded that the agency overpaid the Civil Service Retirement System billions of dollars. A study by the USPS Office of Inspector General, conducted in January 2010, found that the USPS overpaid $75 billion, and a study commissioned by the Postal Regulatory Commission concluded in July that the USPS overpaid $50 billion to $55 billion.

H.R. 5746 directs OPM to transfer any surplus to the Postal Service Retiree Health Benefits Fund. This transfer of funds would alleviate a major source of the Postal Service’s recent economic problems: The obligation to pre-fund future retiree healthcare benefits, as required by the Postal Accountability and Enhancement Act of 2006, costs the USPS more than $5 billion annually. No other federal agency or private company bears this burden.

“This legislation would strengthen the USPS, and would eliminate or greatly reduce the need for severe cuts in service, including ending Saturday delivery and closing neighborhood post offices,” Reid said. “It also would reduce financial pressure to increase postage rates.”