WASHINGTON—The head of the National Association of Letter Carriers (NALC) union urged Congress today to reject a Postal Service proposal to eliminate Saturday mail delivery to American citizens as a quick fix to the financial problems of the U.S. Postal Service, saying that lawmakers should instead implement recommendations of the USPS Office of Inspector General to save the Postal Service tens of billions of dollars in unnecessary retiree health pre-funding payments by returning the $75 billion it has been overcharged for civil service pension costs.

NALC President Fredric V. Rolando said “action on the pre-funding requirement is the best starting point for a long-term strategy to preserve affordable universal service, a strategy that must include product innovation and revenue generation as well as efficiency improvements developed in negotiations for new employee contracts.”

The postal Inspector General (IG) issued a report in January (“The Postal Service’s Share of CSRS Pension Responsibility,” Report Number: RARC-WP-10-001) that found that the Postal Service had been overcharged by $75 billion going back to 1971, when the USPS was created, for pension costs associated with pre-1971 service by employees of the taxpayer-funded Post Office Department. The IG recommended that the accurately measured ‘postal surplus’ in the Civil Service Retirement Fund be transferred to the Postal Service Retiree Health Benefits Fund, which would allow Congress to repeal the crushing pre-funding payments for retiree health now required by law.

In a statement submitted to a hearing of the Senate Appropriations Subcommittee on Federal Service and General Government, Rolando said the U.S. Postal Service “is too important to the country to make rash decisions in an environment of financial distress.”

Rolando characterized the proposal of Postmaster General John E. Potter to discontinue Saturday mail delivery and collections as “draconian.” He said such an action “should be a last resort policy, not a first resort policy.”

“The 200,000 men and women who deliver the mail on city carrier routes today urge you to exercise great caution and to stop and consider the real cause of the immediate crisis: the unworkable and unreasonable pre-funding policy adopted in 2006,” Rolando said. “Congress should correct the retiree health pre-funding policy first – it is the single most effective step you can take to stabilize the Postal Service’s finances.”

Rolando acknowledged that in addition to pre-funding reform the Postal Service’s business model deserves a serious and comprehensive debate in order to secure the long-term viability of the Postal Service.

“NALC and the other postal unions are prepared to deal with the lingering effects of the recession and the negative impact of the Internet at the negotiating table, just as we have adapted to varying business conditions for some 40 years of successful collective bargaining,” he said.

“We believe that it is only in the context of financial stability that a serious and careful legislative debate can take place,” Rolando concluded. “That will require us to do our part at the bargaining table and for Congress to do its part on retiree health pre-funding reform.”

USPS will unveil its “Animal Rescue: Adopt a Shelter Pet” sheet of commemorative stamps today, kicking off a major 8-week promotion with an appearance by PMG Jack Potter on the Ellen DeGeneres Show.

The commemorative sheet of stamps continues a half-century tradition of promoting attention and awareness of national social issues. The set features photographs of 10 shelter pets adopted through the Animal Welfare Society of New Milford, CT. The stamps go on sale April 30 following a first-day-of-issuance (FDOI) ceremony at the Academy of Television Arts and Sciences in Hollywood.

The Postal Service is working with DeGeneres — a well-known advocate for pet adoption — and Halo, a pet food company she co-owns. As its contribution to the 8-week “Stamps to the Rescue” promotion, Halo will donate 1 million meals to animal shelters across the country. “This is a subject I am extremely passionate about,” said DeGeneres. “By working together, we can find good homes for millions of adoptable, homeless and abandoned pets.”

In addition to Potter’s appearance on the show, USPS is participating in the promotion with posters and counter cards in Post Offices. From April 30 through May 14, USPS will promote shelter pet adoption with a special cancellation on its automated equipment.

“These stamps continue a 50-year Postal Service tradition of bringing attention to serious social issues of the day — one letter at a time,” said Potter. “Our hope is these stamps will encourage pet adoption and promote humane and responsible pet care.”

Anticipating the popularity of the series, the Postal Service has printed 300 million stamps — 15 million sheets — and is prepared to print more if 7.5 million sheets are sold by the end of May.

Starting today at 9 a.m. ET, information on the stamps and promotion events is available on usps.com and also stamps to the rescue.com, a microsite developed to promote the stamps.

Source: USPS Newslink

The Postal Regulatory Commission is seeking actuarial expertise to evaluate the postal service’s liability for some of its employee’s civil service pensions. The USPS sought the PRC’s advice after the agency’s Inspector General found that the postal service had been overcharged by as much as $75 billion since 1971 for its share of the pensions for former Post Office Department employees.

The PRC’s solicitation suggests that it wants compare the USPS’s situation with the way a corporation would handle pension liabilities when it divests itself of a subsidiary:

• Provide an assessment of how an allocation would be structured if all parties had negotiating power similar to that involved in acquisitions in the private sector

• As applicable, provide recommendations typically made in similar situations for estimating the allocation of pension liability between a parent company and subsidiaries, particularly if those subsidiaries are divested

The USPS is seeking the PRC’s opinion under the postal reform act passed in 2006, which provides for PRC review of the “fairness and equity” of USPS obligations. PRC agreement that the USPS was indeed overcharged would lend the service considerable moral support. Actually getting the money back, of course, is a different matter.

From the USPS Office of the Inspector General:

Baltimore District officials approved disbursement of a grievance settlement for out-of-schedule pay resulting in overpayments to affected clerks of approximately $1.7 million. This occurred because the responsible manager made an error in preparing a Microsoft Office Excel spreadsheet that overstated out-of schedule hours. The manager applied employee pay rates to the overstated hours on the Excel spreadsheet, resulting in approximately $1.7 million in overpayments. We also determined internal controls over the settlement disbursements were not sufficient to ensure the payment amounts were accurate. As a result, although the Postal Service is seeking reimbursement, there is a risk that it will not be able to recoup all of the overpaid funds. Read the rest of this entry »

Burlingame, CA and London, UK—March 8, 2010—For the first time, spending on digital/online advertising and marketing will overtake print in 2010, according to new projections from Outsell, Inc. In an industry crossover event, companies will spend $119.6 billion on online and digital strategies, from search engine keywords to webinars, while committing $111.5 billion to print methods such as newspaper and magazine ads. Overall, U.S. spending on advertising and marketing will increase in 2010, but by just 1.2 percent to $368 billion.

Outsell’s “Marketing and Ad Spending Study 2010: Total US and B2B Advertising,” forecasts spending, share, and growth for five media types—online, events, print, TV/radio, and PR/other—and methods used within each, from social networking to mobile/wireless marketing.

“Advertisers are directing dollars toward the channels which generate the most qualified leads and most effective branding. As they emerge from the recession, they need more accountability, and they’re spreading their spending over a widening set of options,” said Chuck Richard, Vice President and Lead Analyst, Outsell.

Among findings:

• Print magazine advertising will be up 1.9 percent to $9.4 billion despite the popularity of online channels.

• Methods generating the highest B2B ROI are topped by advertisers’ own websites, followed by conferences, exhibitions and trade shows; direct mail; search engine keywords; and e-marketing/e-newsletters.

• B2B advertisers see cross-media marketing as most effective; 78% combine three or more major marketing methods.

• 51 percent of B2B marketers rate Facebook as extremely or somewhat effective, followed by LinkedIn (45 percent), Twitter (35 percent) and MySpace (25 percent).

Outsell surveyed more than 1,000 US advertisers in December 2009.

Columbia, South Carolina—- Acting United States Attorney Kevin F. McDonald stated today that Timothy Turner, age 25, of Westminster, South Carolina, was sentenced today in federal court in Anderson for maliciously destroying a vehicle carrying United States mail by means of fire, a violation of Title 18, United States Code, Section 844(i). Senior United States District Judge G. Ross Anderson, Jr., sentenced Turner to five years in federal prison. He will also have to serve a three year period of supervised release after imprisonment.

Last June, Turner stole a postal van parked on the campus of Clemson University. The van contained approximately 33 tubs of mail destined for various addresses at the University. After going through the contents of the van, Turner drove it to a rural area in Oconee County and set it on fire. The van and all of the mail items were completely destroyed.

The case was investigated by agents of the United States Postal Inspection Service, the Clemson University Police Department, and the Oconee County Sheriff’s Department. Assistant United States Attorney William J. Watkins, Jr., of the Greenville office handled the case.

WASHINGTON — The U.S. Postal Service today is filing a request with the Postal Regulatory Commission (PRC) to change the designation of some Post Office Boxes from monopoly to competitive designation – a move to allow greater flexibility to meet the needs of customers.

The Postal Accountability and Enhancement Act of 2006 split Postal Service products and services into two categories, market dominant (monopoly) and competitive. Those products and services for which other providers compete with the Postal Service were categorized as competitive. P.O. Boxes currently are listed as market dominant and are subject to a price cap based on the rate of inflation.

“Success in the marketplace demands speed and flexibility. Moving some P.O. Boxes into the competitive product category will give the Postal Service greater flexibility to meet the emerging needs of customers and to respond more quickly to changing market dynamics,” said Robert F. Bernstock, president, Mailing and Shipping Services.

Earlier this month, Postmaster General John E. Potter outlined an aggressive plan of action that included cost cutting, increased productivity, and an array of legislative and regulatory changes necessary to maintain a viable Postal Service for decades to come. Potter also indicated the Postal Service will avail itself of the opportunities under current law to increase revenue and enhance customer service. Today’s filing with the Postal Regulatory Commission is a part of that strategy.

The filing seeks to move about 32,000 existing P.O. Boxes in 49 Post Offices from the current market dominant classification into the competitive class of products. This will allow the Postal Service to test consumer interest in enhancements to the current P.O. Box offering and will help shape future Postal Service P.O. Box service and access strategies. Each of the affected sites is within a half mile of a competing box service provider and all provide door delivery to all addresses within their ZIP Code area.

Less than one half of 1 percent of all Post Office Box service would be affected. There are more than 13 million P.O. Boxes in more than 30,000 Post Offices across the country.

There is no time limit for the PRC to review the filing. The PRC can approve or deny the request to change the classification or request that additional research be conducted by the Postal Service.

The Postal Service receives no tax dollars for operating expenses, and relies on the sale of postage, products and services to fund its operations.

PostCom President Gene Del Polito, PostCom Vice President Jessica Lowrance, Postal Consultant Kathy Siviter, and Mailing & Fulfillment Association Vice President Leo Raymond discuss PMG Jack Potter’s action plan.

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To listen online, press the play button above- to download the mp3 file, right click this link, and select “save”.

Favorite quote from the podcast is Raymond’s comment on the prospect of Congress correcting the USPS retirement overpayment (aka “trust fund”) issue: “I don’t see them [i.e. Congress] doing the things they should do to fix it. I think their viewpoint is ‘we stole it fair and square.’”

PRC February monthly meeting:

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PRC March monthly meeting:

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CHRISTOPHER ISAAC, age 20, of Marrero, Louisiana, was charged in a one count indictment by a Federal Grand Jury with Assault on a Federal Officer, announced U. S. Attorney Jim Letten.

According to the indictment, ISAAC used a dangerous weapon to forcibly assault a United States Postal Service letter while the Postal letter carrier was engaged in his official duties.

ISAAC faces a maximum term of imprisonment of twenty (20) years, a fine of $250,000.00 and three (3) years of supervised release following any term of imprisonment.

U. S. Attorney Letten reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.

The case is being investigated by United States Postal Inspection Service and prosecuted by Assistant United States Attorney Loan “Mimi” Nguyen .