Lawmakers Join Forces to Propel Postal Service Issues to the Forefront
TweetWASHINGTON, D.C. – On March 25, 2010, Reps. Lynch, Chaffetz and Davis announced the reconvening of the Congressional Postal Caucus (CPC). Recently, the United States Postal Service unveiled a new business model to address unprecedented challenges largely due to the current economic environment and the rise in alternative means of communication. If nothing is done, the Postal Service expects to have an $8 billion shortfall by September 30, 2010 and suffer a net loss of $238 billion over the next 10 years.
Bringing the CPC back on line is intended to inspire and stimulate new ideas on how to put the Postal Service back on sound financial footing, assess the benefits and drawbacks of the proposals in Postal Service’s new business plan, and help Federal Policymakers tackle important postal matters such as 6‐day delivery. The caucus will allow for a productive exchange of information and insight among members and will make sure that Congress is well‐equipped to provide successful, permanent solutions to the Postal Service’s current and future issues. Collectively, the Members of the Congressional Postal Caucus will evaluate all viable options for securing a robust and vibrant Postal Service for years come.
According to CPC co‐chair, Stephen F. Lynch, “The Congressional Postal Caucus will ensure that Congress effectively addresses the most challenging and important postal issues of our time. I am excited to be involved with the restoration of this important organization and am looking forward to seeing the benefits that this collaborative effort will bring to the entire postal industry.”
“The U.S. Constitution grants Congress the authority to establish a postal system. In recent years, despite significant increases in productivity and reductions in work force, the US Postal System still faces significant fiscal challenges due to changes in consumer preferences. The Postal Caucus will serve as a forum to discuss proposals to restore fiscal stability to the USPS,” CPC co‐chair Jason Chaffetz said.
“The challenges facing the Postal Service reflect, in large part, deep going technical, economic and social changes now transforming our information infrastructure. The Congressional Postal Caucus will provide an indispensable forum for the development of public policy consistent with the all of the demands we place on the Postal Service of the 21st century,” advised Danny K. Davis, CPC co‐chair.
March 27th, 2010 07:13
CPC, 60yrs of age-34 yrs of service-will leave for buyout!
March 27th, 2010 10:36
Messrs. Lynch, Chaffetz and Davis:
Respectfully, the first issue the CPC should address is the $75 BILLION DOLLARS that the USPS was overcharged for Civil Service pension costs, per the study published in January 2010 on the Office of the Inspector General (OIG) website. The USPS would NOT have to go to 5-day delivery or close any post offices if this error was corrected.
Secondly, the amount paid into the Treasury to prefund future retiree health care benefits per the 2006 PAEA law should be examined. At the current rate of payments, that fund will be overfunded when the payments end in 2016.
From the OIG website
January 20, 2010
New OIG Study Estimates USPS Has Been Overcharged for the CSRS Pension Fund by $75 Billion
A study just released by the U.S. Postal Service’s Office of Inspector General (OIG) shows that the current system of funding the Postal Service’s Civil Service Retirement System pension responsibility is inequitable and has resulted in the Postal Service overpaying $75 billion to the pension fund.
The OIG estimates that if the overcharge was used to prepay the Postal Service’s health benefits fund, it would fully meet all of the Postal Service’s accrued retiree health care liabilities and eliminate the need for the required annual payments of more than $5 billion. Also, the health benefits fund could immediately start meeting its intended purpose — paying the annual payment for current retirees, which was $2 billion in 2009.
This marks the third time the Postal Service has been overcharged. In 2002 it was determined the Postal Service would overfund CSRS by $78 billion. Legislation in 2003 corrected this overfunding. Then it was determined the Postal Service was overcharged $27 billion for CSRS military service credits. In 2006 these funds were returned to the Postal Service by Congress, and the surplus was used to fund retiree health care liabilities.
This study, The Postal Service’s Share of CSRS Pension Responsibility, undertaken in conjunction with the Hay Group, is the third paper sponsored by the OIG that delves into the financial entanglements between the Postal Service and the federal government — generally at the expense of the Postal Service. The latest study describes the inequitable allocation of CSRS costs between the federal government and the Postal Service. The other two reports focus on the Postal Service’s congressionally-mandated retiree health care prefunding payments (Estimates of Postal Service Liability for Retiree Health Care Benefits), and the Postal Service’s interaction with the federal budget (Federal Budget Treatment of the Postal Service).
March 27th, 2010 21:03
5 day deliviery and a buyout its that easy, but goverment will not do it or fix the problem because they are the problem!!!!
March 28th, 2010 16:55
Been carrying the mail for 36 years & I am 58. Been an NALC member since I began. The union should support The USPS on these issues of 5 day delivery & more flexibility. Work to support wages,benefits & working conditions for carriers. Lot of carriers like me waiting for that cash incentive to leave. A thousand a year for each of service & I dare say you’ll see myself & the likes of me signing up. If the union finds this too much I believe you will see some members leave the NALC
March 28th, 2010 21:29
Ratio of workers that move the mail to EAS that stare at computers all day: More than 9:1. (690,000 total employees, 82,000 EAS). Where to cut? Try the FAT. This is not that complicated. Potter wants to cut more from the workforce so THE FAT REMAINS. Naturally, the public is kept in the dark about this UNSUSTAINABLE RATIO, and nothing will be done to cut the fat. Instead, they will prefer to reduce service in a service industry. Sounds like a suicidal “business model” to me, but I’ve only worked here for 30-years so what do I know?
March 29th, 2010 08:51
nostradamus again another misinformed idiot spewing baseless facts. for your information 32,000 of those EAS employees are Postmasters who work mail and work the window while also making sure the union slugs keep moving. most of the others are in a support role such as labor relations ( so the slugs can spend two hours filing a grievance because the postmaster didnt say hi to them, an actual grievance by the way), timekeeping, POOM’s ect.
there is a lot more that goes into it besides some slug dragging around a route sticking mail in boxes a job any competent 12 year old could do
March 29th, 2010 11:49
age 60, 26 yrs svc. will leave with buyout!
March 30th, 2010 11:05
wow, DO YOU REALLY THINK THAT ONLY 49000 PEOPLE WILL LOOSE THIER JOBS. YOU WOULD NOT BE FOR 5 DAY WORK WEEK IF YOU WHERE 1 OF THE 49000. IT IS SAD HOW SELFISH PEOPLE ARE. I HOPE THE UNIONS FIGHT TOOTH AND NAIL.