From National Association of Postmasters of the United States (NAPUS) e-newsletter
On Tuesday afternoon, Senate Homeland Security and Governmental Affairs Committee Chairman Joseph Lieberman (I-CT) intends to conduct a hearing on legislative proposals that seek to avert a “Postal shutdown.” This is the first time in recent memory that the full Committee, rather than its Postal Subcommittee, will convene a postal hearing. The impending USPS default on its $5.6B payment to prefund its retiree health obligations, the legislative bottleneck that has delayed passage of postal relief, as well as three new and highly-controversial USPS proposals played a role in scheduling this forum. Beginning at 2:00 PM EDT, the hearing may be viewed on the Senate Committee website here.
Two weeks ago, Chairman Lieberman’s office reached out to NAPUS to coordinate the designation of a single witness to represent USPS postmasters and supervisors. The presidents of the three managerial organizations settled on NAPS President Louis Adkins to deliver oral testimony on behalf of all three associations, since NAPUS and League Presidents testified most recently before the Senate Postal Subcommittee. Even so, NAPUS will submit written testimony to the Committee, representing the views of its 38,000 members. The invited witnesses include: PMG Patrick Donahoe, a representative of the White House Office of Personnel Management, a representative of the Government Accountability Office, the President of the American Postal Workers Union, a representative of the magazine industry, and a representative of the newspaper industry.
Postal employee groups continue to focus on passing legislation to correct the Postal Service’s overpayments into the Civil Service Retirement Trust Fund and permit the agency to access the surplus to pre-pay its retiree health obligations. However, USPS Headquarters has redirected its efforts to advance a draconian proposal to withdraw from the Federal Employees Health Benefits Program (FEHBP) and the Federal Employees Retirement System (FERS). NAPUS’ Senate testimony, in addition to urging the panel to report legislation to address the pension overpayments, objects to the ill-conceived plan to abandon the FEHBP. As Postmasters should recall, FEHBP was heralded by many as a model for a national health system because of participant choice, aggressive cost-containment, extraordinary efficiency, and effective health promotion. Moreover, past experiences with agency withdrawal from the FEHBP (e.g., the Federal Deposit Insurance Corporation and the Federal Reserve Board) were dismal failures, resulting in the agencies having to buy their way back into the FEHBP. Special was legislation needed. NAPUS strongly believes that the USPS should not be permitted to risk the health care protection of its employees and retirees based on the recommendation of consultants who have been counseling the USPS to withdraw from the FEHBP since the late 1980s.
NAPUS testimony also plans to discuss the adverse effect that USPS plans to close a yet-to-be-determined number of small and rural post offices would have on rural communities. Moreover, NAPUS will renew its request that the current statutory prohibition against closing a post office solely for running a deficit and the requirement that the Postal Service provide a maximum degree of postal services to small and rural communities be retained.
Boy’s and Girl’s, it won’t stop the media from spinning it to be those greedy postal worker’s (labor and management) overpaid, fantastic benefits, and great retirement package, that most americans would love to have! Never you mind to check what UPS makes. No, were talking about a government agency in which most american’s still believe is fed. funded. I believe tis is still a ploy to get his original 5-day delivery, and at least stop part of the pre-funding. Yes, they will still go thru with some cut’s in servive, and attemp to reduce benefits. But changing the retirement system, and health care, unrealistic to believe congresss would go for that, as long as we are a gov. agency. Although that would shock me not for this POG. I’ve been waiting for a incentive to go. Now I’m convinced if it does’nt happen with this new legislation (that is) coming, it’s not going to happen. Jan. 1st sounds like a great day to retire.
If Congress allows the USPS to withdraw from the FEHBP, its all over for both present employee`s as well as Retiree`s! That coupled with USPS attempts to withdraw from FERS as well, I`m sure their new improved in-house Retirement Plan will be there for you when you plan to retire,….right! Hopefully, those of us that are covered under Civil Service Retirement will be safe, but one never knows, does one? Management at USPS Headquarters in Washington have helped steer this organization right into an iceberg due to their ineptness. The only satisfaction Craft employees will have when they get screwed is knowing that Managers and Supervisors are going down with the Ship too! Thanks for nothing. All they ever were concerned with was attempting to reduce Sick Leave usage which they never could understand was a contractual benefit, not a carrot to beat their employees over the head with. Guess if no one abused their Sick Leave, the USPS would be solvent today? Big deal they gave Civil Service and now FERS employees an extra 2% added to their retirement for every 2080 hours that was saved. How many years would one have to live to collect the equivalent of 1 Years Salary? Everyone is not Brain Dead.
Can we get a count on the housing business of the Postal Service?
So employee totals have been drawn down through attrition FASTER than mail volume declines, but that is rarely mentioned. The fact that 80% of the USPS $70 Billion in annual revenues goes to salary and benefits is NOT out of line. We are a service industry. We make nothing. What should that percentage be?? I think it is too low. Finally (for now), the USPS says 80% of post offices is losing money. That is low. It’s more like 92%. The reason is that revenue is credited at the point of entry, so large plants get all the credit, and small offices that actually deliver it DO NOT get the credit for delivering it. The smallest, rural 10,000 post offices cost the $70 Billion dollar organization LESS than $1 Billion per year. If you shut them all down, rural America will suffer unduly.
Pensions. Separate issue. Two types, defined benefit and defined contribution. People hired before 1984 are CSRS, and newer hires are under the FERS system. CSRS is pension, with no social security. FERS is smaller pension, social security contributions taken out, and benefits eligible, plus a 401k type instrument called TSP. The CSRS fund is OVER funded by about $50-75 Billion. Depending on if you believe the OIG or PRC. The OPM miscalculated, but won’t fully admit it. The FERS fund is OVER funded by about $7.5 Billion. So you can see the USPS has been BAILING out the Federal government for some time now. Any credit for these over payments WOULD NOT be a tax payer bailout, and the funds could go directly to the pre-funding of retiree health benefits, raising THAT fund from the current estimated balance of $40 Billion to the 2016 goal of over $70 Billion, also eliminating the remaining 6 annual payments. USPS made $9.5 Billion from 2003-2006 PAEA law passed in 2006 requires Pre-payment to fund for health benefits for future retirees. 10 year plan 2007-2016. About $5.5 Billion required each year. 2007, 2008, and 2010 received FULL payment. 2009 was reduced through H.R. 22 by around $4 Billion for a payment of around $1.4B. Bottom line the losses from 2007-2010 are around $20B, but the prepayments were around $21B, so the USPS is operationally PROFITABLE. Artificial handicap is killing us. No reason to fully fund that account by 2016. That is akin to starving your family to pay off a 30 year mortgage in just 10 years.
In these trying times for the USPS, in tandem with the digital age where identity thieves lurk the lightning-fast internet and leave their victims broke and cold; where First Class and Air Mail Stamps still guarantee the sanctity of mail and warm joyful hearts of postal patrons – millions each day in USA and around the glove, the public should not refuse Sen Lieberman to hold an emergency hearing and then to declare his mandate to continue serving the public at large- rural, small town, medium town and large. Also to influence his colleagues in the Senate to return the surplus Postal Monies that USPS rightfully owns from the start. His partners in crime might say, ” BUT THE GOVERNMENT NEEDED THAT SURPLUS TO FIND THE WEAPONS OF MASS DESTRUCTION AND FUND TWO WARS,” Let Lieberman reply, “let’s do it right this time,”
In these trying times for the USPS, in tandem with the digital age where identity thieves lurk the lightning-fast internet and leave their victims broke and cold; where First Class and Air Mail Stamps still guarantee the sanctity of mail and warm joyful hearts to postal patrons – millions each day in USA and around the glove, the public should not refuse Sen Lieberman to hold an emergency hearing and then to declare his mandate to continue serving the public at large- rural, small town, medium town and large. Also to influence his colleagues in the Senate to return the surplus Postal Monies that USPS rightfully owns from the start. His partners in crime might say, ” BUT THE GOVERNMENT NEEDED THAT SURPLUS TO FIND THE WEAPONS OF MASS DESTRUCTION AND FUND TWO WARS,” Let Lieberman reply, “let’s do it right this time,”
He’s likely to throw us all out in the street. HE’S WITH BONER AND CAR THIEF ISSA AND TEAPOT ROSS.
Lieberman may be the man Postal Workers have been waiting for. He will not just take Donahue at his word which is all I have heard from him thus far.He is probably the most powerful, influential and respected Congressman to get involved in this issue. I believe that he has ability to back Donahue down on some of his draconian proposals.
F**k this guy. He’s a Repuke in all but name now.
Strike
Senator Joe is probably one of few honest, objective politician left….
Hope he has enuf power and will to actually make donahoe tell the truth…
With Lieberman in charge, what could go wrong?
“Special was legislation needed”
I think words you have in order your wrong order, Yoda.