Distribution Directions Vol 9 No 11 USPS Relief, CFO Statement, Senate Chairman, Digital Bill To Help USPS

President Obama's fiscal 2012 budget grants the U.S. Postal Service some of the short-term financial relief it has requested. The Postal Service recently has posted significant losses, including $329 million in the first quarter of fiscal 2011 because of a $1.4 billion prefunding obligation to retiree health benefits and a $700 million workers' compensation liability. Also, the agency has overpaid its Civil Service Retirement System account by $75 billion and contributed nearly $7 billion in excess of its Federal Employees Retirement System obligations. The president's budget proposal would return about $6.9 billion in FERS overpayments to the Postal Service over 30 years, including $550 million in fiscal 2011. USPS also would receive short-term relief from a 2006 requirement to prefund its retiree health benefits at about $5 billion annually. It is the only federal agency with that obligation.

Source: Government Executive

Statement of Joseph Corbett, Postal Service CFO

The Postal Service is encouraged by the President’s recognition of the Postal Service’s financial situation. We look forward to working with the Administration and Congress in the coming year on CSRS and FERS over-funding, the retiree health benefit pre-funding requirement, delivery flexibility and retail access. The Postal Service strongly supports the Administration’s commitment to the principles outlined in the budget:

Realign Postal infrastructure, facilities, processing and delivery systems to continuously improve efficiency;
Promote an adaptive 21st Century Postal workforce; and
Accelerate value creation and enhance service to the public while respecting fair competition in the marketplace.

The Administration’s commitment, together with ongoing Postal initiatives within existing structures, will help put Postal Service on a path toward financial stability.

Source: USPS Press Release

Senate Chairman Speaks Out

Sen. Tom Carper (D-Del.), chairman of the Senate subcommittee overseeing the U.S. Postal Service, released the following statement responding to postal reform measures in President Obama’s 2012 budget proposal: “I welcome the Administration’s engagement in the effort to stabilize the Postal Service’s precarious financial situation. The President’s proposal to reduce the Postal Service’s retiree health care payment due this year and to refund, over a period of time, nearly 7 billion dollars in over payments to the Federal Employees Retirement System, is an important first step. However, more clearly needs to be done in order to address the Postal Service’s long term fiscal problems. We need to address the Postal Service’s massive overpayments to the older Civil Service Retirement System. We also need to make sure that the Postal Service has the resources it needs to meet its future retiree health care obligations.

Source: Senate Carper’s Website

Bill Would Help USPS Adapt to Digital Age

Senator Susan Collins, Ranking Member of the Senate Homeland Security and Governmental Affairs Committee, introduced legislation to help the U.S. Postal Service (USPS) regain its financial footing as it adapts to the era of increasingly digital communications. The "U.S. Postal Service Improvements Act of 2011" would help the USPS achieve financial stability and future cost savings without undermining customer service. "The Postal Service is at a crossroads," said Senator Collins. "It must embrace fundamental change. The Postal Service must take actions to reduce overhead costs, curb no-bid purchasing, bring workforce benefit structure into line, and better serve customers to expand volume.”

Source: Senator Collins Website

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