CRS: The USPS’s Financial Condition: Overview and Issues for Congress
Below is a summary from The Congressional Research Service’s report on “The U.S. Postal Service’s Financial Condition:Overview and Issues for Congress”
This report provides an overview of the U.S. Postal Service’s (USPS’s) financial condition,legislation enacted to alleviate the USPS’s financial challenges, and possible issues for the 112th Congress. It also includes a side-by-side comparison of two of the postal reform bills, H.R. 2309 and S. 1789.
Since 1971, the USPS has been a self-supporting government agency that covers its operating costs with revenues generated through the sales of postage and related products and services.
In recent years, the USPS has experienced significant financial challenges. After running modest profits from FY2004 through FY2006, the USPS lost $25.4 billion between FY2007 and FY2011.Were it not for congressional action, the USPS would have lost an additional $9.5 billion. Read more
Congressman Carter Calls for Post Office Closings Review
(Washington, DC) – Congressman John Carter is asking the U.S. Post Office for a review of the considerations used in determining which post offices to close in the agency’s cost-cutting decisions this month.
“We fully recognize that bringing federal spending under control requires difficult decisions and sacrifice,” says Carter. “But we also need to know that the tough decisions were made for the right reasons, and that any closings are based on what is least damaging for the postal customer, rather than the bureaucracy and unions.” Read more
Congressman Lynch Joins Higgins in Fight Against Closing of Buffalo Mail Processing Facility
Ranking Member on Postal Subcommittee Latest Voice Asking Postmaster to Keep William Street Center Open
Congressman Stephen F. Lynch (MA-9) is joining Congressman Brian Higgins (NY-27) in asking the U.S. Postmaster General to remove the Buffalo Mail Processing facility from the list of those slated for closure. Congressman Lynch is a member of the Committee on Oversight and Government Reform, where he serves as Ranking Member on the Subcommittee on Federal Workforce, U.S. Postal Service and Labor Policy.
“Congressman Lynch understands the struggles of hard-working communities and the devastating economic impact closing the Buffalo facility would have on families and businesses in Western New York,” said Higgins. “We are thankful to add the Congressman’s name to the hundreds of others locally who are fighting to keep the William Street plant open.”
“The Buffalo Processing and Distribution Center plays a key role in western New York’s economy and its closure could have serious economic ramifications for the entire region,” Congressman Stephen F. Lynch said. “Based on the U.S. Postal Service’s own criteria for closing facilities, it makes no sense that the Buffalo facility should be closed. I join with my colleague, Congressman Brian Higgins, in asking that it be removed from consideration for closure.”
Prior to serving in Congress, Lynch worked as an ironworker for 18 years at sites across the country and was eventually elected president of his local union. Congressman Lynch is the son of a postal clerk.
Below is a copy of the letter sent jointly by Congressmembers Higgins and Lynch:
January 26, 2012
The Honorable Patrick R. Donahoe
Postmaster General
475 L’Enfant Plaza SW
Washington D.C. 20260-3500
Dear Postmaster General Donahoe,
We write in strong opposition to the potential closing of the Buffalo Processing and Distribution Center (Buffalo P&DC) and respectfully urge you to remove this site from the United States Postal Service’s list of Area Mail Processing facilities that could be subject to consolidation. Importantly, the Buffalo P&DC plays a vital economic, service, and community role in the Western New York region and its continued operation is essential to the economic vitality of the City of Buffalo and its surrounding areas, all of which depend on this facility as an invaluable source of employment, commercial stimulus, and exceptional delivery standards.
In examining the consolidation and closure of any mail processing or retail facility, we believe that USPS must consider all relevant factors prior to reaching a determination that a site will subject to such action. In particular, due diligence requires that the Postal Service afford maximum consideration to the overall impact of a decision on local residents, postal employees, businesses, and the affected community at-large. Included among the variety of factors that must be taken into account is the economic importance of the facility to the continued vitality of the region. In this regard, the Buffalo PD&C is essential to maintaining economic growth in the City of Buffalo and the greater Western New York area. Read more
Democrats Oppose Additional Cuts to Federal Pay and Benefits
17 Members of Congress call on Conference Committee to Oppose Salary or Retirement Security Cuts, Citing Previous Sacrifices
Washington, DC – Congressman Elijah E. Cummings, Ranking Member of the House Committee on Oversight and Government Reform, led 17 Members of Congress today in urging the conference committee considering legislation to extend the payroll tax cut through 2012 to oppose any additional cuts to the pay or benefits of Federal employees.
“Federal workers have already made significant sacrifices to help reduce our government’s budget deficit,” the Members wrote. “Subjecting these dedicated public servants to additional pay cuts and retirement benefit reductions in order to pay for such expenditures as a payroll tax cut for all middle class Americans is unfair and illogical, particularly as the vast majority of federal workers are middle-income earners as well. Such cuts would also impede the federal government’s efforts to recruit and retain the best and brightest individuals.” Read more
AFGE Statement on Federal Employee Retirement Hearing
WASHINGTON, Jan. 25, 2012 – American Federation of Government Employees National President John Gage today issued the following statement in response to the congressional hearing on federal employees’ retirement security before the House Oversight and Government Reform subcommittee on the federal workforce, U.S. Postal Service and labor policy:
“Congress created the Federal Employees Retirement System in the mid-1980s to mirror leading private sector practices. The vast majority of a federal employee’s retirement income comes from personal investments in the government’s 401(k) plan and mandatory payments into Social Security. Federal employees also receive a very modest pension that provides an average of $939 a month when they retire. As NARFE Director of Retirement Benefit Services David Snell so eloquently stated in his testimony before the subcommittee, ‘federal employees are not retiring rich.’ Read more
Legislative Attacks On Federal Retirement Compensation Is Based On Misguided Assumptions
STATEMENT BY DAVID B. SNELL
DIRECTOR OF RETIREMENT BENEFITS SERVICES
NATIONAL ACTIVE AND RETIRED FEDERAL EMPLOYEES ASSOCIATION
ON BEHALF OF THE MEMBER ORGANIZATIONS OF THE FEDERAL-POSTAL COALITION
note: Full testimony below
Unfortunately, recent legislative proposals have sought to unravel this basic bargain, unfairly singling out middle class federal employees for disproportionate sacrifice. Last month, the House passed legislation (H.R. 3630) that would use cuts to federal retirement compensation of middle class federal and postal workers to pay for a payroll tax holiday. It would offset over half of the cost of the holiday ($65 billion over ten years out of a $121 billion cost3) on the backs of less than 2 percent of the nation’s workforce.4 This would add financial strain on top of the prospect of job loss through the sequestration process mandated by the debt ceiling agreement and the more than $60 billion that the federal government has already saved by freezing federal employee pay for the past two years, which itself has permanently diminished long-term annuities for recent retirees.
Attacks Based on Misguided Assumptions
The legislative attacks on federal employee retirement compensation seem to derive from: (i) the misguided assumption that most private sector 401(k) retirement plans provide adequate retirement income security – they do not; (ii) the related assumption that federal retirement benefits are overly generous – they are not; and (iii) the questionable opinion that instead of pursuing policies that would improve private sector retirement income security, Congress should pursue policies that diminish federal retirement income security – it should not. Read more
Rep. Lynch: Hearing On Reducing Retirement Benefits is Really Attack On Federal Workers
Rep. Dennis Ross, R-Fla., on Wednesday introduced a bill that would increase how much federal employees pay toward their retirement and steeply reduce pensions for new employees.
HR 3813, the Securing Annuities for Federal Employees Act, would raise contributions for current Civil Service Retirement System (CSRS) and Federal Employees Retirement System (FERS) employees by 0.5 percentage points per year for three years, beginning in 2013. This would make FERS employees contribute 2.3 percent of each paycheck toward their pensions, and require an 8.5 percent contribution from CSRS employees.
The bill would eliminate the so-called FERS annuity supplement for new retirees beginning in 2013, except for employees facing mandatory retirement such as air traffic controllers. Today, FERS employees who retire before reaching age 62 receive a supplement equal to the Social Security benefit they will be eligible for once they reach age 62. Read more
Congressman Ross To Hold Hearing On Reforming Federal Pensions
What’s Good for the Goose is Good for the Gander
Chairman Ross to Hold Hearing on Ending Pension Privileges for Members of Congress and Reforming Federal Pensions to Protect the Taxpayer
Washington, Jan 20 -
Lakeland, FL – Congressman Dennis A. Ross (R-FL) today announced he would hold a hearing on reforming Congressional pensions and ensuring that Members of Congress are treated no differently than the rest of the federal workforce. In addition, the hearing will explore options in reforming the entire federal pension system, Congress included, to bring it more in line with the private sector workforce. Read more
Congresswoman Eddie Bernice Johnson Supports PRC Report On USPS PO Closures
Filed under: Congress, post office closings, postal, postal news, postal reform, usps
Washington, DC – (Thursday, January 5, 2012) –Today, Congresswoman Eddie Bernice Johnson acknowledged her support for the Postal Regulatory Commission (PRC) Report on the Postal Service’s Retail Access Optimization Initiative (RAOI). The report outlined significant miscalculations in the USPS’s methodology for indentifying over 3,600 post offices and other retail branches for possible closure.
The Dallas Processing and Distribution Center and four retail branches in the 30th Congressional District are being considered for closure or relocation under the existing RAOI. Several smaller branches in the District have already closed or have been consolidated.
“These recent findings by the Commission align with my initial criticisms,” said Congresswoman Johnson. “Aside from the obvious job implications for tens of thousands of hard-working Americans, this attempt to reduce costs would only drastically cut services for businesses and individuals that rely heavily on the Postal Service, but not actually resolve the agency’s problem of avoiding insolvency.”
Congresswoman Johnson has met with USPS leadership in Dallas and Washington, DC since 2009 to avert any postal closures in the 30th Congressional District. Citing the same concerns as the PRC panel, Congresswoman Johnson has been vocal in her opposition to the method which the post offices were being selected. The USPS has since announced a moratorium on any post office closures until May 15, 2012.
The full report on the Postal Regulatory Commission can be found here:
http://www.prc.gov/Docs/78/78971/N2011-1_AdvisoryOP.pdf
Collins: PRC Opinion On PO Closures Increases Urgency To Pass Postal Reform
Filed under: Congress, post office closings, postal, postal news, PRC, press releases, usps
Washington, DC – December 23, 2011- U.S. Senator Susan Collins, Ranking Member of the Senate Homeland Security and Governmental Affairs Committee and one of the authors of bipartisan postal reform legislation, today issued the following statement regarding the Postal Regulatory Commission’s advisory opinion on the U.S. Postal Service’s plan to close almost 3700 post offices and other retail facilities. The Postal Service is required to ask the PRC for a non binding opinion on nationwide service changes.
The PRC said “the Commission’s primary finding is that the (closure plan) was not designed to optimize the network. The Commission recommends the use of modern optimization tools and techniques to better maximize net retail revenues while fulfilling statutory service obligations.”
“The Commission’s unanimous findings support my and many of my colleagues’ skepticism about the wisdom of mass postal closures without a more thoughtful, transparent, and data-driven process,” said Senator Collins. “Fortunately, such a process is included in the 21st Century Postal Reform Act, which I authored along with Senators Lieberman, Carper and Brown. Our bill would require the Postal Service to find savings and internal efficiencies first – before raising prices and cutting service that could drive away the very customers keeping the mail in business. Today’s PRC opinion only highlights the increasing urgency for Congress to pass comprehensive postal reform if we are to preserve the Postal Service for the next generation of Americans.