Video: House Republicans Cave on Payroll Tax Cut Extension
PR note: To borrow some recent words by Congressman Darrell Issa and posted on Twitter: House GOP “folded like a cheap suit” on tax deal. The borrowed words from Issa “folded like a cheap suit” were recently directed at PMG Patrick Donahoe after USPS agreed to 5-month moratorium on closing/consolidating post offices
Two days ago, the House GOP rejected 2-month payroll tax cut. But after pressure from all sides of the political arena, ” House Speaker John Boehner announced today that Republicans have decided to accept a short-term extension of the payroll tax cut, preventing a hike in taxes just nine days before the tax break expires for 160 million Americans.”.
Video source: ABC News
GOP Senator Asks Postmaster General to Justify Closing Rural Post Offices
Filed under: GOP, politics, post office closings, postal, postal news, press releases, usps
Press Release from the office of U.S. Senator Jerry Moran (R-Kansas)
Aug 12 2011
Minimal savings is far outdone by the hardship to rural and senior citizens
WASHINGTON, D.C. – U.S. Senator Jerry Moran (R-Kan.) this week reiterated to Postmaster General Patrick R. Donohoe the vital economic role the U.S. Postal Service (USPS) plays across Kansas, especially to those living in rural communities and to senior citizens who depend on walking to the local post office to get their mail. The senator asked the Postmaster General to outline the justification for potentially closing rural post offices across the country when the Postal Regulatory Commission has indicated the projected savings would not come close to changing the financial outlook for USPS. Sen. Moran also pointed out that closing a post office simply because of revenue shortfalls is in violation of the United States Postal Code. Read more
Guffey: WashPost Editorial Board’s “Financial Fix For USPS” is the same as Tea Party and GOP
APWU President Cliff Guffey in a Letter to the Editor of the Washington Post: “Destroying unions won’t fix the Postal Service” wrote:
The July 28 editorial “A better route for USPS” endorsed the strategy that is being employed by Republican governors who use budget deficits to attack collective-bargaining rights while ignoring other methods of closing budget gaps. The policy that the editorial promoted, including “renegotiating collective bargaining agreements,” put The Post squarely in the camp of Wisconsin Gov. Scott Walker (R) and the Tea Party.
The Washington Post article cited by Guffey promoted the theory :
The only bill before Congress that offers any opportunity to fix this is the Ross-Issa Postal Reform Act of 2011. Is the act perfect? By no means. But the bill includes a mechanism for fundamental change, as well as several reforms that the Postal Service sorely needs: a shift to five-day delivery, which would save an estimated $3 billion over the first four years; a requirement that the financial predicament of the Postal Service be taken into consideration in any arbitration; and the ability to renegotiate existing contracts if the Postal Service’s finances require it.
Obama Nominates Former Aide of GOP Congressman To PRC
Today, President Barack Obama announced his intent to nominate Robert G. Taub, Nominee for Commissioner, Postal Regulatory Commission (PRC)
Robert G. Taub is currently the Special Assistant to Secretary of the Army John McHugh. Prior to this, Mr. Taub spent significant time working in the U.S. House of Representatives, including serving for a decade as Chief of Staff to then-Congressman McHugh. He has extensive expertise with postal policy and was instrumental in developing the 2006 Postal Accountability and Enhancement Act, which modernized America’s postal laws for the first time since 1970. Mr. Taub served for 12 years on the House of Representative’s Oversight & Government Reform Committee in a series of senior positions, including service as Staff Director of its former Postal Service Subcommittee. In addition, he was a senior analyst at the U.S. Government Accountability Office from 1987 to 1994. Mr. Taub received his B.S. and M.A. in political science from American University.
Mark Acton, Commissioner, Postal Regulatory Commission
Commissioner Mark Acton has served on the Postal Regulatory Commission and its predecessor the Postal Rate Commission since August 2006. Commissioner Acton is currently Vice Chairman of the Postal Regulatory Commission. Prior to his appointment, Mr. Acton served as Special Assistant to the Chairman of the Postal Rate Commission assisting in managing all aspects of agency operations. Commissioner Acton has an extensive professional history of active involvement in the public policy arena, including more than five years handling legislative and regulatory concerns as Staff Director for the Republican National Committee Counsel’s Office. Commissioner Acton is an active member of the University of Louisville Alumni Association and the Kentucky Society of Washington. He attended the University of Louisville and has a Master of Business Administration from the University of Maryland.
source: White House
Call For Action: Urge President Obama To Appoint Democrat To PRC
Clarification from APWU Oakland President Fred Jacobs: The call for action was initiated by APWU Western Region Coordinator Omar Gonzalez via Oakland APWU and sent to PostalReporter
Video: USPS Needs Systemic Changes to Efficiently Manage Operating Costs
Video from today’s Oversight hearing on USPS and APWU Contract Agreement
Rep. Darrell Issa (R-CA), Chairman of the House Committee on Oversight and Government Reform, delivers his opening statement explaining the need for the United States Postal Service to bring its operating costs in line with its declining revenues.
Republicans Introduce Bill To Eliminate FERS Retirement For New Hires
Republican Senators Richard Burr, (R-NC) and Tom Coburn (R-Oklahoma), on Thursday introduced a bill (S. 644) that would eliminate the pension portion of the Federal Employees Retirement System (FERS) for all new federal employees hired after 2012. The legislation would not affect Thrift Savings Plan benefits and agency-matching contributions. It also will not affect FERS pensions for current federal employees and retirees. It would, however, apply to members of Congress.
Press Release
Today, U.S. Senator Richard Burr (R-North Carolina), along with Senator Tom Coburn (R-Oklahoma), introduced the Public-Private Employee Retirement Act of 2011 to address long-term liabilities facing the federal government. The legislation would end the defined benefit pension portion of the Federal Employee Retirement System (FERS) for new federal government hires starting in 2013, leaving fully in place the Thrift Savings Plan with the current match (up to 5%) for both current and future federal workers. The bill would also apply to Members of Congress.
“Right now, federal government workers receive far more generous retirement benefits than private sector employees. The cost to taxpayers of these benefits is unsustainable and we simply cannot afford it,” said Burr. “We cannot ask taxpayers to continue to foot the bill for public employee benefits that are far more generous than their own.”
“The congressional pension plan currently in place only serves to foster political careerism and should have been frozen years ago. In addition to enjoying a better benefits package, federal workers generally earn up to 20 percent more than their private sector counterparts. When American families across the country are being asked to sacrifice in order to meet their basic needs, federal employees and members of Congress should not be the exception. Defined benefit pension plans are going belly-up across the nation because politicians and employers continue to make promises they cannot keep. Existing federal employees will be unaffected, and all federal employees would continue to enjoy a 401(k)-style pension plan with a very generous federal match. But the only responsible thing to do is stop making irresponsible commitments and forcing future generations to pick up the tab,” said Dr. Coburn.
Currently, federal workers enjoy both a defined benefit pension and a Thrift Savings Plan (equivalent to a 401(k)) with up to a 5% match, paid for by the taxpayers. The average private sector employee gets a 401(k) with a 3% employer match and no pension. Federal workers also continue to enjoy federal health care benefits (FEHBP) after they retire, a benefit that is becoming increasingly rare in the private sector.
Current federal government employees and retirees would not be impacted by the changes in the Burr-Coburn bill.
GOP Chairman Issa Formally Announces House Oversight Subcommittee Structure
Filed under: Congress, GOP, politics, postal, postal news, press releases
Names Chairmen and Vice Chairmen
Congressman Darrell Issa (R-Calif.), the Chairman of the House Committee on Oversight and Government Reform issued the following press release:
WASHINGTON D.C. – Rep. Darrell Issa (R-Calif.), the Chairman of the House Committee on Oversight and Government Reform, announced today the members who will serve as Subcommittee Chairmen and Vice Chairmen for the 112th Congress.
“The American people deserve and have a right to expect that the money Washington has taken from them is well spent and well accounted for,” said Issa. “These subcommittees are a reflection of the substantive agenda House Republicans have promised to pursue one that is focused on identifying and reforming waste, fraud, abuse and mismanagement within the federal bureaucracy. The American people have a right to an efficient and effective government. They have a right to a Congress and White House that is held accountable and acts transparently. This is our committee’s mission and this is what Oversight Republicans will work tirelessly to deliver to the American people.”
The Committee will be organized into seven subcommittees with different legislative and oversight jurisdictions as follows:
• The Subcommittee on Federal Workforce, U.S. Postal Service and Labor Policy
◦ Chair: Rep. Dennis Ross (FL-12)
◦ Vice Chair: Rep. Justin Amash (MI-3)
• The Subcommittee on Government Organization, Efficiency and Financial Management
◦ Chair: Rep. Todd Platts (PA-19)
◦ Vice Chair Rep. Connie Mack (FL-14)
• The Subcommittee on Health Care, District of Columbia, Census and the National Archives
◦ Chair: Rep. Trey Gowdy (SC-4)
◦ Vice Chair: Dr. Paul Gosar (AZ-1)
• The Subcommittee on National Security, Homeland Defense and Foreign Operations
◦ Chair: Rep. Jason Chaffetz (UT-03)
◦ Vice Chair: Rep. Raul Labrador (ID-1)
• The Subcommittee on Regulatory Affairs, Stimulus Oversight and Government Spending
◦ Chair: Rep. Jim Jordan (OH-04)
◦ Vice Chair: Rep. Ann Marie Buerkle (NY-25)
• The Subcommittee on TARP, Financial Services and Bailouts of Public and Private Programs
◦ Chair: Rep. Patrick T. McHenry (NC-10)
◦ Vice Chair: Rep. Frank Guinta (NH-1)
• The Subcommittee on Technology, Information Policy, Intergovernmental Relations and Procurement Reform.
◦ Chair: Rep. James Lankford (OK-5)
◦ Vice Chair: Rep. Mike Kelly (PA-3)
An announcement on the date that the Committee officially organizes will be pending sometime this week.
NALC: Congresswoman Virginia Foxx’s Tasteless And Demeaning Comments About Postal Workers
Filed under: Congress, GOP, NALC, postal, postal news, usps
During a November 18 House debate, North Carolina Rep. Virginia Foxx (R-5th) engaged in an anti-union screed that lasted several minutes.
After attacking the pay and benefits of federal workers, she said that they also have too much job security. “Short of shooting up a post office,” Foxx said, “government workers rarely get fired or laid off.”
“Foxx’s statements about unions are factually wrong and her reference to workplace shootings in post offices was tasteless and demeaning to hard-working postal employees,” National Association of Letter Carriers President Fredric V. Rolando said. “Her comments were morbidly disrespectful to those postal employees and their families who have been the victims of shootings.
“Also, it is a myth that poorly performing federal workers—much less those that commit crimes—never get fired,” he added. “But workers facing dismissal or discipline have every right to union representation. The unions that represent federal workers make no apologies for providing this representation and ensuring fairness in the workplace.
“I have written Representative Foxx and demanded an apology, and the NALC will engage the media in her congressional district to expose her outrageous comments,” Rolando said.
The president also encourages members who live in Rep. Foxx’s district to write and/or call her district office to express your concerns over the negative and inaccurate image of federal workers that she tried to project.
The Honorable Virginia Foxx, 6000 Meadowbrook Mall, Suite 3, Clemmons, NC 27012, Phone toll-free (866) 677-8968
source: National Association of Letter Carriers
Federal pay and benefits could change with new Congress
In recent months, there’s been a lot of talk about proposed hiring and pay freezes and mandatory furloughs in the federal government. But those ideas could become reality if Republicans on Tuesday win the necessary 39 seats to gain control of the House. House Republicans unveiled their Pledge to America in September, promising to reduce the size of government and freeze hiring for all nonsecurity-related federal positions. Lawmakers in both chambers also have pushed several measures that would affect federal jobs and benefits.
full story: Govexec.com
NALC: Key GOP lawmakers playing “Russian roulette” with USPS
USPS pays another $5.5 billion for future retiree health
On Sept. 29, Congress adopted a “continuing resolution” (CR) that will fund the federal government through early December. Sens. Tom Carper (D-DE) and Dick Durbin (D-IL) worked tirelessly along with Senate Majority Leader Harry Reid (D-NV) to include an NALC-backed provision in the Senate version of the bill that would have deferred $4 billion of the $5.5 billion payment, due at midnight Sept. 30, to pre-fund future retiree health benefits. Unfortunately, Senate Republicans voted unanimously to block the postal measure, even though the U.S. Postal Service warned that making such a huge payment — which no other agency or private company is required to make — would seriously imperil its liquidity.
“It is very disappointing that GOP members of the Senate who have oversight responsibilities with regard to the Postal Service would take a party-line stance in this irresponsible action,” National Association of Letter Carriers President Fredric V. Rolando said.
Republican appropriators in the House took a similar partisan and irresponsible approach to both the CR and the Postal Service’s financial problems, blocking the inclusion of a deferral provision proposed by Reps. Stephen Lynch (D-MA) and Ed Towns (D-NY).
Rolando blamed the poisonous politics of the 2010 mid-term elections for scuttling the postal amendment.
“Too many politicians who know better have tried to deceive the public with claims that slowing the pre-funding payments represents a taxpayer bailout,” Rolando said. “No company has funded its post-retirement obligations as well as the Postal Service — our pensions are massively over-funded and we have put more away for future retiree health than any company in America.
“It simply makes no sense to force the USPS to use its limited borrowing authority and spend its limited cash reserves on liabilities that won’t come due for decades,” he added.
The Postal Service complied with the law and made the $5.5 billion payment as scheduled on Sept. 30, raising the balance in its Postal Service Retiree Health Benefits Fund to more than $41 billion, more than any company in the country and enough to cover retiree health care costs for decades to come. But the action reduces its end-of-the year cash position to just $2 billion and exposes the USPS to unnecessary financial risk.
Postmaster General Jack Potter observed: “The Postal Service sought a deferral of this $5.5 billion payment to minimize the risk of defaulting on our financial obligations in Fiscal Year 2011. Unfortunately, no legislative action has been taken at this time. The financial risk remains. We will carefully manage every dollar we spend in the upcoming fiscal year. Our current forecast shows that we will not have sufficient cash to make the $5.5 billion payment due on Sept. 30, 2011, and any major disruption, whether in volume loss or unforeseen circumstances, could cause us to default on financial obligations earlier in FY11.”
Pre-funding retiree health benefits is voluntary in the private sector. According to a survey by Towers Watson, only about one-third of all Fortune 1000 companies pre-fund at all. Those that do have put away far less than has the USPS to cover future costs (28 percent versus 46 percent).
No private company would voluntarily choose to make the kind of enormous pre-funding payment that the USPS did yesterday in current economic circumstances. “The legislators who blocked the pre-funding deferral are playing ‘Russian roulette’ with the Postal Service, a vital institution in the American economy,” Rolando said.