Do Congress And PRC Agree On USPS’s Ability To Request An “Exigent” Rate Increase?
From Mailing Mailing Systems Technology via Postcom:
A question that’s top of mind for many mailers who went through the Postal Accountability Enhancement Act of 2006 (PAEA) is, what does Congress think
about the recent USPS filing to the PRC of an exigent rate increase? Here are some things to consider on the legality of the filing (not the rates themselves) that
Congress may weigh in on.
Update: PRC Hearings On USPS Request For Rate Increase
From July 14 through July 27, the Commission will conduct and audiocast five hearings in Docket N2010-1, and three technical conferences in Docket R2010-4. Links to the audio will be posted here approximately 10 minutes prior to the broadcasts. Click on this message for the hearing schedule. http://www.prc.gov
On July 6, 2010, the Postal Service filed a proposed rate adjustment pursuant to 39 U.S.C. 3622(d)(1)(E) and 39 CFR 3010.60, et seq., of the Commission’s rules.\1\ The filing seeks “to increase rates for market dominant products in excess of the otherwise applicable limitations of 39 U.S.C. 3622(b)(1)(A) and 39 CFR 3010.11.” Id. at 11. The proposed prices represent an aggregate increase of approximately 5.6 percent and are to be implemented on January 2, 2011.
The June 16 conference has provided the Commission with a number of potentially useful suggestions and comments. One of the suggestions was that the Commission include a tentative schedule in the Commission’s initial order. The following schedule responds to that suggestion:
July 6, 2010 Exigent Request filed.
July 19, 2010 First Technical Conference (topics to be determined), to start at 2 p.m.
July 23, 2010 Second Technical Conference (if needed).
July 27, 2010 Third Technical Conference (if needed).
August 5, 2010 Deadline for filing suggested questions to be asked of the Postal Service during the public hearing. 39 CFR 3010.65(c).
August 10-12, 2010 Public Hearings.
August 17, 2010 Deadline for filing initial comments. 39 CFR 3010.65(f).
September 2, 2010 Deadline for filing reply comments. 39 CFR3010.65(g).
October 4, 2010 Deadline for Commission determination. 39 CFR
3010.66.
Absent specific notice to the contrary, all technical conferences and hearings will convene at 9:30 a.m., eastern daylight time in the Commission’s hearing room in Suite 200, 901 New York Ave., NW.,
Washington, DC 20268-0001. Further review of the Postal Service filing may warrant adoption of additional procedural dates and/or requirements. If so, the Commission will issue further procedural orders as it deems advisable or necessary in order to ensure both efficiency and fairness. In that connection, the Commission has taken under advisement the further comments and suggestions made by participants at the June 16, 2010 conference.
source: PRC
Schedule of PRC Hearings On USPS Request for Rate Increase and 5-Day Delivery
Filed under: mail delivery, postal, postal news, rate increase, usps
From the Postal Regulatory Commission (PRC)
Schedule for Hearings on Postage Rate Increase
HEARINGS in Docket N2010-1:
July 14 at 9:30 am …
July 16 at 9:30 am …
July 20 at 9:30 am …
July 21 at 9:30 am
July 22 at 9:30 am /
PRC Releases Tentative Schedule To Hear USPS Request For Rate Hike
“The June 16, 2010 conference has provided the Commission with a number of potentially useful suggestions and comments. One of the suggestions was that the Commission include a tentative schedule in the Commission’s initial order.”
The following schedule responds to that suggestion.
- July 6, 2010 Exigent Request filed.
- July 19, 2010 First Technical Conference (topics to be determined), to start at 2:00 p.m.
- July 23, 2010 Second Technical Conference (if needed).
- July 27, 2010 Third Technical Conference (if needed).
- August 5, 2010 Deadline for filing suggested questions to be asked of the Postal Service during the public hearing. 39 CFR 3010.65(c).
- August 10-12, 2010 Public Hearings.
- August 17, 2010 Deadline for filing initial comments.39 CFR 3010.65(f).
- September 2, 2010 Deadline for filing reply comments.39 CFR 3010.65(g).
- October 4, 2010 Deadline for Commission determination.39 CFR 3010.66.
see full press release: http://prc.gov/Docs/68/68812/Order485.pdf
PRC Affirms USPS Overpaid $50 Billion to Retirement Fund
OPM Must Reconsider Calculations
The Postal Regulatory Commission (PRC) released an independent actuarial report [PDF] on June 30 which confirms that the Postal Service was overcharged $50-$55 billion for payments to the Civil Service Retirement System (CSRS) between 1972 and 2009. The report recommended an “adjustment” of $50-$55 billion in favor of the Postal Service.
The PRC has submitted the report to Congress and the Office of Personnel Management (OPM), which administers the fund. By law, OPM must reconsider its calculation of the Postal Service’s pension assets in light of the report; make any appropriate adjustments, and submit the results of its reconsideration to the Commission, the Postal Service, and Congress.
“There seems to be agreement that an updated recognition and disposition of any surplus, if it is to take place promptly, will require Congressional action,” the report noted.
The Postal Service is facing severe budget deficits due to a requirement of the 2006 Postal Accountability and Enhancement Act (PAEA) that the USPS must “pre-fund” future retiree healthcare benefits at a cost of more than $5 billion a year for 10 years. To help restore the Postal Service to financial health, postal unions and other “stakeholders” have been urging Congress to relieve the USPS of the pre-funding obligation – a burden that no other government agency or private business bears.
“The APWU has opposed the elimination of Saturday mail delivery and other cutbacks,” said APWU President William Burrus. “This finding denies the Postal Service any excuse for refusing to provide the American people the service they have received for more than 200 years.”
The PRC study, Civil Service Retirement System Cost and Benefit Allocation Principles, [PDF] was commissioned by the PRC in response to a request by the USPS. It followed a Jan. 20, 2010, report by the USPS Inspector General [PDF] which concluded that the Postal Service had overpaid CSRS obligations by $75 billion.
Sen. Carper Welcomes News of PRC Discovering $50 Billion USPS Overpayment
The office of Sen. Thomas Carper, D-Del., issued the following news release:
WASHINGTON,DC- Sen. Tom Carper (D-Del.), chairman of the Senate’s Federal Financial Management Subcommittee with jurisdiction over the U.S. Postal Service, issued the following statement reacting to a report submitted to Congress by the Postal Regulatory Commission earlier today:
“Every once and a while in life we find money in places that we aren’t expecting, sort of like when you find a ten dollar bill you forgot in the pocket of your jeans that you haven’t worn in a while. This is a very good day indeed because rarely in life do you discover an extra $50 billion lying around. This discovery couldn’t have come at a better time, as the Postal Service is facing a serious financial crisis. In fact, the overpayment the Postal Regulatory Commission has identified represents less than 25 percent of the Postal Service’s projected long-term budget deficit. That said, this certainly is a helpful development that will give Congress some assistance as we work to provide the Postal Service with much-needed relief from the overly-aggressive retiree health funding schedule that was placed on in 2006. It is my hope that it can also provide some momentum to efforts to remove the roadblocks that often prevent the Postal Service from streamlining its operations. Both of these things – financial relief and more aggressive cost cutting – must take place in the very near future if we want a Postal Service capable of continuing to deliver the goods and services millions of Americans depend on.”
Earlier today, the Postal Regulatory Commission submitted to Congress, the Office of Personnel Management (OPM) and the United States Postal Service, an independent actuarial report on the allocation of the Civil Service Retirement System (CSRS) benefits paid to former Post Office Department employees. The Commission report found that an adjustment of $50-$55 billion in favor of the Postal Service would be equitable.
By law, OPM, which is responsible for calculating the Postal Service’s CSRS pension liability, must now reconsider its calculation of the Postal Service’s pension assets in light of this report, and submit the results of its reconsideration to the Commission, the Postal Service, and Congress.
The Commission report suggests that Congress may wish to alter the schedule established in the Postal Accountability and Enhancement Act (PAEA) for potential transfers from the Postal Service Retirement Fund to its Retiree Health Benefit Fund. Currently, such transfers may not take place before September 30, 2015.
The full report, Civil Service Retirement System Cost and Benefit Allocation Principles, is available on the Commission website, www.prc.gov.
PRC Report Finds $50 Billion Discrepancy In USPS Payment Of Retirement Benefits
Washington, DC – The Postal Regulatory Commission today submitted to Congress, the Office of Personnel Management (OPM) and the United States Postal Service, an independent actuarial report on the allocation of the Civil Service Retirement System (CSRS) benefits paid to former Post Office Department employees.
The Postal Service asked for an independent review of current allocations. The Commission report finds that an adjustment of $50-$55 billion in favor of the Postal Service would be equitable.
“The Commission is pleased to provide this expert and timely perspective to assist Congress and OPM as they work to resolve an issue that has far-reaching consequences for the financial health and viability of the Nation’s universal mail system,” said Chairman Ruth Y. Goldway.
By law, OPM, which is responsible for calculating the Postal Service’s CSRS pension liability, must now reconsider its calculation of the Postal Service’s pension assets in light of this report, and submit the results of its reconsideration to the Commission, the Postal Service, and Congress.
The Commission finds that the report, prepared by The Segal Company, provides a persuasive statement of how generally accepted accounting principles should be used to develop the current postal pension assets.
The Commission suggests that Congress may wish to alter the schedule established in the Postal Accountability and Enhancement Act (PAEA) for potential transfers from the Postal Service Retirement Fund to its Retiree Health Benefit Fund. Currently, such transfers may not take place before September 30, 2015.
The full report, Civil Service Retirement System Cost and Benefit Allocation Principles, is available on the Commission web site, http://prc.gov/.
USPS Reports $642 Million Loss for Month Of May
The US Postal Service filed its May 2010 (unaudited) preliminary financial report on Friday, June 24, 2010 with the Postal Regulatory Commission. USPS reported a net income/ loss of $642 million. The total Fiscal Year to year loss is $2.9 billion ($382 lost for April; $381 lost for month of March; $611 lost in February; $592 million lost for the month of January, $179 Million gain the month of December; $255 million lost for November; $221 Million lost the month of October) see full report at the Postal Regulatory Commission
Total Mail Services Volume was down 0.9%
Total Shipping was up 4.6%
Total Mail voume was down 0.8% but revenue up by 0.1%
First class volume down 6.3%
Stand Mail up by 5.6%
Total Workhours was down 3.8% (City Carriers 3.0%, Mail Processing, 9.0%, Cusotmer Services 8.5%, Rural Delivery up by 2.4%, Other 0.8%)
Total Career Employees 590,596
Total Non-Career Employees 89,135
Vehicle Maintenance Service was up 33.6% (see OIG report on Vehicle Maintenance)
Senators ask for field hearings in Hawaii and Alaska on Postal Service proposal to reduce mail delivery to five days a week
The following is a press release from the office of of Senator Daniel Inouye:
June 17, 2010
WASHINGTON, D.C. – U.S. Senators Daniel Inouye (D-Hawaii), Daniel Akaka (D-Hawaii), Lisa Murkowski (R-Alaska) and Mark Begich (D-Alaska) today urged the Postal Regulatory Commission to hold field hearings in Hawaii and Alaska on a Postal Service proposal to reduce mail delivery to five days a week.
The Commission has already announced hearings on the proposal in Las Vegas, Sacramento, Dallas, Memphis, Chicago, Rapid City and Buffalo. The senators said in a letter today to Ruth Y. Goldway, Chairman of the Commission, that mail delivery is unique in Hawaii and Alaska, where residents depend on it for “basic and necessary items.”
The senators said the information gleaned from hearings on the mainland “will bear little relevance to the concerns of the people of Alaska and Hawaii. Such concerns include the likely degradation of efficient and timely delivery of medication, food, water and other necessities.”
The Commission has said that the nationwide elimination of Saturday mail delivery service is one of the most significant changes ever proposed for the Postal Service.
“It is extremely important, therefore, that you are fully informed about the impact of this proposal on our constituents and to the efficiency and effectiveness of the Postal Service on our states,” according to the senators’ letter. “Holding hearings in our states will also generate press coverage that will further inform our constituents about the pros and cons of this proposal.”
Postal Worker’s Letter to PRC: Don’t End Saturday Delivery – Save Money Elsewhere
A Texas Postal Worker in a letter to the Postal Regulatory Commission regarding the elimination of Saturday mail delivery he wrote:
Greetings Everyone!
My name is Bill Hall and I have been a mail processing clerk in the Amarillo, Tx facility for the past 18 years. What I see on a daily basis is the extreme waste that is being put forth in our facility. Money is being wasted on salaries for supervisory positions. We have too many of them. I feel the 204B program should be eliminated. We have more of need for these people as clerks than supervisor trainees. All of our trainees and supervisors work where needed and when needed. In other words, they supervise half the shift and work manually the remaining shift. There have been times when the MDO’s (shift supervisors) have done the job of supervising a particular area if that person is on vacation or even off a day or two. Why can’t the supervisors and MDO’s develop a plan to have rotating days off? I think this alone would curb the use of trainees and their salary. We need them as clerks. There have been occasions where there is no supervisor at the facility on weekends, only 1 trainee. This is
unacceptable.
Almost all of our supervisors have had no previous experience in leadership . Our maintenance is deplorable. The Postal Service is paying good money to a group of people who do nothing but play dominoes and take breaks. This is another area where jobs need to be eliminated. Either do your job or get out. The supervisor needs to get his group together or leave. If an employee can’t find a clean restroom on a daily basis, the supervisor and his crew are getting paid to do nothing.
Another area that needs to be addressed is the unbelievable amout of overtime that is being paid. Several of us go in 2 hours before shift to clean up empty equipment. Most of this is due to the negligence of supervision from the previous shift. They let their employees go home early to save hours but they won’t make them clean up after themselves. I hate to say it, but I will take advantage of the overtime for this stupidity.
I think the Postal Service is eliminating positions that they should leave alone. The mailhandler positions are a thing of the past in Amarillo. The processing clerks are presently doing all duties of the mailhandler with exception of actually unloading the trucks. I think in due time we will be unloading trucks.
Another area that needs to be addressed is the unnecessary paperwork that supervisors have to
complete. With all that there is to do, they don’t have time to supervise. We had a former supervisor that spent 8 of the 9 hours that he was there on the computer doing paperwork. If paperwork could be eliminated, then there would be jobs to be eliminated at all district offices. Big money can be saved in this area. The jobs being held in district offices needs to be scruitinized. To make this situation work that the Postal Service is in, you are going to have to eliminate jobs. But, those jobs should be at the top.
I don’t think we should give discounts to mailers. They should have to pay what everybody else pays per letter. Seems to me we have lost millions over the years because of this. This is an area where the Domestic Mail Manual needs to be rewritten. We could possibly make money just by changing and simplifying the legalese for customers and employees alike. Too many regulations with discounts.
The Postal Service is a SERVICE company. We have not been giving good service in my opinion. I
don’t think we should eliminate one day of the week of service to save money. On weekends we have plenty of mail to work and we get it out on time. It’s ridiculous to cut service to save money when the real problem of saving money is at the top.
Thank You!
Bill Hall