US Postal Service 2011 Annual Report Download - page 42

2011 Report on Form 10-K United States Postal Service - 40 -
parts A and B, and which would have substituted their
current Federal Employee Health Benefits (FEHB)
insurance for a to-be-negotiated “Medigap” style plan. A
second successful amendment would require additional
steps be added to the existing process for consolidating or
closing Post Offices.
POSTAL REFORM ACT OF 2011 (HOUSE)
On June 23, 2011, H.R. 2309, the Postal Reform Act of
2011 was introduced in the House of Representatives.
The bill would create a Commission on Postal
Reorganization (CPR), which would conduct proceedings
regarding closures and discontinuances of the Postal
Service infrastructure, including retail facilities, mail
processing facilities, and area and district offices. The bill
provides the Postal Service with the authority to change
delivery frequency. It also establishes a Postal Service
Financial Responsibility and Management Assistance
Authority, which would operate during any control period.
A control period commences whenever the Postal Service
has been in default to the U.S. Treasury, with respect to
borrowing, for a period of 30 days. The Authority would
have broad powers during such control period, including
assuming all of the powers of the Postal Service Board of
Governors. Other issues addressed in H.R. 2309 include:
modifying collective bargaining agreements; placing
limitations on Postal Service contributions to life and
health insurance programs under FEGLI and FEHBP;
modifying some postal rates, allowing the Postal Service
to offer specific non-postal products and services; and
making reforms in specific Postal Service contracting
practices and provisions.
On October 13, 2011, H.R. 2309 was marked up by the
full House Committee on Oversight and Government
Reform. During the markup, a total of 24 amendments
were offered. Fourteen amendments passed, eight were
defeated, and two were withdrawn. The Committee voted
to report H.R. 2309, as amended, favorably to the House
by a margin of 22–18. The bill now moves to the full
House for consideration.
POSTAL OPERATIONS SUSTAINMENT AND
TRANSFORMATION (POST) ACT OF 2011
On May 17, 2011, S. 1010, the Postal Operations
Sustainment and Transformation (POST) Act of 2011 was
introduced. The POST Act addresses crucial legacy cost
issues, such as retiree health benefits prepayments and
overpayments to the Civil Service Retirement System
(CSRS) and the Federal Employees’ Retirement System
(FERS). It requires the Office of Personnel Management
(OPM) to use a new methodology to value the Postal
Service’s CSRS obligation, as well as determine whether
a surplus exists in the FERS. The measure provides for
various actions that determine use of any surplus,
including using it to pay for retiree health benefit
obligations, pay down the debt, or make payments related
to workers’ compensation, pending Board approval. S.
1010 also removes the prohibition against closing a Post
Office solely for economic reasons and gives the Postal
Service delivery flexibility. It requires an arbitrator to
consider the financial health of the Postal Service when
rendering final decisions on collective bargaining. It
provides flexibility for the development and introduction of
non-postal products and services, allows for the shipment
of wine and beer, and permits the Postal Service to
partner with federal, state and local agencies. S. 1010
was referred to the Senate Committee on Homeland
Security and Governmental Affairs.
U.S. POSTAL SERVICE IMPROVEMENTS
ACT OF 2011
On February 15, 2011, S. 353, the U.S. Postal Service
Improvements Act of 2011 was introduced. The measure
directs the OPM to modify its methodology for calculating
the Postal Service’s payments into both the CSRS and
the FERS funds, and allows the Postal Service to transfer
any surplus from those funds into the PSRHBF or to apply
existing surpluses to workers’ compensation liability
payments or to pay down its existing debt. The bill also
requires an arbitrator to consider the Postal Service’s
financial health when rendering decisions about collective
bargaining agreements; and includes various other
business rules. Finally, it would also convert federal and
postal employees on workers’ compensation to retirement
upon the employee’s reaching retirement age, if workers’
compensation benefits would exceed retirement benefits.
The bill was referred to the Senate Homeland Security
and Governmental Affairs committee.
FEDERAL EMPLOYEES' COMPENSATION
REFORM ACT OF 2011
On February 2, 2011, S. 261, the Federal Employees'
Compensation Reform Act of 2011, was introduced. The
bill would apply to all Federal and Postal employees
currently covered by the Federal Employees’
Compensation Act (FECA). S. 261 would require
employees receiving FECA benefits to transition to the
applicable retirement system when the recipient reaches
retirement age. The bill was referred to the Homeland
Security and Governmental Affairs Committee.
OTHER POSTAL RELATED LEGISLATION
S. 1688, the Save Our Postal Worker Jobs Act of 2011,
introduced on October 12, 2011. S. 1688 would amend
the provisions of Title 5, U.S.C., relating to the
methodology for calculating the amount of any Postal
surplus or supplemental liability under the CSRS.
H.R. 3174, the USPS Pension Obligation Recalculation
and Restoration Act of 2011, introduced on October 12,