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Postal Reform Legislation PassesIn a final push, the 110th Congress passed the long-awaited Postal Reform legislation led by Sen. Carper (D-DE) and Sen. Collins (R-ME) and Reps. Davis (R-VA) and Waxman (D-CA). H.R. 6407, the culmination of nearly ten years of bi-partisan work, is considered long overdue and is intended to help the USPS remain solvent for the long term and also maintain mail volume. Recently the USPS has been plagued by significant fiscal pressures including retiree health benefits and the payments of veterans' military benefits. The military pensions will now be returned to the responsibility of the U.S. Treasury Department, and changes in the retiree pension formula will free up billions in operating costs. The law also allows for the development of a new method for determining rate requests. Currently, the USPS asks for rate increases as needed. Over the next 18 months they will be charged with developing a system that will allow for more predictable and uniform rate increases that may not exceed the rate of inflation. Only specific conditions will trigger an emergency increase under the new law. More authority was also given to the newly created Postal Regulatory Commission. The Commission will have the power of subpoena to investigate possible mismanagement of funds or other wrongdoing and is also establishing an office of inspector general. Any changes to the rate structure in the future will be made by the Commission.
Questions, ideas, or in need of more information? Please contact Stacey Pusey at 302-295-8349. |
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