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SALT LAKE CITY -- A vital governmental organization is calling on Congress to urgently enact legislation to avoid a temporary stoppage to employee payroll benefits and services, which would have a substantial impact on the already troubled economy of the United States.
In a letter to members of Congress, including Rep. Jason Chaffetz, the United States Postal Service (USPS) has urged the legislature to help the organization overcome its financial shortcomings.
The letter, signed by Board of Governors Chairman Louis Giuliano and Postmaster General Patrick Donahoe, urged Congress to eliminate mandates requiring retiree health benefit pre-payments, to allow the USPS to access Civil Service Retirement System and Federal Employee Retiree System (FERS) surpluses and to give the Postal Service the ability to determine the frequency of mail delivery.
"The need for legislative change is immediate," the letter stated. "We urge your support of this vital postal legislation and ask that your work for immediate enactment this fiscal year to avoid the possibility of mail and package delivery disruptions."
The need for legislative change is immediate. We urge your support of this vital postal legislation and ask that your work for immediate enactment this fiscal year to avoid the possibility of mail and package delivery disruptions.
–USPS Letter
The plea to Congress comes as a response to significant financial losses over the last four years, in large part to the legislative imposed constraints for retirees, economic factors and much of the country's mail moving toward electronic sources, the letter said.
Giuliano and Donahoe go on to blame much of the Postal Service troubles to current legislative provisions to fund health benefits for future retirees. "Were it not for this provision of law, the Postal Service would have recorded a cumulative profit of $1 billion from 2007 to 2010, a period during which the recession contributed to a 20 percent decline in mail volume."
As a result, the letter calls for the funds the organization has paid to the FERS to help the Postal Service avoid insolvency in the coming months. Additionally, the Postal Service has informed the Office of Personnel Management (OPM) that it would be suspending its employer contributions to the benefit portion of FERS.
However, the letter did affirm that all employees' FERS contributions will be transmitted to OPM, in addition to matching contributions to an employees Thrift Savings Plan. Giuliano and Donahoe assert the suspension of employer contributions would save the Postal Service about $800 million in the current fiscal year.
"Even in an increasingly digital world, the Postal Service remains critical to the economy, supporting 8 million jobs in the mailing industry and more than $1 trillion in commercial activity annually," the letter said. "The physical delivery of content to America's homes and businesses is the core function of the Postal Service, and this fundamental need of the American people will always exist."
Despite cutting back Postal Service positions by 111,000 and saving $12 billion in costs, Giuliano and Donahoe said the USPS is in "a dire financial predicament." However, they contend the organization is doing all it can to remain a viable provider in the nation's postal delivery system.
"We continue to compete aggressively for customers by offering innovative products and services, such as our highly successful Flat Rate Shipping offerings," they said. "We have seen recent growth in standard mail and packages, although not nearly enough to offset the decline in First-Class Mail."
Email: jfurlong@ksl.com
