Please support H.R. 5746,
United States Postal Service?s CSRS Obligation Modification Act of 2010
I am writing to ask you to co-sponsor and support H.R. 5746, the United States Postal Service?s CSRS Obligation Modification Act of 2010. The bill, which was introduced by Rep. Stephen Lynch on July 15, would restore financial stability to the Postal Service.
H.R. 5746 would require the Office of Personnel Management (OPM) to determine whether the USPS has significantly overpaid its pension obligations, as two recent studies have concluded. A review by the USPS Office of Inspector General, conducted in January 2010, found that the USPS overpaid by $75 billion pension costs for employees whose careers spanned the former Post Office Department and the US Postal Service. An independent study by the Segal Group, which was commissioned by the Postal Regulatory Commission, concluded in July that the USPS overpaid by $50 billion to $55 billion.
If OPM finds that the USPS has overpaid, H.R. 5746 directs OPM to transfer any surplus to the Postal Service Retiree Health Benefits Fund. This transfer of funds would alleviate a major source of the Postal Service?s financial difficulties: The obligation to pre-fund future retiree healthcare benefits, as required by the Postal Accountability and Enhancement Act of 2006, costs the USPS more than $5 billion annually.
H.R. 5746 would strengthen the USPS, and would eliminate or greatly reduce the need for drastic cutbacks in service, such as abolishing Saturday mail delivery and closing neighborhood post offices; it also would reduce financial pressure to increase postage rates.
This measure would provide the USPS greater financial flexibility in a time of severe economic stress; correct a flawed methodology, and fairly credit the Postal Service for overpayments.
I urge you to support this important legislation.
Thank you.
H.R. 5746 would require the Office of Personnel Management (OPM) to determine whether the USPS has significantly overpaid its pension obligations, as two recent studies have concluded. A review by the USPS Office of Inspector General, conducted in January 2010, found that the USPS overpaid by $75 billion pension costs for employees whose careers spanned the former Post Office Department and the US Postal Service. An independent study by the Segal Group, which was commissioned by the Postal Regulatory Commission, concluded in July that the USPS overpaid by $50 billion to $55 billion.
If OPM finds that the USPS has overpaid, H.R. 5746 directs OPM to transfer any surplus to the Postal Service Retiree Health Benefits Fund. This transfer of funds would alleviate a major source of the Postal Service?s financial difficulties: The obligation to pre-fund future retiree healthcare benefits, as required by the Postal Accountability and Enhancement Act of 2006, costs the USPS more than $5 billion annually.
H.R. 5746 would strengthen the USPS, and would eliminate or greatly reduce the need for drastic cutbacks in service, such as abolishing Saturday mail delivery and closing neighborhood post offices; it also would reduce financial pressure to increase postage rates.
This measure would provide the USPS greater financial flexibility in a time of severe economic stress; correct a flawed methodology, and fairly credit the Postal Service for overpayments.
I urge you to support this important legislation.
Thank you.
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