USPS posts $12 million operating profit for second quarter

From the US Postal Service:

  • Operating revenue impacted by the expiration of the exigent surcharge
  • Net loss of $562 million
  • Urgent need to advance postal reform legislation

WASHINGTON — Although the U.S. Postal Service posted modest controllable income for the second quarter of fiscal year 2017 (January 1, 2017 – March 31, 2017) of $12 million, it fell well short of the $576 million that it had for the same quarter last year. This reduction was driven by the April 2016 expiration of the exigent surcharge, which would have generated approximately $500 million in additional revenue during the quarter had it remained in place, and to a lesser extent, a $69 million increase in controllable operating expenses. Continue reading

OIG: Update for Measuring Pension and Retiree Health Benefits Liabilities

Background

The U.S. Postal Service provides pension and health insurance benefits to its retirees. Postal Service employees participate in the Civil Service Retirement System (CSRS) or Federal Employees Retirement System (FERS) pension programs. The Office of Personnel Management (OPM) administers these programs, including projecting future CSRS and FERS assets and liabilities for the federal government and Postal Service. Continue reading

USPS seeks an end to postage price cap

From USPS News Link:

USPS is offering comments on the 10-year pricing system review being conducted by the Postal Regulatory Commission (PRC).

Under a 2006 postal law, the PRC must review the system used for regulating rates and classes for market-dominant products, including First-Class Mail, USPS Marketing Mail and other mail categories. Continue reading

APWU: Postal Reform Act of 2017 Moves Forward

From the American Postal Workers Union:

03/20/2017 — On March 16, the House Oversight and Government Reform Committee “marked-up” and approved the Postal Reform Act of 2017 (H.R. 756). A mark-up is a formal process where a congressional committee can consider and amend a bill before advancing it to the full House of Representatives or Senate.

Recognizing the need to set the Postal Service on sound financial footing, the APWU supported H.R. 756 advancing through committee. The favorable vote to move the bill out of the Oversight Committee is one of several key steps in a lengthy legislative process. Continue reading

USPS Reports Fiscal Year 2017 First Quarter Results

From the US Postal Service:

Passage of postal reform legislation in new Congress urgently needed

WASHINGTON — Excluding the effects of a $1.7 billion change in its workers’ compensation liability due to fluctuations in interest rates, the U.S. Postal Service posted a net loss of approximately $200 million for the first quarter of fiscal year 2017 (October 1, 2016 – December 31, 2016).

Controllable income for the quarter was $522 million compared to $1.3 billion for the same period last year, a decrease of $735 million. Operating revenue decreased by $155 million, and was significantly impacted by the April 2016 expiration of the exigent surcharge. If the exigent surcharge had remained in place, the Postal Service would have generated approximately $570 million in additional revenue during the quarter. Continue reading