To hear right wing pundits talk, you’d think the federal pension system was about to destroy America. That’s why millionaire politicians like Darrell Issa want to eliminate pensions for middle class working people (while clinging to their own more lucrative taxpayer financed retirement plans).

A recent Federal Times article discusses the “problem” in some detail, and comes to a surprising conclusion: there isn’t a problem!

But there’s no evidence to suggest federal pension plans are a financial bomb waiting to go off. That was defused when CSRS was ended, and since FERS is legally required to be fully funded, the unfunded liability will fade over time.

OPM and outside observers such as Adcock and Palguta aren’t the only ones saying the system is sound. The Congressional Research Service has published several reports in recent years on federal pension programs, all of which concluded the programs are on solid ground.

"Although the civil service trust fund has an unfunded liability, it is not in danger of becoming insolvent," CRS said in a January report.

Audit firm KPMG has consistently given OPM’s financial statements and retirement programs unqualified opinions, meaning they found no significant problems.

And the Government Accountability Office said in a 1995 report that CSRS’ flaws, which resulted in the unfunded liability, were resolved with the creation of FERS.

"Provisions have been made for the retirement fund to always have sufficient budget authority to cover future benefit payments," former Assistant Comptroller General Johnny Finch said at a House hearing.

via Fed pensions underfunded by $673B – FederalTimes.com.

WASHINGTON, Oct. 18 — Rep. Chris Smith, R-N.J. (4th CD), issued the following news release:

Ten years ago today, Congressman Chris Smith (NJ-04), stood with workers of the U.S. Postal Service in the parking lot of the Trenton Processing and Distribution Center in Hamilton Township, N.J., as they and all the country and all the world struggled to grasp the impact of an anthrax attack and the threat it presented to the people who worked at the plant and beyond.

Over 200 postal workers from two shifts attended today’s commemoration held in the same facility’s parking lot, including several workers at the plant who were stricken from anthrax and recovered.

“Today, 10 years after the shutdown of this facility as a result of the first case of anthrax bioterrorism in the U.S., we remember the victims of the exposure–those who got sick, those who died and those who were traumatized emotionally–and the extraordinary courage and fortitude of postal employees and management who persevered despite overwhelming concerns of contamination,” said Smith, who spoke at the event.

Five people were killed across the country–including two postal workers–from anthrax-laced letters, and 22 cases occurred nationwide. The Hamilton plant was determined to be the focal point of the attack. Due to the not-fully understood dangers of the biological threat, the facility was not immediately closed, and workers at the time were desperately seeking answers to questions about their safety and protection. The plant was closed Oct. 18, 2001, and did not reopen until March 13 2005.

In the wake of the attack, Smith worked with the USPS to prevent the unnecessary transfer of employees to distant USPS locations, and to ensure that workers would receive mileage payments for travel costs resulting from longer commutes to other work places. He also assisted in securing additional doses of Cipro for nearby Robert Wood Johnson Hospital, which had run out of the antibiotic, and later helped the hospital recoup $600,000 in expenses incurred from the response effort. He also successfully pressed financial companies not to assess fines for late payments due to the impact of the attacks on the mail.

A year after the attacks, Smith, Sen. Joe Lieberman (CT) and Rep. Eleanor Holmes Norton (Wash., DC) requested a study by the Government Accountability Office (GAO). The study, released in 2004, determined the USPS relied heavily on public health agencies to assess the health risks to its employees. These agencies believed the risks to be minimal until the Centers for Disease Control and Prevention (CDC) finally confirmed cases of anthrax in postal employees at the Hamilton and Brentwood, facilities. Only then did the Postal Service close these facilities.

The GAO report focused on problems the USPS had with accuracy, clarity, and timeliness in communicating with its workers. Problems with accuracy stemmed from incomplete information about health risks, and information on the medical response to anthrax contamination was unclear. The report noted the Postal Service, in one case, delayed the release of quantitative data (anthrax spore counts).

“The lessons learned have caused fundamental revisions in closure of rules and security protocols,” Smith said. “Today I am suggesting that the GAO do another ‘look-back/look-forward’ study to determine progress and possible gaps.”

Smith plans to send a formal request in the form of a letter to Comptroller General Gene Dodaro seeking the follow-up study.

BACKGROUND:

Prices for most Postal Service mailing services will change on January 22, 2012. Mailing services includes First-Class Mail, Standard Mail, Periodicals, Package Services and Extra Services. Prices for shipping services will also change on January 22. We will provide customers the new shipping services prices later this fall.

While actual percentage price increases for various products and services varies, the overall average price increase across all mailing services is capped by law at 2.1 percent, the rate of inflation as measured by the Consumer Price Index.

FIRST-CLASS MAIL HIGHLIGHTS:

• Letters (1 oz.) – 1-cent increase to 45 cents. This is the first increase in the price of a First-Class Mail stamp since May 2009.

• Single-piece letters additional ounce rate – unchanged at 20 cents.
• Postcards – 3-cent increase to 32 cents
• Letters to Canada or Mexico (1 oz.) – 5-cent increase to 85 cents
• Letters to other international destinations – 7-cent increase to $1.05
• The second ounce will be free for First-Class Mail Presort pieces weighing between one and two ounces.

ADDITIONAL PRICE ADJUSTMENT HIGHLIGHTS:

• The price increase for Standard Mail Letters is slightly below the overall average at less
  than 1.9 percent

• A new 3-month pricing option will be available to rent PO Boxes for people on the move and others that need a PO Box for a shorter time period.
• Delivery Confirmation will be free for several parcel products as the Postal Service continues to make tracking an integral component of parcels mailed at commercial rates.

ROLE OF THE POSTAL REGULATORY COMMISSION:

The new prices were filed with the Postal Regulatory Commission on Oct. 18, 2011. The Commission has 45 days to review the prices to verify they comply with the overall 2.1 percent price cap for each class of mail. The new prices will go into effect on Jan. 22, 2012.

The US Postal Service Board of Governors meets in closed session beginning at 10 AM this morning, and according to Postcom, they’re expected to announce a 2.1% hike in the price of postage:

Office of Rep. Dennis J. Kucinich (D-OH) News Release

Washington, Oct 17 – Cleveland, Ohio (October 17, 2011) – Congressman Dennis Kucinich (D-OH) today released the following video and statement in support of the workers at the United States Postal Service:

"Reform of the Postal Service is vital to protecting universal service mandate. I agree Congress has a responsibility to work with USPS on this reform. But forcing workers and Postal Service union employees to break their labor agreements and to cut 6-day service is wrong.

"When you look at what is happening the Cleveland area, it is really concerning. First we saw the neighborhood post boxes disappear, and that was a staple for many communities. Instead of driving to the Post Office, anyone could just walk to the box and drop in the mail. Then we saw entire branches disappear and that presented some real hardship for people. And then you start to see private, competitive mail facilities being put right on the same properties as the Postal Service.

"It seems as though there has been a concerted effort inside the Postal Service towards a privatization model. I will fight that effort and any effort to weaken the Postal Service.

"There is something else going on that I find deeply disturbing and that is to make the employees second class citizens. The big battle happening all across the country and in Ohio is over what kind of rights workers have if they happen to work for the public. The issue in Ohio is over Senate Bill 5 and Issue 2, which I am urging be defeated.

"Why are we doing this to the people who serve the public? Why are we making those who work for the postal service second class citizens? We are moving towards a privatized model and we are treating the workers already like they have already been privatized."I am committed to ensuring the viability of the USPS and to the unique, irreplaceable services it provides to Americans. The Postal Service employs the greatest number of veterans outside of the Department of Defense. It provides a living wage and decent benefits for the middle-class. For communities that do not have access to the internet or to public transportation, fighting the closing of a local post office branch often means fighting for their right to interact with the outside world. That is why I am committed to ensuring that our local post offices will still be there when the economy recovers. There are ways to generate revenue without cutting jobs, privatizing essential services and closing vital post office branches in communities that rely on them."

FRESNO, Calif. — United States Attorney Benjamin B. Wagner announced that Karina S. Beard, 44, of Turlock, pleaded guilty today to four counts of mail fraud and two counts of federal Workers’ Compensation fraud.

According to the plea agreement, from October 2006 through January 2009, Beard received federal workers’ compensation benefits for an on-the-job injury she sustained in 2000 while working for the Postal Service. Because of her claimed injuries, restrictions were placed on her physical activities. According to the plea, Beard performed various physical tasks using the purportedly injured part of her body, such as horseback riding.

According to court documents, Beard made false claims on a United States Department of Labor, Office of Workers’ Compensation Programs (OWCP) form. The OWCP is required to make an inquiry of every claimant who receives total disability benefits to ascertain whether the claimant has had any employment, earnings, or changes in their medical condition over the previous 15 months. In compliance with regulations, OWCP sends out a questionnaire to each claimant. Claimants reporting changes in employment, earnings, or their medical condition on the questionnaire may experience a reduction or termination of benefits.

This case is the product of an extensive investigation by the United States Postal Service, Office of Inspector General. Assistant United States Attorney Jeremy R. Jehangiri is prosecuting the case.

Beard is scheduled to be sentenced by United States District Judge Anthony W. Ishii on January 9, 2012. She faces a maximum sentence of 20 years in prison and a $250,000 fine for each count of mail fraud. For each count of federal Workers’ Compensation fraud, the maximum statutory penalty is five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.

WASHINGTON — In anticipation of a busy holiday shipping season, the United States Postal Service is announcing recommended holiday mailing dates and a discounted, flat rate price of $12.95 on packages sent to military service personnel worldwide. The price includes a $2.00 per box discount on Priority Mail Flat Rate Boxes for military mail being sent to APO/FPO (Air/Army Post Office, Fleet Post Office) destinations worldwide. In addition to a lower cost per package, customers can be assured that shipping with the Postal Service will provide reliable, trusted and secure delivery to military personnel stationed worldwide.

To ensure timely delivery of holiday wishes by Dec. 25th, cards and packages to military APO/FPO addresses overseas should be sent no later than the mailing dates listed below.

Mailing date chart footnotes:
1 Express Mail Military Service (EMMS) is available at select military Post Offices. Check with your local Post Office to determine if this service is available to an APO/FPO address.
2 Parcel Airlift Mail (PAL) provides air transportation for parcels on a space-available basis. It is available for Parcel Post items not exceeding 30 pounds in weight or 60 inches in length and girth combined. The applicable PAL fee must be paid in addition to the regular surface rate of postage for each addressed piece sent by PAL service.
3 Space Available Mail (SAM) parcels are paid at Parcel Post prices with maximum weight and size limits of 15 pounds and 60 inches in length and girth combined. SAM parcels are first transported domestically by surface and then to overseas destinations by air on a space-available basis.

The recommended last day to mail the most economical postage to overseas military destinations, including Iraq and Afghanistan, is Nov. 12.

“We suggest using the Postal Service’s Priority Mail Flat Rate Boxes for sending all your military packages overseas this holiday season,” said Giselle Valera, vice president and managing director, Global Business. “There’s no shipping service that’s a better value, more reliable, or easier to use than our Flat Rate program. And, those familiar red and white boxes emblazoned with the ‘America Supports You’ logo are sure to remind those away from home, of a bit of home.”

For online ordering of the large Priority Mail APO/FPO Flat Rate Boxes featuring the “America Supports You” logo and information about mailing letters and packages to military destinations, visit Priority Mail APO/FPO Boxes under “Order Free Boxes.”

The Postal Service also offers free military care kits, designed specifically for military families sending packages overseas. Each kit includes two “America Supports You” large Priority Mail Flat Rate Boxes, four medium-sized Priority Mail Flat Rate Boxes, six Priority Mail labels, one roll of Priority Mail tape and six customs forms with envelopes. The mailing kits can be ordered by requesting them at 800-610-8734.

Additional savings are available for customers printing Priority Mail postage labels online at Click-N-Ship where additional discounts can be obtained for preparing your military mailing online.

Mail addressed to military Post Offices overseas is subject to certain conditions or restrictions regarding content, preparation and handling. APO/FPO addresses generally require customs forms. To see an online table of updated APO and FPO addresses and mailing restrictions by individual APO/FPO ZIP codes, click on APO/FPO Addresses, select “Pull-Out Information” and click on “Other Information.”

via Spread the Joy … Forever.

Looks like Dennis Ross has a problem with facts. When a commenter on his Facebook page mentioned our article criticizing a Washington Post story for ignoring the $50 billion the USPS has (involuntarily) stashed away for future retiree benefits, Ross responded “The other "trust fund" is just pure fantasy.” But then admitted “Yes, there is over $40 billion already in the fund.” Oh. OK. I guess when you’re a Congressman reality and fantasy don’t mean the same things as they do to the rest of us!

Ross also wrote, without providing any specifics, that “the amount of misinformation coming from postalnewsblog is staggering over the past few months”. Considering the source, we’ll take that as a compliment!

But let’s make one thing clear- unlike the Congressman, we deal in facts, not fantasies. And these are the facts:

• Between the “mythical” trust fund with its very real $42.5 billion, and the undisputed $6.9 billion FERS overpayment, the supposedly “insolvent” USPS effectively has almost $50 billion in the bank.
• The trust fund payments are the cause of the USPS losses since 2006. Without them, the USPS would have been profitable over that time period. All of the current USPS debt is money it has had to borrow from the Treasury so that it can then loan it back to the Treasury for the “trust fund”. It’s a shell game designed to take “off budget” postal revenues, and apply them to an “on budget” trust fund, artificially lowering the federal budget deficit.
• No other company or agency has the same obligation to prefund retiree benefits.
• Even if one accepts a need for some level of prefunding, the 2006 law was based on assumptions as to volume and workforce levels that no longer apply, yet no adjustments have been made to the payment levels.
• If the USPS had been allowed to run like a business since 2006 (i.e. without prefunding and Congressmen micro-managing its operations), it would be a profitable enterprise facing the recession with ample cash reserves.
• Republicans refuse to drop the accounting gimmick that places USPS operations “off budget”, while its retirement funds are “on budget” This allows them to cry “BAILOUT” if the USPS asks for some of its own money to be returned to fund its operations.
• Congress created the “crisis”, not the USPS unions or managers, and Congress needs to correct its mistakes before it destroys the US Postal Service.

via US Representative Dennis Ross.

WASHINGTON, Oct. 16, 2011 /PRNewswire-USNewswire/ — The National Association of Letter Carriers (NALC) today announced the retention of investment bank Lazard Group, LLC and former assistant to President Barack Obama for Manufacturing Policy, Ron Bloom, as financial advisors in connection with issues relating to the United States Postal Service (USPS).

Fredric V. Rolando, President of the NALC, announced the retention of its advisors to 1,500 regional and local NALC leaders gathered in a national conference to consider the current USPS financial crisis and the long-term strategic, structural and business challenges facing the USPS.

President Rolando issued the following statement:

"The nation’s letter carriers are committed to preserving six-day-a-week universal postal services to every address in every village, town and city of the nation. NALC and our financial advisors are prepared to work cooperatively with the USPS, the Congress, the White House and all other postal stakeholders and constituencies to resolve current cash flow and financial issues and develop a viable long-term, pro-growth business plan for the Postal Service.

Our efforts will be fact-based, non-political, non-ideological, and focused on the continued provision of universal service to the public and the preservation of hundreds of thousands of good middle-class jobs. We are confident that Lazard and Mr. Bloom-both of whom have extensive experience helping to revitalize numerous large and complex business enterprises around the world-can provide valuable assistance to all stakeholders who share our commitment to maintaining and growing this vital national resource."

The Postal Service is the hub of a $1.2 trillion mailing industry that employs eight million American workers centered on its unique ‘last-mile delivery network.’ NALC is currently engaged in collective bargaining with the USPS. The current five-year collective bargaining agreement expires on November 20, 2011.

via Letter Carriers Bring in Top Financial and Policy Experts to Advise upon Postal… — WASHINGTON, Oct. 16, 2011 /PRNewswire-USNewswire/ –.