Cummings Introduces Legislation to Return USPS to Profitability

cummingsWashington, DC (July 17, 2013)Today, Rep. Elijah E. Cummings, Ranking Member of the House Committee on Oversight and Government Reform, introduced legislation to return the U.S. Postal Service to long-term solvency and sustainability. The Innovate to Deliver (I2D) Act of 2013 (H.R. 2690) would address the agency’s financial challenges through innovative structural changes.

“Our job in Congress is to enact comprehensive legislation that will keep the Postal Service running by offering products and services that meet the ever changing demands of consumers while providing customers with timely and convenient access to these services,” Cummings said. “My legislation would enable the Postal Service to act more like the business it was meant to be by increasing flexibility while ensuring that revenue from mailing rates meets expenses.” 

Cummings’ bill would strengthen the Postal Service by:

  • ·Creating a new Chief Innovation Officer position charged with leading the development of products and services that enable the Postal Service to capitalize on new business opportunities.
  • ·Authorizing the Postal Service to develop new sources of revenue by providing expanded non-postal services, such as check-cashing, new technology and media services, warehousing and logistics, and public internet access.
  • ·Requiring that each class or type of mail bear the direct and indirect costs attributable to it. 
  • ·Requiring the Postal Service to ensure that total costs do not exceed total revenues and, beginning two years after the date of enactment, prohibiting members of the Board of Governors from receiving their $30,000 salaries for any year following a year in which costs exceeded revenues.
  • ·Modifying the Retiree Health Benefits 100% pre-funding requirement by amortizing payments over 40 years, requiring the Postal Service to fund 80% of the liability owed, folding the $11.1 billion in defaulted payments into the amortization schedule, and delaying future payments until 2017.
  • ·Permitting employees of the Postal Service to receive additional service credits as an incentive to retire early.  Employees under the Civil Service Retirement System (CSRS) would be offered one year of additional service credit, while those covered under the Federal Employees’ Retirement System would be offered two additional years of service credit.

·Requiring OPM to recalculate the surplus within the Federal Employees’ Retirement pension system using postal-specific assumptions rather than the government-wide assumptions currently used, and making a one-time return of excess funds to the Postal Service to pay down existing debt while directing future surpluses to pay down liabilities within CSRS and to Retiree Health Benefits payments.

 

  • Wilbur Donawho

    Profitability???? Maybe the Rural Carriers will get a profitable mail count in September….NOT!!!

  • Larry Croft

    A plan is better than doing nothing!

  • TheRealFed

    This is a good plan of action, but will go nowhere because of Darrell Issa and the obstructionist Congress.

  • TonyMange

    Unfortunately Issa will never bring this to a vote and will never reach the floor. Congress is the reason why the Postal Service is in the rut it is in.

  • William James Ward

    The debt was created by Congress not the Postal Service.
    Milking the cash flow of the Postal Service is a disservice
    to the American public. When the Postal Service is supposed
    to be non profit, how can it front five and a half billion dollars
    a year for retirement health benefits when two events loom
    large. First what is wrong with the present system of
    retirement benefits, answer it is very costly and approaches
    $500. a month to be taken out of small pension checks.
    Secondly the people who would benefit have not been
    born yet and employees pushed into retirement will not be
    there to benefit so it is of no benefit.
    The five and a half billion comes out of operational cash flow
    and this causes the shortage facing operations and
    artificially causes cutting jobs, slashing services and
    disrupting the viability of the USPS, all created by the
    Congress. Is it not possible that destroying this service
    that the sanctity of the mails is ruined and privacy of
    communication taken away from Americans. It seems
    to me a totalitarian form of overview is forming, the
    private first class communication will become extinct and
    due to acts of Congress. Congressman Issa claims that
    the Postal Service is looking for a tax payer bailout, no
    taxes are used for Postal Service and it is Congress that
    is behind the ruination of a service that is affordable
    and efficient no matter what the lying diatribe brought
    about by the corrupt individuals self serving falsehood.
    Americans need to protest what will be destroyed, their
    Postal Service which will be replaced by a very high
    cost unaffordable rip in a dying economy……….William