The Latest on S. 1789 Postal Reform

On Thursday, January 26, Senate Majority Leader Harry Reid announced that the Senate would take up the “Stock Act,” which bans insider trading by Members of Congress, rather than postal reform legislation during the week of January 30.

There is some uncertainty about scheduling Senate consideration of S. 1789, although the Senate Leadership, Homeland Security and Governmental Affairs Chairman Joseph Lieberman, and Ranking GOP Member Susan Collins would like to begin consideration during the week of February 6.  

            S. 1789 would change the laws that govern postal operations.  Major provisions of the bill would:

§         Transfer more than $11 billion in surplus retirement contributions from the Civil Service Retirement and Disability Fund (CSRDF) to the Postal Service Fund

§         Change the payments that USPS is required to make to the USPS Retiree Health Benefits Fund (PSRHBF)

§         Permit the USPS to reduce mail delivery from six days per week to five

§         Authorize the USPS to offer employees credit for additional years of service as an incentive to retire

§         Reduce payments to most federal workers receiving benefits under the Federal Employees’ Compensation Act (FECA) and reform the administration of that act. In addition, other provisions of S. 1789 would aim to help the USPS reduce its costs and increase its revenues.

There are some “speed bumps” associated with the bill:

§         The Committee has yet to file its report on the bill. 

§         The Congressional Budget Office calculated a significant cost associated with bill.

§         Several controversial provisions are generating strong opposition.