National Association of Postal Supervisors

Legislative & Regulatory Update
June 24, 2009
 
 
 

House Panel Approves Financial Relief for the Postal Service

Congress began to open the spigot of emergency relief for the Postal Service on Wednesday, when the House postal oversight subcommittee approved legislation that would permit the Postal Service to realign its payments for the health benefits of its retirees.  

The relief is needed because the Postal Service, despite continued cost-cutting, has projected losses of  more than $6B this year, due to the devastating impact of the economic recession.

On a voice vote, the Subcommittee on the Federal Workforce, Postal Service and the District of Columbia unanimously approved an amended version of H.R. 22, that permits the Postal Service to pay its obligations to its current retirees by tapping into billions it has set aside for future payments.  

The Subcommittee permitted the Postal Service to realign its health benefit payments for the next three years.  The original version of the legislation proposed eight years.  The reduction in the length of coverage under the bill was prompted by House fiscal disciplinary rules and a Congressional Budget Office estimate that pegged the bill as costing $12 billion, despite not using a single dollar in taxpayer funds.

NAPS President Ted Keating indicated on Wednesday that NAPS will continue to work to secure financial relief for the Postal Service and gain approval of the amended bill by the full House Oversight and Government Reform Committee soon after Congress returns from its 4th of July recess.  President Keating also extended his thanks to Subcommittee Chairman Stephen Lynch (D-MA) and the panel's top Republican, Rep. Jason Chaffetz (R-UT), along with Rep. John McHugh (R-NY) and Rep. Danny Davis (D-IL), for their leadership in moving the legislation ahead.

Keating also thanked the many NAPS members who have contacted their House Members and helped to add 337 co-sponsors to HR 22.  No other legislation pending in Congress has as many cosponsors and such bipartisan support.




Bruce Moyer
NAPS Legislative Counsel