2018
Legislative Issues
Senator McCaskill Introduces Anti-Privatization Resolution in Senate
Posted by Bob Levi on 09/20/18
On Tuesday evening, Sen. Claire McCaskill (D-MO) introduced S.Res. 633, a Senate resolution to ensure that the U.S. Postal Service remains a governmental service and is not subject to privatization. As introduced, the resolution earned the bipartisan cosponsorship of 27 Senators.
S.Res 633 is the Senate companion to H.Res. 933, which presently has 190 cosponsors. Both measures point out that postal privatization, as being proposed by the White House, would result in higher postage rates, reduce service to rural communities, jeopardize e-commerce, and cripple a part of America's infrastructure.
UPMA members should call their Senators and Representative to cosponsors either H.Res 993 or S. Res. 633, if they have already not done so. (Use the provided links above to determine if your Representative or Senator is a cosponsor.) The number of the U.S. Capitol Switchboard is 202-224-3121.
Senate Passes Bill to Reduce Opioid Transport Through International Mail
Posted by Bob Levi on 09/18/18
Last night, the Senate passed H.R. 6, the Opioid Crisis Response Act of 2018 that includes the so-called STOP Act, which strives to prevent the inbound transport of opioids through international mail, requires that electronic manifests be created for inbound U.S. mail shipments and would levy civil fines against the Postal Service for noncompliance. The legislation also includes numerous provisions relating to research, treatment, and law enforcement relating to opioid abuse. H.R. 6 passed the Senate 99-1 and the House approved a prior version of the bill this past June. The Senate amended parts of the legislation, however the postal provisions in the two bills are the same. The House and Senate bills need to be reconciled before being submitted to President Trump for his signature.
Generally, H.R. 6 would require the Postal Service to transmit "advanced electronic data" to the Customs and Border Protection Service on 70% of international packages by the end of this year and 100% by 2021. Currently, the Postal Service collects 40% of the data. Fines could be imposed on the Postal Service if its does not meet the target. Also, the legislation calls for fees to be imposed on international shippers to help defray the cost to the Postal Service. However, there are many countries that fail to have the technology to implement the required data collection.
Congressional Resolution Opposing Postal Privatization Gains Steam
Posted by Bob Levi on 09/12/18
Over the course of the past few weeks, the House of Representatives' resolution that opposes White House efforts to privatize the U.S. Postal Service has gained momentum. Currently, H.Res. 993 commands the cosponsorship of 178 members of Congress. To determine if your Representative is a cosponsor please link to the Congress.gov. In addition, it appears that key Senators will introduce a companion to H.Res 993 very soon. Once it is introduced, UPMA will push strongly for Senate support.
The House introduced and the contemplated Senate resolutions respond to a White House privatization proposal which was released in June and suggested that America's postal system replicate the flawed privatized European postal model. In addition, the resolutions are an attempt to head-off recommendations of the anticipated Presidential Task Force on the Postal System, which will likely embrace the privatization idea already raised by the White House.
Interestingly, the Presidential Task Force has yet to release a report, despite its August 10 deadline to report its finding and recommendations to President Trump. According to recent press reports, the Task Force briefed the President on its "preliminary" findings in August. The use of the term "preliminary" would seem to indicate that the Task Force has not finalized its report by the deadline established in the Executive Order establishing it. A Treasury Department representative was quoted as saying that the Task Force is "driving toward a public report before the end of the year." This means that the report will likely not be unveiled until after the 2018 congressional elections.Also, a planned September 5 Senate Homeland Security and and Governmental Affairs Committee hearing on the Task Force findings never took place. It has been postponed til such time as the Task Force report is made public.
Senate Confirms Two Board of Governors; President Nominates Two More
Posted by Bob Levi on 08/29/18
Yesterday, the U.S. Senate confirmed Robert Duncan and David Williams as members of the Postal Service Board of Governors by voice vote. In addition, President Trump nominated Ron Bloom and Roman Martinez IV to the Board of Governors.
Governors Duncan and Williams will join Postmaster General Megan Brennan and Deputy Postmaster General Ron Stroman on the Board. The position to which Duncan was confirmed expires on December 8, 2018; and Williams' position expires on December 8, 2019. Their terms may be extended for one year should the President not nominate a successor prior to expiration of their respective appointments. David Williams is the immediate past USPS Inspector General, and Robert Duncan a former chairman of both the Republican National Committee and the Tennessee Valley Authority.
Board of Governor nominee Ron Bloom occupied positions in a number of labor organizations and was part of the Treasury Department during the Obama Administration, with responsibilities in economic policy and manufacturing. In 2011, he was retained by the NALC to provide advice on postal reform. Nominee Roman Martinez has been a director at the Cigna Corporation and a partner of Lehman Brothers, where he served for more than thirty years. Bloom is being nominated for a board position that expires December 8, 2020. and Martinez is being nominated for a position that expires December 8, 2024. Should their nominations be confirmed by the Senate, there would remain 5 Board of Governor vacancies, all of whom must be nominated by President Trump and confirmed by the Senate.
UPMA Pays Tribute to Sen. John S. McCain
Posted by Bob Levi on 08/27/18
In early 2005, Sen. John McCain, a senior member of the Senate Homeland Security and Governmental Affairs Committee held court with the legislative chairs representing the nation's Postmasters. At that time, the senator recognized the efforts of his close colleagues, Sens. Susan Collins and Joseph Lieberman for their work on postal reform legislation. Sen. McCain stated that he supported the need to make the changes necessary to ensure the continued viability of the Postal Service. Below is a picture that appeared in the May/June issue of the Postmasters Gazette that memorializes the presentation. Subsequent to the 2005 get together, Sen. McCain took a number of positions on postal legislation with which Postmasters could not agree.
Nevertheless, Sen. McCain was a military hero and a passionate and courageous legislator who ably represented his beloved state of Arizona, and sought legislative consensus in the pursuit of making our country and this world a better place.
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House Anti-Privatization Resolution Picks Up Support; Status of Presidential Postal Task Force Report Unknown
Posted by Bob Levi on 08/22/18
The legislative resolution that proclaims House of Representatives opposition to a White House proposal to privatize the U.S. Postal Service picked up significant support during the August recess. H.Res. 993 expresses "the sense of the House of Representatives that Congress should take all appropriate measures to ensure that the United States Postal Service remains an independent establishment of the Federal Government and is not subject to privatization." 67 members of Congress added their names to the bipartisan resolution during the recess, bringing the total number of cosponsors to 130. UPMA is providing a link for UPMA members to determine if their Representatives are H.Res. 993 cosponsors. If your member of Congress is not listed, please call his or her office to add the Representative's name to the resolution. The Capitol switchboard number is 202-224-3121.
In addition, President Trump's Task Force on the Postal System was directed to submit its report to the President "not later than 120 days after the date" on which the President signed Executive Order 13829, the Presidential action establishing the Task Force. The deadline was August 10. Thus far. there has been no White House statement relating to the Task Force, whether it was finalized, or if it was even submitted to the President. Nevertheless, there are tentative plans for a September 5 hearing on the Task Force findings before the Senate Homeland Security and Governmental Affairs. It is expected that the hearing would be postponed should the report not be finalized, submitted to the President and made public prior to September
Senate Fails to Hold Vote on Heitkamp-Moran Postal Amendment
Posted by Bob Levi on 08/02/18
Yesterday, the Senate passed H.R. 6147, the Interior, Environment, Financial Services, and General Government Appropriations Act, without considering Senate Amendment 3459. If enacted, the amendment would have prohibited the use of appropriated funds from undermining universal postal services or moving forward with efforts to privatize the Postal Service.
Last week, while the Senate was debating H.R. 6147, Senate Majority Leader Mitch McConnell (R-KY) filed a "cloture motion" restricting debate on the bill and severely limiting the number of amendments that could be voted upon by the full Senate. The cloture motion was approved on Tuesday, July 31. Consequently, the only way Senate Amendment 3459 could be adopted was if included as part of the "managers' amendment " to H.R. 6147. The so-called managers' amendment needed the acceptance of the the Senate leadership and pivotal members of the committees with jurisdiction over the substance of provisions in the amendment. In the case of Senate Amendment 3459, the approval of the leadership of the Homeland Security and Governmental Affairs Committee was essential. It is noteworthy that Sen. James Lankford (R-OK) serves on both the Appropriations Committee and is a subcommittee chair on the Homeland Security and Governmental Affairs Committee. Sen. Ron Johnson (R-WI) chairs the full committee. Additionally, there appeared to be resistance by some GOP senators to preempt the release of the President Trump's Task Force on the Postal System, which may advocate postal privatization.
The Heitkamp-Moran Amendment would have helped protect universal postal services and stalled efforts to privatize the Postal Service. The amendment was introduced by Sen. Heidi Heitkamp (D-ND) and cosponsored by Sens. Jerry Moran (R-KS), Tom Carper (D-DE), Claire McCaskill (D-MO), Pat Roberts (R-KS), Lisa Murkowski (R-AK) and Elizabeth Warren (D-MA).
The President's postal task force is due to release its findings by August 10. In the meantime, UPMA is working with our allies in the Senate and House to secure legislative language to forestall privatization efforts.
Senate Likely to Vote on Bipartisan Anti-Postal Privatization Amendment Tommorrow, July 26
Posted by Bob Levi on 07/25/18
On Tuesday, July 24, Sen. Heitkamp (D-ND) filed an amendment to a pending appropriations bill the would preclude the White House from undermining universal postal services or moving forward with efforts to privatize the federal agency. Sens. Tom Carper (D-DE) and Jerry Moran (R-KS) joined Sen. Heitkamp in sponsoring Senate Amendment 3459. It appears likely that Senate will bring the amendment up for a vote tomorrow, July 26. So, UPMA members should immediately call their two senators to vote "YES" on Senate Amendment 3459. Passage of the amendment would help protect essential mail services, particularly those services provided to rural America. The phone number for the US Capitol Switchboard is 202-224-3121.
Bipartisan House Resolution Introduced Opposing Postal Privatization
By Bob Levy
On July 16, Representatives Steve Lynch (D-MA) and Rodney Davis (R-IL) introduced H.Res. 993, a resolution expressing the sense of the House of Representatives that the U.S. Postal Service should remain a government entity and not be subjected to privatization. Eight members of Congress, representing both political parties, joined Lynch and Davis on the measure. Although H.Res 993 does not have the force of law, it sends a strong signal to the White House that the President's proposal to privatize the Postal Service will meet strong resistance on Capitol Hill. UPMA members should ask their members of Congress to cosponsor H.Res 993.
White House Official Under Fire About USPS Privatization at Congressional Hearing
by Bob Levy
Earlier today, the Deputy Director of the White House Office of Management and Budget (OMB) came under fire by members of the House Committee on Oversight and Government Reform, regarding the White House proposal to privatize the U.S. Postal Service. The privatization plan was part of a report issued on June 21 by the Executive Office of the President entitled, "Delivering Government Solutions in the 21st Century." Although OMB Deputy Director Margaret Weichert testified before the House committee on the entire report, a number of committee members zeroed in on President Trump's plan to privatize the Postal Service.
At the outset of the hearing, Rep. Elijah Cummings (D-MD), explained to the OMB official that instead of working with Congress to improve the Postal Service, the Administration dismissed the two bipartisan bills pending in Congress (H.R. 6076 and S. 2629), one approved overwhelmingly by the committee before which she was testifying. Instead, the White House came to its own conclusions, without even waiting for its own Task Force on the Postal System to report its findings later this summer. Cummings concluded: "President Trump’s proposal to privatize the Postal Service is disorganized, unilateral, nonsensical, and frankly, incompetent."
In response to a question from Rep. James Comer (R-KY), Deputy Director Weichert declared that "privatization is a vision in all scenarios." In the near-term, the Administration seeks to stabilize finances in order to prepare for privatization. During questioning by Rep. Mark Walker (R-NC), with input from Rep. Gerry Connolly (D-VA), Weichert conceded that the she could not determine whether the White House took into account the unique 2006 statutory requirement for the USPS to pre-fund retiree health benefits, as part of its conclusion about the state of postal fiances and its proposal to privatize the agency.
The most damning line of questioning, however, was posed by Rep. Brenda Lawrence (D-MI) who hammered away as to why the Postal Service was not even asked to present a reorganization plan to the White House, while other federal agencies were granted such an opportunity. Weichert could not explain why the USPS was closed-out of the process. Lawrence also explained how it is Congress' constitutional responsibility to be a steward for the Postal Service.
On Monday, UPMA conducted a webinar for all Chapter Legislative and Political Action Chairs on confronting the White House postal privatization proposal. It will be important for UPMA members to touch base with their chapter's Legislative Chair for more information and to communicate with the White House and members of Congress to express strong opposition to the plan.
The White House Switchboard number is 202-456-1414 and the Capitol Switchboard is 202-224-3121.
Office of Personnel Managment Proposes Retirement Cuts and Senate Panel Approves Two USPS Board Of Govenor Nominees
Posted by Bob Levi on 05/10/18
On May 4, the White House Office of Personnel Management (OPM) proposed $143.5 billion in cuts to federal-postal retirement programs. In a letter to House Speaker Paul Ryan, OPM Director Jeff Pon transmitted a legislative proposal that would increase employee contributions to 7.25% within the next 5 years (most UPMA members currently contribute .8%), increase the period of service used to compute annuities from 3 years to 5 years for new retirees, reduce the Civil Service Retirement System COLA by .5%, eliminate the Federal Employee Retirement System (FERS) COLA, and eliminate the FERS annuity supplement for new retirees and survivor annuitants. Generally, OPM's legislative package reflects the items included in the White House Fiscal Year 2019 budget proposal, submitted to Congress earlier this year. It is unclear if the the Administration's proposal will be added to pending legislation, introduced as free-standing bill, included in a reconciliation bill, or considered at all. You can be sure that UPMA will be fighting this latest attempt to cut UPMA benefits. It is important that UPMA members contact their Representatives to oppose the OPM proposal.
On May 7, the Senate Homeland Security and Governmental Affairs Committee approved the nominations of former USPS Inspector General David Williams and former Tennessee Valley Authority Chairman Robert Duncan for the USPS Board of Governors. The next step in the process is a confirmation vote by the full Senate that has yet to be scheduled, but could come up at any time.
President Trump Signs Executive Order Creating Postal Task Force
Posted by Bob Levi on 04/13/18
Last night (4/12/2018), President Donald Trump signed an Executive Order that establishes a White House Task Force on the Postal Service. According to the order, the Task Force is instructed " to evaluate the operations and finances of the USPS." In doing so, the group will evaluate the package delivery market, the decline in first-class mail volume and its implications, the definition of universal service, the role of the USPS in rural communities, and the state of the USPS business model, workforce and pricing. The Task Force is charged with reporting back its observations and recommendations relating to legislative and administrative changes by mid-August.
Treasury Secretary Steve Mnuchin will chair the Task Force; other members will include the Director of the Office of Management and Budget, the Director of the Office of Personnel Management, and other appropriate department heads. During its deliberations the Task Force is instructed to consult with the Postmaster General and the Chairman of the Postal Regulatory Commission. Also, the Task Force shall engage with the Attorney General and the Secretary of Labor.
President Signs Into Law FY 2018 Budget Bill -- No Postal or Benefit Hits
Posted by Bob Levi on 03/26/18
On Friday, March 23, as Congress was leaving the Capitol for its two-week Easter/Passover Recess, President Trump signed into law H.R. 1626, the Consolidated Appropriations Act of 2018. This legislation funds the government through the end of the current fiscal year.
UPMA was attentive to any attempts to use this bill to cut postal employee and retiree benefits.The legislation did not include such provisions.
Although the 2,149 page bill included a variety of substantive "policy riders," an attempt to attach postal reform legislation to it was abandoned. However, H.R. 1626, as enacted, includes a number of provisions that relate to the Postal Service. In addition to providing $58 million to reimburse the USPS for mail for the blind and overseas voting, H.R. 1626 provides $94 million for monitoring the illicit importation of opioids though USPS international air mail facilities.The appropriations bill also includes such perennial postal provisions as the prohibition against using appropriated funds to close or consolidate rural and small post offices, and the prohibition of reducing 6-day residential mail delivery.
As mentioned in the Legislative News post of March 23, UPMA is supporting a resurgent effort in the Senate to take up postal reform legislation. S. 2629, the Postal Reform Act of 2018, is pending on the Senate calendar.
Senate Postal Bill (S. 2629) Introduced
Posted by Bob Levi on 03/23/18
Yesterday, March 22, Senators Tom Carper (D-DE), Jerry Moran (R-KS), Heidi Heitkamp (D-ND) and Claire McCaskill (D-MO) introduced S. 2629, the Postal Reform Act of 2018. The legislation is the Senate version of HR 756, the House postal reform bill. H.R. 756 was approved by the House Oversight and Government Reform Committee last year. S. 2629 shares most of the core provisions of H.R. 756; however, there are key differences.
Both bills would integrate FEHBP and Medicare coverage for Medicare-eligible postal retirees in order to reduce the Postal Service's health care liability. In addition, both include a 3-year USPS premium subsidy for newly enrolled Part B beneficiaries. However, S. 2629 includes three waivers of Medicare Part B coverage: (1) financial hardship, (2) Veterans Administration health coverage and (3) the lack of Medicare providers in the retiree's area of residence.
Both bills call for a more accurate calculation of the USPS' pension liability. In addition, both bills would amortize USPS' remaining health care liability. While H.R. 756 would amortize 100 percent of the remaining liability over the next 35 years, S. 2629 would amortize 80 percent over the next 40 years; the remaining 20 percent would be secured with future postal property sales. (S. 2629 would not require the sales.) S. 2629 would establish a procedure for the USPS to seek waivers from its annual amortization payment through the Postal Regulatory Commission. The Senate bill would also offset the increased Medicare obligation through a one-time $13 billion transfer of funds from the account in which amortization payments have been deposited in the past to the Medicare Trust Fund.
Both bills would reduce the number of presidential-nominated Board of Governors from nine to five, would make the Postal Inspector General (IG) a presidential appointee, would create a Chief Innovation Officer within the USPS, and would reform the way in which the USPS awards vendor contracts.
Both bills would restore one-half of the exigent rate increase that expired in April 2016. S. 2629 would also require the Postal IG to conduct a study relating to the rates charged to "underwater" postal products (i.e., magazines), and would require the USPS to submit to Congress a plan for its long-term solvency.
While H.R. 756 would authorize the voluntary conversion of residential mail deliveries from door delivery to alternative locations (e.g., curbside and cluster boxes) and phase in alternative deliveries for business addresses, S. 2629 contains no delivery conversion language. S. 2629 would permit the shipping of wine, beer and spirits.
Both HR 756 and S. 2629 would expand MSBP appeal rights for EAS level employees and would suspend further post office hour reductions and post office re-classifications, pending an IG report on POStPlan. In addition, S. 2629 would require an IG report on USPS compliance with the statute governing "consultations" and EAS pay talks.
Upon introduction of S. 2629, UPMA Co-Presidents Tony Leonardi and Sean Acord commented: "The United Postmasters and Managers of America (UPMA) applauds the efforts of Senators Carper, Moran, Heitkamp and McCaskill in introducing bipartisan legislation to further the goal of providing financial relief to the U.S Postal Service. UPMA looks forward to continue working with these Senators and other members of Congress to sustain the U.S. Postal Service, a proven national treasure.”
White House FY 2019 Budget Hits Postal Employees and Retirees
Posted by Bob Levi on 02/12/18
Today, President Donald Trump submitted his $4.4 trillion fiscal year 2019 budget to Congress. While the budget projects a 2027 budget deficit of $450 billion, it still slashes over $155 billion from benefits upon which active and retired postal and federal employee rely. In part, the budget proposes to:
More than triple the retirement contributions of most postal and federal employees
•Change the FEHBP employer contribution rate to encourage beneficiaries to enroll in health plans deemed to be "high-performing" and "high-value"
•Eliminate the FERS COLA
•Reduce CSRS COLA by 0.5 percent
•Abolish the FERS retirement supplement for federal and postal employees who retiree prior to Social Security eligibility
•Replace the current annuity calculation of the highest 3 salary-earning years with the highest 5; and
•Dramatically reduce the yield on the Thrift Savings Plan's G-Fund investments.
The budget also proposes unspecified reforms to the Postal Service that includes changing postal rate-setting, modifying the mail delivery schedule and using more efficient delivery methods. In addition, the budget assumes that postal employees and retirees will suffer the same benefit cuts as all active and retired federal employees.
The upcoming UPMA Legislative Summit will provide a crucial opportunity for UPMA members to voice opposition to these proposals that adversely impact UPMA members
