USPS seeks changes to its legislative, regulatory oversight

To help control costs: USPS seeks changes to its legislative, regulatory oversight

Postal Service plans to help close its projected deficit include legislative and regulatory changes to eliminate the prepayment of retiree health benefits, change frequency of delivery and restructure price caps mandated by the Postal Law of 2006.

“We’re asking Congress to restructure our payments for retiree health benefits,” says PMG Jack Potter, adding that USPS also will ask Congress to change the law governing delivery frequency. “Many of our customers have told us they support this change. In fact, they’d prefer it to raising prices or going back to a taxpayer subsidy for the Postal Service.”

The Postal Service of the future will be different, according to Potter, but its action plan for the next decade will continue to drive commerce, serve communities and deliver value. A few highlights of plans seeking legislative and regulatory reform include:

  • Restructure retiree health benefits payments to “pay-as-you-go,” comparable to what is used by the rest of the federal government and the private sector.
  • Adjust delivery days to better reflect current and anticipated volumes and changing patterns in customer use.
  • In FY 2009, $1.40 in revenue was generated per delivery stop daily, based on six days of delivery. That number is expected to drop to $1 by 2020. Under current law, USPS cannot determine the number of days to deliver mail, regardless of costs or declining revenue.

Source: USPS

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