What The Postal Reform Act Will Not Do

April 07, 2022 – PEN – Postal employees, retirees, and the public have been duped once again – this time with the enactment of the Postal Reform Act.

Supporters of this legislation want you to believe that passage of this bill will save USPS financially, improve delivery of our mail, and save USPS billions of dollars. All of that remains to be seen. Personally, we do not see any of that happening now or in the future. What we do see happening and, in our opinion, the reason for this legislation, is solidifying the use of mail-in ballots for national elections.

Let’s dissect a few portions of this bill:

  • Pre-Funding Retiree Health Benefits: This law eliminates the requirement of USPS to pre-fund retiree health benefits for Postal Service (USPS) employees.
    That’s great – but the truth is USPS has not paid into this retiree health fund since 2012 – that’s 10 long years ago. But, as some in Congress have noted and as highlighted by Florida Senator Rick Scott: “This bill doesn’t reduce costs — it just shifts them from one unfunded government program to another unfunded government program.” FedSmith 
    Actually, the Congressional Research Service states that USPS has not paid in this retiree health fund since 2011.
  • Forced Medicare Enrollment for Postal Retirees: This legislation will require USPS employees to enroll in Medicare when they turn 65. Currently, about one-fourth of agency employees do not enroll in Medicare. This change would purportedly save about $22.6 billion over 10 years (you mean…move these costs to other agencies). We agree with Sen. Scott – “Sen. Rick Scott on Senate Floor: Postal Reform is Needed; But it Can’t Be at the Cost of Medicare Recipients, Postal Workers. Additionally, forcing postal retirees to enroll in Medicare is a decision that should be left to the retiring employee – not the government or USPS.
  • Postal Service Health Benefits Program: This law requires the Office of Personnel Management (OPM) to establish the Postal Service Health Benefits Program within the Federal Employees Health Benefits Program under which OPM may contract with carriers to offer health benefits plans for USPS employees and retirees.
    If health care coverage for postal employees is separated from the large pool of federal employees how can this improve cost and coverage for postal employees and retirees? We just do not see how that can happen.
  • Mail Delivery 6 Days Per Week: We already have mail delivery 6 days per week – in some cases 7 days per week. The last time any steps were ATTEMPTED to curtail national days of delivery was way back in 2013….and the effort failed.

We do not believe this law will save the future of USPS, but it will definitely change the future of health care for postal retirees.

This article contains personal opinion – but, more accurate than false.