On January 31st the House Oversight and Government Reform Committee leaders introduced H.R. 756, the Postal Service Reform Act of 2017. The bill addresses unfunded liabilities of the USPS®, makes reforms to keep mailing costs affordable for consumers, and encourages innovation, all without additional borrowing capacity from the U.S. taxpayer.
The legislation is outlined under four main sections;
Title I Postal Service Benefits Reform focuses on three significant employee benefit programs; the Health Benefit Program, Retiree Heath Care Benefit Funding Reform and Pension Funding Reform. Of significance is that the Postal Service Retiree Health Care Benefit Funding Reform Act addresses the prefunding schedule established in the Postal Accountability and Enhancement Act of 2006.
Title II Postal Service Operations Reform allows the Postal Service to increase postal rates for market-dominant products by 2.15%, 1 cent, for a First-Class stamp. Of significant importance in the Nonprofit Mail Industry is that this Act eliminates state and national political committees’ eligibility for non-profit mail rates.
In addition Title II includes:
Title III Postal Service Personnel requires the Postal Service to establish and appoint a Chief Innovation Officer to manage the Postal Service’s development and implementation of innovative postal and nonpostal products and services. It also consolidates the Postal Service and the PRC Offices of Inspector General into a newly established Inspector General for the Postal Community as well as provides non-bargaining, non-supervisory employees access to the Merit Systems protection Board under a section titled MSPB Appeals Rights.
Title IV Postal Contracting Reform requires the Postal Service and PRC to issue a policy on the delegation of contracting authority, post noncompetitive contract awards meeting certain dollar value thresholds, and improve oversight and response to potential conflicts of interest regarding contracting.
House Oversight and Government Reform Committee leaders released the following statement upon introduction:
“This bipartisan measure will make the policy changes that are most urgently needed to put the Postal Service on sound and sustainable long-term financial footing. This collaborative reform effort places the Postal Service on a path toward a viable future.”
You can learn more by following the links below and feel free to contact a member of our Client Relationship or Business Development teams if you have questions.
Click here for Full Text Of Postal Service Reform Act of 2017
Click here for Summary of Postal Service Reform Act of 2017
Click here for Notables Changes To Proposed Act of 2016