While Congress is exploring additional reforms that could aid the U.S. Postal Service in regaining its financial footing, the USPS has requested a number of legislative changes including eliminating preferred rates for nonprofit mailers.
The Alliance of Nonprofit Mailers has vowed to do “whatever it takes” to ensure that particular proposal does not become law, and it is not part of the postal reform legislation introduced this month by Sen. Susan Collins (R-ME), ranking member of the Senate Homeland Security and Government Affairs Committee.
Collins’ bill, which is supported by ANM and other mailers, would fix the agency’s overpayment to the Civil Service Retirement System, estimated to be more than $50 billion, and direct the Office of Personnel Management to correct the methodology for calculating Postal Service obligations to these pension funds. The bill would also improve the Postal Service’s contracting practices and help prevent the kind of problems recently uncovered by the Postal Service Inspector General, which include contract mismanagement, ethical lapses and financial waste.
“The Postal Service is at a crossroads,” Collins said. “It must embrace fundamental change. The Postal Service must take actions to reduce overhead costs, curb no-bid purchasing, bring workforce benefit structure into line, and better serve customers to expand volume. My legislation would help spark new life into the Postal Service as it evolves and maintains its vital role in our nation’s economy.”
Source: ASAE's Inroads - February 24, 2011