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Postal Government Relations Mailers Technical Advisory Committee August 13, 2009

Postal Government Relations Mailers Technical Advisory Committee August 13, 2009. Retiree Health Benefits:. Two bills that address USPS RHB -- H.R. 22 and S. 1507 USPS supports both bills — goal is to secure RHB legislative change

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Postal Government Relations Mailers Technical Advisory Committee August 13, 2009

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  1. Postal Government Relations Mailers Technical Advisory Committee August 13, 2009

  2. Retiree Health Benefits: • Two bills that address USPS RHB -- H.R. 22 and S. 1507 • USPS supports both bills — goal is to secure RHB legislative change • Administration is supportive of change in USPS Retiree Health Benefits payment

  3. S. 1507: Introduced by Senator Tom Carper (D-DE); Senators Joseph Lieberman (I-CT) and Daniel Inouye (D-HI) are co-sponsors Embraces Administration's proposal to restructure RHB payments over next 10 years: Lower total payments in first 5 years and slightly higher payments in last 5 years Awaiting CBO score On July 30, 2009, Senate Homeland Security and Governmental Affairs Committee passed amended bill and referred bill to Senate floor Four amendments adopted Quick Bill Recap: 3

  4. S. 1507 Amendments • #1 Borrowing Authority: Eliminates additional $4 billion in borrowing authority above $15 billion cap. USPS can use an additional $2 billion in FY2009 & 2010 above annual $3 billion cap. (Senator Susan Collins (R-ME)) • #2 GAO Study: By March 31, 2010, GAO to submit long-term structural and operational reform study necessary to achieve financial stability (Senator Susan Collins (R-ME)) • #3 Direction to Arbitrator: Requires arbitration board to consider USPS financial condition. (Senator Thomas Coburn (R-OK)) • #4 Bonuses: If USPS has a year-end loss for the preceding FY, then bonuses are prohibited for certain employees. (Senator Thomas Coburn (R-OK)) • GAO study will initiate broader debate about how USPS serves American public

  5. H.R. 22: 339 co-sponsors - over three quarters of the House Provides 3 years of relief from premium RHB payments Scores $2.5 billion over 3 years Quick Bill Recap: 5

  6. Administration and Leadership in Congress committed to helping USPS w/ RHB payment issue USPS has repeatedly advised Congress, Administration that w/out legislative change, USPS cannot pay all of its RHB obligation at the end of this fiscal year Other stakeholders have weighed in, i.e., OIG has stated that assumptions factored into our RHB payment amounts need to be revisited: Workforce population will continue to decline Rate of Health Care inflation too high House staff exploring offsets available to $2.5 billion score of H.R. 22 Senate staff acknowledges that S. 1507 is a short-term fix Current Status 6

  7. Congress in recess until after Labor Day USPS Government Relations using this time to continue Congressional staff outreach: Urging immediate action Working w/ Communications to get message out to broader influential audience including business and trade publications: RHB Legislative Change needed before Sept. 30 Long-term structural change needed for USPS Wide dissemination of USPS 3rd quarter financials Engaged in a broader public policy debate now about need for 6 to 5 day delivery and other USPS cost-cutting actions and the larger question about proper USPS business model Next Steps: 7

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