Congress Blocks Seven AMP Consolidations
In one of its final acts before adjourning for the year, Congress directed a halt to Area Mail Processing consolidations in seven locations and criticized the Postal Service for its handling of its network realignment effort. The setback to the USPS infrastructure initiative is included in the FY 2008 omnibus government funding legislation, adopted by the House and Senate. The funding measure is expected to be signed by the President.
The roadblock to AMP consolidation effort is contained in the joint explanatory statement of the omnibus funding measure. Congress questioned the wisdom of further AMP consolidations, basing its judgment on Government Accountability Office testimony to Congress delivered in July, faulting AMP consolidations as based on inadequate criteria, inconsistent data and insufficient stakeholder input. The Postal Service already has canceled scores of AMP study efforts in locations around the country over the past year.
Annual Revenue Forgone Payment to USPS Assured
The Revenue Forgone Reform Act of 1993 provides for a $29 million annual payment over 42 years to the Postal Service to pay off a $1.2 billion debt Congress created by mandating preferred postage rates to nonprofits and others in the early 1990s.
NAPS and other postal employee groups urged Congress to make the annual revenue forgone payment, especially after the House earlier this year had refrained from including payment funding in its original appropriation measure.
The Postal Service on December 19 published in the Federal Register its modern service standards for Market-Dominant Products. These service standards represent what mailers can and should expect in terms of delivery for the product classes covered.
Service standard modernization is required by the postal reform law -- the Postal Accountability and Enhancement Act -- passed by Congress almost exactly a year ago. This is the first adjustment of service standards for non-First-Class Mail since 1975.
Market-Dominant Products include First-Class Mail, Periodicals, Standard Mail and Package Services, as well as certain special services.
The next major development in service standard modernization will involve USPS creation of a system to measure how well the Postal Service is meeting the standards. The Postal Service is exploring an approach that utilizes both the Intelligent Mail Barcode and an independent contracting system.
FERS Sick Leave Bill Still In Drafting Mode
As the First Session of Congress came to a close, Rep. James Moran (D-VA) and his staff continued to work on the introduction of a bill to provide a lump sum payment to retiring FERS-covered employees for unused sick leave. A FERS sick leave bill could be introduced, at the earliest, in late January. The House of Representatives returns to Washington to begin its Second Session on January 15.
The Congressional Research Service in a 2004 study and again this summer reported that that FERS employees use their sick leave more frequently – almost thirty-five percent more often -- than their CSRS counterparts do, particularly as they approach retirement. Data compiled last year by the Office of Personnel Management reached the same findings, showing that retirement-eligible FERS employees on average used more sick leave than CSRS retirement-eligible employees.
According to the Congressional Research Service, forty-five states provide some form of compensation for unused sick leave at retirement. More than half of them provide a one-time cash payment, limiting the size of the payment in some way, through either a cap on how much sick leave may be credited, or the size of the payment itself, or both.
USPS Governors Approve Bank of
The USPS Board of Governors on December 17 issued its decision approving a controversial Negotiated Service Agreement with Bank of America Corporation. The NSA will provide discounts to BAC on First-Class Mail and Standard Mail letters, in return for BAC’s expanded use of Intelligent Mail Barcode technology.
The Postal Regulatory Commission, in its decision reviewing the proposed BAC Negotiated Service Agreement, recommended adoption of the NSA by a 4-1 vote, despite noting that the Postal Service could lose as much as $45 million under the proposed agreement. The Legislative Update appearing on page 21 of the November issue of The Postal Supervisor reported on the initial PRC decision.
The Board of Governors, in its decision to move ahead with the NSA, criticized the PRC’s estimation of reduced revenues, and emphasized the importance of broadened use of the Intelligent Mail Barcode. The Governors noted: “BAC’s adoption of the IMB will not only create momentum for the use of this technology among other members of the mailing industry, but given BAC’s substantial size, its use by BAC will create incentives for the suppliers of the mailing industry to make adjustments to their products to support the new technology. Thus, we believe BAC’s early adoption of this groundbreaking technology will enable the Postal Service to meet its objectives of widespread use of the IMB technology rapidly and consistently with recent pronouncements to achieve implementation by 2009.”
Mail Moves America, the coalition of postal and printing industry organizations fighting efforts to establish Do Not Mail registries, has created a new website. It’s got lots of good information on the Do Not Mail issue. Check it out by clicking here.
NAPS Legislative Counsel