US House to vote to provide Postal Service with $50 billion in relief | The mighty 790 KFGO

By David Shepardson

WASHINGTON (Reuters) – The U.S. House of Representatives is expected to vote on Tuesday on a bipartisan reform bill aimed at helping the Postal Service (USPS) save about $50 billion over a decade and requiring future retirees to s enroll in a government health insurance plan.

The USPS has had net losses of more than $90 billion since 2007. One reason is 2006 legislation requiring it to pre-fund more than $120 billion in healthcare and retirement benefits for retirees.

House Oversight Committee Chair Carolyn Maloney said Monday the bill would strengthen the USPS and save $50 billion over 10 years.

If approved, the legislation goes to the US Senate.

The bill eliminates requirements for USPS pre-funding of retiree health benefits for current and retired employees for 75 years, a requirement that no company or other federal entity faces. USPS projects that it would significantly reduce its pre-funding liability and save it about $27 billion over 10 years.

It requires future retirees to enroll in Medicare. About 25% of postal retirees do not enroll in Medicare even though they are eligible for it, causing the USPS to pay higher premiums than other employers. USPS estimates the change could save it about $22.6 billion over 10 years.

The White House and postal unions support the bill, as do the Greeting Card Association and Hallmark

One of the service’s biggest customers, Amazon.com, said it strongly supports the legislation.

“Americans across the country have long depended on the USPS for its reliable and affordable delivery options,” Amazon Vice President of Public Policy Brian Huseman wrote in a letter to lawmakers Feb. 2. .

Postmaster General Louis DeJoy proposed in March 2021 to cut projected losses over the next decade by $160 billion, which included https://about.usps.com/what/strategic-plans/delivering-for -america/assets/USPS_Delivering-For-America .pdf#:~:text=The%20Plan%E2%80%99s%20strategic%20initiatives%20are%20designed%20to%20reverse,the%20next20ten%20years%20in% 20achieving%20balance%20operating%20financial reforms in the House bill. The USPS also passed new delivery standards in October https://www.Reuters.com/world/us/slower-us-mail-standards-take-effect-friday-2021-09-29 that slow some deliveries first class mail.

The bill requires the USPS to maintain mail deliveries six days a week and develop an online weekly performance data dashboard by zip code, and expands special rates for local newspaper delivery.

(Reporting by David Shepardson; Editing by Stephen Coates)

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