MDF Systems, Inc.
780 James P. Casey Road
P.O. Box 917
Bristol, CT 06010-0917
Tel:800-426-3752
Tel:860-584-4750
Fax:860-584-4759
www.mdfsystems.com
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Industry News
President Bush signed legislation on April 23, 2003 that changes how the United States Postal Service (USPS) pays into the Civil Service Retirement System (CSRS).
Without this legislative change, USPS risked overpaying its CSRS obligation by $78 billion, costs that would have to come from postage and fees paid by their customers.
“We are grateful to President Bush for his action on behalf of the Postal Service,” said Postmaster General Jack Potter, who commended the entire mailing community, including the postal unions and management associations, for their efforts in support of this legislation.
“The new law is an important tool to help maintain the financial stability of the Postal Service. But we also will continue to manage the organization more efficiently than ever as we implement the strategies of the Transformation Plan,” added Potter.
David A. Weaver, President & CEO of the Mailing & Fulfillment Service Association (MFSA) reacted this way in a statement to his members: “Great news! Postage rates will likely remain stable until 2006.”
He went on to say, “This achievement has been accomplished through the work of an exceptional coalition of mailers, postal unions, and the Postal Service. MFSA has been active in this coalition, in the parallel work of the Mailers Council, and in direct contact with members of both Houses through the calls and letters of our membership.”
“However, …the bill that was passed includes an escrow provision that will activate in 2006 and require the Postal Service to resume the higher rate of payment, although into a separate account whose disposition Congress will determine. Over the next two years, all of us will need to refocus on amending this provision to prevent the reinstatement of this significant expense on the Postal Service or, at the very least, to guarantee that the funds collected are used to offset postal debt and support rate stability.”
According to PMG Potter, the change will not affect retirement benefits for current or former USPS employees. It also will not affect employee contributions to CSRS.
© Copyright 2004 MDF Systems
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