After more than a decade of working with our union brothers and sisters, postal management, Democrats, and Republicans, the NPMHU is pleased to announce that the House of Representatives passed the Postal Service Reform Act, H.R. 3076, on February 8, 2022.
Because of dedicated and collaborative work between and among stakeholders, we are now one step closer to fiscal stability for the United States Postal Service.
While the bill is narrow in scope, it addresses the largest financial burdens of the USPS.
First, it repeals the 2006 mandate requiring the Postal Service to prefund its retiree healthcare benefits. No other private sector business or federal agency uses this practice, and it is the cause of annual losses of $5 billion a year for over a decade. In the 116th Congress, members of the House passed a standalone bill to address this onerous issue.
Second, it provides Medicare integration for future postal retirees and their annuitants. The majority of postal retirees already participate in Medicare, and postal employees have contributed $34 billion to the program since 1983. USPS estimates integration as well as the repeal of the prefunding mandate would generate savings of $40 billion over ten years.
Additionally, H.R. 3076 helps to stabilize service and provide avenues for revenue growth by codifying six-day delivery and allowing for agreements with state, local, and tribal governments to provide noncommercial services. Furthermore, the bill offers greater transparency to postal customers to ensure that service meets the demands of American households and businesses.
This bill does not fix every problem with the Postal Service. But it shows the dedicated work of elected officials, recognizing the value of the Postal Service and its dedicated workforce.
I urge the Senate to now act, and take up the House-passed legislation, to protect the viability of this invaluable institution.