One of the worst tornado’s in the nation’s history left a path of death and destruction in the community of Moore, Oklahoma on Monday afternoon.  The Moore Post Office suffered extensive damage from the storm, as Postal Inspectors remain on the scene to provide security to the building.  Spokespersons for the U. S. Postal Service report that all employees are safe and accounted for.  Postal officials will provide additional information as it becomes available.

NAPUS National President Bob Rapoza asked all NAPUS members to keep the residents of Moore, Oklahoma in their thoughts and prayers. NAPUS members have fond memories of the area, where the 2012 NAPUS national convention was held,  just a few miles north of Moore in Oklahoma City.

Charlie Moser
May 21, 2013

Non-career Employee Health Benefits Plan to be in effect for January 2014

05-02-2013

 USPS has awarded UnitedHealthcare a contract to offer a health benefits plan to qualified non-career employees as defined by the Patient Protection and Affordable Care Act (PPACA).

 Approved by Congress in 2010, PPACA requires employers with 50 or more employees to offer qualifying employees — those who are paid for an average of 30 hours per week for a specified period of time — certain levels of coverage at an affordable cost by January 2014. City Carrier Assistants and Mail Handler Assistants will qualify under the terms of their respective collective bargaining agreements.

 Health benefits plans for current USPS career employees and retirees are not affected by PPACA.

 The Postal Service late last year announced a request for proposals to insurance companies to provide plans that meet PPACA requirements for qualifying non-career employees. After conducting a highly competitive and rigorous evaluation of technical aspects, pricing and other factors in the proposals, USPS awarded UnitedHealthcare a contract to begin offering health benefits next January.

 Qualifying non-career employees will receive information on the new plan later this fall. There also will be more information posted before Open Season on the My HR Benefits pages of the employee website LiteBlue.

 Plan enrollment is expected to start during this year’s Open Season, beginning Nov. 11.

The USPS Board of Governors met April 9 to discuss this action, and has directed the Postal Service to delay implementing the new delivery schedule. The delay will continue until Congress and the president approve a law that will allow USPS to make changes that would include the authority to adjust its delivery schedule. This decision by the Board of Governors means that for the time being, we will continue delivering mail and packages six days a week. 

In addition, the Board has directed Postal Service management to take other actions, including:

 Seeking to reopen negotiations with the postal unions and consultations with management associations; 

 Taking administrative actions to reduce costs. 

 Evaluating further options to increase revenue, including an exigent rate increase, to raise revenues across current product categories and products not currently covering their costs. 

The Board said that it views a new delivery schedule as a necessary part of a larger five-year business plan to restore the Postal Service to long-term financial stability, and continues to support legislative goals identified in that plan. The Board urged Congress to quickly pass comprehensive postal legislation, including provisions that would give the Postal Service the ability to establish an appropriate national delivery schedule.

Attached is the statement from the U.S. Postal Service Board of Governors BN Board Statement Delivery Schedule April 2013

Charlie Moser
April 10, 2013

The Washington Post is reporting that the President will propose to increase employee contributions towards retirement. A recent White House proposal suggested raising the retirement contribution by 1.2% over a 3-year period. In addition, it is reported that, as part of a “grand bargain” with the GOP, the White House budget will propose a less generous consumer price index formula for calculating cost-of-living-adjustments (i.e., the chained-CPI) for federal programs, including Social Security. Finally, recent budget documents have also included savings attributable to Postal reform, which may include reducing mail delivery frequency. We will have a better idea about the specifics early next week, so stay posted.

Both Houses of Congress have already passed their versions of the FY 2014 Budget. On March 21, the House of Representatives passed House Concurrent Resolution 25 by a 221-207 vote, and, on March 23, the Senate passed Senate Concurrent Resolution 8 by a slim 50-49 majority. The House budget includes 10-year savings totaling approximately $132 billion in cuts directed at the federal workforce, including retirement and the Federal Employees Health Benefits Program (FEHBP). However, the Senate budget does not include such cuts.

It is important to note that White House budgets are typically dead on arrival on Capitol Hill, and that the House and Senate must reconcile their respective budget resolutions. Even so, the budget proposals are merely blueprints and do not have the force of law. Separate legislation must be passed and signed by the President to enact any changes to federal employee and retiree benefit programs, or to modify the COLA calculation.

 Charlie Moser
March 29, 2013

Tester thanked Postmasters for what they do for Americans, including Montanans. Pointing out that Montana is large and rural, he said its citizens do not take the Postal Service for granted. “Your hard work keeps communities stitched together,” he declared. “That is why rural communities rely on the Postal Service.”

He said Congress needs to understand rural America. And there is a lot of work to do in order to put the Postal Service on firm financial footing. Tester referred to last year’s Senate-passed postal reform bill, S. 1789, saying it wasn’t perfect, but it would have helped.

He touched on growing package delivery and reiterated the agency needs more flexibility, but Congress must do it right. “Cutting hours and service won’t help,” he stressed. “And it can’t be put on the backs of postal employees.”

Tester said committee members are working on a new bill; they know what is at stake and hope to have a bill out soon. “I will keep fighting for responsible reform,” he pledged. “I share your commitment to saving the Postal Service.”

He told Postmasters to stay in touch; the good information they provide their lawmakers helps them make good decisions.

Rep. Michael Grimm (R-NY), a member of the House Committee on Financial Services, thanked Postmasters for their service and said they often are forgotten—people don’t recognize the Postal Service enough. “It takes a special person to serve this country,” he declared.

In discussing the challenges facing the Postal Service, he said common sense must prevail. He referred to the prefunding requirement, saying it is a new world now, compared to 2006 when it became law, and the agency must be as competitive as possible.

“Closing and consolidating facilities is misguided and undermines our history and standards of excellence,” he said. Grimm deemed the USPS indispensible—its dedication and level of service are unrivaled. And despite the Internet, the Postal Service still needs its brick-and-mortar presence.

“Don’t lose hope,” he said. “Some of us get it and know how honorable you are.”

Rep. Tammy Duckworth, (D-IL), is a member of the House Oversight and Government Reform Committee. She told Postmasters she was honored to be in a room with fellow public servants. “We all know Congress is dysfunctional,” she said. “And nowhere is it more clear than in its handling of the Postal Service.”

Duckworth said she asked to serve on the Oversight and Government Reform Committee because of the Postal Service. She wants to help find reasonable solutions to help it function better and give it the tools to be competitive.

She is not a proponent of five-day delivery because of her concern over prescription deliveries. “We cannot have veterans or seniors not receiving their medications,” she stressed. Medications are sent via First-Class Mail; recipients can’t wait three or four days to receive them.

She told Postmasters they are lifelines and connections to senior citizens and rural communities who need the high-quality services they deliver. Small businesses need the USPS to help their business grow. And the Postal Service plays a valuable role in hiring veterans, allowing them to participate in our nation’s economy.

Duckworth said some want to blame federal and postal employees for our country’s financial challenges. But she vowed to stand up for hard-working public servants and work with them to allow the Postal Service to succeed and allow Postmasters to do their jobs.

“You have a friend in me,” she said. “I get it! I hope to be one of your voices in Washington.”

Sen. Mark Begich (D-AK), also a member of the Senate Committee on Homeland Security and Governmental Affairs, told NAPUS members Alaskans clearly understand the importance of the Postal Service and the necessity to pass a postal reform bill. He commended Postmasters for what they do and also NAPUS for its help on last year’s postal reform bill, S. 1789. “NAPUS brought a voice to the table,” he said.

He concurred that S. 1789 was a step in the right direction, especially on the prefunding issue. The committee recognized that prefunding could not be accomplished in just 10 years.

Begich said they hope to have a mark-up on a postal reform bill by April—it’s important to keep the bill moving. He said Sen. Tom Carper and Rep. Darrell Issa, chairmen of their respective committees, are talking to each other. Hopefully, as the bill moves forward, a lot of the issues will have been discussed between the House and Senate.

He pointed out the Postal Service needs long-term sustainability and that it can’t be accomplished in a piecemeal fashion. “We face significant challenges,” he admitted. “Congress is somewhat polarized.” He said Carper and Sen. Tom Coburn, the committee’s ranking Republican, have a strong relationship. Even though they may disagree, they understand they need to keep things moving.

Begich stressed again how important the Postal Service is to rural areas: “It’s not just another federal agency; it’s a critical service.”

“We have a great opportunity and know the clock is ticking. We are motivated to get this done,” he promised.

Sen. Tom Carper (D-DE), chairman of the committee working to fashion a postal reform bill, told convention attendees he has enjoyed working with the NAPUS leadership and their friends in Delaware.

He talked about the big picture, referring to the tough times the nation endured in 2007 through 2009. Last week, there were 330,000 jobless claims—good news for the economy. There are competing budgets that will be introduced in Congress this week. Clearly, the county needs a more fiscally responsible road map, but has an obligation to the “least of these.”

Carper said there are three key elements to dealing with the economy, which also relate to the Postal Service: develop additional revenues, reform entitlement programs and look at every segment and ask, “How do we get better results for less money?”

“Where does the Postal Service fit in?” he asked. “We need to pass legislation.” Carper referred to last year’s Senate-passed postal reform bill and said it was thanks, in no small part, to the efforts of NAPUS President Bob Rapoza and Director of Government Relations Bob Levi.

During last year’s efforts to pass postal reform, Carper said they negotiated to find something the House could live with—they were very close. But then time ran out.

Carper was encouraged when House Oversight and Government Reform Committee Chairman Darrell Issa and Ranking Democrat Elijah Cummings testified before the Senate committee on Feb. 13. “We need to communicate understanding with one another,” he said.

He also said the Postal Service cannot just focus on cutting and commended Sen. Bernie Sanders’ emphasis on how to best use the USPS’ unique distribution system. There are good ideas out there, but right-sizing has to be done in a humane way.

“You are a big part of the economy,” Carper told NAPUS Postmasters. “We need legislation to make it clear you will be here.” He also expressed thanks to our veterans.

He closed with a story from when he was governor of Delaware. He had received a letter from a young woman asking what the key to happiness was; she had sent the letter to all 50 governors. Carper said he sent her this reply—probably the shortest she would receive: “Serve others.”

“You do this, I do this,” he told Postmasters. “I hope it provides you as much pleasure as it has me.”

He acknowledged that issues he has been dealing with since last year have been very frustrating; these issues still remain this year: consolidations, DUOs and POStPlan, to name a few. And there still exists a divided Congress—as long as it remains divided, these and more issues will continue to come NAPUS’s way.

“We need to stress to our congressional representatives to come together and pass meaningful postal reform this year,” he urged. He told Postmasters when they visit Capitol Hill, they need to let their lawmakers know how frustrated they are with the inaction of Congress. “That’s the message you need to take to Capitol Hill,” he said, “and that’s the message I gave them during my testimony in front of the Senate Homeland Security and Governmental Affairs Committee.”

Rapoza said kicking this can down the road has damaged Congress’ image. Postmasters and the communities they serve have made painful sacrifices with the implementation of POStPlan, the reduction of full-time Postmaster positions and the reduction of hours at more than 13,000 post offices, the majority in rural areas.

In his testimony, Rapoza warned that, if Congress chooses to do nothing to resolve its fundamental differences, the integrity of our nation’s universal postal system will be irrevocably compromised “This week,” he stressed, “we must deliver this same message on the Hill.”

Congressional lawmakers must be reminded Postmasters and the communities they serve have made compromises. Congress must do the same: settle their differences. “Get out of the way and let us serve the American public,” he said.

Postmasters always have been the ambassadors of the Postal Service and NAPUS has been in the forefront of representing NAPUS’ best interest. “On our watch,” he vowed, “NAPUS and the Postal Service will not go away.”

Nanci Langley, commissioner with the Postal Regulatory Commission, told NAPUS members she is motivated by their dedicated commitment and resiliency. She commended NAPUS, saying it is well known throughout Congress, the administration, the mailing community and L’Enfant Plaza.

“This is your time to reacquaint your representatives as to what the Postal Service means to their communities,” she said. “This is an opportunity to discuss all the issues of concern; foremost is resolving the prefunding issue.”

Langley declared the Postal Service a cornerstone of the economy; addressing the agency’s financial problems is critical. Hard-copy mail continues to bind the nation by providing universal and affordable service. And the Postal Service broadens access for senior citizens and others who depend on its services.

She commended NAPUS for being in the forefront to call on Congress to allow the USPS to offer new products and services. Postmasters understand what is being considered on Capitol Hill; the USPS is prevented from offering products that are outside its core mission of processing and delivering the mail.

“As Postmasters,” she said, “you understand the relevancy of the Postal Service and the social value of the mail. You have challenges, but also an opportunity to let Capitol Hill know what’s going on in your individual areas, as well as your state.”

Langley recounted how when she worked for former Sen. Daniel Akaka, he always appreciated visits from NAPUS Postmasters. “His advocacy on behalf of Postmasters was guided by these meetings,” she stressed. “Having the opportunity to sit down and let lawmakers know what is happening—that they need their communities’ post offices open—is critical to finding solutions.”

Rep. Gerry Connolly (D-VA), senior member of the House Committee on Oversight and Government Reform, commended NAPUS’ work to help kill last year’s House postal reform act. He said, as a result, Congress now must take the time and think through this issue and not have bad judgment. “Congress first must clean up its own act,” he declared to loud applause.

He referred to the 2006 postal reform bill and said the prefunding requirement from that legislation must be fixed. And it essentially put the Postal Service in a straitjacket so options for alternative models cannot be explored. “A post office can have a certain centrality in a community,” he explained. “If Starbucks wants to pay the Postal Service to have a branch in a post office, what’s the problem—the DMV, local government, Hallmark? Let’s see what works so we can develop an alternative business model. I don’t agree that we don’t have options.”

Connolly is skeptical of the PMG’s claim going to five-day delivery will save $2 billion a year. “He hasn’t provided analytics and what revenue you would lose: pharmaceuticals, newspapers, will it damage rural delivery? You want to make it better, not kill it.”

He said Congress now has a fresh opportunity to craft a new business model for the agency. “And all is not terrible,” he declared. “Last quarter, take out the prefunding requirement and the Postal Service made $100 million in operations.”

Connolly talked about the growing package delivery segment, pointing out technology deconstructs some lines of business, but also can provide new opportunities. “We need to plan a new model for the future,” he suggested, “and allow you to experiment—what works in Hawaii won’t work in Boston.”

Connolly believes there is an opportunity in the 113th Congress for postal reform. He told Postmasters they have a golden opportunity to educate their lawmakers and make sure they understand what is at stake.

“You have a chance to recalibrate and re-educate and push my colleagues on a more thoughtful course to make the Postal Service more successful in the future,” he said. “Working together, I think we can have great success with the 113th Congress.”

NAPUS Director of Government Relations Bob Levi told convention attendees they need to be incredible advocates for NAPUS this week as they visit Capitol Hill. They must fight for Postmasters and post offices and—most importantly—be credible.

“We’re here at a very important time in the history of the USPS,” he said. “It’s facing a crisis—a large part not of its own making.”

Levi discussed that not enough attention has been given to the revenue side of the ledger. “Every time you reduce service,” he explained, “you lessen the brand. In President Bob Rapoza’s testimony before Sen. Carper’s committee, that’s what he focused on: how to build postal revenue and how we can use our infrastructure to become innovative.”

Carper and his committee have yet to present a bill, as well as Rep. Darrell Issa and his committee. They both have indicated they are in the red zone as far as crafting a comprehensive, consensus piece of legislation, but not in the end zone. “As they approach the end zone,” Levi pointed out, “we want to be very involved and have a constructive role in determining what that bill will be. As the bill develops, we will take a strong role in promoting what is in NAPUS’ best interests.”

He said this is not about posturing; this is about working behind the scenes to craft a legislative package to work for NAPUS’ members. “We don’t need glory,” he said, “just the final product. And if it benefits Postmasters, we’ve succeeded.”

Levi reminded Postmasters that Congress respects NAPUS members. “You are the strongest advocates for your fellow members and the Postal Service.”

Rep. Chris Van Hollen (D-MD) also urged Postmasters to talk to their members of Congress. He said it is important to impress on them Postmasters are an army of people watching what Congress is doing.

He thanked Postmasters for what they do for their customers and recognized the fact the American public trusts the Postal Service—a tribute to Postmasters who manage the post offices. “We need to make sure you continue to have the tools that allow you to do that work on behalf of your customers. Your brand is a whole lot better than the brand of members of Congress,” he admitted.

Van Hollen said the one thing that won’t help the Postal Service to stay competitive in a very competitive environment is to reduce services. In fact, one reason why the Postal Service brand is so good is because it provides reliable services. “When we start chipping away,” he said, “people will lose confidence in the reliability of those services and you will lose customers. And we cannot violate your obligation to universal service; we need to make sure that service remains top-quality.”

Van Hollen said Congress needs to provide the Postal Service with greater flexibility with respect to finances and eliminating the prefunding requirement. And it needs to be done quickly. “That is why people are so frustrated,” he declared, “the gridlock and inability to get things done when there are common-sense solutions.

“Thank you for what you do for people in my neighborhood and communities around the country. You are part of the backbone of the American economy; we would not be successful without the kind of work you do every day.”

NAPUS Postmasters Retired President Jack Wilkins told convention attendees he loves being president of the retiree organization. He acknowledged the unsettling times in which Postmasters and retirees find themselves.

Wilkins earlier had asked the Postmaster General if retired Postmasters could serve as Postal Service trainers. “Having a better-trained, better-informed work force would enhance customer service,” he said. The Postal Service is considering this proposal.

He urged everyone to be strong in their faith and have confidence in their daily lives and support each other. “Be strong in your support of NAPUS so Postmasters’ voices will continue to be heard in Congress and in the Postal Service,” he counseled.

NAPUS Secretary-Treasurer Mike Quinn said 2012 was not one of NAPUS’ better years. POStPlan has affected everyone—some still are suffering—and it has affected the organization. He said NAPUS will continue to work to resolve differences and find positions for those affected. “We still have an obligation to those who want to work for the Postal Service,” he stressed.

POStPlan also has had an impact on NAPUS’ finances and how it does business. But, under President Bob Rapoza’s leadership, changes and adjustments have been made that continue to keep NAPUS’ finances strong.

“My goal for the next two years is for the organization to be fiscally strong and put into place measures for the future,” he pledged. “We need to survive and the only way to survive is to change. But with that change, we need to be aware of what we had in the past and continue to provide services to our Postmasters.”

Quinn commended the Executive Board for their work this week. “We understand the challenges we face in the future. We want what’s best for NAPUS.”

“Tomorrow,” he declared, “we do our real business—going to the Hill.” He recognized Director of Government Relations Bob Levi and his ability to open doors with Congress. Levi arranged for Quinn to talk to Rep. Stephen Lynch earlier this year in a face-to-face meeting.

“Tomorrow,” he said, “get to know the people you’re talking to; some of them have a lot of humility and most of them have the right idea for what’s right for our country. It’s up to us to inform them so they can make the right decisions for us and the Postal Service.”

Despite the challenges facing NAPUS, Postmasters and the Postal Service, Quinn still believes the future is bright. “Thank you for your support you’ve given me and making me feel part of the NAPUS family,” he said. “And I look forward to helping you transition into a brighter future.”

Levi asked them if the Postal Service still is relevant. Post said Issa feels the Postal Service is relevant and will remain viable. There is a need for its services, especially in rural areas; not everyone has broadband access. But in order to continue to serve that market, the agency needs to be right-sized. Issa feels Congress must help the USPS manage that correctly in order to be viable for years to come.

Kilvington agreed the Postal Service still is relevant. He referred to the recent explosion in the package business. In addition, people are very concerned about security and their personal information and prefer using the mail in those instances. Carper wants Congress to be more clear on the role of the USPS and must address its financial issues sooner rather than later.

Levi turned to the prefunding issue and the onerous payments. “How do we deal with this?” he asked.

Kilvington said Carper strongly believes there should be some form of prefunding; the USPS is supposed to be self-supporting. But the payment should not be detrimental. Congress needs to look at tailoring the payments to fit the obligations. Carper also wants to see a new structure for health care so the payments aren’t so high.

Post said Issa agrees. He goes back to GAO’s philosophy that the Postal Service needs to prefund at the greatest extent possible now because it will be harder as time goes on and the agency earns less money. First-Class Mail is the most profitable, but it will continue to decline. Issa wants to ensure health benefits are available to retirees who earned these benefits.

Levi referred to the letter Carper and Issa signed, committing to work together to achieve postal reform. He asked the panelists how far apart they are—what are the remaining differences?

Kilvington said both legislators agree on the goal: achieve $20 billion in savings and create new revenue. “If you put aside some of the labor issues, they’re close,” he said. “I think they’ll come to a deal pretty soon.”

Carper appreciates the importance of keeping post offices open. Despite needing to save money, he feels the Postal Service needs to provide access for its customers; it is counterproductive to close offices.

Levi asked if the dynamics had changed on both committees since the November elections—are there new challenges?

Post said they were very sorry to see Dennis Ross leave the House committee, but Rep. Blake Farenthold (R-TX), has been very engaged in the issues. “The committee won’t miss a beat,” he declared.

Kilvington said the Senate Committee has lost Sens. Joe Lieberman and Susan Collins—both who worked hard on postal issues. But despite some people’s fears, Sen. Tom Coburn (R-TX), the ranking Republican, does not want to dismantle the Postal Service; he wants to do what works. Also, the committee this year is skewed more rural.

Levi brought up the issue of six- versus five-day delivery. He referred to the Postmaster General’s statement that the USPS will implement five-day delivery on Aug. 4. “How does that statement affect postal reform,” he asked.

Post said the announcement has impacted the debate. Issa supports the plan and hopes the PMG will move forward with implementation. He feels this is just one part of where the Postal Service needs to be, but it also needs to focus on other things. Issa also supports shifting to more curbside and cluster-box deliveries.

Kilvington said Carper has long felt the Postal Service should have the authority to change delivery schedules. But does the PMG have the authority to change to five-day delivery? This makes it more important to clarify the agency’s authority. Carper supports maintaining Saturday delivery of packages as it is a competitive advantage.

Regardless of the posturing, Kilvington said Congress needs a bill. The Postal Service claims going to five-day delivery will save $2 billion a year; that still leaves $18 billion. It is just one of the many issues still to be tackled.

Levi prefaced the 2006 Postal Accountability and Enhancement Act. He said the legislation did a lot for accountability, but not so much for enhancement. “Looking back,” he queried, “if you had to do it all again, what would be different?”

Kilvington said Carper regrets two things: the restrictions on Postal Service products and service—it needs the authority to do other things and offer more services—and prefunding. In 2006, mail volume was at its peak. No one anticipated the impending recession or the impact electronic diversion would have. In hindsight, the prefunding would have been structured more affordably and tied to what the agency owed—not complicated congressional budget rules.

At the same time, though, the legislation was not a failure. The rate caps have allowed the USPS to change rates more quickly.

Post said Issa’s biggest regret is the timing; it would have done more good things if it had been passed much earlier. Two of the positives, though, are the rate caps and prefunding reforms, which were intended as long-term issues. The rate caps forced the agency to become more efficient and look at savings.

In response to a comment from the floor that Congress is not as quick to provide postal relief as it was to help the auto industry, Kilvington stressed to Postmasters the importance of educating Congress about the Postal Service’s challenges—there just isn’t the knowledge of what the USPS needs.

Post echoed these thoughts, saying, “Should the mail stop, Congress would intervene; but it keeps coming.” Those who are aware, understand the prefunding issue. The other issues, though, Congress has its own ideas.

Also, there are a number of postal groups pulling Congress in different directions. Kilvington said NAPUS is a great group with which to work—it is realistic about what needs to happen and its main goal is to keep the Postal Service open.

Kilvington and Post agreed postal reform legislation is a high priority for both Carper and Issa.