National Rural Letter Carriers’ Legislative Update Mid States Conference 2011 Kevin P. Talley Assistant Director of Governmental Affairs

Topics of Discussion Politics of 112 th Congress USPS Finances U.S. Senate U.S. House of Representatives PAC Totals

112 th Congress House of Representatives 241 Republicans 192 Democrats 2 Vacancies

112 th Congress – House of Representatives

112 th Congress U.S. Senate 51 Democrats 2 Independents (D) 46 Republicans 1 Vacancy

112 th Congress – U.S. Senate

* Includes CSRS and FERS pension funding for postal and federal. This is calculated from the Postal Service’s 2009 Annual Report and the Notes to the 2009 Financial Statements of the United States ( † S&P 500 companies. ‡ Watson Wyatt, Accounting for Pensions and Other Postretirement Benefits The study includes Fortune 1000 Companies that prefund, but 28 percent (for 2008) is exaggerated because 63 percent of companies do not prefund. Benchmark for Pension Standards Gold Standard: 80% for Pensions 30% for Health

Senate Bills Senator Carper Modifies the methodology for calculating the CSRS surplus, $$ can be transferred to the PSRHBF FERS Pension Surplus $$ Returned Arbitrator language to consider: – Financial Condition of the USPS – Flexibilities and restraints in the rate system – Pay and compensation for comparable levels of work in the private sector – Render disputes in 45 days Ability to close post offices and facilities Repeal 6 day delivery language Senator Collins S. 353 Directs OPM to use existing authority to change the methodology for calculating the CSRS surplus, $$ can be transferred to the PSRHBF Directs OPM to use existing authority to change the methodology for calculating the CSRS surplus, $$ can be transferred to the PSRHBF Arbitrator language to consider: Arbitrator language to consider: – Financial Condition of the USPS Converts federal and postal employees on workers’ comp. to retirement upon retirement age (S. 261) Converts federal and postal employees on workers’ comp. to retirement upon retirement age (S. 261)

Arbitration Language (suggested) Option #1: LABOR DISPUTES.—Section 1207(c) of title 39, United States Code, is amended by adding at the end the following:”(d) Nothing in this Title shall be construed to limit factors an arbitrator may take into consideration in rendering a decision pursuant to this subsection.“ Option #2: The arbitration board shall consider both the financial condition of the Postal Service and the objective of maintaining postal employees’ compensation relative to inflation in making any decision

Senate Appropriations Financial Services & General Government Subcommittee Democrats: Sen. Richard Durbin (IL)-Chair -Position on 6 day delivery: Uncommitted; traditionally favors maintaining 6 day delivery Sen. Frank Lautenberg (NJ) -Position on 6 day delivery: Uncommitted; traditionally favors maintaining 6 day delivery Sen. Ben Nelson (NE) -Position on 6 day delivery: Favors maintaining 6 day delivery Republicans: Sen. Jerry Moran (KS)-Ranking Member -Position on 6 day delivery: Uncommitted; traditionally favors maintaining 6 day delivery Sen. Mark Kirk (IL) - Position on 6 day delivery: Uncommitted

House of Representatives – 112 th Congress H.R – USPS Pension Obligation Recalculation and Restoration Act of 2011 Introduced by Rep. Lynch (D-MA) on 4/4/11. Direct OPM, within 6 months of enactment, to recalculate USPS' past, present, and future CSRS pension obligation for those employees that served as both federal workers prior to 1971 and postal employees post-1971, using an updated methodology.  Any resulting surplus from recalculation is then transferred over to the USPS Retiree Health Benefit Fund. Immediate repayment of the USPS FERS surplus of $6.9 billion.  Would apply $5.5B towards USPS FY11 Retiree Health Benefits payment, $1.2B towards the upcoming USPS workers compensation payment, and the resulting $200M applied to existing treasury debt. 65 co-sponsors (as of 5/6/11). [only 1 Republican has signed on]

112 th Congress Rep. Issa Bill Unclear on content of bill, but may address CSRS/FERS overpayment, USPS management structure, and reduce costs at USPS. Expected to be introduced by July Tough decisions will be made, but we will be at the table throughout the process.

House of Representatives – 112 th Congress Maintaining 6-Day Delivery PRC Report shows eliminating Saturday would save only $1.7 billion (not USPS estimate of $3.1 billion) $484 million would come from Rural Carriers. Net revenue lost - $0.6 billion. Average 25% of First-Class and Priority mail to be delayed by 2 days.  All Members (7 R, 4 D) of the House Appropriations subcommittee on Financial Services and General Government support maintaining 6-day delivery.

House of Representatives – 112 th Congress H.Res. 137 – 6-day Bill Introduced by Rep. Sam Graves (R-MO). “…the sense of the House of Representatives that the United States Postal Service should take all appropriate measures to ensure the continuation of its 6-day mail delivery service.” 124 co-sponsors (as of 5/6/11)

House of Representatives – 112 th Congress H.R – Reform USPS for the 21 st Century Act Introduced by Rep. Gerry Connolly (D-VA) The scope of this bill is to tackle a long-list of USPS related initiatives. Some of the items included are: Vote By Mail “Forever Box" Electric Vehicles Nonpostal Products and Services Small Business Mailing Pools Electronic Post Office Box Services 11 co-sponsors (as of 5/6/11)

StateMembersAggregatePer Capita Iowa2488$20,382.00$8.19 Illinois4390$10,530.00$2.40 Indiana3540$4,038.80$1.14 Kansas1626$15,808.50$9.72 Michigan4542$14,886.98$3.28 Minnesota3163$4,214.00$1.33 Missouri3565$17,729.48$4.97 North Dakota686$3,049.00$4.44 Nebraska1490$4,073.50$2.73 Ohio4490$16,624.21$3.70 South Dakota756$2,564.50$3.39 Wisconsin3758$12,120.00$3.23 Middle States34494$126,020.97$3.65 National Avg107609$335,014.26$3.11

Conclusion