1. National Postal Policy Council (NPPC)
Linda Malone
Vice President, Network Operations
May 10, 2016

2. Agenda
USPS Financials
Service Performance Update
Remittance Update
Secure Destruction
PARs Information
Questions

3. USPS Financials

4. Financial Results Revenue - Revenue was $1.4B above SPLY.
Controllable Expenses - Expenses were $1.0B above SPLY.
Salaries & Benefits
SPLY overrun of $551M: 17.2M hours overrun in total work hours resulted in a $719M overrun. Offset by a $145M underrun in average mix and rate in the field, and $23M underrun in leave liability adjustment. YTD March has one more delivery day compared to SPLY.
Transportation
SPLY overrun is mostly from 3R Air Transportation of $172M FedEx Day
1 - Estimated.
2 - Before RHB pre-funding, FERS unfunded liability amortization, and non-cash adjustments to workers’ compensation liabilities.
3 - March YTD FY2016 has one more retail and delivery day as compared to FY2015.

5. Service Performance Update

6. First-Class Composite
YTD
91.59
Q3TD
93.13
Actual
SPLY Var
+3.51
+6.25
YTD/Q3TD: SPFC thru Apr 22, 2016, Presort Apr 15, 2016

7. First-Class Overnight
YTD
95.71
Q3TD
96.18
Actual
SPLY Var
+0.23
+1.44
YTD/Q3TD: SPFC thru Apr 22, 2016, Presort Apr 15, 2016

8. First-Class 2-Day 93.95 95.13 +1.76 +2.53 YTD Q3TD Actual SPLY Var
YTD/Q3TD: SPFC thru Apr 22, 2016, Presort Apr 15, 2016

9. First-Class 3-5 Day 88.43 91.19 +6.11 +9.95 YTD Q3TD Actual SPLY Var
YTD/Q3TD: SPFC thru Apr 22, 2016, Presort Apr 15, 2016

10. First-Class Presort 3-5 Day - Air
YTD
89.22
Q3TD
94.00
Actual
Target Var
(6.03)
(1.25)
95.25
First-Class Presort 3-5 Day Air
UCL/LCL
Target
QTD: Presort thru Apr 29, 2016
Presort does not include LMF

11. First-Class Presort 3-5 Day - Surface
YTD
93.64
Q3TD
96.21
Actual
Target Var
(1.61)
+0.96
95.25
First-Class Presort 3-5 Day Surface
UCL/LCL
Target
QTD: Presort thru Apr 29, 2016
Presort does not include LMF

12. Scanning 97.17 97.47 +0.50 +0.77 YTD Q3TD Actual SPLY Var
YTD/Q3TD thru Apr 29, 2016

13. Phoenix Hecht Remittance Survey Results – Fall 2015-02

14. PH Fall

15. Nationally improved by 1.8 hours
PH Fall
Nationally improved by 1.8 hours
Improved in 22 out of the 28 cities measured
11 Cities achieved below 50 hours
10 cities improved by 4 or more hours versus the previous survey
Caller handoff metric improved by 1.5 hours

16. Just completed the Spring survey this week
PH Spring
Just completed the Spring survey this week
Focused on:
Customer-USPS partnership related to mail availability and communication
Internal operational optimization
Expect official results by the end of June

17. Secure Destruction

18. SD Program Overview
Each year USPS® returns over 1.2 billion pieces of Undeliverable-As- Addressed (UAA) First-Class Mail® to mailers
Large mailers send mail that is processed at USPS® facilities prior to being sent out for delivery.
Secure Destruction eliminates UAA Return to Sender mail at the USPS® facility.
Secure Destruction Service
Secure Destruction was created in response to mailers asking to reduce handling costs for “Return to Sender” mail with Personal Protected Information (PPI)
Applies only to letter-sized First-Class Mail®
Performed by USPS® employees in USPS® facilities
An opt-in service for mailers provided at no additional fee

19. Federal Government Records
SD Program Overview
Secure Destruction may be of interest to mailers who face the risk of liabilities if they don’t properly and securely destroy Personal Protected Information (PPI)
Protected by…
Protected by…
Target Types of PPI
Health Records
Student Records
Credit Card Records
Consumer Records
Financial Records
Health Insurance Portability and Accountability Act of 1996
Financial Services Modernization Act of 1999
Protected by…
State Security Breach Notification Laws
Protected by...
Federal Government Records
Family Educational Rights and Privacy Act of 1974
Protected by…
Governed by…
Privacy Act of 1974
Payment Card Industry Data Security Standard

20. SD Program Overview
Existing and new equipment will be used to complete the process 1 2 3
USPS® CIOSS Undeliverable Mail Processing (PARS)
Letter-size First-Class Mail® enters the USPS® Combined Input-Output Sub System (CIOSS) processing facility.
Label and Sort Mailpieces
UAA RTS mail is labeled and sorted for Secure Destruction.
Verify Mailpieces
All SD mail is verified by USPS® employees prior to destruction.
Shred Mailpieces
All verified SD mail is fed into an industrial cross-cut shredder at the USPS® facility.
Recycle Shredded Paper
USPS® facilities recycle shredded SD mail. 5 4
Secure Destruction is a part of the USPS® BlueEarth sustainability initiatives. The service securely shreds and recycles letter-size pieces of Undeliverable-As-Addressed (UAA) First-Class Mail® with personal protected information that would otherwise be returned to the sender. Secure Destruction is an opt-in service that operates under the protection and supervision of the United States Postal Service.

21. Receiving electronic notifications is a Two Part Process*
Notification of new address or reason for non-delivery is provided to mailer via ACS™
Secure Destruction Data is associated with the IMb™ and is provided in a separate report
* All mailer SD eNotification records are provided daily in reports available to registered mailers through the customer Electronic Product Fulfillment (EPF) customer portal website. Reports provide mail piece IMb™, the date, time and 5 digit of the Postal Facility where the mail piece was routed for the Secure Destruction.

22. SD Program Overview
Securely destroying mail within USPS® processing facilities provides three types of benefits:
Environmental - Reduces the carbon footprint of UAA mail through recycling and eliminating unnecessary reverse logistics associated with returning mailpieces to the sender
Economic - Reduces the costs for mailers for handling and destroying RTS mail in-house or through third party contactors
Security - Strengthens mailers’ information security programs, processes, and procedures

23. FY14, FY15 and FY16 (YTD – thru 3/31/16)
Mail Processing Stats
Total SD Mail Volumes
FY14, FY15 and FY16 (YTD – thru 3/31/16)

24. SD Mailer Update

25. Outreach Overview Ongoing Mailer Communications and Outreach
RIBBS SD Webpage
RIBBS PCC Webpage
Mailer Industry Alerts
SD Earth Day Industry Alert Article (issued April 20th)
Industry Alert on SD Workshop-in-a- Box Update on RIBBS PCC Page (May release)
Individualized SD Presentations to interested mailers
Public Presentations at Conferences and Meetings (e.g. GSA’s Last Known Address Interagency Workgroup, Nat’l Postal Forum, etc.)

26. SD Enrollment
For Additional Information on Secure Destruction visit the RIBBS SD Webpage at:
SD Enrollment and eNotification Questions?... Contact the National Customer Support Center at:
Phone: , option 1
Other SD Questions? …Contact the USPS
Office of Sustainability SD Program Management Team
Phone:

27. PARS Information

28. First Class Mail Statistics Report
PARs Information
First Class Mail Statistics Report
Total Processed
Local
Non-Local
Returned
Waste Mail
Other
ACS
Jan-16
72,610,540
4,956,000
18,598,100
28,146,514
2,182,599
18,727,327
42,254,444
Feb-16
74,177,394
4,245,171
15,963,764
31,997,475
2,418,257
19,552,727
43,860,891
Mar-16
70,254,696
4,061,889
14,544,669
30,495,588
2,665,401
18,487,149
41,427,070
Apr-16
62,459,722
3,775,930
12,806,962
27,388,639
1,984,141
16,504,050
37,000,257
Total
279,502,352
17,038,990
61,913,495
118,028,216
9,250,398
73,271,253
Percentage
100.0%
6.1%
22.2%
42.2%
3.3%
26.2%
Definitions
Processed
Pieces accepted for processing
Addressed to SCFs defined as local in the zone table
The inverse of Local, i.e. all the rest of the SCFs
Returned to the sender
Waste
Disposed of by mailer request or due to the mail class of the piece
All volume returned to the Carrier (No-Record, Temp Expired,
Current Resident, Temp Not Effective)
An Address Correction notification was processed based on the endorsement
or Service Type Identified in the IMb

29. Questions & Open Discussion