Pappas Votes to Pass Postal Service Reform Act of 2022
Today, Congressman Chris Pappas (NH-01) voted to pass the Postal Service Reform Act of 2022, legislation that will make urgently-needed reforms to ensure the health and longevity of the U.S. Postal Service.
"The U.S. Postal Service is a bedrock institution that delivers for Granite State households, businesses, and communities," said Congressman Chris Pappas. "The USPS has continued to provide critical service all while in need of significant operating reforms, without which the long-term stability and integrity of the Postal Service is in jeopardy. That is why I voted today to pass this bipartisan legislation to preserve and strengthen this popular American institution, and I urge my colleagues in the Senate to quickly send this bill to President Biden's desk."
The legislation requires Medicare integration for future retirees, eliminating the requirement to pre-fund retiree health benefits for 75 years in the future - something no private company or other federal entity is required to do - develop performance transparency measures, implement six-day integrated delivery, and allow USPS to offer non-postal services for state and local governments.
Key provisions of the Postal Service Reform Act of 2022 include:
Medicare Integration: The Postal Service Reform Act of 2021 would require future Postal Service retirees, who have been paying into Medicare their entire careers, enrolling in Medicare. Currently, roughly a quarter of postal retirees do not enroll in Medicare even though they are eligible. This means the Postal Service is stuck paying far higher premiums than any other public or private sector employer. By more closely integrating Medicare, the Postal Service estimates it could save approximately $22.6 billion over 10 years.
Eliminating the Requirement to Prefund Retiree Health Benefits: The Postal Service Reform Act of 2021 would eliminate the requirement that the Postal Service pre-fund retiree health benefits for all current and retired employees for 75 years in the future. No private company or other federal government entity is required to comply with such a burdensome requirement. The Postal Service estimates this provision would drastically reduce its prefunding liability and allow it to save roughly $27 billion over 10 years.
Service Performance Transparency: The Postal Service Reform Act of 2021 would require the Postal Service to develop a public-facing, online dashboard with national and local level service performance data updated each week to provide additional transparency and promote compliance with on-time delivery of mail.
Six-Day Integrated Delivery: The Postal Service Reform Act of 2021 would require the Postal Service to deliver both mail and packages at least six days per week across an integrated network.
Non-Postal Services: The Postal Service Reform Act of 2021 would allow the Postal Service to enter into agreements with State, local, and tribal governments to provide non-commercial 2 property and services that provide enhanced value, do not detract from core postal services, and provide a reasonable contribution to Postal Service institutional costs.
The U.S. Postal Service funds the universal mail service it provides to nearly 159 million delivery points solely through the sale of postage. USPS adds one million new delivery points every year.
In August 2020, Pappas voted to pass H.R. 8015, the Delivering for America Act, which would prohibit the Postal Service from implementing or approving any changes to the operations or service levels in effect on January 1, 2020, that would impede prompt, reliable, and efficient service.
Congressman Pappas led 31 Members of Congress in calling on Health and Human Services Secretary Azar to publicly defend USPS, urging him to "convey to the President and the public the significant negative impact that a reduction in USPS service would have on our health care system."
He also called on the United States Postal Service Office of the Inspector General to investigate a media report that the USPS sold a mail sorting machine at the facility on Goffs Falls Road in Manchester for scrap parts to a man from Pennsylvania. The report came as the Postmaster-General has spent months systematically attacking the Postal Service and undermining services that veterans, seniors, and voters rely on every day.
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