Industry groups supported a General Accounting Office position recommending Congress repeal part of a new law affecting the U.S. Postal Service.

The part the mailing groups support involves pulling back on establishing an escrow account for money the USPS will save from not having to fund some of its past employee pension obligations. But at the same time, they were against GAO suggestions that all self-supporting federal agencies, including the USPS, pay the military components of Civil Service Retirement System (CSRS) benefits.

Last April, Congress enacted Public Law 108-18, which lowered the USPS’ annual CSRS payment obligation by $2.5 billion per year beginning in fiscal 2003, averting a rate case until 2006.

The GAO recommended that Congress repeal sections of the law specifying the USPS put into escrow money it will have saved from not having to pay some of its retirees’ pension obligations.

Bob McLean, executive director of the Mailers Council, said the USPS could make better use of the money without being told by Congress exactly how to spend it.

As for the military obligations requirement,

ndustry groups supported a General Accounting Office position recommending Congress repeal part of a new law affecting the U.S. Postal Service.

The part the mailing groups support involves pulling back on establishing an escrow account for money the USPS will save from not having to fund some of its past employee pension obligations.

At the same time, they were against GAO suggestions that all self-supporting federal agencies, including the USPS, pay the military components of Civil Service Retirement System (CSRS) benefits.

Last April, Congress enacted Public Law 108-18, which lowered the USPS’s annual payment CSRS obligation by $2.5 billion per year beginning in fiscal 2003, averting a rate case until 2006.

The GAO recommended that Congress repeal sections of the law that specified the USPS put into escrow money it will have saved from not having to pay some of its retirees’ pension obligations.

Bob McLean, executive director of the Mailers Council asserted that the USPS could also make better use of the money without being told by Congress exactly how to spend it.

As for the military obligations requirement, “This essentially makes the postal service the only agency to pay its military obligations,” said Direct Marketing Association spokesman Louis Mastria. “We want to see a level playing field.”

This whole issue dates back to last fall when the USPS discovered it had grossly miscalculated the amount of money it had to pay retiring employees. With a change in the law about how retirees are paid, the USPS could hold off increasing rates until 2006 if certain laws were changed (Direct Newsline, Nov. 5. 2002).

For the next few months, mailer groups worked feverishly to lobby Congress to change those laws resulting in Public Law 108-18 last April.

Industry groups supported a General Accounting Office position recommending Congress repeal part of a new law affecting the U.S. Postal Service.

The part the mailing groups support involves pulling back on establishing an escrow account for money the USPS will save from not having to fund some of its past employee pension obligations.

At the same time, they were against GAO suggestions that all self-supporting federal agencies, including the USPS, pay the military components of Civil Service Retirement System (CSRS) benefits.

Last April, Congress enacted Public Law 108-18, which lowered the USPS’s annual payment CSRS obligation by $2.5 billion per year beginning in fiscal 2003, averting a rate case until 2006.

The GAO recommended that Congress repeal sections of the law that specified the USPS put into escrow money it will have saved from not having to pay some of its retirees’ pension obligations.

Bob McLean, executive director of the Mailers Council asserted that the USPS could also make better use of the money without being told by Congress exactly how to spend it.

As for the military obligations requirement, “This essentially makes the postal service the only agency to pay its military obligations,” said Direct Marketing Association spokesman Louis Mastria. “We want to see a level playing field.”

This whole issue dates back to last fall when the USPS discovered it had grossly miscalculated the amount of money it had to pay retiring employees. With a change in the law about how retirees are paid, the USPS could hold off increasing rates until 2006 if certain laws were changed (Direct Newsline, Nov. 5. 2002).

For the next few months, mailer groups worked feverishly to lobby Congress to change those laws resulting in Public Law 108-18 last April.