U.S. senators again $46 billion in monetary reduction for Postal Service By Reuters

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© Reuters. FILE PHOTO: A U.S. Postal Service (USPS) brand is pictured on a mail field within the Manhattan borough of New York Metropolis, New York, U.S., August 21, 2020. REUTERS/Carlo Allegri

By David Shepardson

WASHINGTON (Reuters) -A bipartisan group of 20 U.S. senators on Wednesday launched laws to offer the cash-strapped U.S. Postal Service (USPS) with $46 billion in monetary reduction over 10 years.

The U.S. Home of Representatives Oversight and Reform Committee voted unanimously to approve companion laws final week.

The laws would get rid of a requirement USPS pre-fund retiree well being advantages for 75 years and would require postal staff to enroll within the Medicare government-retiree well being plan. As a substitute USPS would pay a small, yearly “high up” fee to handle precise annual retiree prices.

“This common sense, bipartisan laws would assist put the Postal Service on a sustainable monetary footing,” mentioned Senator Gary Peters, a Democrat who chairs the panel that oversees the Postal Service.

The Postal Service has struggled with poor supply efficiency over the previous yr, dealing with an enormous enhance in packages and COVID-19 staffing points.

The invoice would require USPS to keep up supply for six days per week.

In March, Postmaster Common Louis DeJoy proposed a 10-year strategic plan that might get rid of $160 billion in forecasted purple ink by slowing some mail deliveries, slicing some retail hours and shutting some areas.

DeJoy advised Reuters in March that motion was urgently wanted. “We’re shedding $10 billion a yr – gotta repair it,” he mentioned.

USPS needs President Joe Biden’s administration to calculate pension obligations utilizing “trendy actuarial rules” that might save an additional $12 billion.

USPS has reported web losses of $86.7 billion since 2007. One purpose is 2006 laws mandating that it pre-fund greater than $120 billion in retiree healthcare and pension liabilities, a requirement that labor unions have referred to as an unfair burden not shared by different companies.

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