Recent Government Accountability Office testimony to Congress stated processing capacity for First-Class Mail exceeds processing needs by 50 percent, and analysis by industry experts indicates an additional drop of 35 billion pieces in First-Class Mail by 2020. With mail volume declining, does this provide an opportunity for the Postal Service to capture savings by adopting industry best practices in its First-Class Mail processing operations?
The Federal Employees’ Retirement System (FERS) is one of the retirement programs of the U.S. government, and benefits are extended to U.S. Postal Service employees. FERS is administered by the Office of Personnel Management (OPM). Congress established the guidelines for OPM to set contribution rates and can alter them by passing new law or amending an existing law. Postal Service employees who began their careers after December 31, 1983, are automatically enrolled in the FERS. For Postal Service employees, a majority of FERS funding is accomplished through Postal Service contributions.
The debate about the Postal Service’s future is heating up and Pushing the Envelope is interested in your views. Last week the Senate Subcommittee on Federal Financial Management, Government Information, Federal Services, and International Security held a hearing on the Future of the Postal Service. The week before there was a hearing in the House on the Postal Service’s financial crisis and future viability, and on April 12, the Government Accountability Office issued a report laying out the strategies and options to maintain the Postal Service’s viability.
Public policy debates about solving the Postal Service’s financial crisis have largely focused on reducing costs by cutting service such as Saturday delivery, transitioning from brick and mortar post offices to alternative retail sales channels, or limiting other functions performed by the Postal Service. There has been less talk about the costs of meeting delivery service standards, which were reviewed following the passage of the Postal Accountability and Enhancement Act of 2006.
The Postal Service is required by law to “provide, reliable, and efficient services to patrons in all areas and shall render postal services to all communities.” Consequently, the Postal Service has the largest retail presence in America with more than 32,000 leased or owned facilities located across the country. Today, alternate access channels are widely available. Customers can purchase stamps and access services at the Postal Service’s website www.usps.com, self-serve kiosks, grocery stores, retail outlets, and privately-operated shipper locations.