The Postal Accountability and Enhancement Act of 2006 (PAEA) ushered in a new regulatory structure for the U.S. Postal Service. One key element was a price cap on market dominant products. (Most of the Postal Service's products are market dominant.) This means that price increases for market dominant products are capped by the rate of inflation as measured by the Consumer Price Index (CPI).
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.
News about disappearing collection boxes is everywhere these days. Even BBC News ran a story on the decline of the blue collection box in the United States.
The Postal Service argues that picking up mail from collection boxes is expensive. Removing underused boxes is a cost savings move and a reasonable response to the economic crisis. The Postal Service is removing boxes with less than 25 stamped mail pieces per day.
As noted in the update on Wednesday, there was a tremendous response to last week’s brainstorming exercise! As of Friday afternoon there were almost 350 comments posted -- many more than usual! If nothing else, this shows widespread and heartfelt concern for the well-being and financial viability of the Postal Service. Not only was the quantity of postings notable, so was the variety of ideas; they covered a broad spectrum, from cost-cutting possibilities to new lines of business.
In developing countries, postal services are often critical to reaching a vast underprivileged populace. How do posts in these countries cope with the tension between their universal service obligation and financial viability? A look at today’s India Post offers some insights. First founded under British colonial rule 150 years ago, India Post connects India’s people through a network of more than 150,000 post offices. More than 80 percent of these post offices are in rural areas, where residents primarily depend on postal services to communicate with the outside world.
If you’re reading this blog, you likely have an interest in the Postal Service and its financial welfare. How can the Postal Service provide you and other stakeholders with the most appropriate financial information? When the Postal Accountability and Enhancement Act (the Act) was enacted on December 20, 2006, it made significant changes to the Postal Service’s financial reporting responsibilities and governance.