***Thompson Communicates Principles on Postal Reform***

September 27, 2011

Washington, D.C. – U.S. Representative Glenn ‘GT’ Thompson today wrote the following letter to local union representatives of the U.S. Postal Service (USPS). Thompson issued the letter after “informational rallies” were held by four USPS national employee union groups, including the National Rural Letter Carriers' Association, at his Bellefonte and Titusville offices. Included with the letter was a fact sheet outlining Thompson’s previous policy positions and research on several USPS reform proposals, including H.R 1351, a bill advocated by the USPS’s national unions.

Full text of the letter:

September 27, 2011

Dear United States Postal Service Employees:

Thank you for taking the time to visit my office and voice your concerns.

As you all know, our country is experiencing very difficult economic times, and the United States Postal Service (USPS) has not been immune to these challenges. Having met with many of you before, I know we share the commitment to securing a viable economic future for the USPS, which has provided a stable source of employment for so many and essential mail services to our rural communities.

Recently, the USPS proposed a new series of cost-cutting proposals. These measures include office closures, many of which are small, rural providers, suspension of the current six day per week delivery requirement, cutting down excess capacity, and restructuring health care plans.

Unfortunately, these new proposals come just after the USPS, beginning in 2006, implemented aggressive reforms to employment and budgets throughout its operations. Despite these efforts, in 2011, the USPS faces a deficit of $8.5 billion and mail volumes continue to decline, down 20% since 2006. This is why we must enact serious structural reforms that will allow the Postal Service the flexibility and mandate to run independently and efficiently.

There are several key areas in which I know we see eye-to-eye. For example, a reduction in the number of rural post offices could be potentially harmful in the long-run, costing the USPS additional losses in revenue, not to mention jobs and access for those of us living in rural America. I have met with my constituents, USPS employees and contractors with regard to these concerns, and continue to engage Administration officials to ensure any of the proposed offices for closure will not disproportionately impact our rural communities.

I’ve also been insistent that any proposal to end or curtail six day mail delivery should be considered only as a last resort. Proposals to trim back mail delivery to five days hits rural America especially hard, and may be shortsighted, as competitors take over this service. For these reasons, I've supported previous efforts to protect six day mail delivery, including H.Res.173 in the 111th Congress.

On the issue of retiree health benefit requirements, last Congress I supported a short-term reprieve of the 2006 “pre-fund” mandate. This requirement needs to be reexamined in order to ensure the payment structure is economically feasible. Ultimately, without a nationally competitive business model put forward by the USPS, its future financial viability cannot be secured.

Without a doubt, the USPS's financial problems are as complex as they are urgent. Your attendance here today is testament to this unfortunate reality. As the USPS, Executive Branch, Administration officials, and Congress move forward in this important process, I will continue to represent and advocate the best interests of our local economies and rural communities.

Thank you again for visiting my office. I look forward to working with you in the days and weeks ahead.

Sincerely,

Glenn ‘GT’ Thompson

Thompson’s Support for the USPS and USPS Employees

Ensuring USPS’s Current, Long-Term Solvency: “…last Congress I supported a short-term reprieve of the 2006 “pre-fund” mandate. This requirement needs to be reexamined in order to ensure the payment structure is economically feasible. Ultimately, without a nationally competitive business model put forward by the USPS, its future financial viability cannot be secured…”

Thompson supported a short-term reprieve of the 2009 payment by voting to support H.R. 22 during the 111th Congress. H.R. 22 would require USPS to make annual payments into the fund consisting of a contribution to cover predicted retirement health care costs of current postal workers and interest on the contribution owed for both current and future annuitants. (Roll Call Vote, 9/27/11)
The Postal Service Inspector General, Office of Personnel Management, and the Postal Regulatory Commission all agree that the pre-funding is necessary at certain levels. (USPS, 7/22/09)

Advocating for Rural Letter Carriers: “I’ve also been insistent that any proposal to end or curtail six day mail delivery should be considered only as a last resort. Proposals to trim back mail delivery to five days hits rural America especially hard, and may be shortsighted, as competitors take over this service...”

Thompson supported H.Res.173 during in the 111th Congress, a resolution of support for keeping 6-day mail delivery. Additionally, Congressman Thompson continues to support the Social Security Fairness Act, which would have repealed the Government Pension Offset and the Windfall Elimination Provision. (Thomas.gov, 9/27/11)

Washington Post’s Editorial Page: “On Tuesday, Postmaster General Patrick Donahoe announced that 3,653 local post offices are being studied for closure. But closing post offices will not resolve the USPS’s problems. Eighty percent of the Postal Service’s current costs stem from labor — a higher percentage than more than 30 years ago, when the USPS lacked automation...” (Washington Post, 7/28/11)

Facing the Facts: “Despite these efforts, in 2011, the USPS faces a deficit of $8.5 billion and mail volumes continue to decline, down 20% since 2006. This is why we must enact serious structural reforms that will allow the Postal Service the flexibility and mandate to run independently and efficiently…”

H.R. 1351 would change a 40 year old formula that has long been agreed upon to create an “overpayment” in the range of $75 billion. This agreement, which stated that the USPS would operate separate of Congressional financial oversight, mandated that the Service be responsible for pension increases of employees to the Civil Service Retirement Fund resulting from wage increases. The Postal Service stated in 1973 that, “The Postal Service has concluded that it is proper, as a matter of principle, for these costs to be imposed on postal ratepayers rather than the taxpayers.” (USPS, 3/27/73)
The non-partisan Congressional Research Service has stated that H.R. 1351 would put a tremendous burden on taxpayers and offer a “zero-sum game” without fixing any of the Postal Service’s issues. (CRS, 2/24/11)
Washington Post’s Editorial Page: “The biggest crisis surrounding the U.S. Postal Service is the fact that no one seems to notice how bad the crisis is…Facing a deficit of $8 billion this year, the Postal Service will default on its obligations by October and leave taxpayers footing the bill unless serious changes are made….”(Washington Post, 7/28/11)

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