BREAKING: Shaheen Celebrates Biden’s Signature on Historic Bipartisan Bill to Strengthen the Postal ServiceApril 06, 2022
(Washington, DC) – U.S. Senator Jeanne Shaheen (D-NH) today applauded President Biden for signing into law the Postal Service Reform Act of 2022. This bipartisan bill Shaheen supported provides key reforms to address longstanding financial and structural issues faced by the U.S. Postal Service, which have hurt postal workers and communities dependent on delivery of essential items.
“The USPS has struggled to maintain operations and remain solvent for years, but the pandemic exacerbated those issues and threatened its survival like never before. These challenges put in jeopardy the ability of the USPS to continue its essential work delivering packages, benefits checks, ballots and more to communities across the nation,” said Shaheen. “That’s why Congress took action to modernize this institution and strengthen its financial standing, and I’m thrilled our bipartisan bill is now law. This legislation is a win for postal workers and generations of Americans who rely on this centuries-old institution to remain strong.”
Key provisions of the Postal Service Reform Act of 2022 include:
- Medicare Integration: The Postal Service Reform Act of 2022 would require future Postal Service retirees, who have been paying into Medicare their entire careers, enrolling in Medicare. Currently, roughly a quarter of postal retirees do not enroll in Medicare even though they are eligible. This means the Postal Service is stuck paying far higher premiums than any other public or private sector employer. By more closely integrating Medicare, the Postal Service estimates it could save approximately $22.6 billion over 10 years.
- Eliminating the Requirement to Prefund Retiree Health Benefits: The Postal Service Reform Act of 2022 would eliminate the requirement that the Postal Service pre-fund retiree health benefits for all current and retired employees for 75 years in the future. No private company or other federal government entity is required to comply with such a burdensome requirement. The Postal Service estimates this provision would drastically reduce its prefunding liability and allow it to save roughly $27 billion over 10 years.
- Service Performance Transparency: The Postal Service Reform Act of 2022 would require the Postal Service to develop a public-facing, online dashboard with national and local level service performance data updated each week to provide additional transparency and promote compliance with on-time delivery of mail.
- Six-Day Integrated Delivery: The Postal Service Reform Act 2022 would require the Postal Service to deliver both mail and packages at least six days per week across an integrated network.
- Non-Postal Services: The Postal Service Reform Act of 2022 would allow the Postal Service to enter into agreements with State, local, and tribal governments to provide non-commercial property and services that provide enhanced value, do not detract from core postal services and provide a reasonable contribution to Postal Service institutional costs.
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