As Mail Handlers are now aware, Postmaster General David Steiner announced earlier this year that if the United States Postal Service continues operations as usual, it is set to run out of money by the end of the year. In order to meet performance standards for customers without impacting employment, the Postal Service enacted cost saving measures to help lessen financial stress in the short run while long term solutions are created. The National Postal Mail Handlers Union has received questions from members regarding the Postal Service’s decision to defer its payments to the Federal Employee Retirement System (FERS) for the remainder of the fiscal year. The Postal Service estimates this deferment will make about $2.5 billion available. Rest assured, current and retired Mail Handlers and all postal employees will not be immediately impacted by this temporary suspension. The Office of Personnel Management (OPM) is still obligated to meet USPS retirement payments and there will not be a lapse in annuities.
While this action is temporary, there are fiscal changes that can be made that would be beneficial in the long run.
The Civil Service Retirement System (CSRS) is the older of the retirement programs and only applies to postal and federal employees hired before 1984 and only covers a minority of postal employees. USPS pays for a disproportionate amount for CSRS employees who worked for both the Department of the Post Office, as it existed before 1971, and the current USPS. The methodology for calculating USPS CSRS expenses misconstrues employees’ salary and USPS is required to cover the full cost of CSRS benefits — which does not apply to other federal agencies.
The USPS Office of Inspector General, USPS, NPMHU and other stakeholders have all called for action from the Executive Office to update allocation methodologies for CSRS payments which, according to the Postal Service, could provide $14 billion in savings over ten years.
The Postal Service is also handcuffed by how it can invest its retirement funds, as they are managed by the Office of Personnel Management and the Treasury Department. Currently, these funds are required to be invested in Treasury securities, which generate low rates of return. The OIG has repeatedly reported that if USPS were already allowed diversified investments of 60 percent stocks and 40 percent bonds would have generated billions in previous fiscal years. Appropriately investing retirement funds would lower the Postal Service’s retirement costs.
Finally, the Postal Service has borrowing authority from the Treasury Department to maintain liquidity and fund operational expenses. The borrowing limit is currently set to $15 billion, however, that limit was set back in 1992, and does not meet inflation growth. In a hearing before the House Subcommittee on Government Operations, PMG Steiner testified, “This limit is one reason we were forced to defer capital improvements for many years, leading to a deterioration in our network that we are still trying to recover from…. no private company is as limited in its credit access as the Postal Service, and certainly not one with our scope, operational complexity, and importance to the American public.”
The National Postal Mail Handlers Union will work with our fellow postal unions, USPS, and other stakeholders to promote these common-sense accounting solutions. The Postal Service has delivered for every American household and business for over 250 years and is invaluable to the country’s national economy. We must work to ensure that it can continue this work while also protecting Mail Handlers’ jobs and benefits.
NPMHU COMMITTEE ON THE FUTURE APPOINTMENTS
National President Hogrogian has made two appointments to the NPMHU Committee on the Future (COTF): Charles L. Harris, President of Local 317, and Bob Griffith, President of Local 330. These appointments help ensure that the COTF reflects the NPMHU local union structure and its membership.
Charles L. Harris began his career with the United States Postal Service in 2007 as a Mail Handler in Local 317 at the Mobile, Alabama, P&DC, following his retirement from the United States Army. He became a Shop Steward in 2009. In 2014, he was elected Branch President and served three terms. In 2023, he was elected Local President. He has served as a delegate to the NPMHU National Conventions in 2020 and 2024. He also served on the Rules Committee at the 2024 National Convention. In addition, he completed LMOU negotiations for Mobile and Huntsville, Alabama, and RI-399 inventories for the Mobile P&DC and Birmingham RP&DC.
Bob Griffith began his career as a Mail Handler in 1996 at the Boise P&DC. He became a Steward in 1998. In 2000, he was elected Treasurer of Local 330, and he was reelected to that position by acclamation in 2003, 2006, and 2009. In 2011, he was appointed Local President, and he was elected to that position by acclamation in 2012, 2015, 2018, 2021, and 2024. He has served as a delegate to the NPMHU National Conventions in 2004, 2008, 2012, 2016, 2020, and 2024. He has also served on the Political and Legislative Committee, the Resolutions Committee, and the Credentials Committee at National Conventions. In addition, he has attended numerous training sessions at the National and Local levels.
