August 22, 2020 by Menagerie Stella has done an excellent job of myth busting about the postal service mess. Claim: The United States Postal Service (USPS) is losing money due to a 2006 law mandating it fund its pensions 75 years in advance. The Postmaster General explained the "real" issues with the post office: Back in 2007, Postmaster General John Potter indeed told Congress at the time that the business model of the agency was already broken. It made me think, if they privatize the Post Office, would that take away mail fraud charges since it would no longer be a government service? 201 . US Postal Service workers have a retiree health care benefit in addition to their pension. The law requires the Postal Service, which receives no taxpayer subsidies, to prefund its retirees' health benefits up to the year 2056. Already, if I ship a 20 lb package through Fed Ex from Baltimore to say Dallas, it costs maybe $25. This report briefly describes Congress’s pursuit of postal reform, summarizes the major provisions of the new postal reform law, and identifies … Without this obligation, the Post Office actually turns a profit. But they have a HUGE current pension burden. Press question mark to learn the rest of the keyboard shortcuts, Back in 2007, Postmaster General John Potter indeed told Congress at the time that the business model of the agency was already broken. The USPS defaulted on it's pension payments from 2012-2016. The Postal Accountability and Enhancement Act: Overview and Issues for Congress Congressional Research Service 3 To this end, the PAEA requires the USPS to pay more than $5 billion annually from FY2007 and FY2016 to build up a retirement fund from which both USPS employees and USPS retirees will be paid come FY2017.12 The funds previously 22, to reform the postal laws of the United States, after striking all after the enacting clause and inserting in lieu thereof, the text of S. 662, Senate companion measure, after agreeing to the committee amendment in the nature of a substitute, and the following amendments proposed thereto: Some have called this a "manufactured crisis." Conservatives want to break it, and then bleat about it needing to be privatized. ALEC’s typical recommendation for lawmakers is to privatize government services, and past reports have tied ALEC to the passage of a 2006 bill, the Postal Accountability and Enhancement Act, which required the postal service to pre-fund employees’ pensions and health benefits for 75 years into the future, contributing to the postal service’s financial troubles in subsequent years. L. No. Their profit in 2017? If that doesn't meet the definition of insanity, I don't know what does. Postal Accountability and Enhancement Act: Senate passed H.R. /r/Politics is for news and discussion about U.S. politics. I came here to basically say what he said, this 75 year pre-funding thing is a mischaracterization. 102) Removes provisions empowering the Postal Service to provide nonpostal services, except that the Postal Service may … Again, its one of his petty grudges against someone richer than him. Subchapter VII of the Postal Accountability and Enhancement Act (PAEA), Public Law 109-435, 120 Stat 3198, specifies three objectives which, after consultation with the Postal Regulatory Commission, the United States Postal Service must fulfill in relation to service standards for its market-dominant products. All of this begs the real question which is why are we still doing defined benefit retirement plans? New York Times, White House to … No, if we privatize, companies will go into cities where it is profitable, no business in their right mind is going to deliver to rural addresses. This is the key issue here. it required USPS to pre-fund its pensions for its workers for 75 years. Unlike other employers, though, the USPS is required by the Postal Accountability and Enhancement Act (PAEA) of 2006 to pre-fund retiree health costs out … It directed the PRC to … The most commonly-criticized part of this law is that it required USPS to pre-fund its pensions for its workers for 75 years, which was (and as far as I'm aware still is) unique in public offices and … Cep and others are welcome to scour the cited Postal Accountability and Enhancement Act (PAEA) of 2006 for any mention of the seventy-five-year threshold, but they are bound to … the Postal Accountability and Enhancement Act, the Postal Regu-latory Commission shall review each nonpostal service offered by the Postal Service on the date of enactment of that Act and deter-mine whether that nonpostal service shall continue, taking into … The law requires the Postal Service, which receives no taxpayer subsidies, to prefund its retirees' health benefits up to the year 2056. You have to use actuarial data to calculate your projected liability compared to your current asset base and its projected return, and then you have to add to it every year and adjust based on changes. Pub. Post Haste: Why Reform of the US Postal Service is a Matter of Urgent National Concern. POSTAL ACCOUNTABILITY AND ENHANCEMENT ACT -- (House of Representatives - July 26, 2005) BREAK IN TRANSCRIPT. New York Times, Postal Service Is Nearing Default as Losses Mount, Sept. 4, 2011 . This report describes Congress's pursuit of postal reform, and summarizes the major provisions of the new postal reform law. Postal Accountability and Enhancement Act; Acronyms (colloquial) PAEA: Enacted by: the 109th United States Congress: Effective: December 20, 2006: Citations; Public law: 109-435: Legislative history; Introduced in the House as the Postal Accountability and Enhancement Act (H.R. most of which flow from compensation and benefits owed to its significant cohort of employees and retirees. Unlike private-sector entities, the Postal Service is barred from lobbying. For all institutions besides military, we should be doing defined contribution plans. On the eighth day of December in 2006, at 10:33 at night, the 2009th Congress passed H.R. Had the USPS set up 401Ks for their people, maybe matched 20 to 25% like most other for-profit employers for the last couple of decades, they wouldn't be in this position. (Sec. Sometimes they are a way of recognizing or honoring the sponsor or creator of a particular law (as with the 'Taft-Hartley Act'). Postal Service for the future, the Postal Accountability and Enhancement Act of 2006 instead is killing our mail system. A grain of truth blown out of proportion. Any other business you know that has fully funded their pensions for the next 50 years? Get these people in their houses and help this virus flatten out. Passed by a Republican-led Congress and signed into law by President George W. Bush, the PAEA gave the Postal … Those who support it within union circles are incredibly quiet which is highly disturbing. 201 . 3198, limits the Postal Service’s authority to provide nonpostal services, first, to those it offered as of January 1, 2006, and, second, to those that the Commission authorizes to continue. The internet has obviously changed the way messages get sent and has impacted the USPS, but it is not at all obvious that they would be bankrupt without the PAEA. This repor t briefly describe s Congress’s pursuit of postal reform, summarizes the major provisions of the new postal … At the very least, some sort of trigger mechanism to end the postal monopoly should have been part of it. I don't think it was, that was a shitty burden to put on the post office. Posted on January 22, 2020 January 22, 2020 by 21cpw. All Votes R epublicans D emocrats I ndependents; Aye 95 % 410 208 . Tag: Postal Accountability and Enhancement Act PRC Releases FY 2019 Annual Report to the President and Congress. Laws acquire popular names as they make their way through Congress. Tagged: Postal Accountability Enhancement Act of 2006. 1 . As the Postal Service has worked to … No 5 % 20 20 . It's a dinosaur who's death would likely be inevitable anyways, primarily because of the need for Congress to approve price increases and basically preventing them from operating as a for-profit organization, as well as the advent of the internet, email, and electronic communications. Many on the left regard it as an attempt to financially hamstring USPS in favor of private carriers. Contrary to many reports, these payments are not to prefund 75 years worth of retirement health benefits, PAEA did not require USPS to prefund 75 years of retiree health benefits over a 10-year period. As an ebay seller I thank God I can send something for a few dollars through USPS, as compared to FedEx prices. So, as we have heard, the USPS was singled out for this enormous requirement. Press question mark to learn the rest of the keyboard shortcuts. Postal Service operates and conducts business. UPS, Fedex and Amazon compete with them right? The idea that the free market is going to step in and people will choose between companies to mail their letters, that we would have carriers from multiple companies coming to our house every day - one for the water bill, one for The Economist, one for the card from my cousin, etc - is not realistic. Can't vote by mail if there's no post office. It puts the USPS at a huge competitive disadvantage. Designed to prepare the U.S. For-profit businesses just don't have pension plans like this anymore and haven't for a long time. On Passage of the Bill in the House. 22 (109th) in the House. THOMAS, The Postal Accountability and Enhancement Act, 2006. Pre-funding pensions is not unique to USPS. President George W. Bush signed the Postal Accountability and Enhancement Act on December 20, 2006. It's also significant that lots of companies benefit from a burden that makes the USPS less competitive; these same companies might also would benefit from full USPS privatization, a goal that has been pushed by several conservative think tanks for years. President George W. Bush signed the Postal Enhancement and Accountability Act (P.L. New comments cannot be posted and votes cannot be cast, More posts from the AskConservatives community, Press J to jump to the feed. Press J to jump to the feed. With twenty-one months left in the 115th Congress this bill is a threat for quite a while unless voted down. It's a perfect week to do it, too. What is distinctive about the USPS is that, a a result of the 2006 Postal Accountability and Enhancement Act (PAEA), they are also required to pre-fund their retiree medical promises. EDIT: Man, the "both sides" team is really out in force today doing a full court press. 101) Amends federal law provisions concerning the Postal Service to add definitions, including the terms postal service, competitive product, market-dominant product, and rates. He's probably actively doing everything he can to hinder them... just like he does with everything else. The Postal Accountability and Enhancement Act requires the Postal Regulatory Commission to develop and maintain regulations for a modern system of rate regulation, consult with the Postal Service on delivery service standards and performance measures, consult with the Department of State on international postal policies, prevent cross-subsidization or other anti-competitive postal practices, … The Postal Accountability and Enhancement Act (PAEA) was signed into law by President George W. Bush on December 20, 2006. Before Congress passed the Postal Accountability and Enhancement Act of … Mr. Chairman, I yield myself such time as I may consume. President George W. Bush signed the Postal Accountability and Enhancement Act (PAEA; P.L. I give an envelope/package to my local carrier, they transfer to another carrier, both carriers have different pricing. To reform the postal laws of the United States. Republicans have wanted it to die for decades but it was doing fine. All it would take is a couple days to make people freak out, a full week would be even crazier. 39 U.S.C. 109-435; 120 Stat. Then there is the Postal Accountability and Enhancement Act of 2006 (PAEA), which some have taken to calling "the most insane law" ever passed by Congress. That said, I agree they have problems. Maybe they should go on strike and give everyone a look at how bad things will be come September if they shut down. Text of H.R. Yeah this is a direct threat to Democracy, Trump has to be removed from office. This was a vote to pass H.R. Postal Accountability and Enhancement Act - Title I: Definitions; Postal Services - (Sec. The republicans have been wanting the US post office to fail so they can privatize it and sell it off the their friends. “It’s these internet companies that give their stuff to the Postal Service — packages.” He asserted that the Postal Service loses money “every time they deliver a package for Amazon or these other internet companies that deliver.”. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. As a reminder, this subreddit is for civil discussion. President George W. Bush signed the Postal Accountability and Enhancement Act (PAEA; P.L. The Postal Accountability and Enhancement Act of 2006 significantly changed how the U.S. Period. Signed into law by President George W. Bush on December 20, 2006. President George W. Bush signed the Postal Accountability and Enhancement Act on December 20, 2006. The Postal Accountability and Enhancement Act (PAEA) is a United States federal statute enacted by the 109th United States Congress and signed into law by President George W. Bush on December 20, 2006. What about lobbying Congress for changes to these rules? The motivations behind it were fine, though. (a) SHORT TITLE- This Act may be cited as the `Postal Accountability and Enhancement Act'. He warned, “With the diversion of messages and transactions to the internet from the mail, we can no longer depend on printed volume growing at a rate sufficient to produce the revenue needed to cover the costs of an ever expanding delivery network.”. 603(b). The Postal Accountability and Enhancement Act (PAEA) is a United States federal statute enacted by the 109th United States Congress and signed into law by President George W. Bush on December 20, 2006. Not being able to vote by mail is just a perk. It's the 75 years (which is actually 50 btw) part that is unique. “I’ll tell you who’s the demise of the Postal Service,” he said. Introduced in the House as the Postal Accountability and Enhancement Act (H.R. The Postal Accountability and Enhancement Act (PAEA), Pub. 22 (109th): Postal Accountability and Enhancement Act Jul 26, 2005 at 9:54 p.m. (Sec. Cost at USPS is the same. § 404(e). The Postal Accountability and Enhancement Act (PAEA) was signed into law by President George W. Bush on December 20, 2006. Debate/discuss/argue the merits of ideas, don't attack people. In general, be courteous to others. 22 (109th) in the House. The report also suggests PAEA-related oversight issues for Congress. He claims Amazon takes advantage of it or some mess. Uhh ... how is the USPS a monopoly in 2020? I mean pretty much every former postal employee who has put in 20 to 30 years is getting almost $2500 a month. It was passed in order to kill the USPS. Break something to prove it was broken when you found it. Weren't working with Fed Ex and UPS. And now hundreds of Roanoke jobs So, despite defaulting, they still managed to lose almost $39B in 4 years. And people act like he's not doing anything to help. All Votes R epublicans D emocrats I ndependents; Aye 95 % 410 208 . The report also suggests PAEA-related oversight issues for Congress. I have studied this and been tested on it and even seen a bit in my professional life and I'm still not an expert; not even close. The one job that specifically mandated by the Constitution . I am a bot, and this action was performed automatically. Chronic problem two is the Postal Accountability and Enhancement Act (PAEA), a law passed with bipartisan support in 2006 that requires USPS to prepay a … Not bad for an entity that performs an essential public service without taxpayer dollars. I'll be honest - I don't understand this description of how the USPS pension funding works (I also never heard the 75 years part) but it is the only agency that has to pre-fund its pensions. Republicans supporting taking away a law that catches them if they defraud people seems right up their alley. SHORT TITLE; TABLE OF CONTENTS. H.R. The post office has a pension program like the government. Now that it threatens a fairer election, of course he's going to do his best to kill it. New comments cannot be posted and votes cannot be cast. 1 . Need more proof that the pre-funding of the pensions wasn't an issue? In part, the Act provided new flexibility, particularly in competitive pricing for shipping services, enabling the Postal Service to respond to dynamic market conditions and changing customer needs for packages. Yes, a retirement crisis is brewing; most private-sector pensions are wildly underfunded. Namely, the Postal Accountability and Enhancement Act of 2006. In 2006, in what looks like an attempt to bust the Postal Workers’ Union, George Bush signed into law the Postal Accountability and Enhancement Act of 2006. 22 (109th): Postal Accountability and Enhancement Act as of Feb 9, 2006 (Passed the Senate with an Amendment version). That goes away. And your willingness to let it die out ignores the tremendous service that they provide, also outlined in the Hill article you quoted - everything from magazine advertising to mail in ballots and jury summons. ET. Was the Postal Accountability and Enhancement Act of 2006 a good law? Totals. In part, the Act provided new flexibility, particularly in competitive pricing for shipping services, enabling the Postal Service to respond to dynamic market conditions and changing customer needs for packages. Designed to prepare the U.S. 6407) by Tom Davis (R-Virginia) … Chronic problem two is the Postal Accountability and Enhancement Act (PAEA), a law passed with bipartisan support in 2006 that requires USPS to prepay a … For those who have questions regarding any media outlets being posted on this subreddit, please click here to review our details as to whitelist and outlet criteria. Pensions get audited and given a rating on how well they're pre-funding, and all of this is reported to the DOL. “The Postal Accountability Act REQUIRES the USPS to pre-fund employee retirement medical benefits 75 years into the future” “The PAEA contributions have no bearing on cash flow because the USPS IS NOT making those contributions.” Clearly we can add the word “REQUIRED” to the list of English words that now have “fluid” definitions. And the second article noted that postal revenues were unchanged from a decade ago (pre PAEA), but that the agency has 120 billion per year in unfunded debts. 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