2012 NAPUS National Convention

Transcription

1 2012 NAPUS National Convention

2 Sequestration $1.2 Trillion in 10-year budget savings 8-10% across-the-board cuts to discretionary accounts Deal to avert sequestration Statutory Debt Limit Debt limit set at $16.4 Trillion Current debt at about $15.5 Trillion Bush-Era tax cuts Expiration would yield about $4 Trillion Medicare sustainable growth rate (aka Doc Fix) 9/7/2012 2

3 SEQUESTRATION 10-Year Cut $1.2 Trillion Subtract 18% in debt servicing Cut $109.3 Billion/YEAR $54.7 Billion Military & $54.7 Domestic

4 Legislative Sluggishness Calls for the PMG s resignation Rep. Brian Higgins (D-NY) Rep. Pete DeFazio (D-OR) Anxiety about Board of Governors James Miller III Katherine Tobin Steve Crawford 4

5 9/7/2012 5

6 S Awaits conference or House vote Passed (April 2012) Bipartisan and consensus H.R Awaits floor vote (Committee-reported October 2011) Lacks votes to pass Partisan and geographic Issues Next Year or Lame-Duck Session Six-day delivery and post office closures No operational consequences of default Lack of time on legislative schedule 9/7/2012 6

7 Abolish FEHBP retiree prefunding requirement Get out of FEHBP Recalculate CSRS and FERS retirement liability Override collective-bargaining agreements Require arbitrator to consider USPS finances Reduce delivery frequency Grant increased pricing flexibility Permit greater range of products and services 9/7/2012 7

8 USPS 2016 Plan Network Sorting & Transportation Retail Delivery Compensation & Benefits Wages, Benefits & Administration Legislative Changes Retired Health Benefit Pre-Fund Five-Day Delivery Projected Savings $9.1 Billion $5.0 Billion $8.5 Billion TOTAL $22.6 Billion

9 Abolish FEHBP retiree prefunding requirement USPS departure from FEHBP Recalculate CSRS and FERS retirement liability Override collective-bargaining agreements Require arbitrator to consider USPS finances Reduce delivery frequency Grant increased pricing flexibility Permit greater range of products and services

10 October 2002 OPM & GAO Discovered USPS Projected to Overfund CSRS Fund by $71 78 Billion April 2003 PL (FY 13 Cost > $6 Billion) 2-Year Rate Freeze Creation of Escrow Fund Shift Military Retirement Liability to USPS December 2006 PL Eliminates Escrow Fund Restores Treasury Responsibility for Military Service Requires Prefunding (FY 13 Cost $5.6 Billion) 9/7/

11 Active USPS Employees Collective-bargaining & consultation Streamlined structure Retired USPS Employees Pre-Medicare: Same as actives Medicare: Gap combined with Parts A& B 9/7/

12 USPS group more expensive than Feds Crafted by same consultants who crafted FDIC plan USPS benefits would be less comprehensive than FEHBP Who bargains for retirees? Self & Spouse not necessarily cheaper than Family FEHBP Insurance Reserve? Is USPS capable of administering and selfinsuring FEHBP controls costs better than private sector 9/7/

13 9/7/

14 Refund $11 Billion FERS overpayment, using for VERAs and debt reduction Restructure Retiree Health pre-payment by amortizing 80% of the liability over a 40-year period Refund $11 Billion FERS overpayment, using for transition costs S H.R. 2309

15 Negotiation and consultation on health care Arbitrator to consider USPS financial situation Workers compensation changes Eliminates floor on pay & benefits Arbitrator to consider USPS financial situation and determine comparability Workers compensation changes Prohibits no layoff clause in contracts S H.R. 2309

16 3-year moratorium on facility closures that impact service standards 1-year moratorium on rural post office closures S H.R. 2309

17 Two-year moratorium on moving to five-day delivery Six-month moratorium on moving to five-day delivery 12 days per year as non-delivery days until implementation of reduced delivery frequency Shift to non-door deliveries S H.R. 2309

18 Preserves community post offices Establishes retail service standards PRC has binding authority on Post Office closing appeals Establishes Post Office closing commission Annual cap of 5% of rural POs in CAG K&L Eliminates maximum degree requirement Eliminates solely for running a deficit prohibition S.1789 H.R. 2309

19 Rate study on underwater products May increase rates by 2% over CPI until reach cost May reverse post office closing Rate study on underwater products Must increase rate by 2% over CPI until reach 90% of cost S H.R. 2309

20 Steps prior to closure Citizens advocate Vote-by-mail Reduce capacity as alternative PRC can suspend closure Keeps service standard for 3 years Overnight for FCM & periodicals orig./dest. Maximum 3-day in US S H.R. 2309

21 Establishes Chief Innovation Officer Establishes Advisory Commission Establishes Postal Control Board Triggered by default 2-year authority Supplants BOG Can abrogate all agreements Mandatory cost savings S H.R. 2309

22 Exploit processing, retail, delivery & technology Co-location with governmental agencies Ship wine, beer & spirits Increase NSAs No new non-postal, except advertising and state services S H.R. 2309

23 Contracting Executive compensation Contracting Executive compensation S H.R. 2309

24 Sen. Homeland Security and Gov t Affairs Joseph Lieberman, Chair Susan Collins Postal Subcommittee Tom Carper, Chair Scott Brown Federal Workforce Daniel Akaka, Chair Ron Johnson Sen. Homeland Security and Gov t Affairs Susan Collins Tom Carper Postal Subcommittee Scott Brown or Jerry Moran Jon Tester/Mark Begich Federal Workforce Ron Johnson or Rand Paul Mark Begich/Jon Tester 112 th CONGRESS 113 th Congress

25 Dems GOP Dems-Up GOP-Up 9/7/

26 Dem GOP Competitive 9/7/

27 Dem GOP Competitive 9/7/

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29 Ryan Budget ($375 billion) Simpson-Bowles ($88 billion) Obama ($21 billion) Increase retirement contribution Reduce federal workforce Freeze pay for two years Increase retirement contribution Defer COLA to 62 Turn FEHBP into voucher Increase retirement contribution

30 Cantor or Hoyer Majority Leader Issa or Cummings Oversight Committee Ryan or Van Hollen Budget Committee McConnell or Reid Majority Leader Collins or Carper Homeland Security Committee Sessions or Murray Budget Committee 9/7/