Postal Update

August 25, 2016

Possible Postal Reform Action Pending….
Recent Postal Reform efforts are actually gaining some traction, with both a House and Senate vote expected before the years end. A favorable vote by congress would lessen the likelihood of a January postage increase.

Highlights of Postal Reform Measures….
• Bipartisan Draft legislation, (“2016 Postal Service Reform Act”) approved by the House Oversight and Government Reform Committee. House and senate, floor vote later 2016.
• Postal retirees to switch to Medicare as primary care.
• Phase out USPS mandated retiree healthcare contribution over 4 years.
• Saturday Delivery will continue
• Aggressive move from curbside delivery to cluster delivery
• Reinstate ½ or all, (4.3%) exigency rate surcharge.
• New rate setting process by 2018

Somebody in Washington is singing….
It appears that the USPS is not holding their breath, being down this path before as two other bills in the last three years have gone nowhere, are now planning to file for new rates in October with implementation on January 8, 2017. This type of information is usually vaulted until a proposal is filed. My guess…leaking such information early will add some fuel to the reform fire, prompting some serious action. But, let’s not forget congress is a little preoccupied with the pending presidential election.

Snap Shot of 2017 Postal Rate Filing….
• First-Class Presort letters weighing from 1 to 3 ounces pay the same 1 ounce rate.
• Consolidate 3-digit and AADC sort for First-Class and Standard mail, to a single AADC sort.
• Eliminate FSS price increments for Standard Mail Flat-size.
• Eliminate Permit Indicia application and annual fees.
• Eliminate Qualified Business Reply annual fees.
• Increase Standard Mail Flats weight limit for piece/pound rate structure from 3.3 ounces to 4 ounces.
• Add digital address or URL data to eDoc to support “Informed Delivery”.
• Postage percentage increase is yet to be determined.

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