U.S. Sen. Steve Daines (R-MT) on Feb. 1 sponsored bipartisan legislation that would repeal a federal mandate requiring the U.S. Postal Service (USPS) to pre-fund its employees’ retirement health benefits.
The existing mandate has caused financial strain on the USPS, which is the only federal agency subject to this requirement, according to Sen. Daines’ office.
“The United States Postal Service is essential to Montanans across our state, especially for our seniors, veterans and rural communities,” Sen. Daines said. “My bipartisan bill will help the Postal Service stay in business providing world class delivery of our mail every day while also ensuring its employees maintain their benefits.”
Sen. Daines introduced the USPS Fairness Act, S. 145, with lead cosponsor U.S. Sen. Brian Schatz (D-HI), to amend the United States Code to repeal the requirement that USPS prepay future retirement benefits.
According to a bill summary provided by the senator’s office, S. 145 would eliminate billions in defaulted prefunding payments from USPS’s financials, but at the same time would not alter future USPS retiree health liabilities payments from the Retiree Health Benefit Fund (RHBF). USPS would continue to pay its contributions for retiree health benefit premiums from the RHBF until it is depleted, the summary states.
“There is no reason we should be requiring the USPS to pre-fund its future health and retirement benefits,” Sen. Schatz said. “It’s an unnecessary burden that is jeopardizing its financial health.”
The legislation has garnered support from several organizations, including the American Postal Workers Union, the National Association of Letter Carriers, the National Association of Postal Supervisors, the National Postal Mail Handlers Union, and Communications Workers of America, among others.