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Title II — Postal Service Workforce Realignment and Right-Sizing

H.R. 2690 · 113th Congress · Jul 16, 2013 · Lineage

II Postal Service Workforce Realignment and Right-Sizing

Sec. 201 Separate normal-cost percentage recalculation of Federal Employees Retirement System

(a)
In general— Section 8423(a)(1) of title 5, United States Code, is amended—
(1)
in subparagraph (A)—
(A)
by striking “subparagraph (B))” and inserting “subparagraph (B) or (C))”; and
(B)
by striking “and” at the end;
(2)
in subparagraph (B), by striking the period and inserting “; and”; and
(3)
by adding at the end the following:

“(C) the product of—

“(i) the normal-cost percentage, as determined for employees of the United States Postal Service (and the Postal Regulatory Commission), multiplied by

“(ii) the aggregate amount of basic pay payable by the United States Postal Service (and the Postal Regulatory Commission), for the period involved, to its employees.”

(b)
Effective date— The amendments made by subsection (a) shall be carried out as soon as practicable, except that contributions shall be set in accordance with such amendments not later than the first applicable pay period beginning in the first fiscal year beginning at least 180 days after the date of the enactment of this Act.

Sec. 202 Treatment of surplus contributions to Federal Employees Retirement System

(a)
In general— Section 8423(b) of title 5, United States Code, is amended by adding at the end the following:

“(6)

“(A) If, for any fiscal year to which this paragraph applies, the amount determined under paragraph (1)(B) is less than zero (hereinafter in this paragraph referred to as “excess postal contributions to FERS”), such amount shall be treated in accordance with the following:

“(i) In the case of the first fiscal year to which this paragraph applies and for which excess postal contributions to FERS are determined, the amount of such excess contributions shall be transferred by the Secretary of the Treasury to such account as the Secretary considers appropriate so that such amount shall be used for the payment of obligations issued by the United States Postal Service under section 2005 of title 39.

“(ii) In the case of any subsequent fiscal year to which this paragraph applies and for which excess postal contributions to FERS are determined, the amount of such excess contributions shall be transferred by the Secretary of the Treasury to the account to which are credited any Government contributions which are made by the United States Postal Service under section 8334(a)(1)(B) (or which would be made, but for clause (ii) thereof).

“(B) This paragraph applies to the fiscal year last ending before the date of the enactment of this paragraph and each fiscal year thereafter.

“(C) In the case of any transfer under subparagraph (A)(ii) for a fiscal year corresponding to a fiscal year for which a determination of Postal surplus or supplemental liability is scheduled to be made under section 8348(h), the transfer under subparagraph (A)(ii) shall be made before such determination under section 8348(h) is made.”

(b)
Conforming amendment— Section 8348(h)(1)(B)(iii) of title 5, United States Code, is amended by striking “principles.” and inserting “principles, including any amounts described in section 8423(b)(6)(A)(ii).”.

Sec. 203 Sense of Congress

It is the sense of Congress that the United States Postal Service should use its available authority as it deems necessary to provide early retirement or separation incentives to eligible Postal Service employees.

Sec. 204 Contributions to Thrift Savings Fund of voluntary separation incentive payments

(a)
Section 8351(b)(2) of title 5, United States Code, is amended—
(1)
by striking the matter before subparagraph (C) and inserting the following:

“(2)

“(A) An employee or Member may contribute to the Thrift Savings Fund in any pay period any amount of such employee’s or Member’s basic pay for such pay period.

“(B) An employee may contribute (by direct transfer to the Fund) any part of any voluntary separation incentive payment that the employee receives under section 3523.”

(2)
by adding at the end the following:

“(D) Notwithstanding section 2105(e), in this paragraph, the term “employee” includes an employee of the United States Postal Service or the Postal Regulatory Commission.”

(b)
Section 8432(a) of title 5, United States Code, is amended—
(1)
by redesignating paragraph (3) as (4);
(2)
by striking the matter before paragraph (4) (as so redesignated by paragraph (1)) and inserting the following:

“(a)

“(1) An employee or Member may contribute to the Thrift Savings Fund in any pay period, pursuant to an election under subsection (b), any amount of such employee’s or Member’s basic pay for such pay period.

“(2) An employee may contribute (by direct transfer to the Fund) any part of any voluntary separation incentive payment that the employee receives under section 3523.

“(3) Contributions made under paragraph (1) pursuant to an election under subsection (b) shall, with respect to each pay period for which such election remains in effect, be made in accordance with a program of regular contributions provided in regulations prescribed by the Executive Director.”

(3)
by adding at the end the following:

“(5) Notwithstanding section 2105(e), in this subsection the term “employee” includes an employee of the United States Postal Service or of the Postal Regulatory Commission.”

(c)
Regulations— The Executive Director of the Federal Retirement Thrift Investment Board shall promulgate regulations to carry out the amendments made by this section.

Sec. 205 Service credit contributions of voluntary separation incentive payments

(a)
Voluntary separation incentive payments— The Postal Service may provide voluntary separation incentive payments to employees of the Postal Service who voluntarily separate from service before October 1, 2016 (including payments to employees who retire under section 8336(d)(2) or 8414(b)(1)(B) of title 5, United States Code, before October 1, 2016), which may not exceed the maximum amount provided under section 3523(b)(3)(B) of title 5, United States Code, for any employee.
(b)
Additional service credit—
(1)
Civil Service Retirement System— Section 8332 of title 5, United States Code, is amended by adding at the end the following:

“(p)

“(1)

“(A) For an employee of the United States Postal Service who is covered under this subchapter and voluntarily separates from service before October 1, 2016, the Office, if so directed by the United States Postal Service, shall add not more than 1 year to the total creditable service of the employee for purposes of determining entitlement to and computing the amount of an annuity under this subchapter (except for a disability annuity under section 8337).

“(B) An employee who receives additional creditable service under this paragraph may not receive a voluntary separation incentive payment from the United States Postal Service.

“(2) The United States Postal Service shall ensure that the average actuarial present value of the additional liability of the United States Postal Service to the Fund resulting from additional creditable service provided under paragraph (1) or section 8411(m)(1) is not more than $25,000 per employee provided additional creditable service under paragraph (1) or section 8411(m)(1).

“(3)

“(A) Subject to subparagraph (B), and notwithstanding any other provision of law, no deduction, deposit, or contribution shall be required for service credited under this subsection.

“(B) The actuarial present value of the additional liability of the United States Postal Service to the Fund resulting from this subsection shall be included in the amount calculated under section 8348(h)(1)(A).”

(2)
Federal Employees Retirement System— Section 8411 of title 5, United States Code, is amended by adding at the end the following:

“(m)

“(1)

“(A) For an employee of the United States Postal Service who is covered under this chapter and voluntarily separates from service before October 1, 2016, the Office, if so directed by the United States Postal Service, shall add not more than 2 years to the total creditable service of the employee for purposes of determining entitlement to and computing the amount of an annuity under this chapter (except for a disability annuity under subchapter V of that chapter).

“(B) An employee who receives additional creditable service under this paragraph may not receive a voluntary separation incentive payment from the United States Postal Service.

“(2) The United States Postal Service shall ensure that the average actuarial present value of the additional liability of the United States Postal Service to the Fund resulting from additional creditable service provided under paragraph (1) or section 8332(p)(1) is not more than $25,000 per employee provided additional creditable service under paragraph (1) or section 8332(p)(1).

“(3)

“(A) Subject to subparagraph (B), and notwithstanding any other provision of law, no deduction, deposit, or contribution shall be required for service credited under this subsection.

“(B) The actuarial present value of the additional liability of the United States Postal Service to the Fund resulting from this subsection shall be included in the amount calculated under section 8423(b)(1)(B).”

(c)
Goals—
(1)
In general— The Postal Service shall offer incentives for voluntary separation under this section and the amendments made by this section as a means of ensuring that the size and cost of the workforce of the Postal Service is appropriate to the work required of the Postal Service, including consideration of—
(A)
the closure and consolidation of postal facilities;
(B)
the ability to operate existing postal facilities more efficiently, including by reducing the size or scope of operations of postal facilities in lieu of closing postal facilities; and
(C)
the number of employees eligible, or projected in the near-term to be eligible, for retirement, including early retirement.
(2)
Definition— In this subsection, the term “career employee of the Postal Service” means an employee of the Postal Service—
(A)
whose appointment is not for a limited period; and
(B)
who is eligible for benefits, including retirement coverage under chapter 83 or 84 of title 5, United States Code.

Sec. 206 Modification of prepayment schedule relating to Postal Service Retiree Health Benefits Fund

(a)
Contributions— Section 8906(g)(2)(A) of title 5, United States Code, is amended by striking “through September 30, 2016, be paid by the United States Postal Service, and thereafter shall” and inserting “after the date of enactment of the Innovate to Deliver Act of 2013”.
(b)
Postal Service Retiree Health Benefits Fund— Section 8909a(d) of title 5, United States Code, is amended—
(1)
by striking paragraph (2) and inserting the following:

“(2)

“(A) Not later than 180 days after the date of enactment of the Innovate to Deliver Act of 2013, the Office shall compute, and by June 30 of each succeeding year, the Office shall recompute, a schedule including a series of annual installments which provide for the liquidation of the amount described under subparagraph (B) (regardless of whether the amount is a liability or surplus) by September 30, 2053, or within 15 years, whichever is later, including interest at the rate used in the computations under this subsection.

“(B) The amount described in this subparagraph is the amount, as of the date on which the applicable computation or recomputation under subparagraph (A) is made, that is equal to the difference between—

“(i) 80 percent of the Postal Service actuarial liability as of September 30 of the most recently ended fiscal year; and

“(ii) the value of the assets of the Postal Retiree Health Benefits Fund as of September 30 of the most recently ended fiscal year.”

(2)
in paragraph (3)—
(A)
in subparagraph (A)—
(i)
in clause (iii), by adding “and” at the end;
(ii)
in clause (iv), by striking the semicolon at the end and inserting a period; and
(iii)
by striking clauses (v) through (x); and
(B)
in subparagraph (B), by striking “2017” and inserting “2016”;
(3)
by striking paragraph (4) and inserting the following:

“(4) Computations under this subsection shall be based on—

“(A) economic and actuarial methods and assumptions consistent with the methods and assumptions used in determining the Postal surplus or supplemental liability under section 8348(h); and

“(B) any other methods and assumptions, including a health care cost trend rate, that the Director of the Office determines to be appropriate.”

(4)
by adding at the end the following:

“(7) In this subsection, the term “Postal Service actuarial liability” means the difference between—

“(A) the net present value of future payments required under section 8906(g)(2)(A) for current and future United States Postal Service annuitants; and

“(B) the net present value as computed under paragraph (1) attributable to the future service of United States Postal Service employees.”

(c)
Unpaid obligations of the postal service— Any obligation of the Postal Service under section 8909a(d)(3)(A) of title 5, United States Code, as in effect on the day before the date of enactment of this Act, that remains unpaid as of such date of enactment shall be included in the recomputation requested in section 8909a(d)(2) of such title (as amended by subsection (b) of this section).
(d)
Technical and conforming amendments—
(1)
Heading— The heading of section 8909a of title 5, United States Code, is amended by striking “Benefit” and inserting “Benefits”.
(2)
Table of sections— The table of sections at the beginning of chapter 89 of such title is amended by striking the item relating to section 8909a and inserting the following:

Sec. 207 Study on USPS workforce realignment and right-sizing options

(a)
In general— Not later than 1 year after the date of enactment of this Act, the Comptroller General shall submit to the Committee on Oversight and Government Reform of the House of Representatives and the Committee on Homeland Security and Governmental Affairs of the Senate a report on the workforce reduction or realignment methods used by the United States Postal Service to align its workforce with its needs.
(b)
Contents of the report— The report required under subsection (a) shall include the following:
(1)
The projected workforce needs of the Postal Service over the next 5 fiscal years, given the current mail volumes and the demand for Postal services.
(2)
Possible options for allowing Postal Service employees who are eligible for voluntary early retirement to deposit voluntary separation incentive payments to obtain service credit or to otherwise allow such payments to be credited in the computation of retirement annuity benefits.
(3)
The terms and conditions for the voluntary separation incentive payments offered under section 205.
(4)
The number of employees in each job category and in each postal service area to whom the Postal Service has offered an incentive for voluntary separation, the number of offers of incentives for voluntary separation that have been accepted, the number of offers of incentives for voluntary separation that remain pending, and the number of employees in each job category and in each postal service area projected to separate from service during each quarter through the end of the first quarter of 2016.
(5)
The number of employees in each job category who are covered under chapter 83 or 84 of title 5, United States Code, and who have accepted offers of incentives for voluntary separation, including the number of employees covered under each chapter who voluntarily separated under subsection (a) of section 205 or the authority under subsection (b) of section 205.
(6)
The total savings and work hour reductions by job category and postal service area that have been realized by the Postal Service as of the date of the report and that are projected to be realized during each of the next 3 years as a result of the offers of incentives for voluntary separation.
(7)
The total expenditures made by the Postal Service to provide incentives for voluntary separation.
(8)
Any training, retraining, or hiring that may be required by the authority the Postal Service is granted under this Act to develop and offer for sale nonpostal products and services.

Sec. 208 Applicability of provisions relating to reductions in force

Section 1005 is amended by adding at the end the following:

“(g)

“(1) Except as otherwise provided by any collective bargaining agreement entered into under chapter 12, the provisions of subchapter I of chapter 35 of title 5 and the regulations implementing such subchapter, shall apply to employees of the Postal Service who hold positions that are within bargaining units under section 1202.

“(2) Before using the authority provided in paragraph (1), the Postal Service shall demonstrate to the Office of Personnel Management how it will comply with section 3502(a)(4) of title 5.”

Sec. 209 Enhanced reporting on facility network initiatives

Section 404(d) is amended by adding at the end the following:

“(7)

“(A) The Postmaster General shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Government Reform of the House of Representatives and the Postal Regulatory Commission a report that details plans to close or suspend a Postal Service retail or processing facility during the period to which such report pertains. The first such report shall be submitted not later than 120 days after the date of enactment of this paragraph. Reports shall be submitted semiannually thereafter.

“(B) Each report submitted by the Postal Service under subparagraph (A) shall address, at a minimum—

“(i) the specific retail and processing facilities the Postal Service plans to suspend or close;

“(ii) the anticipated date of suspension or closure of each such facility;

“(iii) the cost of continued operations at the facilities for which closure is planned;

“(iv) the purpose of each such suspension or closure, as determined by paragraph (2)(A);

“(v) plans for the establishment of alternative access points for retail facilities listed in clause (i), including the date on which each such alternative access point shall open for business and the planned location of each such alternative access point;

“(vi) how each facility closure conforms with previously filed actions for suspension or closure;

“(vii) the timeline for closure or suspension activities described in paragraphs (1) and (3), and all other formal closure or suspension activities planned in connection with the retail facility closure;

“(viii) how work performed at mail processing facilities recommended for closure or consolidation will be transferred or absorbed by other facilities within the network;

“(ix) cost savings expected or achieved from consolidation of both retail and mail processing facilities;

“(x) the impact of each planned closure on postal employees, including relocation or reassignment plans; and

“(xi) the status of ongoing suspensions or closures identified in previous reports.”