The Postal Service Reform Act of 2022 was recently passed by Congress and will be signed into law soon. This law addresses the finances and operations of the U.S. Postal Service (USPS) with the goal of helping to preserve the postal service and help it remain self-sufficient. Here’s a loot at what’s in the new law:
Health Care Provisions
The bill requires the Office of Personnel Management (OPM) to establish the Postal Service Health Benefits Program as part of the Federal Employees Health Benefits Program. This allows OPM to contract with insurers and other carriers to offer health benefits plans for USPS employees and retirees.
The bill provides for enrollment of retirees under Medicare. Previously, retirees were not required to enroll in Medicare and many relied on their insurance for coverage. This provision is expected to save the postal service over $20 billion over the next decade.
Because USPS is no longer funding insurance for many retirees, the bill repeals the requirement that the USPS annually prepay future retirement health benefits.
Other Provisions
The new law allows USPS to establish programs to enter into agreements with agencies of any state, local, or tribal government, and with other government agencies, to provide products and services that reasonably contribute to the costs of the USPS and meet other specified criteria.
The USPS must create a public dashboard to track service performance and must report regularly on its operations and financial condition.
The Postal Regulatory Commission (PRC) must submit a yearly budget to the USPS. It must also conduct a study to identify the causes and effects of postal inefficiencies relating to flats.
The USPS Office of Inspector General shall perform oversight of the Postal Regulatory Commission.
6 day delivery will be codified as law, preventing service reduction in the future.
Lawmakers hope that these reforms will help the fiscal sustainability of the USPS well into the future.
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