Press Release

For Immediate Release

Contact: Robert E. McLean

Release No. 02-6

703-418-0390

November 6, 2002

bmclean@mailers.org

Mailers Council Statement on
USPS Retirement Liabilities Analysis

WASHINGTON, November 5, 2002--Today the United States Postal Service (USPS) released a new financial analysis of its portion of the federal government’s retirement fund. The study shows that postal payments have almost fully funded all future Civil Service Retirement System (CSRS) obligations. Under current law the USPS will overpay its CSRS obligations by more than $70 billion. In response, Robert E. McLean, executive director of the Mailers Council, the nation’s largest coalition of mailers, issued the following statement:

“We strongly endorse a change in current law to prevent the overpayment of postal pension obligations. Without this change, postal customers will pay higher rates sooner than necessary. With such a change, Congress can ensure rate stability until 2006, and help the nation’s economy--including the $9 billion mailing industry that had been damaged by the recession.

“We applaud PMG Potter for his cost-cutting program that has substantially reduced expenses and the size of the postal workforce, helping to improve productivity and delay postage rate increases. And this legislative change could delay the next rate case even further, giving the USPS some much-needed breathing room. However, one-time pension savings cannot resolve the USPS’ long-term problems. Therefore, we continue to support creation of a presidential commission on the Postal Service. Let’s remember that the USPS faces almost $50 billion in retiree health insurance costs and billions more in debt it cannot repay, and that the General Accounting Office put the USPS on its High-Risk List.”

The Mailers Council is a coalition of 37 corporations, nonprofit organizations and major mailing associations. Collectively the Council accounts for as much as 70 percent of the nation's mail volume.

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Note to Media: For additional background information visit www.mailers.org, or call Joan Worden at 202-337-5411.