Category: News


Earlier this year, USPS suspended the employer contribution to the annuity portion of the Federal Employee Retirement System (FERS) to conserve cash and preserve liquidity — in large part to ensure that the Postal Service could continue honoring its commitment to meet employee payroll. The suspension freed $900 million in USPS funds during fiscal year 2011.

USPS now has decided that, subject to further legislative developments, it will pay suspended employer contributions and resume biweekly payments of the employer contributions with the Dec. 9, 2011 pay date. Pending legislation in both Houses of Congress would, if enacted, make the surplus FERS funding available to the Postal Service.

Download complete letter here.

Please share this announcement with your members at the local level:

NAPS Invokes Rights under Title 39, USC and requests Fact Finding:

On Monday, November 14, 2011, the National Association of Postal Supervisors initiated a request to the Federal Mediation and Conciliation Service (FMCS) to enter Fact Finding with the United States Postal Service in accordance with procedures in 39 U.S.C. Section 1004(f) and 29 CFR Part 1404.

Now that our request for Fact Finding has been submitted, pursuant to 39 U.S.C. Section 1004(f)(2), within 15 days after receiving our request, the Federal Mediation and Conciliation Service shall provide a list of seven (7) individuals recognized as experts in supervisory and managerial pay policies.

Each party shall designate one individual from the list to serve on the panel. If, within 10 days after the list is provided, either of the parties has not designated an individual from the list, the Director of the Federal Mediation and Conciliation Service shall make the designation. The first two individuals designated from the list shall meet within 5 days and shall designate a third individual from the list.

The third individual shall chair the panel. If the two individuals designated from the list are unable to designate a third individual within 5 days after their first meeting, the Director shall designate the third individual. In addition to the submission to the Federal Mediation and Conciliation Service, we served notice to the Postal Service of our intentions to initiate Fact Finding.

As further information becomes available we will release it to the membership. We appreciate your support in this matter.

NAPS Resident Officers

EAS Pay Package for Fiscal Years 2011-2015

Dear Mr. Atkins:

Enclosed is the Postal Service’s final decision concerning changes in pay policies, schedules, and fringe benefit programs for supervisors. This decision is the outcome of the pay consultation process outlined in Title 39, U.S. Code, § 1004 (e). This decision was made following full and fair consideration of recommendations submitted by the National Association of Postal Supervisors.

This compensation package covers fiscal years 2011 through 2015.


Doug A. Tulino

Download EAS Pay Package here.

Senate Committee Approves Postal Reform Bill

NAPS Leg/Reg Update – November 10, 2011

Postal reform legislation took a major step forward on Wednesday as a Senate panel overwhelmingly approved a bipartisan bill on a 9-1 vote. The bill now goes to the full Senate.

The Postal Service is expected to announce a $10B loss for the recently concluded fiscal year and its payment of a $5.5B retiree health benefit payment has been delayed until November 18. Without legislative relief, USPS is likely to run out of cash and be unable to meet its payroll by next summer.

The Senate Homeland Security and Governmental Affairs Committee approved a revised version of The 21st Century Postal Service Act, S. 1789, introduced by Sen. Joe Lieberman (I-CT), Sen. Susan Collins (R-ME), Sen. Tom Carper (D-DE) and Sen. Scott Brown (R-MA).

The revised version of the bill assures all non-union employees the choice to stay in the Federal Employees Health Benefits Program if USPS were to leave the FEHBP and create a new health plan, as negotiated with and approved by all four postal employee unions. NAPS and the other management associations also would have the opportunity to participate in the discussions leading to any new USPS health plan. These revisions to the bill were added at the request of NAPS and NAPUS.

At Wednesday’s markup, the Committee also adopted amendments that:

— Strike the bill’s original provision requiring that eligible postal retirees drop FEHBP coverage in favor of Medicare as their primary insurer. (Republican conservatives on the Committee joined with some Democrats in eliminating the Medicare provision from the bill, which the Postal Service contended would save millions of dollars.);

— Require the Postal Service to set minimum standards of service and consider alternatives to closure prior to closing any post office currently under consideration for closure;

— Assure Congressional oversight over Postal Service contracts; and

— Require the Postal Service to inform Congress of its actions and rationale in response to advisory opinions of the Postal Regulatory Commission.

The bill’s provisions revamping the government’s workers comp program remained intact, despite efforts by Sen. Daniel Akaka (D-HI) at the markup to strike the provisions from the bill. Akaka was the only committee member to vote against the bill, due to concerns about the workers comp changes.

Also, the bill’s provisions providing for elimination of six-day delivery in two years remained, after an amendment by Sen. John McCain (R-AZ) to initiate five-day delivery immediately failed on a 5-12 vote. Under the bill, USPS may proceed toward five-day delivery in two years after showing it has exhausted all other cost-cutting options and has come up with remedies to soften the impact on customers who may be disproportionately affected.

USPS workforce downsizing employee buyouts — either through voluntary incentive payments up to $25K or additional service credit of one year for CSRS employees and two years for FERS employees — also remain in the bill. The buyouts, which will be used to eliminate at least 100,000 jobs by 2015, will cost nearly $2 billion and will be financed by a portion of the $7 billion in overpaid FERS monies that USPS will receive. The company may use the balance of the money to pay down some $15 billion in debt to the U.S. Treasury and for other purposes.

The legislation would significantly lower the amount — currently around $5.5 billion — that the Postal Service has to pay each year to “pre-fund” future retiree health care benefits.

At Wednesday’s markup, Sen. Jon Tester (D-MT) offered, then withdrew an amendment that would reduce USPS executive compensation and cap the Postmaster General’s salary at $174,000 — the current level of Congressional pay. The PMG makes $276,840 annually before bonuses and other perks. Tester estimated the amount saved through his amendment could keep five rural post offices open in Montana. “If our employees have to sacrifice, then there’s no reason why the leaders shouldn’t sacrifice too,” he said. Opponents, including Sen. Lieberman and Sen. Carper, said it would reduce the Postal Service’s capacity to attract and retain talented leadership. A compromise version of the Tester amendment could be offered when the bill comes to the Senate floor.

The legislation’s goal is to “get the Postal Service back in the black and help it remain financially sound into the future,” Committee Chairman Joe Lieberman (I-CT), said in a news release. No date has been set for the full Senate to take up the bill.

In the House, a more controversial postal bill, H.R. 2309, introduced by Rep. Darrell Issa (R-CA) and Rep. Dennis Ross (R-FL) also awaits action by the full House. The bill, cleared last month along party lines by the House Oversight and Government Reform Committee, would deal with the Postal Service’s financial problems by treating it as a bankrupt institution and throw it into receivership.

The Congressional Budget Office must release cost estimates on the budgetary impact of the Senate and House bills before either chamber may move ahead to take each of them up.

Bruce Moyer
Legislative Counsel to NAPS
[email protected]

Management Salary Freeze

Management Salary Freeze



Nov. 9, 2011

Link Extra


To help reduce costs, the Postal Service today announced it is freezing Postmaster, manager, administrative and supervisor pay for fiscal years 2011 and 2012. USPS also is changing its sick and annual leave earnings formulas for new hires in these positions.

Effective Jan. 14, 2012, individuals hired from outside the Postal Service as supervisory or managerial employees or as Postmasters will accrue annual and sick leave at different rates than current employees (see table below). The accrual rate for current employees in these positions — as well as current employees who are promoted to these categories in the future — will not change.

This action follows decisions made earlier this year, including an officer and executive pay freeze implemented in July. Last spring, the American Postal Workers Union, which represents 209,834 employees, agreed to a two-year pay freeze and other provisions that will save the Postal Service $3.8 billion over the term of the negotiated labor agreement.

Today’s announcement affects nearly 62,000 Executive and Administrative Schedule (EAS) category employees, including more than 44,000 represented by the Postal Service’s three management associations. The National Association of Postal Supervisors (NAPS) represents 23,385 supervisory and managerial employees. The National Association of Postmasters of the United States (NAPUS) and the National League of Postmasters of the United States (NLPM) represent 13,741 and 7,271 Postmasters, respectively.

Today’s announcement follows pay consultations with those associations. USPS consults with management associations on pay and benefit packages. Postal Service management employees do not have access to collective bargaining.

The wage freeze also applies to 17,439 additional EAS employees not represented by management associations.

Formula for Earning Sick and Annual Leave (calculated by years of service)

  New Hires
(Effective Jan. 14, 2012) 
Current Employees
Annual Leave
10 days if less than 5 years     13 days if less than 3 years
  15 days if 5 years
but less than 15 years
20 days if more than 3 years
and less than 15 years
  20 days if 15 years or more 26 days if more than 15 years
Sick Leave 3 hours per pay period 4 hours per pay period

Note:  One pay period equals two weeks. There are 26 pay periods per year.

Reply from the Office of Representative Michael Grimm

Reply from the Office of Representative Michael Grimm



Dear Mr. Roma,

Thank you for contacting me regarding the financial troubles of the United States Postal Service (USPS). It’s good to hear from you.

As you know, on April 4, 2011 Congressman Stephen Lynch (MA-09) introduced H.R. 1351, the USPS Pension Obligation Recalculation and Restoration Act of 2011 which would repeal the requirement for prefunding retirement health costs of future postal employees and retirees. If it was not for this requirement the USPS would have run a surplus of $611 million as opposed to the net loss of more than $20 billion over the last four years. You will be happy to know I have cosponsored H.R. 1351 and plan to do all I can to see it passes the House and is signed into law.

I realize the United States Postal Service is in a difficult financial situation. H.R. 1351 would help the USPS return to financial solvency and help to avoid the closure of local post offices and disruption of services.

Rest assured, I will keep your views in mind as legislation regarding the United States Postal Service. Thank you again for sharing your thoughts and concerns. I invite you to follow me on Facebook and Twitter @repmichaelgrimm or visit my website at Should you have any further comments or questions, please do not hesitate to contact my office.


Michael G. Grimm
Member of Congress

Federal Times – USPS wants single health plan for employees, retirees

The U.S. Postal Service wants to create a new, single health care plan for its employees.

Tony Vegliante, the Postal Service’s chief human resources officer and executive vice president, said in an interview Wednesday that concentrating roughly a million postal employees and retirees in a single insurance provider would yield true economies of scale and hold down health care costs for the financially flailing agency.

Postal employees and retirees now get their health insurance through the Federal Employees Health Benefits Program (FEHBP), which offers hundreds of national, regional and local health plans to choose from. The Postal Service recently proposed pulling out of federal health and pension plans and starting its own as a way to cut costs.

Vegliante said FEHBP has “watered down” its negotiating position by dividing 8 million federal and postal employees and retirees among more than 200 plans.

“I don’t see any benefit we’d be deprived of,” Vegliante told Federal Times. “In fact, I see the opposite effect. There’s 207 plans in FEHB — there’s no economy of scale there. I don’t know where the leverage is.”

Click here for complete article.

NAPS Executive Board Teleconference Minutes – September 19, 2011

Louis Atkins

Before beginning the telecom regarding the September 27, 2011 Legislative Rally for support of HR 1351, President Atkins informed the Executive Board that NAPS takes prided in the success of getting every impacted NAPS member in the latest RIF a job, who wanted one.

President Atkins also mentioned that NAPS supports President Obama’s Budget Plan as it relates to the USPS, except for the President’s plan that reduces mail delivery from six to five days. NAPS still contends that 6-day delivery should be the last resort, since there are other legislative options to get the monies owed the USPS due to overfunding.

Download complete minutes here.