President Signs CSRS Act Freezing Rates for 3 Years

Share this content:
President Bush signed the Postal Civil Service Retirement System Funding Reform Act of 2003 into law yesterday, guaranteeing mailers at least three years without postal rate increases.

The law will allow the U.S. Postal Service to lower pension contributions to the CSRS after reviews found that the system was overfunded. Postal officials estimate that it will save $2.9 billion in fiscal year 2003 and $2.6 billion in FY 2004 through the change.

The postal service has said that it will use some of the savings to keep rates steady until 2006. Other savings will be used to pay down its $11.2 billion debt in fiscal years 2003, '04 and '05. Congress mandated that the savings cannot be used to pay for executive bonuses.

Without the lower pension contributions, postal officials would have begun seeking approval for the next rate increase this fall.

Meanwhile, postal officials reported that Standard Mail and Package Services volume are up, but other categories are declining.

From the start of the fiscal year last September through March 21, Standard Mail volume increased 4.6 percent, while Package Services volume was up 6.4 percent. However, First-Class mail was down 2.3 percent, and Periodicals fell 4 percent. Priority Mail reported the largest decline -- 14.4 percent -- followed by Express Mail, which was down 9.5 percent. International mail dropped just 0.9 percent.

Year-to-date revenue was $38.2 billion, a 5.6 percent increase over last year, but $819.3 million less than the postal service's plan. Still, net income was $1.68 billion, which was $314.6 million greater than plan. Helping the bottom line was the fact that expenses were $1.13 billion less than budgeted.

Total mail volume was 112.5 billion, up 0.6 percent compared to last year, but under plan by 1.8 billion mail pieces.


Next Article in Direct Mail

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above