Senators Keep Postal Reform Bill on Hold

Share this content:
Two senators are preventing postal reform legislation from being passed in the Senate.

Bob McLean, executive director of the Mailers Council, confirmed yesterday that Sens. Jeff Sessions, R-AL, and Jim DeMint, R-SC, have put a hold on S.662, which was put on the Senate calendar for consideration under its unanimous consent rule two weeks ago. If no senators object, the bill could pass without debate.

Both senators want the bill changed to support the Bush administration's position on the treatment of the Civil Service Retirement System escrow money and the payment of the military obligation.

"This is a very bad thing," McLean said. "I don't think it is permanent. It is just a reflection that some senators are just now engaging in the substance of the bill and need to be informed as to why this bill is important to the mailing industry and to postal customers."

Like the House version, which passed last summer, the Senate's bill would repeal a provision of the Postal Civil Service Retirement System Funding Reform Act of 2003 requiring that money owed to the U.S. Postal Service because of an overpayment into the CSRS fund be held in an

escrow account. The account would require contributions of $78 billion over 60 years.

The bill proposes to use the escrow funds to pre-fund post-retirement health benefit obligations, pay down any outstanding debt to the Treasury and hold down operating expenses and rate increases. It also returns the responsibility for funding CSRS pension benefits related to the military service of postal retirees to the Treasury Department. No other agency is required to make this payment retroactively.

The Bush administration, however, does not agree with these proposals because of their costs and budget impact.

Also, senior postal service officials blasted the bill and several new amendments last month, saying it could cause a 20 percent rise in postage rates.

Melissa Campanelli covers postal news, CRM and database marketing for DM News and To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting


Next Article in Direct Mail

Sign up to our newsletters

Company of the Week

We recently were named B2B Magazine's Direct Marketing Agency of the Year, and with good reason: We make real, measureable, positive change happen for our clients. A full-service agency founded in 1974, Bader Rutter expertly helps you get the right message to the right audience at the right time through the right channels. As we engage our clients' audiences along their journey, direct marketing (email, direct mail, phone, SMS) and behavioral marketing (SEM, retargeting, contextual) channels deliver information relevant to the needs of each stage. We are experts at implementing and leveraging marketing technologies such as CRM and marketing automation in order to synchronize sales and marketing communications. Our team of architects and activators plan, execute, measure and adjust in real time to ensure the strategy is working as needed and change things if it's not.

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