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USPS offers ‘little convincing evidence’ its reform plans will succeed, regulator says
Watchdog suggests Louis DeJoy’s overhaul initiatives are destined for failure without significant changes.
February 3, 2025
Senior Correspondent
The U.S. Postal Service’s plan to reform its operations and fix its finances is defective, overly optimistic and will severely damage its performance, a regulator with oversight of the agency found in a new review.
The negative impacts of Postmaster General Louis DeJoy’s Delivering for America plan have been felt since it was first implemented in 2021, the Postal Regulatory Commission said in an advisory opinion, and years later is still not ready for implementation. USPS is likely to realize little benefit from the proposals, PRC said, while worsening service and negatively impacting certain mail products and communities. DeJoy and postal management have repeatedly said all of his steps to overhaul the Postal Service are necessary for the survival of the agency and anyone standing in his way would hasten its demise.
“The commission urges the Postal Service to reconsider whether the speculative, meager gains from this proposal outweigh the certain downgrade in service for a significant portion of the nation,” PRC wrote.
The commission, whose opinion is non-binding but was being closely watched by lawmakers in both parties, said it recognizes that USPS is in a difficult position and supports the push for change. It issued its opinion after postal management requested it, which followed criticism from Democrats, Republicans, the USPS inspector general and stakeholders.
PRC specifically examined two parts of DeJoy’s plan: its Regional Transportation Optimization initiative, which requires mail to sit overnight at post offices instead of being collected each evening for transportation to a processing center, and its processing plant consolidations that will result in the 60 regional processing distribution centers. To accommodate the changes, the Postal Service will deliver some mail more slowly. Together, USPS projected the efforts would save around $4 billion annually.
The regulators said the Postal Service should better prepare for its RTO initiative, as the plan was rushed, included incomplete information on impacts and lacked regional specificity. The consolidation plan, it added, is unlikely to “create a more efficient network compared to the legacy network.”
“Other than saying ‘trust us,’ the Postal Service offers little convincing evidence or testimony to reasonably support its claims that its proposed actions will turn out the way it estimates,” PRC said.
The Postal Service failed to provide empirical evidence to support its cost savings claims and even if fully realized would reduce its annual operating costs by just 4%. Those savings are “not likely to significantly improve the Postal Service’s financial condition,” the commission said.
The regulators added that postal management is underselling the impact of its changes and estimated that half of all ZIP Codes will have downgraded service for regular, First-Class mail. They added that in places USPS has implemented its plans to date, most notably in Richmond, Virginia, and Atlanta, performance declined precipitously.
“In considering the Postal Service’s claims that service performance and reliability will improve as a result of its proposed changes, the commission is concerned that the opposite may occur,” the watchdog said.
PRC added USPS was glossing over how much more significantly rural communities would feel the impacts of the changes. Some populations will not receive First-Class mail pieces for six or more days, it said. Those impacts may render the reforms in violation of the law, the commission added.
David Walton, a USPS spokesman, said the agency was reviewing the advisory opinion and did not yet have any further comment. DeJoy previously promised to lawmakers he would take the PRC’s opinion seriously and tweak his plan as he saw fit. PRC made more than three-dozen recommendations for updating DeJoy’s reforms.
DeJoy vehemently defended his efforts during hearings last month and said anyone standing in his way would bring about the end of the Postal Service. Sen. Josh Hawley, R-Mo., pledged to “go to the mat” on the issue and work with everyone on the committee to sink DeJoy’s plan.
“I hate this plan and I’m going to do everything I can to kill it,” Hawley said.
Postal management also recently announced lower on-time delivery targets for 2025, with USPS now saying, for example, it expects to deliver regular cards and letters slated for two-day delivery on time just 87% of the time in fiscal 2025 compared to its goal of 93% in fiscal 2024. For mail scheduled to be delivered in three-to-five days, USPS now hopes to deliver 80% on time compared to 90% in fiscal 2024.
UPDATED 02 03 2025
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This hotline is for questions about the Jan. 13, 2025 MOU.
These resources are not to advise you on your personal financial
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Please be advised that the Day of mourning for President James Carter will be observed on Thursday, January 9th. The USPS will suspend regular mail deliveries, retail services and administrative office activity on that day. Employees will receive 8 hours of administrative leave for that day. Employees who are required by management to work that day or employees who have Thursday as a lay/off day, will be given 8 hours of administrative leave to be used at a later date by the end of the fiscal year.
Ron Suslak
President, Queens Area Local, APWU
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Schumer tells feds he’ll call a vote on windfall elimination provision repeal
The Social Security Fairness Act,
which would repeal to controversial tax provisions affecting some federal workers and retirees, has 63 sponsors in the Senate, more than the 60 votes needed to force a vote on the measure.
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https://postaltimes.com/urge-senate-leadership-to-bring-h-r-82-s-597-to-a-floor-vote/
ATTENTION ALL ESPICALLY RETIREES
YOUR RETIREMENT IS ON THE BLOCK
Urge Senate Leadership to Bring H.R. 82/S. 597 to a Floor Vote
November 19, 2024
On November 12, we witnessed a historic moment with the Social Security Fairness Act, H.R. 82, to repeal the windfall elimination provision (WEP) and the government pension offset (GPO), passing the House with overwhelming majority 327-75. Now it is time to ramp up efforts and push for the bill to be brought to the Senate floor to help us get one step closer in achieving WEP/GPO repeal!
We urge all members to contact their senators to CLICK ON LINK BELOW NOW!!!!!!!!!
urge Senate leadership to bring H.R. 82/S. 597 for a floor vote.
With H.R. 82 being passed, and few legislative days left in the session, it’s crucial to get Senate action on H.R. 82/S. 597. The momentum for repealing WEP and GPO is strong. It’s essential that we keep our advocacy strong in working towards getting WEP/GPO repeal passed prior to the end of year!
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Louis DeJoy’s Surprising Second Act
https://time.com/6263424/louis-dejoy-trump-election-postal-reform/
Membership Meeting Notice.
Monday
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at 9 AM
UNION HALL
98-11 101st AVENUE
OZONE PARK NY
ATTENTION RETIREES!!!!!!!!!!!!!
Open Season Is (Nov. 11) NOVEMBER 12– Dec. 9 Open Season is the annual enrollment period for health benefits. Outside a qualifying life event (QLE), this is the only time to enroll or make changes to your benefits. New this Open Season is the Postal Service Health Benefits (PSHB) Program, which takes effect Jan. 1, 2025. Changes to your benefits can be made (Nov.11) NOVEMBER 12TH through Dec. 9 using the new Postal Service Health Benefits System (PSHBS). A link to the PSHBS can be found on keepingposted.org. The USPS Open Season Virtual Fair kicks off Nov. 3, with an Open Season 101 seminar presented by the Benefits and Wellness team. The seminar covers how your benefits work together and explains the new benefits programs. The virtual fair also provides an opportunity to visit PSHB provider booths attend presentations from health and dental insurance carriers, Medicare, Social Security, Thrift Savings Plan, CHECKBOOK’s Guide to Health Plans for Federal Employees and more. For the fair schedule and Open Season benefits programs, go to keepingposted.org. Reminder regarding the Medicare Part B Special Enrollment Period: If you were an eligible annuitant who chose to enroll in Medicare Part B during the recent Special Enrollment Period, please note the following: 1. Open Season is an opportunity to select a health benefits plan that works in conjunction with your Medicare coverage. 2. Review plan options carefully, to include premium reimbursement rebate incentives. 3. Your Medicare Part B coverage will be effective on January 1, 2025. 4. If, after reviewing the PSHB plan information, you want to rescind your Medicare Part B enrollment, you can request a termination from the Social Security Administration until December 31, 2024. It is best to cancel as soon as possible to avoid an inadvertent payment of Medicare Part B premiums. If your request to cancel Medicare Part B enrollment is made after January 1, 2025, you will no longer be eligible for the PSHB Program unless a Medicare Part B exception applies. You will also be responsible for any Part B and PSHB premiums due through the month of termination. If you have questions regarding termination of Part B or if you would like to terminate your Part B enrollment, call the Social Security Administration at 1-800-772-1213. TTY users call 1-800-325-0778. Login.gov: This Open Season, a login.gov account will be required to access the new Postal Service Health Benefits System (PSHBS). The PSHBS must be used to make changes or enroll in a health benefits plan under the new PSHB Program. Login.gov is a secure sign-in service. Creating an account can be done in a few steps. Visit login.gov for more information and to create an account. Open Season begins Nov. 11 and will be here in a few days. Don’t wait to create your login.gov account. Important information coming to your mailbox: You will receive a “Crosswalk” guide on which plan under the new PSHB program is most comparable to your current Federal Employee Health Benefits (FEHB) plan. You should review the plan identified for you to ensure that it is the most advantageous for your coverage needs. If you are satisfied, no action needs to be taken. You and your covered dependents will be transitioned to the new PSHB plan identified for you. Please be sure to check your mail for this guide. USPS RETIREE E-NEWSLETTER November 2024 Frequently Asked PSHB Questions Question: How do I enroll in a health plan if I do not want the plan that has been identified for me in the “crosswalk” letter? Answer: To enroll in a health plan, you will need to first establish a login.gov account. This account is required to access the Postal Service Health Benefits System (PSHBS). Utilize CHECKBOOK’s Guide to Health Plans for Federal Employees and Retirees to view and compare plans. After determining the plan that is best for you, make the change using the Postal Service Health Benefits System (PSHBS) which is the new enrollment platform for PSHB.
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