S. 1688 (112th): Save Our Postal Worker Jobs Act of 2011

112th Congress, 2011–2013. Text as of Oct 12, 2011 (Introduced).

Status & Summary | PDF | Source: GPO

II

112th CONGRESS

1st Session

S. 1688

IN THE SENATE OF THE UNITED STATES

October 12, 2011

introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs

A BILL

To amend the provisions of title 5, United States Code, relating to the methodology for calculating the amount of any Postal surplus or supplemental liability under the Civil Service Retirement System, and for other purposes.

1.

Short title

This Act may be cited as the Save Our Postal Worker Jobs Act of 2011.

2.

Findings

Congress finds the following:

(1)

The Inspector General of the United States Postal Service has reported that—

(A)

the Postal Service has overpaid into the Civil Service Retirement System by as much as $75,000,000,000; and

(B)

the Postal Service has overpaid into the Federal Employees’ Retirement System by as much as $6,800,000,000.

(2)

The Postal Service announced that it may have lost as much as $10,000,000,000 in fiscal year 2011.

(3)

The Postal Service has proposed reducing the number of employees of the Postal Service by more than 200,000 through attrition and layoffs.

3.

Modified methodology

(a)

In general

Section 8348(h) of title 5, United States Code, is amended by adding at the end the following:

(4)
(A)

To the extent that a determination under paragraph (1), relating to benefits attributable to civilian employment with the United States Postal Service, is based on any provision of law described in subparagraph (C), such determination shall be made in accordance with such provision and any otherwise applicable provisions of law, subject to the following:

(i)

The average pay used in the case of any individual shall be a single amount, determined in accordance with section 8331(4), taking into account the rates of basic pay in effect for such individual during the periods of creditable service performed by such individual. Nothing in this subsection shall be considered to permit or require—

(I)

one determination of average pay with respect to service performed with the United States Postal Service; and

(II)

a separate determination of average pay with respect to service performed with its predecessor entity in function.

(ii)

In determining the portion of an annuity attributable to civilian employment with the United States Postal Service, with respect to any period of employment with the United States Postal Service that follows any other period of employment creditable under section 8332 (without regard to whether such employment was with an entity referred to in clause (i)(II)), the total service of an employee for purposes of any provision of law described in subparagraph (C) shall be the sum of—

(I)

any period of employment with the United States Postal Service; and

(II)

any period of employment creditable under section 8332 that precedes the period described in subclause (I).

(B)
(i)

Not later than 6 months after the date of enactment of this paragraph, the Office shall determine (or, if applicable, redetermine) the amount of the Postal surplus or supplemental liability as of the close of the fiscal year most recently ending before such date of enactment, in conformance with the methodology required under subparagraph (A).

(ii)
(I)

If the result of the determination or redetermination under clause (i) is a surplus, the Office shall transfer the amount of such surplus to the Postal Service Retiree Health Benefits Fund not later than 15 days after the date of such determination or redetermination.

(II)

If a determination or redetermination under clause (i) for a fiscal year is made before the Office makes a redetermination under paragraph (2)(B) with respect to the fiscal year, the Office may not make a determination under paragraph (2)(B) with respect to the fiscal year.

(C)

The provisions of law described in this subparagraph are—

(i)

the first sentence of section 8339(a); and

(ii)

section 8339(d)(1).

(5)

For purposes of this subsection—

(A)

the term Postal Service Retiree Health Benefits Fund means the fund established under section 8909a; and

(B)

the term Postal Service Fund means the fund established under section 2003 of title 39.

.

(b)

Coordination provisions

(1)

Amendment

Section 8909a of title 5, United States Code, is amended by adding at the end the following:

(e)

Notwithstanding any other provision of law, the amount payable by the Postal Service under subsection (d) in any fiscal year ending on or before September 30, 2021, shall be determined without regard to the requirements under section 8348(h)(4).

.

(2)

Rule of construction

Nothing in this Act, or an amendment made by this Act, shall be construed to affect the amount of any benefits otherwise payable from the Civil Service Retirement and Disability Fund to any individual.

(c)

Technical amendment

The heading for section 8909a of title 5, United States Code, is amended by striking Benefit and inserting Benefits.

4.

Additional provisions

(a)

In general

Section 8348(h)(2) of title 5, United States Code, is amended by adding at the end the following:

(F)

Notwithstanding any other provision of this subsection, for purposes of determining the Postal surplus or supplemental liability for each of fiscal years 2016, 2017, 2018, 2019, and 2020—

(i)

paragraph (4)(A) shall not apply to a determination under paragraph (1); and

(ii)

the determination under paragraph (1) shall be made by applying the methodology that was used to carry out this paragraph with respect to the fiscal year preceding the fiscal year referred to in paragraph (4)(B)(i).

.

(b)

Relating to a postal surplus

Section 8348(h)(2)(C) of title 5, United States Code, is amended—

(1)

by inserting 2021, after 2015,; and

(2)

by striking if the result is and all that follows through terminated. and inserting the following:

if the result is a surplus—

(i)

that amount shall be transferred—

(I)

to the Postal Service Retiree Health Benefits Fund, if the surplus is for fiscal year 2020 or a preceding fiscal year; and

(II)

to the Postal Service Fund, if the surplus is for fiscal year 2021 or a subsequent fiscal year; and

(ii)

any prior amortization schedule for payments shall be terminated.

.

5.

Treatment of certain surplus retirement contributions

Section 8423(b) of title 5, United States Code, is amended—

(1)

by redesignating paragraph (5) as paragraph (6); and

(2)

by inserting after paragraph (4) the following:

(5)

If, for fiscal year 2010, the amount computed under paragraph (1)(B) is less than zero (in this section referred to as surplus postal contributions), the amount of such surplus postal contributions shall be transferred—

(A)

to the Postal Service Retiree Health Benefits Fund to pay any liability to the Postal Service Retiree Health Benefits Fund for fiscal year 2011;

(B)

if all liability to the Postal Service Retiree Health Benefits Fund for fiscal year 2011 has been paid, to the Employees’ Compensation Fund established under section 8147; and

(C)

if all liability of the United States Postal Service to the Employees’ Compensation Fund has been paid, to the United States Postal Service for the repayment of any obligation issued under section 2005 of title 39.

.

6.

Effective date

(a)

In general

This Act and the amendments made by this Act shall take effect on the date of enactment of this Act.

(b)

Intent of Congress

It is the intent of Congress that this Act apply with respect to the allocation of past, present, and future benefit liabilities between the United States Postal Service and the Treasury of the United States.