A Year Like None Other

A Year Like None Other
By Bob Levi
NAPS Director of Legislative & Political Affairs

I cannot overstate the gravity of the challenges confronting postal supervisors, managers and postmasters during the first few months of 2025. There are toxic ap peals to privatize the U.S. Postal Service, postal management continuing to misdeliver for America and the punitive congressional recommendations to slash postal employee health and retirement benefits.

At the same time, the delay in the National Association of Letter Carriers to ratify a collective bargaining agreement aptly demonstrates the need for prompt passage of the Postal Supervisors and Managers Fairness Act, which, in part, would accelerate the process by which EAS-level postal employees can secure an updated pay and benefits schedule. Also, we will seek to secure COLA equity for Federal Employees Retirement System (FERS) annuitants. These key issues are among those that will be addressed at NAPS’ upcoming Legislative Training Seminar (LTS) April 6-9.

Prying away the U.S. Postal Service from being a governmental responsibility is being floated by Elon Musk and his crew of faceless, nameless, reckless technocrats. This monstrous idea needs to be shot down now. Should this idea gather any steam, universal, affordable mail service provided by well-trained and trusted public employees would be in dire jeopardy.

In case you believe this fear is far-fetched, you need only turn to what has happened to the U.S. Agency for International Development (USAID). President Trump shuttered the agency last month. While I take no position on the merits of USAID’s mission or work, it is instructive to note the agency was established under the Foreign Assistance Act of 1961 as an independent establishment of the federal government.

The U.S. Postal Service was created as an independent establishment a decade later in 1971. Although a national postal operation is firmly rooted in the U.S. Constitution (Article 1, Section 8), our postal legacy is no protection from those who seek to dismantle fundamental governmental functions.

For this reason, NAPS not only will be vigilant regarding postal privatization, we also will fight proactively to safeguard a government-run postal operation whose mission continues to be binding the nation together. Consequently, NAPS is strongly promoting H. Res. 70, a congressional resolution to support the USPS as an independent establishment of the federal government and not subject to privatization. Rep. Stephen Lynch (D-MA) introduced H. Res. 70, with Reps. Nick LaLota (R-NY), Andrew Garbarino (R-NY) and Gerald Connolly (D-VA) as original co-sponsors.

Some of the motivation for weakening the Postal Service has been fueled by the operational failures resulting from the so-called “Delivering for America” (DFA) initiative. In the eyes of postal policymakers, mailers and the American public, confidence in postal leadership’s ability to deliver for America has been seriously compromised.

The most recent evidence of the plan’s shortfalls was starkly enumerated in the Postal Regulatory Commission’s much-anticipated advisory opinion regarding the DFA. The PRC published its unanimous opinion on Jan. 31. In sum, the five commissioners concluded that “the Postal Service is irreversibly changing its network without laying the foundation for success (emphasis added).”

In its well-documented, 301-page opinion, the PRC found the USPS’ plan relies on a flawed design whose implementation is premature. The commission opined that the DFA relies on inflated and uncertain cost-savings, which is unlikely to impact the agency’s financial condition.

Most importantly, the PRC determined the plan is having and will continue to have a negative impact on timely mail delivery, especially in and to rural communities. Finally, the panel concluded the method for evaluating the DFA is unreliable. The PRC urged the Postal Service to reconsider whether the speculative, small gains from the DFA outweigh the certain downgrade in service for a significant portion of the nation.

Additionally, at the February USPS Board of Governors meeting, the agency heralded a $144 million net profit for the first quarter of FY25. The large volume of election mail and modest growth in Ground Advantage plowed the way for the surplus; however, on-time performance continued to lag.

Finally, in early February 2025, the Government Accountability Office (GAO) published its formal response to a request by two House Appropriations Subcommittee chairs to audit the projected cost-savings the USPS claimed would result from its redesigning mail processing facilities, one of the key elements of the DFA. In sum, the GAO cast doubt on the projected cost savings.

Now, permit me to move to the emerging congressional budget process. It does not offer any good news for postal employees and retirees. To bolster border security, finance corporate and individual tax cuts and cut the federal deficit, congressional budget vultures have targeted federal employees and retirees, including those of the Postal Service.

In mid-February, the House Budget Committee unveiled a budget bill that tasks the House Committee on Oversight and Accountability with coming up with cuts to the postal and federal community totaling $50 billion over the next decade. Among the proposals is a 3.6% pay cut for federal and postal employees who began federal employment before 2014. This would result from setting FERS employee contributions at 4.4% for all employees, not those hired in 2014 and thereafter.

Another proposal would replace the current formula for calculating a retirement annuity from the average salary of the highest three years to the highest five. Also under consideration is a plan to create a fixed-dollar, tax-free voucher to pay for health insurance, rather than use the weighted average premium method.

This idea would shift a significant portion of the health insurance burden from the government to its employees and retirees. Of course, there are other anti-employee proposals, but these stick out as impacting the postal community most significantly.

We also are attuned to the NALC rank-and-files’ rejection of the collective bargaining agreement negotiated between USPS and NALC leadership. This rebuff delays the commencement of NAPS’ pay consultations with the USPS on behalf of EAS-level postal employees.

Current law tethers EAS pay consultations to the conclusion of a collective bargaining agreement with the largest postal union, presently the NALC. Legislation for which NAPS has strongly advocated for the past five years would, among its provisions, tie the beginning of pay talks to the conclusion of the pay and benefits schedule, rather than wed it to a union collective bargaining agreement.

Moreover, the legislation would mitigate the need for expensive and lengthy legal actions should the USPS not comply with a mediation panel’s decision, if mediation is triggered. The legislation would make the mediation panel’s decision binding. We expect Rep. Connolly to reintroduce the bill prior to LTS.

Finally, NAPS will be working to secure the same full COLA for FERS annuitants as provided Civil Service Retirement System (CSRS) annuitants. Under current law, if the Consumer Price Index (CPI) is greater than 3%, the FERS COLA is 1% less than the CSRS COLA. If the CPI is between 2% and 3%, the FERS COLA will be frozen at 2%. If the CPI is 2% or less, the FERS and CSRS COLAs are the same. H.R. 491 would ensure that FERS and CSRS COLAs reflect the full Social Security COLA. Connolly introduced this bill.

It is quite evident this year will be like none other in recent memory. For this reason, we need every postal supervisor, manager and postmaster to become exemplary legislative advocates—not only for NAPS, but for themselves, as well.