# Presentation: 510656

## CSRS LEGISLATION

**CSRS LEGISLATION**
**PUBLIC LAW 108-18**
**	****	****	****	**

## PUBLIC LAW 108-18

** ****Changes Postal Service CSRS Funding **
**   ****to Prevent $105 Billion Over Payment **
**   ****Under Existing Legislation**

** ****Transfers $27 Billion CSRS Cost of **
**    ****Military Service to USPS **

** ****Places “Savings” (*****Difference Between***
***   ******New and Old CSRS Payments*****) in **
**   ****Escrow  Beginning in FY 2006**

**PUBLIC LAW 108-18**

## PUBLIC LAW 108-18

** ****USPS Use of “Savings” Beyond FY 2005**
**   **

** ****Funding CSRS Cost of Military Service –  ****	**** USPS or U.S. Treasury to Pay?**

**PUBLIC LAW 108-18**

## PUBLIC LAW 108-18

** ****$17B Relates to Treasury Payments Made **
**      ****Between 1971 and 2002**

** ****90% Relates to Military Service Prior To **

**     ****1971 Establishment of USPS **

**USPS Position on Military Service Costs**

** ****USPS Only Agency Charged This Cost**

** ****President’s Commission:  “Taxpayers, Not**

**     ****Ratepayers, Should Finance Military Pensions”**

**PUBLIC LAW 108-18**

## PUBLIC LAW 108-18

** ****2003/04 --  Liquidation of Debt**

** ****2005 -- Fund Expense Growth or Liquidate Debt**** **

**PUBLIC LAW 108-18**

** ****2006 & Beyond – Hold in Escrow Pending **
**    ****Legislative Change**

## PUBLIC LAW 108-18

** ****Debt Repayment;**
** ****Pre-funding Post Retirement Health Benefits;**
** ****Cost Saving Capital Investments;**
** ****Delaying/Moderating Increases in Postal Rates;**
** ****Any other Matter; and **
** ****Work of President’s Commission **

**PUBLIC LAW 108-18**

** ****Use of “Savings” After 2005**

## PUBLIC LAW 108-18

** **

**PUBLIC LAW 108-18**

** ****Sense of Congress Stated in Act**

## PUBLIC LAW 108-18

** ****$3.2B Required to Fund FY 2006 Escrow**

** ****USPS Opposes Escrow Requirement  **

**PUBLIC LAW 108-18**

** ****USPS Position on Escrow Requirement**

## PUBLIC LAW 108-18

**Returned to U. S. Treasury, Pre-Fund Postretirement Health Benefit Costs of Employees and Retirees.**

**PUBLIC LAW 108-18**

** ****USPS Preferred Proposal **

** ****Responds to “Sense of Congress” and**
**   ****GAO Concerns re Recognizing and Funding **
**   ****Costs when Earned.**

## PUBLIC LAW 108-18

**Military Service Costs:**

** ****Pre-Fund Retiree Health Benefit Cost for**

**   ****New Hires Since FY 2002**

** ****Liquidate Debt**

** ****Fund Cost Saving Capital Investments**

** ****Pay Annual Retiree Health Benefit **
**     ****Premium Costs **

**PUBLIC LAW 108-18**

** ****USPS Alternate Proposal**

## PUBLIC LAW 108-18

**        ****Increases Rates 5.4% Increase**

** ****USPS Preferred Proposal:**
**        ****Increases Rates 1.5% to 2.0%  **

**PUBLIC LAW 108-18**

** ****FY 2006 Rate Impact of Proposals**

** ****USPS Alternate Proposal:**
**        ****Increases Rates 0.3%**

## PUBLIC LAW 108-18

**GAO Evaluation of USPS, OPM and Treasury Proposals Due November 29, 2003.**

**PUBLIC LAW 108-18**

** ****Next Steps**

** ****Disposition of Savings:**
**- GAO Evaluation of USPS  Proposal Due           November 29, 2003.**
**- Congress to Revisit Savings Issue Within 180 Days of Receiving GAO Report.**