508-12/30/21-mh 

United States Postal Service

Fiscal Year 2021 

Annual Report 

to Congress

Fiscal Year 2021 Annual Report

Fiscal Year 2021 Comprehensive Statement 

on Postal Service Operations

Fiscal Year 2021 Performance Report

Fiscal Year 2022 Performance Plan

FY 2021 Annual Report to Congress — United States Postal Service iii

Contents

Report Structure and Purpose 1

FY 2021 Annual Report 1

Letter from the Postmaster General and United States Postal Service (USPS)

Board of Governors Chairman 2

USPS Board of Governors 4

USPS Executive Leadership Team (ELT) 8

USPS Organizational Chart 10

FY 2021 Comprehensive Statement on Postal Service Operations 12

USPS History and Mission Statement 12

Commitment to Diversity 13

Overview of Postal Service Operations 13

Key Financial and Operating Statistics 24

Executive Compensation 30

FY 2021 Performance Report and FY 2022 Performance Plan 32

Corporate-wide Goals and Targets 32

High-Quality Service 34

Excellent Customer Experience 38

Safe Workplace and Engaged Workforce 42

Financial Health 46

Strategic Initiatives 52

Additional Information 54

FY 2021 Annual Report to Congress — United States Postal Service 1

Report Structure and Purpose

This document consists of the following four reports:

 The Fiscal Year (FY)1

 2021 Annual Report, including 

a statement from the United States Postal Service 

(USPS) Postmaster General and USPS Board of 

Governors Chairman on our2 operations 

 The FY 2021 Comprehensive Statement on Postal 

Service Operations 

 The FY 2021 Annual Performance Report 

 The FY 2022 Annual Performance Plan 

This document’s purpose is to provide Postal Service 

information to stakeholders The document fulfills the 

requirements of the following articles of Title 39 in the 

United States Code (U S C ):

 414(f), on the reporting of financial information 

related to special postage stamps (p 19) 

 416(f), on the reporting of information related to 

semipostal stamps (p 19) 

 2401(e), on the submission of a Comprehensive 

Statement (pp 12–30) 

 2402, on the submission of an Annual Report (pp 

1–11) 

 2803, on the submission of an Annual Performance 

Plan (pp 32–53) 

 2804, on the submission of an Annual Performance 

Report (pp 32–53) 

 3652(g), on the submission of the Comprehensive 

Statement, Annual Performance Report and Annual 

Performance Plan (pp 12–53) 

 3686(d), on the reporting of executive compensation 

in excess of Federal Level Executive 1 (p 30) 

1

 All references to a specific year or “the year” refer to the Postal Service fiscal year

ending Sept. 30, 2021. However, specific month and year references pertain to the

calendar dates. 

2 The terms “we,” “us” and “our” refer to the United States Postal Service. 

FY 2021 Annual Report

Financial and Operational Highlights Totals at Sept. 30 Percent Change

FY 2021 FY 2020 FY 2019 FY 2021 FY 2020

(in millions, except percentages)

Total mail and package volume 128,861 129,171 142,562 (0.2)% (9.4)%

Total revenue with investment and interest income $ 77,069 $ 73,225 $ 71,306 5.2% 2.7%

Total expenses1 $ 81,999 $ 82,401 $ 80,119 (0.5)% 2.8%

Net loss $ (4,930) $ (9,176) $ (8,813) (46.3)% 4.1%

Purchases of property and equipment $ 1,872 $ 1,810 $ 1,419 3.4% 27.6%

Debt $ 11,000 $ 14,000 $ 11,000 (21.4)% 27.3%

Capital contributions of U.S. Government $ 13,132 $ 3,132 $ 3,132 319.3% 0.0%

Deficit since 1971 reorganization $ (88,812) $ (83,840) $ (74,664) 5.9% 12.3%

Total net deficiency $ (75,680) $ (80,708) $ (71,532) (6.2)% 12.8%

(in actual units indicated, unaudited)

Number of career employees 516,636 495,941 496,934 4.2% (0.2)%

Number of pre-career employees 136,531 148,092 136,174 (7.8)% 8.8%

Total delivery points 163,139,167 161,374,152 159,901,312 1.1% 0.9%

Change in delivery points served 1,765,015 1,472,840 1,343,056 19.8% 9.7%

1

 Includes interest expense
2 United States Postal Service — FY 2021 Annual Report to Congress

Letter from the Postmaster General and USPS Board of Governors Chairman

At every home and business, and in every community 

in America, the United States Postal Service plays 

an indispensable role in the daily experience of the 

American public The secure, affordable, reliable, and 

universal delivery of mail and packages we provide 

helps drive commerce, connect people to one another, 

and bind the nation together as we have done 

throughout our rich history 

We are — uniquely — an independent entity of the 

executive branch that is expected to operate like a 

business, albeit one with a powerful public service 

mission We generate our own revenue through the sale 

of postal products and services, while competing for 

customers and striving to meet evolving marketplace 

needs Our success in meeting public expectations 

depends upon our own constant evolution by 

embracing the changing nature of technology and the 

economy, and by adopting best practices across our 

enterprise 

The past year provided powerful conditions for change 

The nation continued to contend with the impacts of 

COVID-19 on the economy and the many disrupted 

patterns of daily life These impacts — resulting in 

higher demand for package delivery services and lower 

demand for mail delivery — affected the business 

environment for the Postal Service and illuminated 

systemic shortcomings in our operations and approach 

to the marketplace 

To put the organization on a better trajectory after 

a decade of financial losses and underinvestment 

— along with chronic operational and service 

underperformance — the Postal Service published the 

Delivering for America plan on March 23, 2021 

The Delivering for America plan establishes a 10-year 

vision for transforming the Postal Service into a highperforming organization and identifies the strategies 

necessary to achieve financial sustainability and service 

excellence 

The plan is both ambitious and achievable given the 

current environment It reorients the Postal Service 

business model and operational structure, and 

embraces best practices and investments in service, 

people, and infrastructure Our plan is growth-oriented, 

designed to build out and better utilize our capacity and 

to introduce new offerings needed to compete in the 

growing e-commerce delivery marketplace 

If fully implemented, the Delivering for America plan 

will reverse a projected $160 billion in financial losses 

over the next 10 years We will accomplish this 

through a combination of legislative and administrative 

actions; leveraging existing and new pricing authorities 

established by the Postal Regulatory Commission; 

management initiatives to achieve greater efficiencies 

in mail processing, transportation, retail, delivery, 

and administrative operations; and initiatives to grow 

revenue and introduce new products With timely 

implementation, we expect to operate with a positive 

annual net income beginning in 2023 or 2024 and 

realize break-even operations over the remaining 10 

years 

The Delivering for America plan also commits to 

dramatic improvement in service performance and 

reliability With an improved operating model designed 

to meet appropriate and achievable service standards, 

the Postal Service will be able to achieve at least 95 

percent on-time delivery performance across all product 

categories This represents a significant improvement 

in the service reliability that we provide to the American 

public, and reflects an organizational commitment to 

precise, on-schedule operations across the postal 

enterprise 

At the core of the plan is investment to spur growth 

and better align the Postal Service with marketplace 

opportunities We intend to invest $40 billion to 

fund a new vehicle fleet, processing equipment 

and automation, facility improvements, retail and 

delivery operation upgrades, and better information 

technology—all designed to put our employees in the 

best possible position to succeed 

Importantly, our plan expands our capacity to deliver 

higher volumes of packages, with greater reliability, and 

to enable America’s e-commerce shippers to provide 

more consumers with same-day, next-day, and twoday delivery The launch of our USPS Connect suite 
FY 2021 Annual Report to Congress — United States Postal Service 3

of offerings is specifically designed to leverage the 

capabilities of our network so that we can aggressively 

pursue clear marketplace opportunities and drive 

revenue growth 

As you read this Annual Report to Congress, you will 

find a review of how the Delivering for America plan 

initiatives are producing progress and improving our 

financial position, service reliability, and customer 

experience, while also creating a safe and engaged 

work environment for our employees 

You will also see that the Postal Service went to 

extraordinary lengths to ensure that the 2020 general 

election was effectively supported, and that America’s 

mailed-in ballots were delivered securely and on time 

In this document, we review our election efforts and the 

many other ways we fulfil our public service mission to 

earn the trust and business of the American public 

On behalf of the women and men of the Postal Service 

— who take great pride in serving our customers and 

the nation — we hope you find this report informative 

and useful 

Thank you for your interest in the United States Postal 

Service 

Louis DeJoy

Postmaster General and Chief Executive Officer

Ron A Bloom

Chairman, Board of Governors
4 United States Postal Service — FY 2021 Annual Report to Congress

United States Postal Service Board of Governors

The Board of Governors of the United States Postal 

Service is comparable to the board of directors of 

a publicly held corporation The Board3 consists of 

up to nine Governors appointed by the President of 

the United States with the advice and consent of the 

Senate 

The Governors select the Postmaster General, who 

becomes a member of the Board, and those 10 select 

the Deputy Postmaster General, who also serves on the 

Board The Postmaster General serves at the pleasure 

of the Governors for an indefinite term, and the Deputy 

Postmaster General serves at the pleasure of the 

Governors and the Postmaster General 

As of Sept 30, 2021, the Board consisted of nine 

appointed Governors, the Postmaster General, and the 

Deputy Postmaster General 

Ron A. Bloom, USPS 

Board of Governors 

Chairman

Ron A Bloom was 

nominated to serve 

on the Postal Service 

Board of Governors by 

President Donald Trump 

and was confirmed by 

the Senate in August 

2019 Bloom served the 

remainder of a seven-year term that expired Dec 8, 

2020, and is currently in his holdover year that expires 

Dec 8, 2021 Bloom was unanimously elected by 

his fellow Governors on Feb 9, 2021, to serve as the 

24th Chairman of the Board of Governors Bloom also 

serves as the chairman of the Strategy and Innovation 

Committee since October 2019 and member of the 

Election Mail Committee as of August 2021 

Bloom is a vice chairman and managing partner of 

Brookfield Asset Management, in the Private Equity 

group As part of his work at Brookfield, he serves 

on the board of directors of Westinghouse Electric 

Company and Clarios 

Bloom is a former vice chairman, U S Investment 

Banking, Lazard 

Bloom completed his undergraduate degree at 

Wesleyan University in 1977 and received his MBA with 

Distinction from the Harvard Business School in 1985 

Roman Martinez IV, 

USPS Board of 

Governors Vice 

Chairman

Roman Martinez IV 

was appointed to the 

Postal Service Board of 

Governors by President 

Donald Trump and 

confirmed by the Senate 

in August 2019 Martinez 

is serving the remainder of a seven-year term that 

expires Dec 8, 2024 Martinez has served as vice 

chairman of the Board of Governors since February 

2021, chairman of the Audit and Finance Committee 

and a member of the Compensation and Governance 

Committee since October 2019 

Martinez serves on the board of trustees of New York 

Presbyterian Hospital and on the board of advisors of 

the International Rescue Committee 

Martinez is a former board member of Cigna 

Corporation, a former vice chairman of the Investment 

Advisory Council of the State Board of Administration of 

Florida, former board member of Orbital ATK Inc and 

Bacardi corporation, and a former managing director of 

Lehman Brothers 

A graduate of Boston College, Martinez also obtained a 

MBA degree from the Wharton School of the University 

of Pennsylvania 

Robert M. Duncan, 

Governor

Robert M Duncan’s 

appointment to the 

Postal Service Board of 

Governors by President 

Donald Trump was 

confirmed by the Senate 

in August 2018 Duncan, 

of Kentucky, served the 

remainder of a seven-year 

term that expired on Dec 8, 2018 Duncan served in 

his holdover year during most of calendar year 2019 

Duncan was confirmed by the Senate in December 

3

 All “Board” and/or “BOG” references in this document refer to The Board of 

Governors of the United States Postal Service.
FY 2021 Annual Report to Congress — United States Postal Service 5

2019 for another seven-year term, which expires Dec 

8, 2025 Duncan was elected chairman of the Board 

of Governors in September 2018 and was re-elected 

chairman in November 2019 Duncan has served as 

a member on the Compensation and Governance 

Committee and as a member on the Strategy and 

Innovation Committee since June 2021 In August 

2021, Duncan also served as a member of the Election 

Mail Committee Duncan was formerly the chairman 

of the Compensation and Management Resources 

Committee and Audit and Finance Committee 

Duncan is chairman of the board of trustees at Alice 

Lloyd College, a private four-year liberal arts college 

in Pippa Passes, Kentucky Duncan was formerly the 

17th chairman of the President’s Commission on White 

House Fellowships, a former chairman of the board of 

directors of the Tennessee Valley Authority and former 

chairman of the Republican National Committee 

Duncan holds degrees from University of the 

Cumberlands and the University of Kentucky College 

of Law, and he has completed various executive 

education programs 

John M. Barger, 

Governor

John M Barger’s 

appointment to the 

Postal Service Board of 

Governors by President 

Donald Trump was 

confirmed by the Senate 

in August 2019 Barger 

is serving the remainder 

of a term that expires 

Dec 8, 2021 Barger has served as chairman of the 

Compensation and Governance Committee and as 

a member of the Strategy and Innovation Committee 

since October 2019 

Barger is the managing director of NorthernCross 

Partners, an investment and advisory firm, and serves 

as a director on a number of company boards, 

including several involved in e-commerce, logistics and 

supply chain, data analytics, digital visualization, and 

electronic displays 

Barger served as a board member of the Los Angeles 

County Employees Retirement Association (LACERA) 

for seven years, including as chairman of the Board of 

Retirement and the Board of Investments 

Barger earned his undergraduate degree from Ohio 

Wesleyan University, his law degree from University 

of California San Francisco, Hastings College of Law, 

and his MSc in finance and accounting (Econ) from the 

London School of Economics He was admitted to the 

California state bar in 1984 

Donald L. Moak, 

Governor

Donald L Moak was 

appointed to the Postal 

Service Board of 

Governors by President 

Donald Trump and 

confirmed by the Senate 

in June 2020 Moak will 

serve for the remainder 

of a seven-year term that 

expires Dec 8, 2022 Moak has served as a member 

of the Operations Committee since August 2020, the 

Audit and Finance Committee since June 2021, and 

chairman of the Election Mail Committee in 2020 and 

again as of August 2021 

Moak is the co-founder and Chief Executive Officer 

of The Moak Group, a public affairs, advocacy, and 

business consulting firm 

Moak is a former Marine Corps captain, Navy fighter 

pilot, Delta Airlines B-767 pilot, and president of the Air 

Line Pilots Association 

Moak is a graduate of the University of West Florida 

William D. Zollars, 

Governor

William D Zollars 

was appointed to the 

Postal Service Board of 

Governors by President 

Donald Trump and 

confirmed by the Senate 

in June 2020 Zollars will 

serve for the remainder 

of a seven-year term that 

expires Dec 8, 2022 Zollars has served as chairman 

of the Operations Committee and as a member of the 

Audit and Finance Committee since September 2020 

Zollars currently serves on Board of Directors of Cerner 

Corporation, ProLogis Inc , C2FO, RedStone Logistics, 

and Main Street Data 
6 United States Postal Service — FY 2021 Annual Report to Congress

Zollars is the former president and chief executive 

officer of YRC Worldwide, Inc 

Zollars is a graduate of the University of Minnesota with 

a Bachelor of Arts in economics and is a member of Phi 

Beta Kappa 

Ronald A. Stroman, 

Governor

Ronald A Stroman 

was appointed to the 

Postal Service Board of 

Governors by President 

Joseph R Biden and 

confirmed by the Senate 

in May 2021 Stroman is 

serving in his first term 

that expires on Dec 8, 

2021 In May 2021 he was confirmed by the Senate 

to a second term expiring Dec 8, 2028 Stroman 

has served as a member of the Audit and Finance 

Committee and the Operations Committee since June 

2021 

Stroman served as the 20th Deputy Postmaster 

General, the second-highest ranking postal executive, 

from March 2011 until his retirement in June 2020 

Since leaving the Postal Service, he worked as a senior 

fellow at the Democracy Fund and served as the lead 

for President Biden’s transition team for the Postal 

Service 

Stroman earned his Juris Doctorate from Rutgers 

University Law Center 

Amber McReynolds, 

Governor

Amber McReynolds 

was appointed to the 

Postal Service Board of 

Governors by President 

Joseph R Biden and 

confirmed by the 

Senate in May 2021 

McReynolds will serve for 

the remainder of a sevenyear term that expires on Dec 8, 2026 McReynolds 

has served as a member of the Compensation 

and Governance Committee and the Strategy and 

Innovation Committee since June 2021 

McReynolds is a leading expert on election 

administration and policy Her professional career has 

been focused on strengthening democratic institutions 

with a goal of improving the voting experience for all 

She is the Founding Chief Executive Officer of the 

National Vote at Home Institute, a non-partisan nonprofit dedicated to expanding and improving vote-bymail systems in all 50 states 

McReynolds is a graduate of the University of Illinois 

at Urbana-Champaign and the London School of 

Economics and Political Science 

Anton G. Hajjar, 

Governor

Anton G Hajjar was 

appointed to the Postal 

Service Board of 

Governors by President 

Joseph R Biden and 

confirmed by the Senate 

in May 2021 Hajjar will 

serve for the remainder 

of a seven-year term 

that expires Dec 8, 2023 Hajjar has served as a 

member on the Audit and Finance Committee and the 

Operations Committee since June 2021 

Hajjar previously served as the general counsel of the 

American Postal Workers Union, AFL-CIO Prior to 

this position, he represented unions and workers while 

serving as counsel at Murphy Anderson PLLC and as a 

principal at O’Donnell, Schwartz & Anderson, PC 

Hajjar is a graduate of Fordham University and Tulane 

University Law School Following law school, he served 

as a law clerk for Judge John Minor Wisdom of the 

United States Court of Appeals for the Fifth Circuit 
FY 2021 Annual Report to Congress — United States Postal Service 7

Louis DeJoy, USPS 

Postmaster General and 

Chief Executive Officer

Louis DeJoy is the 75th 

Postmaster General of 

the United States and 

the Chief Executive 

Officer (CEO) of the 

world’s largest postal 

organization by mail 

volume delivered 

Appointed by the Governors of the Postal Service, 

DeJoy began his tenure as Postmaster General in June 

2020 Prior to joining the Postal Service, he spent more 

than 35 years growing and managing a successful 

nationwide logistics company 

As chairman and CEO of New Breed Logistics, DeJoy 

spent decades in collaboration with the U S Postal 

Service, Boeing, Verizon, Disney, United Technologies, 

and other public and private companies to provide 

supply chain logistics, program management and 

transportation support New Breed Logistics was a 

contractor to the U S Postal Service for more than 

25 years, supplying logistics support for multiple 

processing facilities The company received Quality 

Supplier Awards from the Postal Service on four 

separate occasions 

In 2014, New Breed merged with XPO Logistics, with 

DeJoy serving as CEO of XPO Logistics’ supply chain 

business in the Americas before his retirement in 

December 2015 He then joined the company’s board 

of directors, where he served until 2018 

As Postmaster General, DeJoy has committed to 

creating a long-term, viable operating model for the 

Postal Service that will ensure the organization can 

fulfill its public service mission while remaining selfsustaining Since August 2020, DeJoy has served as 

a member of the Board of Governors’ Strategy and 

Innovation Committee 

DeJoy is a member of the Board of Trustees at Elon 

University in North Carolina and the Fund for American 

Studies in Washington, DC He received his Bachelor of 

Business Administration from Stetson University 

Doug Tulino, Deputy 

Postmaster General and 

Chief Human Resources 

Officer

Douglas Tulino was 

appointed to serve as 

the Deputy Postmaster 

General of the United 

States in May 2021 He 

will continue to serve as 

chief human resources 

officer (CHRO), emphasizing a commitment to the 

Postal Service workforce and to initiatives in the 10-

year plan, Delivering for America, which are designed 

to make the Postal Service a great place to work for all 

employees 

As Deputy Postmaster General, Tulino will ensure 

the organization’s culture, talent, labor relations and 

leadership development are all contributing to the 

successful implementation of the Delivering for America 

plan He will also play a key leadership role in ongoing 

stakeholder outreach 

As CHRO, he oversees all aspects of Human 

Resources (HR) for the Postal Service’s 

653,000-member workforce He is responsible for 

Labor Relations, HR Management, Organizational 

Development, Compensation and Benefits, Learning 

and Development, Recruiting and Hiring, and HR 

Technology 

Tulino holds a Bachelor of Business Administration and 

Industrial Relations from Kent State University in Ohio 
8 United States Postal Service — FY 2021 Annual Report to Congress

USPS Executive Leadership Team (ELT)

Postmaster General and 

Chief Executive Officer 

Louis DeJoy

Chief Commerce and 

Business Solutions 

Officer and Executive VP

Jacqueline Krage 

Strako

Chief Retail and 

Delivery Officer and 

Executive VP 

Joshua Colin, Ph.D.

Chief Logistics and 

Processing Operations 

Officer and Executive VP 

Isaac Cronkhite

Deputy Postmaster 

General and Chief 

Human Resources 

Officer Douglas Tulino

Chief Technology 

Officer and Executive VP 

Scott Bombaugh

Chief Information 

Officer and Executive VP 

Pritha Mehra

Chief Customer and 

Marketing Officer and 

Executive VP 

Steve Monteith
FY 2021 Annual Report to Congress — United States Postal Service 9

Chief Financial Officer 

and Executive VP 

Joseph Corbett

General Counsel and 

Executive VP 

Thomas Marshall

Finance and Strategy 

Senior VP 

Luke Grossmann
10 United States Postal Service — FY 2021 Annual Report to Congress

USPS Organizational Chart 

Executive Leadership Team (ELT): 11 (shaded)

Officers — non ELT: 33

POSTMASTER GENERAL 

AND

CHIEF EXECUTIVE OFFICER

Louis DeJoy

Deputy Postmaster 

General & 

Chief Human 

Resources Officer

Douglas Tulino

Chief Retail & 

Delivery Officer 

& Exec. VP

Joshua Colin Ph.D.

Chief Logistics 

& Processing 

Operations Officer 

& Exec. VP

Isaac Cronkhite

Chief Commerce 

& Business 

Solutions Officer & 

Exec. VP

Jacqueline Krage Strako

VP Human 

Resources

Simon Storey

VP Delivery 

Operations

Angela Curtis

VP Processing 

& Maintenance 

Operations

Mike Barber

VP Facilities

Tom Samra

VP Labor 

Relations

Katherine Attridge

VP Retail & 

Post Office 

Operations

Elvin Mercado

VP Logistics

Robert Cintron

VP Transportation 

Strategy

Peter Routsolias

VP Organization 

Development

Jenny Utterback

VP Area Retail & 

Delivery Operations 

Atlantic

Salvatore Vacca

VP Regional 

Processing 

Operations Eastern 

Dane Coleman

VP Business 

Solutions

(Vacant)

VP Area Retail & 

Delivery Operations 

Southern

Timothy Costello

VP Regional 

Processing 

Operations Western

Larry Munoz

VP Business 

Development

(Vacant)

VP Area Retail & 

Delivery Operations 

Central

A/Eric Henry 

VP Area Retail & 

Delivery Operations

WestPac

Eduardo Ruiz
FY 2021 Annual Report to Congress — United States Postal Service 11

Chief Postal 

Inspector

Gary 

Barksdale

VP Government 

Relations & 

Public Policy

Peter Pastre

VP Corporate 

Affairs

Judy de Torok

VP Corporate 

Communications

Jeffery Adams

Judicial Officer

Alan Caramella

Chief 

Technology 

Officer & 

Exec. VP

Scott Bombaugh

Chief 

Information 

Officer & 

Exec. VP

Pritha Mehra

Chief Customer 

and Marketing 

Officer & 

Exec. VP

Steven Monteith

Chief 

Financial 

Officer & 

Exec. VP

Joseph Corbett

General 

Counsel 

& Exec. VP

Thomas Marshall

VP Engineering

Systems

Linda Malone

VP Chief 

Information 

Security Officer

A/Michael Ray

VP Customer 

Experience

Kelly Sigmon

SVP Finance 

& Strategy

Luke Grossmann

VP Enterprise 

Analytics

Jeffrey Johnson

VP Technology 

Applications

Marc McCrery

VP Marketing

Sheila Holman

VP Controller

Cara Greene

VP Innovative 

Business 

Technology

Gary Reblin

VP Network & 

Compute 

Technology

William Koetz

VP Sales

Shavon Keys

VP Supply 

Management

Mark Guilfoil

VP Product 

Solutions

Thomas Foti

VP Pricing & 

Costing

Sharon Owens
12 United States Postal Service — FY 2021 Annual Report to Congress

FY 2021 Comprehensive Statement on Postal Service 

Operations

USPS History and Mission Statement

Our history 

The United States Postal Service has a storied history 

as the institution of our Government guaranteeing safe 

and secure communication among and between the 

Government and the American people 

Many are familiar with our history, which began with the 

Second Continental Congress and Benjamin Franklin in 

1775 and continued in 1787 when the Postal Clause of 

the U S Constitution empowered Congress to establish 

Post Offices and post roads Congress exercised those 

powers with the passage of The Post Office Act of 

1792, which made postal services a permanent fixture 

of the Federal Government The act included provisions 

to facilitate freedom of the press, ensure the privacy 

of personal correspondence, and expand the nation’s 

physical infrastructure, all vital to our nation’s growth 

and prosperity 

These principles and objectives endure While radio, 

television and the internet have irrevocably altered our 

information-gathering habits, postal correspondence 

remains the most secure and resilient form of 

communication, providing the American people with a 

delivery infrastructure vital to our national security 

USPS retains the largest physical and logistical 

infrastructure of any non-military government institution, 

providing an indispensable foundation supporting an 

ever-changing and evolving nationwide communication 

network Capitalizing on its expertise in scheduling 

Our mission

In April 2020, the Board of Governors adopted 

the following mission statement for the Postal 

Service to conduct long-range planning and set 

strategic policy:

Our mission

 To serve the American people and, through the 

universal service obligation, bind our nation 

together by maintaining and operating our 

unique, vital and resilient infrastructure. 

 To provide trusted, safe and secure 

communications and services between 

our Government and the American people, 

businesses and their customers, and the 

American people with each other. 

 To serve all areas of our nation, making full use 

of evolving technologies.

To meet this mission we will:

 Remain an integral part of the United States 

Government, providing all Americans with 

universal and open access to our unrivaled 

delivery and storefront network. 

 Maintain and enhance our reputation and role 

as a trusted face of the federal government 

in every community and provide all levels of 

government with access to our network and 

services. 

 Provide frequent, reliable, safe and secure 

delivery of mail, packages and other 

communications to all Americans. 

 Use technology, innovation, and where 

appropriate, private sector partnerships, to 

optimize and adapt our network, operations 

and business model to meet the changing 

needs of our customers and delivery 

recipients, while maintaining our core mission. 

 Operate in a modern, efficient and effective 

manner that allows us to minimize what we 

charge for our services, consistent with 

meeting, in a fair way, our obligations to our 

current and retired employees and other 

stakeholders. 

 Remain an employer of choice, able to attract, 

retain and develop high quality employees 

who possess the skills necessary to excel in a 

rapidly changing business environment.
FY 2021 Annual Report to Congress — United States Postal Service 13

and high-volume sorting, USPS also serves a vital role 

enabling digital commerce 

Commitment to Diversity

The Postal Service defines diversity as “the richness of 

cultures, perspectives, experiences and backgrounds ” 

USPS recognizes the value of a diverse workforce 

and is one of the leading employers of minorities and 

women 

As part of the Delivering for America plan, the Postal 

Service launched the Executive Diversity Council (EDC) 

to advise, assist, and recommend on diversity, equity, 

and inclusion matters and champion key initiatives to 

build leadership and organizational capabilities The 

EDC is comprised of an experienced, diverse group of 

senior executive leaders 

The Postal Service also created a National Steering 

Committee (NSC) to advance the key focus areas 

identified by the EDC Both the EDC and NSC are 

focused on increasing diversity in leadership positions 

Additionally, the organization created a new Diversity, 

Equity and Inclusion (DEI) team, dedicated to 

integrating DEI practices into its employee programs 

and processes to drive the necessary cultural changes 

needed throughout the organization 

Currently, minorities comprise 52 percent and women 

comprise 47 percent of the total workforce Further, 

minorities comprise 38 percent and women comprise 

37 percent of senior USPS management positions 4

More than a quarter of Postal Service workers are Black 

(29 percent), 13 percent are Hispanic and 8 percent are 

Asian In contrast, according to 2018 Census Bureau 

data of the national workforce, Black Americans make 

up 13 percent, Hispanic Americans 17 percent, and 

Asian Americans 6 percent 5

The Postal Service is also a leading employer of 

veterans with just over 10 percent of its workforce 

comprised of veterans, nearly double the national 

rate of 5 7 percent according to the Bureau of Labor 

Statistics 6

4

 Senior management is defined as Offic , Executive, and Payband level positions.

5

 DeSilver, D., & Schaeffer, K. (2020, May 14). The state of the U.S. Postal Service 

in 8 charts. Retrieved September 28, 2021, from https:// www.pewresearch.org/

fact-tank/2020/05/14/the-state-of-the-u-s-postal-service-in-8-charts/

6

 Table 5. Employed persons 18 years and over by industry, class of worker, sex, 

veteran status, and period of service, 2020 annual averages. (2021, March 18). 

Retrieved Oct 14, 2021, from https://www.bls.gov/news.release/vet.t05.htm 

In 2021, the Postal Service was ranked the top federal 

agency in Black EOE Journal, Hispanic Network 

magazine, and Professional Woman’s magazine 

Additionally, the Postal Service received the Readers’ 

Choice Award as a top 20 government employer in 

Equal Employment Opportunity magazine, Woman 

Engineer magazine, Minority Engineer magazine, and 

Careers & the disABLED magazine 

Overview of Postal Service Operations

After the passage of the Postal Reorganization 

Act (PRA), the United States Postal Service began 

operations July 1, 1971, succeeding the cabinet-level 

Post Office Department The PRA established the 

Postal Service as an “independent establishment of 

the executive branch of the Government of the United 

States ” 

According to Title 39 U S C subsection 101, “The 

United States Postal Service shall be operated as a 

basic and fundamental service provided to the people 

by the Government of the United States, authorized 

by the Constitution, created by an Act of Congress, 

and supported by its people The Postal Service shall 

have as its basic function the obligation to provide 

postal services to bind the Nation together through 

the personal, educational, literary, and business 

correspondence of the people It shall provide prompt, 

reliable and efficient services to patrons in all areas and 

shall render postal services to all communities ”

In accordance with the provision of the PRA, the Postal 

Service fulfills its legal mandate to provide universal 

services at fair and reasonable prices by offering 

a variety of postal services to its many customers 

Although the Postal Accountability and Enhancement 

Act (PAEA) classifies the services offered as Market 

Dominant and Competitive “products,” the term 

“services” is often used in this report for consistency 

with other descriptions of services the Postal Service 

offers 

USPS Services and Postal Rates

To fulfill its universal service obligation, USPS provides 

services to patrons in all areas and communities in the 

United States The Postal Service serves rural areas, 

communities and small towns and uses a variety of 

transportation methods to move mail through this large 

network, including both surface and air transportation 

As a self-funded organization, the Postal Service 

receives no tax dollars for its operating expenses and 
14 United States Postal Service — FY 2021 Annual Report to Congress

relies on the sale of postage, products and services to 

fund its operations 

Services are sold at approximately 31,000 Postal 

Service-managed Post Offices, stations, and branches, 

plus approximately 3,000 additional Contract Postal 

Units, Community Post Offices, and Village Post 

Offices A large network of commercial outlets also sells 

stamps and services on behalf of the Postal Service 

Customers can also purchase stamps and services on 

the web at www.usps.com. Mail deliveries are made to 

more than 163 million city, rural, PO Box, and highway 

delivery points 

Services include the following:

 First-Class Mail — This category includes letters, 

cards and large envelopes destined for either 

domestic or international (up to 4 pounds) delivery 

Large envelopes may weigh up to 13 ounces to 

domestic destinations and less than 16 ounces 

if mailed internationally First-Class Mail is sealed 

against inspection It contains correspondence, 

bills or statements of account, payments and other 

mailable content 

 Marketing Mail — This category includes 

advertisements and marketing packages weighing 

less than 16 ounces and meeting the criteria of not 

being required to be mailed using First-Class Mail 

service because of their content Marketing Mail 

is typically used for direct advertising to multiple 

delivery addresses Every Door Direct Mail is a 

category of Marketing Mail: it enables customers 

to prepare direct mailings without names and 

addresses for distribution to all business and 

residential customers on individual carrier routes 

 Periodicals — This category encompasses the 

Periodicals class of mail offered for distribution of 

newspapers, magazines and newsletters that have 

a required frequency Customers must receive prior 

USPS authorization to use this service 

 Shipping and Packages — This category includes 

the following services: 

First-Class Package Service — Commercial,

an option for shippers of packages that weigh less 

than 1 pound 

First-Class Package Service — Retail, for 

shipment of boxes, thick envelopes or tubes of 

13 ounces or less 

Package Services for merchandise or printed 

matter, such as library and media mail weighing up 

to 70 pounds 

Parcel Services, which includes Parcel Select 

and Parcel Returns services, including “last-mile” 

products, and USPS Marketing Mail Parcels, which 

provide commercial customers with a means of 

package shipment 

Priority Mail, which is offered as a service both 

within the U S and abroad with domestic, dayspecified (non-guaranteed) delivery 

Priority Mail Express, which provides overnight 

to 2-day delivery, with money-back guaranteed 

service including tracking, proof of delivery and 

basic insurance up to $100 Priority Mail Express 

delivery is offered to most U S destinations for 

delivery 365 days a year 

 International Mail — This category offers 

international mail and shipping services with 

individual customer contracts and agreements with 

foreign postal administrations Priority Mail Express 

International and Priority Mail International services 

compete in the e-commerce cross-border market 

to more than 190 countries In addition, First-Class 

Package International Service offers competitive 

solutions to both retail and commercial mailers 

for shipping to many countries Global Express 

Guaranteed is a co-branded service with FedEx to 

more than 190 countries 

 Other — This broad category includes PO Box 

services, money orders and USPS Extra Services 

PO Box services provide customers an additional 

method for private and convenient mail delivery 

Money orders offer customers a safe, convenient 

and economical method for payment remittance 

Money orders are available for amounts up to 

$1,000, can be purchased and cashed at most 

Post Offices, or deposited or negotiated at financial 

institutions USPS Extra Services offer a variety 

of service enhancements that provide security, 

proof of delivery or loss recovery These services 

include: Certified Mail, Registered Mail, Signature 

Confirmation, Adult Signature, and insurance up to 

$5,000 Extra Services are available online, at Post 

Offices or at USPS self-service kiosks 
FY 2021 Annual Report to Congress — United States Postal Service 15

Market Dominant services include, but are not limited 

to, First-Class Mail, Marketing Mail, Periodicals, Bound 

Printed Matter parcels, Marketing Mail parcels, and 

Library/Media Mail 

Market Dominant prices are established to be fair, 

equitable, and affordable Prices and fees are reviewed 

and approved by the Governors and are subject to a 

review process by the Postal Regulatory Commission 

(PRC) Price increases for Market Dominant services are 

currently generally subject to a price cap based on the 

Consumer Price Index for All Urban Consumers (CPI-U) 

with some additional pricing flexibility and authority 7 In 

FY 2021, the retail price for a First-Class Mail 1-ounce 

stamp was raised $0 03 to $0 58 and continued to 

be one of the lowest letter-mail postage rates among 

industrialized countries 

Competitive services, such as Priority Mail, Priority Mail 

Express, First-Class Package Service, Parcel Select, 

Parcel Return Service and some types of International 

Mail, are not limited by a price cap By law, the price for 

each Competitive service must cover its “attributable 

costs” (meaning the Postal Service’s costs attributed 

to such service through reliably identified causal 

relationships) Further, Competitive services collectively 

must contribute an “appropriate share” to the 

institutional costs of the Postal Service In general, the 

Postal Service attempts to set its prices for Competitive 

services to maximize profitable revenue The FY 2021 

average price increases varied by Competitive services 

product 

7

 For additional information regarding the Postal Service’s pricing authority, please 

reference PRC Order 5763, issued in November 2020.

USPS Connect

The Postal Service’s processing and delivery 

network enables businesses to reach 

customers reliably and affordably. The Postal 

Service’s latest innovation, USPS Connect, 

will now provide businesses with expanded 

access to the network through its suite of 

local, regional, and national offerings. USPS 

Connect will give more businesses, including 

small local businesses, the ability to induct 

their mailpieces deeper in the Postal Service 

network, reducing shipping costs while still 

providing fast and affordable delivery options. 

As outlined in Delivering for America, USPS 

Connect is a key strategy for USPS to support 

its commitment to growth and innovation.

The USPS Connect suite of offerings is built 

around the following local, regional, national 

and returns solutions. 

 USPS Connect National will provide 

affordable nationwide package delivery 

solutions for businesses and organizations of 

all sizes.

 USPS Connect Regional will provide 

affordable next-day delivery within a broad 

geographic region.

 USPS Connect Local will provide affordable 

local-to-local next-day package delivery. This 

includes same-day and Sunday delivery, plus 

package pickup options at many locations.

 USPS Connect Local Mail will provide 

next-day delivery of legal and regular-sized 

documents at an affordable flat rate and 

same-day delivery in participating locations.

 USPS Connect Returns will help businesses 

offer their customers convenient returns, 

with free carrier pickup or drop off at one of 

31,000 retail locations across the country.
16 United States Postal Service — FY 2021 Annual Report to Congress

Operations

Beginning in FY 2020 and continuing into FY 2021, the 

Postal Service realigned core business operations in 

support of its mission and strategy, focusing on what 

it does best: collect, process, move, and deliver mail 

and packages This organizational change captured 

operating efficiencies by providing clarity and economies 

of scale to allow the Postal Service to reduce its cost 

base and generate new revenue 

The new organizational structure is centered around 

three operating units:

 Retail and Delivery Operations — Focused on 

accepting and delivering mail and packages efficiently 

and with a high level of customer satisfaction 

 Logistics and Processing Operations — Focused 

on processing and moving mail and packages 

efficiently to delivery units within determined service 

standards 

 Commerce and Business Solutions — Focused 

on leveraging Postal Service infrastructure to enable 

growth 

As part of the operational realignment, the Postal 

Service adjusted its Retail and Delivery Operations areas 

and districts, as well as its Logistics and Processing 

Operations regions and divisions, to better serve the 

American public Image #1 shows the Retail and 

Delivery Operations Areas and Districts and Image #2 

shows the Logistics and Processing Operations Regions 

and Divisions 

Image #1: Retail and Delivery Operations Areas and Districts

 
FY 2021 Annual Report to Congress — United States Postal Service 17

Image #2: Logistics and Processing Operations Regions and Divisions

 
18 United States Postal Service — FY 2021 Annual Report to Congress
FY 2021 Annual Report to Congress — United States Postal Service 19

Semipostal Stamps

Semipostal stamps are postage stamps with a postage 

value equal to the First-Class Mail single-piece, 1-ounce 

stamp rate in effect at the time of purchase, plus an 

amount to fund a designated cause By law, funds from 

sale of semipostal stamps, less the postage paid and 

the reasonable costs incurred by the Postal Service, 

are distributed to designated agencies to support the 

approved causes 

Semipostal stamps are either congressionally mandated 

or issued through discretionary authority granted to the 

Postal Service through the Semipostal Authorization 

Act, Pub L 106-253 Under this act, the Postal Service 

may issue and sell semipostal fundraising stamps to 

advance such causes as it considers to be “in the 

national public interest and appropriate ” The law 

specified that the Postal Service can issue up to five 

new semipostal fundraising stamps over a 10-year 

period 

In FY 2021, the Postal Service sold four semipostal 

stamps: the congressionally mandated Breast Cancer 

Research semipostal stamp, the congressionally 

mandated Save Vanishing Species semipostal stamp, 

and, under the Postal Service’s discretionary authority, 

the Alzheimer’s semipostal stamp and the Healing 

PTSD semipostal stamp 

The Breast Cancer 

Research semipostal 

stamp generated 

approximately $1 5 

million in funds in 

excess of the postage 

value in FY 2021 As of 

Sept 30, 2021, and 

since the stamp’s 

inception, the Postal 

Service had distributed 

approximately $64 

million, or 70 percent of 

the proceeds, to the 

National Institutes of 

Health within the 

Department of Health and Human Services and 

approximately $27 million, or 30 percent of the 

proceeds, to the Breast Cancer Research Program 

within the Department of Defense 

The Save Vanishing

Species semipostal 

stamp generated 

approximately $449,000 

in funds in excess of the 

postage value in FY 

2021 As of Sept 30, 

2021, and since the 

stamp’s inception, the 

Postal Service had 

distributed approximately $6 million, 100 percent of the 

funds collected in excess of the postage value, to the 

U S Fish and Wildlife Service to support its 

Multinational Species Conservation Fund 

The Alzheimer’s

semipostal stamp 

generated approximately 

$114,000 in funds in 

excess of the postage 

value in FY 2021 As of 

Sept 30, 2021, and 

since the stamp’s 

inception, the Postal 

Service had distributed 

approximately $1 million, 

100 percent of the funds 

collected in excess of 

the postage value, to the National Institute on Aging 

within the U S Department of Health and Human 

Services 

The Healing PTSD

semipostal stamp 

generated approximately 

$408,000 in funds in 

excess of the postage 

value in FY 2021 As of 

Sept 30, 2021, and 

since the stamp’s 

inception, the Postal 

Service had distributed 

approximately $1 million, 

100 percent of the funds 

collected in excess of 

the postage value, to the 

Department of Veterans 

Affairs 
20 United States Postal Service — FY 2021 Annual Report to Congress

Environmental Affairs and Corporate Sustainability

Sustainability is a core commitment of the Postal 

Service As the organization invests in new technology, 

it will champion sustainable and environmentally 

focused solutions At the Postal Service, environmental 

stewardship means continuously advancing the 

organization’s sustainability goals and environmentallyfocused solutions that reduce greenhouse gas 

emissions, energy, fuel, and waste The following crossfunctional initiatives are examples of postal stewardship 

that benefit customers, employees and the environment:

Environmental Compliance. Environmental 

compliance is the foundation of the Postal Service’s 

commitment to sustainability The Postal Service strives 

to be a good steward of the environment and minimize 

its impact by establishing programs and practices to 

meet applicable federal, state and local environmental 

regulations 

Environmental Compliance Reviews. The Postal 

Service conducts environmental compliance reviews 

(ECRs) at its facilities to evaluate site-level compliance 

with all applicable environmental regulations and Postal 

Service policy ECRs are the foundation of the Postal 

Service’s compliance program These reviews follow 

a standardized protocol to assess site compliance 

and provide a platform to directly engage employees 

to assist with compliance implementation When 

necessary, the Postal Service mandates corrective 

actions and provides compliance assistance to ensure 

completion 

Storage Tank Management. The Postal Service has 

a comprehensive program focused on improving and 

maintaining tank systems to avoid contaminating the 

environment The Postal Service removes and replaces 

tanks that pose a liability as they approach end of life 

or warranty limits Replacement tanks are installed only 

where necessary These new tank systems are centrally 

monitored and designed to prevent and quickly detect 

leaks to avoid soil and groundwater contamination 

Solar Power. The Postal Service is committed to 

increasing conservation efforts with the installation of 

on-site renewable energy projects at multiple facilities, 

including at the South Jersey Mail Processing Center 

in New Jersey This large solar project adds to the 

Postal Service’s solar energy portfolio and includes the 

installation of more than 13,000 solar panels, which is 

enough electricity to power more than 856 homes 

each year 

Green Energy Purchases. The Postal Service has 

initiated an environmental investment in renewable 

energy certificates Electricity contract suppliers in 13 

states will now provide 25 percent of their power from 

renewable energy sources, including wind power, hydro 

power and solar installations As a result, the Postal 

Service will consume more than 880,000 megawatts of 

green power over a four-year period 

Hydrogen Fuel Cells (HFC). The Postal Service is 

committed to accelerating the path of innovation and 

to investing in the future through initiatives such as 

using hydrogen fuel cells to replace lead acid batteries 

in powered industrial vehicles Building on previous 

success at the Washington Network Distribution Center 

mail processing facility, facilities were reviewed for HFC 

technology expansion The current target facilities are 

the New Jersey Network Distribution Center and the 

Brooklyn Processing and Distribution Center The Postal 

Service is determined to optimize the environmental 

benefits of hydrogen fuel cells in additional locations 

Corporate Energy Interface (CEI) Resiliency Tool.

The Postal Service CEI Resiliency Tool provides 

information to ensure the protection of Postal Service 

employees and assets in anticipation of disastrous 

weather events Facilities can be searched by address 

to access information about whether the facility is 

susceptible to sea level rise, flooding and storm surge 

Additionally, the tool provides data on facility assets, 

such as the number and type of equipment, number 

and type of vehicles and the number of employees 

This information provides critical planning information 

for operations in advance of a dangerous or disastrous 

weather pattern Operations can use the data to 

determine if equipment needs to be removed or 

precautions put in place to minimize loss 

Recycled Materials. The Postal Service’s Priority Mail, 

Priority Mail Express and ReadyPost corrugated boxes 

are recyclable and meet Sustainable Forestry Initiative 

or Forest Stewardship Council Certification standards 

The Postal Service partners with the organization 

How2Recycle to help customers understand how to 

properly recycle postal products How2Recycle is a 

labeling system that gives consumers clear recycling 

instructions 

Environmentally Preferable Products. The Postal 

Service is committed to using environmentally 

preferable products where possible The Postal Service 

continues to promote the integration of sustainable
FY 2021 Annual Report to Congress — United States Postal Service 21

goods and services throughout its supply chain by 

increasing the use of sustainability contract clauses 

when working with suppliers, increasing availability 

of these products through the internal online catalog, 

and taking steps toward increased accountability by 

improving its supplier tracking and reporting system 

USPS BlueEarth. The Postal Service helps customers 

reduce waste, increase recycling and improve their 

carbon footprints through several Postal Service’s 

BlueEarth programs: 

 USPS BlueEarth Secure Destruction is a sustainable 

mail service that reduces the handling costs of 

return-to-sender First-Class letters and flats for 

business customers who use Intelligent Mail 

barcode technology Mail that is undeliverable 

can be intercepted, inspected and handled in a 

secure manner by USPS rather than returning it 

to the sender BlueEarth Secure Destruction helps 

reduce the carbon footprint of First-Class Mail and 

is more cost-effective for both mailers and the 

Postal Service In FY 2021, the USPS BlueEarth 

Secure Destruction Mail Service intercepted and 

securely handled more than 111 million pieces of 

undeliverable First-Class letters and flats that would 

have otherwise been returned to sender 

 USPS BlueEarth Federal Recycling Program provides 

a convenient mail back option for federal agencies to 

recycle small electronics and used toner cartridges 

Participating agencies can access online reports of 

their recycling activity which includes details about 

the final disposition of each item recycled 

 USPS BlueEarth Carbon Accounting Service

provides major mailers an online report of the 

emissions produced due to their mailing and 

shipping activity This information can be used for 

their corporate inventory or to purchase carbon 

credits to offset and provide carbon neutral shipping 

for their customers 

National Recycling Operation. This program 

transports materials — primarily paper, cardboard 

and plastic — from Post Offices to central hubs for 

recycling, using available space in Postal Service 

vehicles The Postal Service encourages recycling 

initiatives across the organization to increase recycling 

performance and improve the organization’s bottom line 

at the same time 

The Postal Service is “Putting its Stamp on a Greener 

Tomorrow” by taking sustainable actions and 

integrating environmental business practices into dayto-day operations Additional information on the Postal 

Service’s sustainability efforts is available in the 2021 

Annual Sustainability Report, available at www.usps.

com/green.

Commitment to a Safe and Secure Network

The United States Postal Inspection Service (USPIS) 

is the law enforcement, crime prevention, and 

security arm of the Postal Service In FY 2021, USPIS 

Inspectors helped USPS maintain America’s trust by:

 Ensuring the secure transfer of election mail through 

the Postal Service’s network as an unprecedented 

number of people relied on USPS to vote 

 Serving as a core member of the Department 

of Justice’s COVID-19 Fraud Task Force, an 

interagency working group assembled to address 

COVID-19 related fraud schemes 

 Investigating frauds that target seniors through the 

mail, such as lottery and sweepstakes fraud 

 Reducing mail theft through vigorous investigation of 

customer reports and preventing theft by protecting 

physical infrastructure and educating customers 

 Leading efforts to eliminate opioids and other illicit 

drugs from the mail by coordinating with other 

law enforcement agencies to share intelligence, 

coordinate cases and conduct joint enforcement 

operations 

 Working aggressively with other law enforcement 

agencies and key trade partners to stem the flow 

of illegal drugs entering the United States, as well 

as improving detection through the collection and 

receipt of customs advance electronic data (AED) as 

required by the STOP Act 

In FY 2021, USPIS launched its Southwest Border 

Initiative at major induction points, identified by internal 

analytical work, for drugs in the domestic mail In the 

initial phase completed in August 2021, teams of USPIS 

Inspectors conducted interdictions and investigations 

at the southwest border, seizing over 60 pounds of 

fentanyl, 213 pounds of methamphetamine and over 

$760,000 in illicit proceeds This operation produced 

significant intelligence that will help assist in multiple 

high-impact investigations and will help strategize future 

operations 
22 United States Postal Service — FY 2021 Annual Report to Congress

While USPIS is continuing its efforts to remove opioids 

and other illicit drugs from the mail, the agency is also 

focusing on multiple other initiatives to ensure a safe 

and secure network To learn more about USPIS, visit 

https://www.uspis.gov.

Election Mail Performance

During the 2020 election period, the Postal Service 

delivered roughly 543 million pieces of election mail, a 

96 percent increase from 2016 Election mail consists 

of mail to or from election officials, including ballots, 

ballot applications, registration forms, or other items 

that enable citizens to participate in the voting process 

Throughout 2020, the Postal Service faced 

unprecedented challenges, including an unfamiliar 

political spotlight; however, the commitment among 

letter carriers, clerks, mail handlers, supervisors, 

postmasters, plant managers, and other employees 

throughout the organization was resolute Postal 

employees rose to the occasion, served the American 

people with pride and distinction, and upheld the Postal 

Service’s promise to deliver the nation’s election mail 

securely and on time, consistent with the organization’s 

non-partisan public service mission 

To support the timely delivery of election mail, the Postal 

Service Board of Governors chartered an Election Mail 

Committee in August 2020, to oversee, review, and 

monitor the organization’s preparations for the election 

season The following statistics highlight the Postal 

Service’s exemplary election season performance 

Key General Election Performance Statistics:

 On average, the Postal Service delivered ballots from 

election officials to voters in 2 1 days and ballots 

from voters to election officials in 1 6 days 

 99 89 percent of ballots were delivered to election 

officials within 7 days from when the Postal Service 

received the ballot 

 The overwhelming majority of ballots were delivered 

in far less time than that Specifically, based on 

internal processing scores, 97 9 percent of ballots 

mailed from voters to election officials were delivered 

within three days, and 99 7 percent were delivered 

within five days 

 Total mail volume surpassed 4 6 billion mailpieces for 

both Political Mail (used for campaign purposes and 

excluding ballots) and Election Mail, representing a 

114 percent increase above the 2016 election cycle 

Key Election Mail Performance Statistics

Percent of ballots delivered from voters 

to election officials within seven days:

99.89

Percent of ballots delivered from voters 

to election officials within three days:

97.9

Average time to deliver ballots from 

election officials to voters:

2.1 Days

Average time to deliver ballots from 

voters to election officials:

1.6 Days
FY 2021 Annual Report to Congress — United States Postal Service 23

 The Postal Service delivered more than 135 million 

ballots, including blank ballots delivered from election 

officials to voters and completed ballots returning 

from voters to election officials 

In August 2021, the Board of Governors chartered 

a new bipartisan Election Mail Committee, focused 

on overseeing, reviewing, and monitoring the Postal 

Service’s preparations for the 2022 primary and general 

election elections and making recommendations to 

the Board on this and related issues Specifically, the 

committee has the following duties:

 Review and make recommendations on the Postal 

Service’s plans to serve citizens and state and local 

entities on matters related to elections 

 Review and make recommendations on election and 

political mail products the Postal Service offers 

 Monitor and make recommendations regarding 

the operational and performance metrics related to 

voting by mail and election and political mail 

 Provide regular reports to the Board on matters 

within their scope and special issues that may merit 

Board attention 

 Perform all other duties required by law or otherwise 

necessary for effective guidance of the Postal 

Service’s election mail functions, or as the Board 

may direct 

For additional information on the USPS 2020 PostElection Analysis visit www.about.usps.com/newsroom. 

COVID-19 Pandemic Response

In March 2020, the Postal Service established the 

COVID-19 Response Command Team to ensure 

proactive management of the pandemic’s effect on 

employees, operations and customers The team 

continues to monitor the daily effects of the pandemic 

and identify potential and actual impacts throughout the 

nation The team also recommends and implements 

policies, plans and procedures to ensure continued 

high-quality service to the public, while also meeting 

employee and customer safety needs The Postal 

Service’s COVID-19 Supplies Command Center 

remains dedicated to ensuring that Postal Service 

facilities have adequate supplies to keep employees 

safe and meet ongoing facility cleaning needs 

throughout the pandemic 

Core responsibilities of the COVID-19 Response 

Command Team include:

 Reinforcing proper workplace behaviors regarding 

safety precautions such as social distancing and 

wearing face coverings 

 Implementing contact tracing and other COVID-19 

tracking procedures 

 Updating cleaning and ventilation policies 

 Monitoring postal leave policies for employees 

affected by the COVID-19 pandemic 

 Expanding telework capabilities for most 

administrative employees and ensuring adequate 

communication to and safeguards for employees 

who have returned to the office 

 Issuing stand-up talks, articles, videos and other 

communications to ensure employees have the 

latest information 

 Maintaining steady communication with residential 

customers and business mailers regarding postal 

facility disruptions and delivery impacts through 

USPS Service Alerts at about.usps.com/newsroom/

service-alerts.

The Postal Service is proud of its ability to provide a 

trusted, valued service to the American public, while 

safeguarding employees and customers during the 

continuing national public health emergency 

Continuity and Preparedness

The Postal Service Continuity and Preparedness group 

ensures that plans, procedures and protocols are in 

place to respond to emergencies that could disrupt 

operations, and provides the tools and resources that 

enable resumption of operations quickly, safely and 

efficiently Continuity and Preparedness coordinates 

actions with senior and field management when 

employees and property are affected by natural 

disasters or national emergencies The Postal Service’s 

commitment to resuming safe mail delivery as soon 

as possible after disruptions would not be possible 

without the Continuity and Preparedness team and 

the resilience of USPS employees and its networks 

The Postal Service takes its mission of providing 

universal service across the nation seriously, striving 

to keep communities connected and deliver a sense 

of normalcy, even during local, regional or national 

disruptions to service 
24 United States Postal Service — FY 2021 Annual Report to Congress

Key Financial and Operating Statistics

Financial History Summary

(in millions)

FY 2021 FY 2020 FY 2019

Operating results

Total revenue1 $ 77,041 $ 73,133 $ 71,154

Operating expenses

Compensation and benefits2 50,085 48,730 47,519

Retirement benefits3 7,376 6,964 6,197

Retiree health benefits 5,110 4,660 4,564

Workers’ compensation (580) 2,903 3,504

Transportation 9,652 8,814 8,184

Other operating expenses 10,201 10,116 9,911

Loss from operations $ (4,803) $ (9,054) $ (8,725)

Investment and interest income (expense), net (127) (122) (88)

Net loss $ (4,930) $ (9,176) $ (8,813)

Financial position

Cash and cash equivalents4 $ 23,858 $ 14,358 $ 8,795

Property and equipment, net 14,778 14,567 14,352

All other assets5 7,769 6,979 2,486

Total assets $ 46,405 $ 35,904 $ 25,633

Retiree health benefits $ 56,975 $ 51,865 $ 47,205

Workers’ compensation liability 18,174 20,074 18,529

Debt 11,000 14,000 11,000

Retirement benefits 14,915 11,583 8,385

All other liabilities5 21,021 19,090 12,046

Total liabilities $ 122,085 $ 116,612 $ 97,165

Total net deficiency $ (75,680) $ (80,708) $ (71,532)

1

 Includes other non-operating income such as sale of land and buildings, sale of miscellaneous equipment and sale of motor vehicles.

2

 Excludes Federal Employees Retirement Systems (FERS) normal costs, amortization of unfunded retirement benefits retiree health benefits and

workers’ compensation.

3

 Includes FERS normal costs and amortization of unfunded retirement benefits

4

 Cash and cash equivalents are unrestricted.

5

 Includes restricted cash of $449 million, $354 million, and $366 million, at September 30, 2021, 2020, and 2019, respectively.
FY 2021 Annual Report to Congress — United States Postal Service 25

Revenue, Pieces and Weight Statistics

(in millions of units indicated, unaudited)

FY 2021 FY 2020 FY 2019

First-Class Mail1

Revenue $ 23,281 $ 23,781 $ 24,431

Number of pieces 50,695 52,628 54,936

Weight, pounds 2,551 2,644 2,780

Marketing Mail2

Revenue $ 14,590 $ 13,909 $ 16,359

Number of pieces 66,200 64,004 75,653

Weight, pounds 5,560 5,715 6,917

Shipping and Packages3

Revenue $ 32,013 $ 28,529 $ 22,783

Number of pieces 7,578 7,325 6,165

Weight, pounds 15,308 14,163 12,568

International Mail

Revenue $ 2,223 $ 2,408 $ 2,474

Number of pieces 409 742 855

Weight, pounds 311 432 476

Periodicals

Revenue $ 942 $ 1,024 $ 1,194

Number of pieces 3,679 4,006 4,635

Weight, pounds 1,160 1,283 1,572

U.S. Postal Service Mail4

Number of pieces 280 441 284

Weight, pounds 97 110 101

Free Matter for the Blind5

Number of pieces 20 25 34

Weight, pounds 9 10 13

Other services – revenue5 $ 3,960 $ 3,472 $ 3,895

Postal Service totals

Operating revenue $ 77,009 $ 73,123 $ 71,136

Number of pieces 128,861 129,171 142,562

Weight, pounds 24,996 24,357 24,427

Note: The Postal Service has reclassified the totals for certain mail categories in prior years to conform to classifications used in the current ye .

1 Excludes First-Class Mail Parcels.

2

 Excludes Marketing Mail Parcels.

3

 See Shipping and Packages and Other Services Statistics table on the following page.

4

 No revenue is received or recorded for this category of mail.

5

 By law, the Postal Service is required to offer below-cost postage prices to certain categories of mailers including blind individuals. Congress agreed to reimburse the Postal 

Service for revenue it had foregone by offering these below-cost postage prices..
26 United States Postal Service — FY 2021 Annual Report to Congress

Shipping and Packages and Other Services Statistics

(in millions of units indicated, unaudited)

FY 2021 FY 2020 FY 2019

Priority Mail Express

Revenue $ 820 $ 697 $ 716

Number of pieces 29 24 26

Weight, pounds 34 29 28

First-Class Packages

Revenue $ 7,386 $ 6,227 $ 4,465

Number of pieces 2,056 1,848 1,398

Weight, pounds 786 696 532

Priority Mail

Revenue $ 13,514 $ 11,831 $ 9,728

Number of pieces 1,405 1,274 1,097

Weight, pounds 3,760 3,385 2,937

Parcel Select Mail and Marketing Mail Parcels

Revenue $ 9,224 $ 8,740 $ 6,849

Number of pieces 3,499 3,536 2,947

Weight, pounds 9,487 8,713 7,593

Parcel Return Service Mail

Revenue $ 234 $ 202 $ 204

Number of pieces 72 72 75

Weight, pounds 173 181 199

Package Services

Revenue $ 835 $ 832 $ 821

Number of pieces 517 571 622

Weight, pounds 1,068 1,159 1,279

Total shipping and packages

Revenue $ 32,013 $ 28,529 $ 22,783

Number of pieces 7,578 7,325 6,165

Weight, pounds 15,308 14,163 12,568

Other services

Certified Mail

Revenue $ 567 $ 598 $ 653

Number of articles 156 168 187

Return Receipts

Revenue $ 262 $ 280 $ 314

Number of articles 110 120 138

USPS Tracking

Revenue $ 1 $ 1 $ 1

Number of articles 3 1,565 5,422

PO Box Services revenue $ 1,207 $ 1,095 $ 1,037

Money Orders

Revenue $ 147 $ 146 $ 148

Number of articles 71 77 81

Insurance

Revenue $ 105 $ 93 $ 78

Number of articles 17 17 14

Shipping and mailing supplies

Revenue $ 122 $ 135 $ 107

Number of articles 49 60 53

Miscellaneous other services revenue $ 1,549 $ 1,124 $ 1,557

Total other services revenue $ 3,960 $ 3,472 $ 3,895

Note: The Postal Service has reclassified the totals for certain mail categories in prior years to conform to classifications used in the current year.
FY 2021 Annual Report to Congress — United States Postal Service 27

Post Offices and Delivery Points

(in actual units indicated, unaudited)

FY 2021 FY 2020 FY 2019

Post Offices, stations and branches

Postal Service-managed

Post Offices 26,362 26,362 26,362

Classified stations, branches and carrier annexes 4,885 4,968 4,960

Total Postal Service-managed 31,247 31,330 31,322

Contract Postal Units 2,009 2,094 2,175

Village Post Offices 542 590 667

Community Post Offices 425 437 449

Total offices, stations and branches 34,223 34,451 34,613

Residential delivery points

City 84,775,116 84,233,373 83,739,561

Rural 46,475,650 45,320,604 44,425,454

PO Box 16,020,228 16,015,289 15,985,189

Highway Contract 3,106,794 3,050,749 3,001,015

Total residential delivery 150,377,788 148,620,015 147,151,219

Business delivery points

City 7,818,805 7,789,025 7,734,259

Rural 1,766,055 1,736,436 1,707,145

PO Box 3,093,299 3,146,028 3,226,893

Highway Contract 83,220 82,648 81,796

Total business delivery 12,761,379 12,754,137 12,750,093

Total delivery points 163,139,167 161,374,152 159,901,312

Change in delivery points 1,765,015 1,472,840 1,343,056

Number of Routes by Type of Delivery

(in actual units indicated, unaudited)

Route FY 2021 FY 2020 FY 2019

City 142,207 142,018 142,672

Rural 81,288 79,900 79,404

Highway Contract Route 9,676 9,661 9,731

Total 233,171 231,579 231,807
28 United States Postal Service — FY 2021 Annual Report to Congress

Postal Vehicle Inventory

(in actual units indicated, unaudited)

Vehicle type FY 2021 FY 2020 FY 2019

Delivery and collection (0.5–2.5 tons) 212,327 207,945 204,274

Mail transport (tractors and trailers) 4,158 5,719 5,481

Mail transport (5–11 tons) 2,167 2,782 3,460

Administrative and other 6,482 6,697 6,925

Service (maintenance) 4,611 5,464 5,858

Inspection Service and law enforcement 2,623 2,934 2,942

Total 232,368 231,541 228,940

Real Estate Inventory

(in actual units indicated, unaudited)

Real estate inventory FY 2021 FY 2020 FY 2019

Owned properties 8,460 8,440 8,393

Owned interior square feet 194,097,968 193,867,670 193,355,127

Leased properties 22,986 23,050 23,118

Leased interior square feet 85,449,683 78,860,472 79,027,452

GSA1

/other government properties 290 291 292

GSA1

/other government interior square feet 1,729,484 1,732,001 1,792,744

1 General Services Administration.

Real Estate Inventory Actions

(in actual units indicated, unaudited)

Real estate inventory actions FY 2021 FY 2020 FY 2019

Lease actions (alternate quarters, new leases and renewals) 5,593 5,414 4,410

Property disposals1 3 5 8

New construction2 98 98 76

Repair and alteration projects 53,237 61,483 59,864

Repair and alteration expense project totals (in thousands, rounded) $ 270,000 $ 268,000 $ 240,000

Repair and alteration capital projects 4,119 4,312 4,428

Repair and alteration capital project totals (in thousands, rounded) $ 553,000 $ 555,000 $ 519,000

1 Total partial and complete property sales does not include non-property sales such as right-of-ways/easements, sale of rights, defaults, installment payments, etc.

2 Includes the build-out of pre-existing spaces that the Postal Service did not previously own, the new construction of leased or owned space, and the expansion of existing 

spaces.
FY 2021 Annual Report to Congress — United States Postal Service 29

Employees

(actual numbers, unaudited)

FY 2021 FY 2020 FY 2019

Headquarters and HQ-related employees

Headquarters 6,416 3,477 3,311

Headquarters – field support units 2,761 3,425 3,447

Inspection Service – field 2,358 2,399 2,441

Inspector General 1,016 1,017 1,031

Total HQ and HQ-related employees 12,551 10,318 10,230

Field employees

Area offices 129 923 946

Postmasters/installation heads 12,662 13,667 13,729

Supervisors/managers 22,663 25,189 25,581

Professional administration and technical personnel 2,309 4,792 4,752

Clerks (including nurses) 129,113 119,171 121,573

Mail handlers 46,866 36,721 36,939

City delivery carriers 172,894 167,934 166,343

Motor vehicle operators 9,417 9,189 8,742

Rural delivery carriers – full-time 75,134 74,255 73,165

Building and equipment maintenance personnel 27,867 28,675 29,751

Vehicle maintenance employees 5,031 5,107 5,183

Total field employees 504,085 485,623 486,704

Total career employees 516,636 495,941 496,934

Pre-career employees

Casuals 188 10,261 849

Postal support employees 31,346 25,778 26,251

Non-bargaining temporary 332 341 339

Rural part-time 54,110 58,747 58,224

Postmaster relief and leave replacements 1,838 1,959 2,021

City carrier assistant 37,652 38,079 42,121

Mail handler assistant 11,064 12,927 6,369

Total pre-career employees 136,531 148,092 136,174

Total employees 653,167 644,033 633,108
30 United States Postal Service — FY 2021 Annual Report to Congress

Executive Compensation

Federal law requires the Postal Service to provide 

compensation and benefits to employees at a level 

comparable to the private sector The Postal Service 

will continue to pursue this goal for all of its employees 

In addition, the organization supports, develops and 

provides a wide range of tools and development 

resources that assist employees in reaching their full 

potential 

The Board of Governors establishes executive officer 

compensation and benefits, subject to the requirements 

and limitations of federal law Although USPS governing 

law provides that executives should be compensated 

at a level comparable to the private sector, the Postal 

Service does not have the resources to achieve this 

level of compensation Compensation for executive 

officers remains significantly below that of similarly 

ranked senior executives in the private sector 

In most circumstances, the Postal Service cannot 

compensate its executives more than the rate for Level 

1 of the Executive Schedule ($219,200 in calendar 

year (CY) 2020) Under certain programs, bonuses 

or other rewards can be awarded, which raise the 

level of compensation beyond this limit; however, 

compensation is still limited by federal law 

Performance-based payments for FY 2019 were paid 

in CY 2020 Performance-based payments were 

determined by the Board of Governors 

In accordance with legal reporting requirements, 

the following table reports executives compensated 

in excess of Federal Executive Level 1 in CY 2020 

The second column of the table reports the total 

compensation in excess of Federal Executive Level 1, 

including salary and bonus or other payment The third 

column lists the amount of bonus or other payments 

that caused pay to exceed Level 1 of the Executive 

Schedule in CY 2020 The terms “bonus or other 

payment” in the third column of the table are statutory 

terms that represent various amounts which are a part 

of an executive’s total compensation; these amounts 

are predicated on the Postal Service’s maintenance of 

a performance appraisal system that makes meaningful 

distinctions based on relative performance 

Executive Name

CY20 Reportable 

Earnings in Excess 

of CAP I

CY 2020 Bonus or 

Other Payment

Kristin A. Seaver $ 84,244 $ 31,452

Isaac S. Cronkhite 82,321 31,452

Jacqueline M. Strako 74,244 21,452

Thomas J. Marshall 72,276 24,313

David E. Williams, Jr. 64,244 11,452

Joseph Corbett 61,551 11,452

Luke T. Grossmann 49,196 20,982

Douglas A. Tulino 35,456 31,987

Joshua D. Colin 31,029 31,452

Michael J. Elston 23,392 30,831

Scott R. Bombaugh 19,423 29,252

Pritha Mehra 14,886 11,452

Salvatore N. Vacca 14,473 29,232

Angela H. Curtis 12,327 32,752

Gary R. Barksdale 9,457 9,880

Steven W. Monteith 8,608 21,452

Dane A. Coleman 6,514 23,422

Michael L. Barber 3,641 20,959

Gregory S. Crabb 3,542 14,404

Vernal D. Webster Jr. 3,476 24,330

Jeffrey C. Johnson 2,787 3,210

Robert Cintron 1,029 1,452

Gregory G. Graves 1,029 1,452

Linda M. Malone 1,029 1,452

Abelardo P. Munoz Jr. 1,029 1,452

Tom A. Samra 1,029 1,452

Shaun E. Mossman 265 688

Note: Legislation requires reporting compensation in the last full calendar year. 

This timeframe does not align with the Postal Service’s fiscal year, which is 

from October to September.

Table updated August-2022 in accordance with OIG Project Number 

22-126.
FY 2021 Annual Report to Congress — United States Postal Service 31
32 United States Postal Service — FY 2021 Annual Report to Congress

FY 2021 Performance Report 

and FY 2022 Performance Plan

Corporate-wide Goals and Targets

The Postal Service is a self-supporting, independent 

federal establishment of the U S Government and 

continues to play an indispensable role as a driver 

of commerce and provider of delivery services that 

connect Americans to one another — reliably, affordably 

and securely — and to every residential and business 

address 

To provide a roadmap for a more efficient, valuable 

and relevant organization that will meet the evolving 

needs of the nation and customers now and for years 

to come, the Postal Service issued the Delivering for 

America plan in March 2021 It outlines the following 

12 strategic areas of focus to achieve financial 

sustainability and service excellence 

 Strengthen value of mail and sustain public service

mission, including 6-day mail delivery 

 Implement service standards that achieve service

excellence 95% of the time 

 Innovate and launch USPS Connect 

 Modernize delivery vehicle fleet, and with

Congressional support, implement electric fleet by

2035 

 Implement best-in-class processing operations 

 Implement best-in-class delivery operations 

 Implement a modern, transformed network of retail

Post Offices 

 Implement a fully optimized surface and air

transportation network 

 Stabilize and empower workforce to include reducing

pre-career turnover 

 Align organizational structure to support

effectiveness 

 Support legislative and administrative actions 

 Implement a more rational pricing approach including

a judicious implementation of new and existing

pricing authorities 

These strategies position the Postal Service to 

successfully meet the evolving mailing and shipping 

needs of the nation and become the preferred delivery 

service provider for the American public 

To assess efforts in implementing these strategies, the 

organization measures performance through progress 

against these corporate performance outcomes:

 High-Quality Service

 Excellent Customer Experience

 Safe Workplace and Engaged Workforce

 Financial Health

For each of these, the following subsections describe 

both the measures used to assess organizational 

progress in the FY 2021 performance report, the 

FY 2021 actual outcomes, and the FY 2022 plan to 

achieve targets 

These targets are aligned with the FY 2022 Integrated 

Financial Plan (IFP), which includes planned revenue 

and expenses for FY 2022 Every fiscal year, USPS 

develops a budget and plan intended to be sufficient to 

meet its targeted financial and nonfinancial performance 

outcomes The Postal Service sets all corporate-wide 

targets to be achievable given the planned expenses in 

the IFP 8

The following table shows actual corporate 

performance from FY 2018-FY 2021 and targets for 

FY 2021-FY 2022 for each measure 

8

 The FY 2022 Integrated Financial Plan information contained in this document will 

be revised if needed upon approval by the Board of Governors.
FY 2021 Annual Report to Congress — United States Postal Service 33

FY 2021-FY 2022 Targets and FY 2018–FY 2021 Actuals for Corporate-wide Performance Outcomes

Corporate 

Performance 

Outcome Measure

FY 2022 

Target

FY 2021

Actual

FY 2021

FY 2020 

Actual

FY 2019 

Actual

FY 2018 

Target Actual

High-Quality 

Service1

Single-Piece First-Class Mail

Two-day 90.25 86.44 87.81 91.47 92.05 93.78

Three-to-five-day 90.00 63.20 68.64 78.83 80.88 82.48

Presort First-Class Mail

Overnight 94.75 93.38 93.99 94.72 95.46 96.00

Two-day 93.00 88.29 89.20 92.77 94.10 94.92

Three-to-five-day 90.50 80.87 84.11 89.89 91.95 91.96

First-Class Mail Letter and Flat Composite (FCLF) 91.00 82.69 84.88 89.73 91.36 92.07

Marketing Mail and Periodicals Composite 91.50 87.12 86.62 88.38 88.73 89.26

Market Dominant Composite 2,3,4 91.25 85.30 85.86 89.00 89.86 89.66

Excellent 

Customer 

Experience

Customer Experience Composite Index5 72.99 68.49 76.90 72.40 69.04 67.47

Business Service Network (BSN) 97.33 97.89 97.20 97.33 96.68 95.90

Point of Sale (POS) 87.46 84.39 90.42 87.46 87.77 87.98

Delivery 80.94 70.41 86.33 80.94 80.40 80.47

Customer Care Center (CCC) 63.02 61.85 60.03 60.03 46.94 39.19

Customer 360 (C360) 40.05 33.34 55.00 40.05 37.45 36.73

Large Business Panel N/A N/A N/A N/A N/A 72.34

usps.com 73.41 67.13 73.41 73.41 72.94 57.54

Business Mail Entry Unit (BMEU) 96.72 95.66 96.73 96.72 96.00 95.33

Safe Workplace 

and Engaged 

Workforce

Total Accident Rate 13.45 13.48 13.75 13.09 14.19 15.09

Grand Mean Engagement Score 3.38 3.36 N/A 3.29 3.36 3.34

Engagement Survey Response Rate N/A 25 51 33 38 42 

Financial 

Health6

Controllable Income (Loss) ($ in billions) (4.10) (2.39) (5.60) (3.75) (3.42) (1.95)

Deliveries per Total Work Hours, Percent Change NA N/A N/A 0.90 (0.60) (0.50)

Note: NA indicates that either no data was collected or no target was set for the relevant indicator and year.

1

 The Postal Service is providing nonpublic service performance data for certain competitive products as part of the Nonpublic Annex in the Annual Compliance Report 

proceeding conducted by the Postal Regulatory Commission (PRC).

2

 Market Dominant Composite includes all First-Class Mail, Marketing Mail, Periodicals, Flats, Bound Printed Matter Parcels, Marketing Mail Parcels and Library/Media 

Mail.

3

 The FY 2019-FY 2021 actual scores are sourced from the Service Performance Measurement (SPM) system. In FY 2018, data was sourced from legacy SPM systems 

(e.g. External First-Class Measurement System and Intelligent Mail Accuracy and Performance System). For more information regarding comparability, refer to USPS 

Response to Question 4 from the 2020 Annual Compliance Report Chairman Information Request No. 2, dated Jan. 14, 2021.

4

 FY 2018-FY 2020 actuals are provided for comparability purposes only. Market Dominant Composite was introduced in FY 2021.

5

 In FY 2019-FY 2022, the Customer Experience Composite Index is based on survey responses from the following touchpoints: Business Service Network, Point of Sale, 

Delivery, Customer Care Center, C360, usps.com and Business Mail Entry Units. For more information regarding comparability, refer to USPS Response to Question 4 

from the 2020 Annual Compliance Report Chairman Information Request No. 2, dated Jan. 14, 2021.

6

 The FY 2022 Integrated Financial Plan information contained in this document will be revised if needed upon approval by the Board of Governors.
34 United States Postal Service — FY 2021 Annual Report to Congress

High-Quality Service

The Postal Service is committed to “bind the Nation 

together through the personal, educational, literary 

and business correspondence of the people [We] 

shall provide prompt, reliable and efficient services to 

patrons in all areas and shall render postal services to 

all communities” (U S C Title 39) This forms the core of 

USPS operations 

The Postal Service operates a highly complex network 

of distribution and delivery facilities interconnected by 

multiple modes of transportation across the country 

The organization measures service performance at the 

product level against specific service standards on a 

continuous basis

Service Performance Measurement (SPM) is an internal 

measurement system that measures and reports service 

performance from the time mail is deposited in a Postal 

Service facility to when a USPS employee delivers it to a 

home, business or PO Box 

The annual service performance indicators are reported 

as a cumulative score throughout the year and are 

volume weighted Service performance during the first 

half of the year — when mail volume is highest — sets 

the pace for the remainder of the year 

In FY 2021 the Postal Service measured service 

performance in the following categories: 

Single-Piece First-Class Mail. The measures for this 

category represent the performance of single-piece FirstClass Mail letters, postcards and flats throughout the 

fiscal year The indicators show the estimated percent of 

total mail by service standard (two-day and three-to-fiveday) that was delivered to customers on time 

Presort First-Class Mail. The measures for this 

category represent the performance of commercial 

presorted First-Class Mail letters, postcards and flats 

delivered throughout the fiscal year The indicators show 

the estimated percent of total mail by service standard 

(overnight, two-day and three-to-five-day) that was 

delivered on time 

First-Class Mail Letter and Flat (FCLF) Composite.

This category represents the weighted average of the 

performance of single-piece First-Class Mail and Presort 

First-Class Mail across all service standards, weighted 

by volume 

Marketing Mail and Periodicals Composite. This 

category is a composite indicator of the percent of all 

Marketing Mail and Periodicals that was delivered within 

the service standard established during the year This 

includes Marketing Mail letters, Marketing Mail flats and 

Periodicals Approximately two-thirds of mail volume 

in this composite is Marketing Mail letters, while the 

remainder is Marketing Mail flats and Periodicals 

Market Dominant Composite. The Market Dominant 

Composite includes letters and flats of all First-Class 

Mail, Marketing Mail, Periodicals, Bound Printed Matter 

and all parcels of Library Mail, Media Mail and Bound 

Printed Matter The score for this category is generated 

by dividing the total volume (of all classes, shapes and 

service standards) by the number of pieces delivered on 

time and is reported as a cumulative year-to-date score 

FY 2021 Performance Report

The following table includes both FY 2021 Actuals 

(unmitigated) and FY 2021 Targets for the High-Quality 

Service measures 

Measure

FY 2021 

Actual

FY 2021 

Target

Delta

(pp1)

FY 2021 

Target 

(Met/

Not Met)

Single-Piece FirstClass Mail Two-Day 86.44 87.81 (1.37) Not Met

Single-Piece FirstClass Mail Three-toFive-Day

63.20 68.64 (5.44) Not Met

Presort First-Class 

Mail Overnight 93.38 93.99 (0.61) Not Met

Presort First-Class 

Mail Two-day 88.29 89.20 (0.91) Not Met

Presort First-Class 

Mail Three-to-FiveDay80.87 84.11 (3.24) Not Met

First-Class Mail Letter 

and Flat Composite 

(FCLF)

82.69 84.88 (2.19) Not Met

Marketing Mail and 

Periodicals Composite 87.12 86.62 0.50 Met

Market Dominant 

Composite 85.30 85.86 (0.56) Not Met

1

 PP refers to the percentage point difference between FY 2021 Actuals and FY 

2021 Targets.

In FY 2021, providing high-quality service was 

especially challenging, and only the Marketing Mail and 

Periodicals Composite measure met its target for the 

year All other measures missed their fiscal year targets 
FY 2021 Annual Report to Congress — United States Postal Service 35

While many variables negatively affected service 

performance, four are noteworthy: poor peak season 

performance, employee absenteeism, reduced supplier 

capacity, and weather and natural disaster disruptions 

Peak season in FY 2021 was significantly more 

challenging than anticipated The organization plans 

each year for the increased mail and package volume 

expected during peak season, but the record level of 

package volume received last year from November 

through January impeded the flow of mail from 

being processed timely through postal facilities and 

contributed to poor First-Class and Marketing Mail 

performance during peak season and subsequent 

months The unprecedented surge in package volume 

affected the entire delivery industry, with many other 

delivery companies instituting volume capacity controls 

for their customers, resulting in a substantial diversion 

of their package volume to the Postal Service and 

creating gridlock and backlogs throughout the network 

Additionally, high levels of employee absenteeism due 

to the pandemic negatively affected the Postal Service’s 

ability to staff its operations appropriately to support ontime service performance 

The pandemic also affected air and surface 

transportation contractors, who are essential to 

achieving service performance targets Postal Service 

operations were greatly affected by continued 

reductions in commercial air lift, as airlines reduced 

the number of flights, changed schedules, and used 

smaller airplanes with less capacity for mail and 

package cargo space Efforts to mitigate these issues 

by using alternative and additional transportation 

suppliers were minimally effective due to high demand 

for transportation services throughout the industry 

Further, as mail transportation schedules are planned 

in advance to meet existing service standards, the 

ability to dynamically transfer mail from air to surface 

transportation to achieve service standards was limited 

The Postal Service also experienced significant 

challenges due to natural disasters and weather events 

In some cases, these events impacted postal suppliers 

and led to reduced on-time service performance 

For example, a major icing event caused the Postal 

Service’s largest transportation partner to close their 

primary air hub for several days, resulting in a weekslong backlog of undelivered mail 

The Postal Service Board of Governors chartered a 

new bipartisan Election Mail Committee, which was 

given responsibility to oversee, review, and monitor 

the organization’s preparations for the 2020 election 

Service performance for Election Mail items during 

this period was strong - 97 9 percent of ballots were 

delivered from voters to election officials within three 

days and 99 89 percent of ballots within seven days 

The Postal Service was able to accomplish this 

performance due to the hard work and commitment 

of postal employees at every level Throughout the 

enterprise, ballots were prioritized in processing 

operations and regular sweeps were conducted 

in facilities to ensure ballots were quickly moving 

through the system The organization added extra 

transportation, staff, and overtime to support these 

efforts Letter carriers checked all mailboxes on their 

route, regardless of inbound or outbound mail, for 

ballots Mail was collected and processed on the 

Sunday before the election, and mail at risk of being 

delivered late was prioritized and routed to the express 

network at no extra charge These extraordinary efforts 

resulted in a successful election mail performance and 

reinforced the Postal Service’s commitment to providing 

high-quality service 

Reference the FY 2021–FY 2022 Targets and FY 2018–

FY 2021 Actuals for Corporate-wide Performance 

Outcomes table on page 33 for historical 

performance.

FY 2022 Performance Plan

For FY 2022, Market Dominant service performance 

will be measured against service standards of two-day 

and three-to-five day for Single-Piece First-Class Mail 

For Presort First-Class Mail, service performance will be 

measured relative to overnight, two-day, and three-tofive day service standards The following table states 

the FY 2022 targets 

Measure FY 2022 Target

Single-Piece First-Class Mail Two-Day 90.25

Single-Piece First-Class Mail Three-to-Five-Day 90.00

Market Dominant Composite 91.25

First-Class Mail Letter and Flat Composite (FCLF) 91.00
36 United States Postal Service — FY 2021 Annual Report to Congress

Measure FY 2022 Target

Presort First-Class Mail Overnight 94.75

Presort First-Class Mail Two-day 93.00

Presort First-Class Mail Three-to-Five-Day 90.50

Marketing Mail and Periodicals Composite 91.50

These ambitious targets, greatly exceeding the FY 

2021 actuals, reflect the organizational strategic 

vision from Delivering for America and will position the 

Postal Service to achieve 95 percent on-time service 

performance relative to service standards once the plan 

is fully implemented 

In FY 2022, the Postal Service will continue 

implementing the elements of the Delivering for America 

plan to achieve service excellence Postal leadership 

will conduct a thorough review of processing locations 

and establish site-specific operating plans to improve 

operational efficiency, resulting in better service 

throughout the network 

The Postal Service will proactively plan for the FY 2022 

peak season, based on the challenges faced last fiscal 

year and in accordance with the Delivering for America 

plan The organization is executing on strategies to pull 

together people, technology, transportation, equipment, 

and facilities into a well-integrated and streamlined 

mail and package network The Postal Service is hiring 

over 40,000 seasonal delivery and plant personnel, 

expanding its facility footprint by leasing 7 5 million 

additional square feet in more than 40 multi-year 

annexes, and installing new processing equipment to 

accommodate the delivery needs of customers 

To further support peak operations, the Postal Service 

will continue efforts to stabilize the career workforce 

by working with the American Postal Workers Union 

and the National Postal Mail Handler Union to increase 

the number of career employees through a scheduled 

conversion process At the beginning of FY 2022, the 

total career bargaining unit workforce increased by 

more than 25,000 employees compared to the same 

period last year The Postal Service will continue to hire 

seasonal employees and provide training to prepare 

them for their peak season duties 

The Postal Service will also continue to invest in its 

network, as part of the $40 billion in planned capital 

investments outlined in the Delivering for America 

plan The Postal Service will continue installations of 

new package sorting machines; at the beginning of 

FY 2022, the organization had installed 70 of the 112 

machines Additionally, more than 50 large package 

sorting machines will be deployed before December 

These investments will increase processing capacity by 

more than 4 5 million additional packages daily 

In the first quarter of FY 2022, the Postal Service 

expects to complete its processing network redesign, 

which will expand Surface Transportation Centers 

(STC) to add several hundred thousand square feet 

for improved workflow This is part of a multi-year 

network redesign that will permit continued operations 

as facilities are modernized and optimized to meet 

customer needs for the future As a core component of 

the Delivering for America plan, the network redesign is 

essential to sustain high-quality service performance 

On October 1, the Postal Service also implemented 

new service standards for First-Class Mail and 

Periodicals The service standard changes are a part of 

the Delivering for America plan and will increase delivery 

reliability, consistency, and efficiency for customers The 

service standard changes are a necessary step towards 

achieving 95 percent on-time service performance 

Most First-Class Mail (61 percent) and Periodicals (93 

percent) will be unaffected by the new service standard 

changes Single-Piece First-Class Mail traveling within 

a local area will continue to have a two-day service 

standard For mail products traveling longer distances, 

service standards will increase by one or two days 

depending on distance With the implementation of the 

service standard change, the Postal Service can design 

its ground transportation network to deliver more FirstClass Mail, benefiting customers 

To follow the success of the 2020 election season 

performance and to reaffirm the Postal Service’s 

commitment to the election process, the Board of 

Governors reconstituted the Election Mail Committee in 

August 2021 to oversee, review, and monitor the Postal 

Service’s preparations for the 2022 primary and general 

election elections and make recommendations to the 

Board on this and related issues 

Reference the FY 2021–FY 2022 Targets and FY 2018–

FY 2021 Actuals for Corporate-wide Performance 

Outcomes table on page 33 for historical 

performance.
FY 2021 Annual Report to Congress — United States Postal Service 37
38 United States Postal Service — FY 2021 Annual Report to Congress

Excellent Customer Experience

Excellent customer experience is foundational to the 

Postal Service’s success To evaluate USPS customer 

satisfaction with the services provided, customers are 

surveyed at every primary interaction point, referred 

to as “touchpoints ” The Customer Experience (CX) 

Composite Index provides a comprehensive view of the 

customer’s experience across the most frequently used 

customer-facing channels The CX Composite Index 

is comprised of seven component surveys: Business 

Service Network (BSN), Point of Sales (POS), Delivery, 

Customer Care Center (CCC), Customer 360 (C360), 

usps com, and Bulk Mail Entry Unit (BMEU) 

To calculate the FY 2021 CX Composite Index score, 

each customer touchpoint’s raw overall satisfaction 

score is multiplied by its respective weighting and 

the total is summed This total represents the CX 

Composite Index score for the year There were no 

methodology changes in FY 2021 that affected the 

measurement of key metrics in the CX Composite 

The following describes each component of the CX 

Composite Index:

BSN Survey. The BSN provides nationwide support 

to qualified business customers on service issues, 

information and requests The BSN survey measures 

businesses’ satisfaction with the overall experience 

provided by the BSN The national weighting of the BSN 

score used to calculate the CX Composite Index is 10 

percent 

POS Survey. The POS survey measures customers’ 

overall satisfaction with their experiences at retail 

locations The national weighting of the POS score used 

to calculate the CX Composite Index is 15 percent 

Delivery Survey. The Delivery survey measures the 

overall satisfaction of residential and small/medium 

business customers’ delivery experience, including 

both street address and PO Box deliveries The national 

weighting of the Delivery score used to calculate the CX 

Composite Index is 20 percent 

CCC Survey. The CCC survey measures customer 

satisfaction for customers who call the Customer Care 

Center The national weighting of the CCC score used to 

calculate the CX Composite Index is 20 percent 

C360 survey. The C360 survey measures satisfaction 

with issue resolution for customers who file service 

requests with the Postal Service The national weighting 

of the C360 score used to calculate the CX Composite 

Index is 20 percent 

usps.com Survey. The usps com survey measures 

customer satisfaction with the USPS website The 

national weighting of the usps com score used to 

calculate the CX Composite Index is 5 percent 

BMEU Survey. The BMEU survey measures business 

customers’ overall satisfaction with their experience at 

the BMEU The national weighting of the BMEU score 

used to calculate the CX Composite Index is 10 percent 

All FY 2021 survey results and methodology for 

each component and the CX Composite Index are 

comparable to FY 2020 

FY 2021 Performance Report

The following table includes both FY 2021 Actuals and 

FY 2021 Targets for the Excellent Customer Experience 

metrics 

Measure

FY 2021 

Actual

FY 2021 

Target

Delta 

(pp)1

FY 2021 

Target 

(Met/

Not Met)

CX Composite Index 68.49 76.90 (8.41) Not Met

BSN 97.89 97.20 0.69 Met

POS 84.39 90.42 (6.03) Not Met

Delivery 70.41 86.33 (15.92) Not Met

CCC 61.85 60.03 1.82 Met

C360 33.34 55.00 (21.66) Not Met

usps.com 67.13 73.41 (6.28) Not Met

BMEU 95.66 96.73 (1.07) Not Met

1

 PP refers to the percentage point difference between FY 2021 actuals and FY 

2021 targets.

In FY 2021, the Postal Service improved its overall 

CX Composite Index score of 68 49 percent from the 

previous year’s 72 40 percent Despite improvements 

in CCC and BSN scores, the CX Composite Index 

score target of 76 90 percent was not met, due to five 

component surveys missing their respective FY 2021 

targets: POS, Delivery, C360, usps com, and BMEU 

One positive year-over-year trend to note is CCC, which 

improved by 1 82 percentage points from FY 2020 BSN 

also improved year-over-year by 0 56 percentage points 

This is the second consecutive year that scores for both 

CCC and BSN have improved 

In FY 2021, the ongoing COVID-19 pandemic continued 

to impact USPS operations, resources, and employee 

availability, affecting the organization’s efforts to improve 

customer experience Additionally, the Postal Service
FY 2021 Annual Report to Congress — United States Postal Service 39

received record package volume during its peak season 

from November through January As a result, C360 case 

volume more than doubled during this time period as 

customers experienced issues and delays with mail and 

packages 

The Postal Service continued to evolve and improve its 

measurement, reporting, and evaluation of customer 

experience in FY 2021, including the addition of a 

Spanish-language option for BSN, BMEU, and usps 

com surveys This change improves the inclusivity of 

the surveys and allows USPS to capture more feedback 

from Spanish-speaking customers 

The Postal Service continued to ask the overall 

satisfaction question in each component survey in FY 

2021 All FY 2021 CX Composite Index scores are thus 

comparable to FY 2020 and FY 2019 actual scores 

The following sections address FY 2021 actual scores, 

FY 2021 targets, accomplishments achieved throughout 

the year, and other related information for each CX 

survey component 

BSN Survey. In FY 2021, the Postal Service achieved 

a score of 97 89 percent, exceeding the target of 

97 20 percent by 0 69 percentage points This score 

represented a 0 56 percentage point improvement 

compared to FY 2020 BSN customers identified issue 

resolution as their primary concern Added attention was 

placed on survey responses that indicated “issues have 

still not been resolved ” The requirement to obtain the 

customer’s satisfaction of the resolution prior to closing 

service requests was critical to improving customer 

experience The BSN team continued to develop 

improvement plans for locations with low scores and 

provided additional guidance to BSN employees and 

Consumer and Industry Contact Managers to address 

issues and concerns before closing a customer’s issue 

The Postal Service continued to apply this feedback 

process to all service requests 

POS Survey. In FY 2021, the Postal Service achieved 

an overall satisfaction score of 84 39 percent, 6 03 

percentage points lower than the target of 90 42 

percent This score represented a 3 07 percentage point 

decrease compared to FY 2020 The Postal Service did 

not meet the fiscal year target largely due to the impact 

of the ongoing COVID-19 pandemic on retail operations 

The Postal Service continued to maintain the retail safety 

measures that were implemented in FY 2020, including 

social distancing initiatives and the use of cough and 

sneeze barriers Additionally, the launch of a Self-Service 

Kiosk Prepaid Acceptance Pilot provided contactless 

transactions for customers who require a receipt when 

mailing a prepaid package 

Delivery Survey. In FY 2021, the Postal Service 

achieved a score of 70 41 percent,15 92 percentage 

points lower than the target of 86 33 percent This 

score represented a 10 53 percentage point decrease 

compared to FY 2020 The challenges of the COVID-19 

pandemic impacted performance in this area 

To help improve customer experience with delivery

performance, the Postal Service conducted several 

Delivery pilots in FY 2021 One pilot was conducted 

in the Triboro area of New York City at locations with 

high numbers of deliveries that failed on their first 

attempt To improve performance at these locations, 

the pilot initiative replaced existing Centralized Box 

Units with Neighborhood Post Boxes, which have larger 

compartments and can accommodate more and/or 

larger customer packages In another pilot, the Postal 

Service tested smart locker units in the Northern Virginia 

area This pilot allowed customers more options for 

package delivery, including direct delivery or redelivery to 

these secure lockers 

CCC Survey. In FY 2021, the Postal Service achieved 

a score of 61 85 percent, an improvement of 1 82 

percentage points compared to FY 2020, and exceeded 

its FY 2021 target of 60 03 percent by 1 82 percentage 

points To achieve this, the Postal Service improved 

customer experience within its automated Interactive 

Voice Response System This included enrolling 

customers to receive text alerts regarding package 

tracking and enhancing the way USPS captures tracking 

numbers from customers so that it is more accurate 

This enabled the CCC team to resolve customer 

inquiries more quickly CCC agents continued to 

provide high levels of service to customers throughout 

the year with customer feedback showing strengths in 

agent knowledge and courtesy Agents also provided 

additional value to small business customers by 

identifying products and services that could help them to 

grow their business 

C360 Survey. In FY 2021, the Postal Service achieved a 

score of 33 34 percent, 21 66 percentage points lower 

than the target of 55 00 percent This score represented 

a 6 71 percentage point decrease compared to FY 

2020 Customers primarily reported that their issues 

were not adequately resolved and that follow-up 
40 United States Postal Service — FY 2021 Annual Report to Congress

contact was not made in a timely manner by USPS 

representatives 

To improve issue resolution, the Postal Service trained 

internal users to better utilize the C360 platform In 

addition, the Postal Service created two cross-functional 

teams of subject matter experts to coach, train, and 

motivate personnel One team focused on how to 

leverage real-time, actionable reports to improve initial 

contact and resolution performance and the other 

team leveraged the C360 platform to deliver a quick, 

successful, and quality resolution 

In FY 2021, the Postal Service developed and deployed 

a Congressional Inquiry Portal Congressional staffers 

can now use the portal as a direct link to the C360 

platform to create Service Requests directly for 

constituents, which allows inquiries to be routed to 

proper channels, investigated, and resolved in a timely 

manner This process saves Congressional staffers’ 

time, creates a permanent record of the inquiry, and 

gives immediate confirmation of receipt by USPS 

usps.com Survey In FY 2021, the Postal Service 

achieved a score of 67 13 percent, 6 28 percentage 

points lower than the target of 73 41 percent This 

score represented a 6 28 percentage point decrease 

compared to FY 2020 To address customer needs 

and improve the digital experience on the website 

during the pandemic, the Postal Service revised the 

international section and the Post Office locator, and 

added guest checkout to the Postal Store Additionally, 

the Postal Service enhanced the support available for 

small business customers, including the creation of 

a small business webpage and the expansion of the 

USPS Loyalty Program, which is an incentive program 

for registered business users of the Click-N-Ship 

application Finally, the Postal Service reviewed its 

tracking application with customers and stakeholders to 

assess possible usability enhancements in the future 

BMEU Survey. In FY 2021, the Postal Service achieved 

a score of 95 66 percent,1 07 percentage points lower 

than the target of 96 73 percent This score represented 

a 1 06 percentage point decrease compared to FY 

2020 While the target was not achieved in FY 2021, 

customers cited issue resolution and positive employee 

attitudes as the two primary drivers of satisfaction In 

FY 2021, the Postal Service continued to leverage the 

successful strategies and initiatives that it used in FY 

2020 to improve customer service These initiatives 

included improving issue resolution, implementing 

trainings, updating job aids, and coaching and 

mentoring employees that serve BMEU customers 

Reference the FY 2021–FY 2022 Targets and FY 2018–

FY 2021 Actuals for Corporate-wide Performance 

Outcomes table on page 33 for historical 

performance.

FY 2022 Performance Plan

The following table includes the FY 2022 Targets for the 

Excellent Customer Experience metrics 

Measure FY 2022 Target

CX Composite Index 72.99

BSN 97.33

POS 87.46

Delivery 80.94

CCC 63.02

C360 40.05

usps.com 73.41

BMEU 96.72

In FY 2022, the Postal Service will continue to prioritize 

excellent customer experiences across multiple 

channels This includes improving the way employees 

engage with customers, measuring customer 

experiences in a timely manner, and providing consistent 

customer service across all channels 

In FY 2022, the Postal Service will include the same 

touchpoints with the same weighting as the FY 2021 CX 

Composite Index 

The Postal Service will continue to improve the 

measurement of customer experiences by ensuring 

questions accurately measure both customer sentiment 

and attributes of customer satisfaction across the CX 

surveys Further, the organization will work to influence 

change across all customer-facing channels in FY 

2022 The Postal Service will empower its workforce to 

prevent undesirable customer experiences by providing 

actionable data to help them resolve customer pain 

points and improve customers’ experiences 

As part of the Delivering for America plan, the Postal 

Service is planning to invest in its retail units to provide 

a world-class customer experience with improved retail 

training, modernized uniforms, refreshed lobbies, and 

expanded self-service and digital options 

Reference the FY 2021–FY 2022 Targets and FY 2018–

FY 2021 Actuals for Corporate-wide Performance 

Outcomes table on page 33 for historical performance
FY 2021 Annual Report to Congress — United States Postal Service 41
42 United States Postal Service — FY 2021 Annual Report to Congress

Safe Workplace and Engaged Workforce

Employee Safety

Employee safety is a top priority for the Postal Service 

Prevention is the guiding principle for both occupational 

safety and health-related legislation as well as the 

underlying philosophy of the USPS Safety Program To 

avoid accidents and occupational diseases, USPS has 

adopted standard requirements for safety and health 

protection in the workplace and established compliance 

protocols to ensure effective implementation 

Risk assessment and management are fundamental to 

preventing and controlling risks to safety and health in 

the workplace This includes accounting for all relevant 

risks, checking the efficacy of safety measures, and 

regularly documenting and reviewing outcomes 

In FY 2021, the Postal Service continued to evaluate 

pandemic-related risks and implement controls to 

protect employees and reduce the disease’s spread 

The Postal Service marshaled all possible resources to 

meet the challenges posed by the pandemic Early in 

the pandemic, the organization established a dedicated 

USPS COVID-19 Command Response leadership team 

to direct employee, operational, business and customer 

continuity efforts during this extraordinary time USPS 

followed guidance from CDC and other public health 

authorities and continues to provide employees with 

up-to-date information USPS will continue to protect 

employees in the workplace as they serve the American 

people 

The Postal Service’s safety performance is measured 

by the total accident rate The formula for calculating 

the total accident rate is the number of recorded 

accidents in the year multiplied by 200,000 (calculated 

by the average annual 2,000 work hours per employee 

multiplied by 100 to standardize accident rates) 

This number is then divided by the annual number of 

exposure hours 

The total accident rate formula is:

Total Number of Accidents x 200,000 ___________________________________________

Exposure Hours

This rate uses the same calculation developed by 

the Occupational Safety and Health Administration 

(OSHA) for its Illness and Injury (I&I) rates metric, which 

has been expanded to include accidents that do not 

result in medical expenses, days away from work, or 

restrictions from performing full duty Using the total 

accident rate is an industry best practice that enables 

the Postal Service to design targeted prevention 

strategies to decrease accidents and reduce their 

impact on employees and the organization 

FY 2021 Performance Report

In FY 2021, the total accident rate was 13 48, 

surpassing the target of 13 75 The following table 

includes both the FY 2021 Actual and FY 2021 Target 

for the corporate safety metric 

Measure

FY 2021 

Actual

FY 2021 

Target Delta

FY 2021 

Target 

(Met/

Not Met)

Total Accident Rate 13.48 13.75 (0.27) Met

The Postal Service was able to meet its FY 2021 target 

by continuing the Safety Intervention and Recognition 

Program that tracked district level performance each 

month With the new organizational restructure of 

field operations implemented in FY 2021, USPS was 

able to better target poor performance and develop 

strategies for accident reduction for Retail and Delivery 

and Logistics and Processing These efforts are directly 

related to the Delivering for America strategic plan and 

helped foster a safe work environment for all employees 

throughout the organization 

In FY 2021, the Postal Service conducted nearly 

2 7 million workplace and driver observations using 

the Informed Mobility Safety Observation Tool The 

tool tracked compliance with required observations 

and provided insight into the most common unsafe 

behaviors observed This insight allowed the field to 

implement safety awareness campaigns and engage 

employees to correct those unsafe behaviors before 

they resulted in accident or injury 

The new structure of the organization and the 

realignment of the Safety, Injury Compensation and 

Medical Services functions into a single Occupational 

Safety and Health team allowed the Postal Service to 

provide more data analysis tools and refine existing 

tools By visualizing accident data, injury compensation 

claims and costs into a single scorecard, the impacts of 

each accident became more evident 

The following table shows accidents by type in FY 2021 

and FY 2020 
FY 2021 Annual Report to Congress — United States Postal Service 43

Accident Count by Type

Accident Type FY 2021 FY 20202 Percent Change

OSHA I&I 30,694 33,009 -7.01

Non-Recordable 49,151 44,211 11.17

Motor Vehicle1 27,760 26,211 5.90

Total 79,845 77,220 3.40

1

 Motor vehicle accidents are included in both the OSHA I&I and non-recordable 

accident counts.

2

 FY 2020 accident counts by type may differ from reported accident totals in previous Annual Reports to Congress due to either coding changes or additional claims 

being submitted after the end of the fiscal yea .

Reference the FY 2021–FY 2022 Targets and FY 2018–

FY 2021 Actuals for Corporate-wide Performance 

Outcomes table on page 33 for historical 

performance.

FY 2022 Performance Plan

The FY 2022 target for the total accident rate is 13 45 

The Postal Service will continue proactive safety and 

prevention efforts to achieve the target Outreach efforts 

will be concentrated on the most frequent workplace 

hazards (such as dog bites, distracted driving, extreme 

weather events, and slip, trip and fall injuries) and will 

target at-risk groups The following table states the FY 

2022 target 

Measure FY 2022 Target

Total Accident Rate 13.45 

In support of Delivering for America, the Postal Service 

will continue to foster safety as a core value throughout 

the organization Specifically, the Postal Service will 

focus on equipping local leaders with the tools and 

awareness training needed to maintain a culture of 

safety, including the introduction of the Safety and 

Health Management Tool that will be available for field 

use on Oct 1, 2021 The tool provides insight into the 

safety culture in postal facilities and tracks hazards, 

inspection findings, and accident investigations 

Reports provide trends and forecasts so that actions 

can be taken before accidents occur 

In addition, USPS has designed an Occupational Safety 

and Health Scorecard that combines accident data with 

injury compensation data This allows field leadership 

to track the costs and impacts of each accident and 

documents efforts to return injured workers to suitable 

employment as early as possible 

As outlined in Delivering for America, the Postal Service 

will continue to empower employees to identify, record, 

and report safety concerns in real time and will provide 

timely communications of safety and health information 

to the workforce The cooperation and support of 

employees will be crucial to establish effective accident 

reduction action plans and promote early safety 

interventions within processing facilities and Post 

Offices 

Reference the FY 2021–FY 2022 Targets and FY 2018–

FY 2021 Actuals for Corporate-wide Performance 

Outcomes table on page 33 for historical 

performance 

Employee Engagement

The Postal Service aims to engage employees so 

that teams, individuals and leaders thrive and perform 

at high levels Research shows that higher levels of 

employee engagement correlate to healthier work 

environments, successful teams and positive business 

outcomes for organizations 

To measure the level of engagement at the Postal 

Service, the organization administers the Postal Pulse 

survey to all employees annually Postal Pulse results 

include the survey response rate and the grand mean 

score The survey response rate identifies the level of 

participation of all potential respondents during each 

survey administration The grand mean score assesses 

overall engagement levels of surveyed respondents 

across all survey participants 

FY 2021 Performance Report

In FY 2021, the Postal Pulse survey response rate was 

25 percent, which was lower than both the FY 2021 

target of 51 percent and the FY 2020 response rate 

of 33 percent The following table shows the FY 2021 

Actual and Target 

Measure

FY 2021 

Actual

FY 2021 

Target Delta (pp)1

FY 2021 

Target 

(Met/

Not Met)

Engagement Survey 

Response Rate 25% 51% (26) Not Met

1

 PP refers to the percentage point difference between FY 2021 actual and FY 2021 

target.

This year, the Postal Pulse survey was administered 

from May 11, 2021 through June 11, 2021 Nonbargaining employees received the survey link via Postal 

email on May 11, and each subsequent week until they 

responded or until June 11 if they did not respond The 

Postal Pulse survey was administered to bargainingunit employees using three methods: a paper survey 

distributed at the work unit, a paper survey mailed to 
44 United States Postal Service — FY 2021 Annual Report to Congress

the employee’s home address, and via Postal email, if 

available Employees also had the option to access the 

survey through LiteBlue, the employee external Internet 

platform All employees were invited to respond to the 

survey on-the-clock 

Employees were also encouraged to complete 

the survey through other communication channels 

including email and official internal postal employee 

communications 

This year’s response rate for the Postal Pulse Survey 

was 25 percent, which did not meet the goal of 51 

percent and was an 8 percentage point decrease from 

FY 2020 The response rate is calculated by totaling the 

number of employees who responded to at least one 

of the 12 core survey questions, divided by the total 

eligible population 

Three root causes contributed to not achieving the target 

response rate: the target was overly ambitious given 

preceding trends, the COVID-19 pandemic continued to 

impact the Postal Service in 2021, and the organization 

continued its restructuring efforts in FY 2021 

1. Ambitious Target – The target response rate of 51

percent was not realistic Over the past four survey

administrations, the response rate has been steadily

declining, with year-to-year changes ranging from

3-5 percent Given the declining trend, it was not

realistic to expect a one-year increase of 18 percent.

2. COVID-19 Pandemic – Gallup, the survey

administrator, verified that, for most of their clients,

employee surveys in general had reduced response

rate during the pandemic Although the response rate 

could rebound as people began returning to work, 

the likelihood of it increasing to greater than prepandemic levels was unlikely 

3. USPS Restructure – The survey was administered

three days after the Postal Service announced a

major restructure Organizational changes often

cause increased employee anxiety, which can lead to

reduced engagement 

In FY 2021, the Postal Service achieved multiple 

successes related to employee engagement 

This year, the grand mean score was 3 36, an increase 

of 0 07 from last year’s score This signifies a return to 

pre-pandemic levels of engagement This improvement 

occurred despite the decrease in the response rate 

Another positive accomplishment was the transition 

of engagement training to a virtual platform To date, 

over 51,000+ leaders have attended the instructor-led 

“Creating an Engaging Workplace at the USPS” training 

in the last five years, including 1,040 who completed 

it through the new virtual platform The class teaches 

attendees how to interpret survey results and take 

steps to improve engagement throughout the year 

Leaders are expected to integrate survey feedback 

into their local operations and communicate local 

improvements to their teams 

This past year, the Postal Service also had a national 

campaign to promote team employee engagement 

action plans This focus resulted in a 99 percent 

completion rate for action plan development — the 

highest completion rate to-date and a significant 

improvement over the 59 percent rate for FY 2020 

Gallup analysis of the survey results showed that 

supportive conversations with supervisors result 

in higher engagement scores Consequently, the 

Postal Service encouraged Next Level Connections, 

one-on-one conversations between supervisors 

and employees designed to assess and address 

employee engagement needs Discussions can now 

be documented in the internal HR platform, HERO 

Over 1,400 Next Level Connection conversations were 

documented in HERO 

Reference the FY 2021–FY 2022 Targets and FY 2018–

FY 2021 Actuals for Corporate-wide Performance 

Outcomes table on page 33 for historical 

performance.

FY 2022 Performance Plan

The Postal Service is changing from a response rate 

target to a grand mean engagement score target 

Analysis of postal data has shown that grand mean 

engagement scores correlate significantly with a 

variety of key performance metrics, such as improved 

productivity, improved customer satisfaction, and 

reduced leave usage, accidents, and injuries The FY 

2022 metric target will be a grand mean engagement 

score of 3 38 

The following table states the FY 2022 target 

Measure FY 2022 Target

Grand Mean Engagement Score 3.38 

Grand mean scores over the past eight years have 

ranged from 3 16 to 3 36 Over the span of five survey 

administrations from 2016-2019, the scores increased 
FY 2021 Annual Report to Congress — United States Postal Service 45

by 0 01 each year The proposed target score of 3 38, 

an increase of 0 02 from FY 2020, is aggressive, yet 

realistic 

The Postal Service has multiple initiatives underway to 

improve engagement across the organization, including 

stabilizing the pre-career workforce, training frontline 

supervisors, enhancing technical and leadership training 

programs, and reinforcing managerial performance and 

accountability 

A key component of Delivering for America is to 

improve retention among the pre-career workforce The 

Postal Service will do this by focusing on improving 

the job experience during the first 90 days, which will 

help new employees feel more engaged and supported 

from the start The organization has multiple initiatives 

targeted at better equipping supervisors to feel more 

engaged and confident This includes improving the 

processes for hiring and training supervisors 

Efforts to enhance training extend beyond frontline 

supervisors The Postal Service is also reviewing and 

identifying opportunities to improve functional and 

technical training and leadership programs The goal 

of these programs is to ensure employees and leaders 

have the knowledge and skills they need to succeed, 

which is a critical element of employee engagement 

In FY 2021, the organization was restructured to drive 

greater line-of-sight and accountability throughout the 

organization In FY 2022, the Postal Service expects 

to empower leaders at all levels to take ownership and 

drive performance, which will enhance engagement 

throughout the organization 

Reference the FY 2021–FY 2022 Targets and FY 2018–

FY 2021 Actuals for Corporate-wide Performance 

Outcomes table on page 33 for historical 

performance.
46 United States Postal Service — FY 2021 Annual Report to Congress

Financial Health

As a self-funded organization, the Postal Service 

receives no tax dollars for its operating expenses and 

relies on the sale of postage, products and services 

to fund its operations The Postal Service continues 

to face long-term systemic challenges to its business 

model, including declines in mail volume and growth in 

legacy retirement and retiree health benefit costs 

The COVID-19 pandemic continued to impact the 

Postal Service’s financial health in FY 2021 The 

organization experienced significant increases in 

customer demand for package delivery services while 

also facing staffing and transportation shortages 

Increased use of employee leave and expenditures on 

personal protective equipment have also contributed to 

increased expenses Emergency legislation, including a 

$10 billion grant from the Coronavirus Aid, Relief, and 

Economic Security (CARES) Act, has helped ensure 

sufficient liquidity to maintain operations 

In FY 2021 and years prior, the Postal Service 

implemented price increases on various Market 

Dominant and Competitive services to remain 

competitive within the industry However, these price 

increases have not fully offset the organization’s losses 

due to overall mail volume decline 

Controllable Income (Loss)

The Postal Service’s financial statements are 

prepared in accordance with U S Generally Accepted 

Accounting Principles (GAAP) Controllable income 

(loss) is a non-GAAP measure defined as total revenue 

less controllable expenses Controllable expenses 

are divided into several categories: compensation 

and benefits, Federal Employees Retirement System 

(FERS) normal cost, Postal Service Retiree Health 

Benefits Fund (PSRHBF) normal cost (controllable), 

transportation, depreciation, supplies and services, 

and rent, utilities and other Projections of controllable 

income (loss) are based on planned revenues and 

expenditures for every program activity included in 

the Postal Service’s Integrated Financial Plan (IFP) 

Controllable income (loss) should not be considered 

a substitute for net income (loss) and other GAAP 

reporting measures 

The Postal Service uses controllable income (loss), 

rather than net income (loss), as its principal indicator 

to assess its financial performance, as net income 

includes the effects of factors (such as interest rate 

changes) that cannot be controlled or influenced by 

management 

Non-Controllable Expenses

Those expenses excluded from controllable income 

(loss) are non-controllable expenses, which are not 

reflective of short-term operational decisions and are 

subject to large fluctuations outside the organization’s 

control 

Non-controllable expenses include: revaluations of the 

PSRHBF normal cost based on requests for payment 

from the Office of Personnel Management (OPM); the 

amortization of the Postal Service’s unfunded PSRHBF 

liabilities; the amortization of unfunded liabilities for the 

Postal Service’s participation in FERS and Civil Service 

Retirement System (CSRS); and non-cash expenses 

related to changes in the liability for participation in the 

federal workers’ compensation program These items 

are excluded from the calculation of controllable income 

(loss) 

Fluctuations in non-controllable expenses are caused 

by changes in interest rates for workers’ compensation 

and by changes in actuarial assumptions related to 

other retirement plans The Postal Service can only 

marginally influence these expenses over the long term 

by changing the number of employees or compensation 

rates, but this effect is very small and gradual compared 

to the effect of external factors For example, a 1 

percent increase in the discount rate would cause a 

decrease in the Sept 30, 2021, workers’ compensation 

liability and related expense by approximately $2 0 

billion Similarly, a 1 percent decrease in the discount 

rate would cause an increase in the Sept 30, 2021, 

workers’ compensation liability and related expense by 

approximately $2 5 billion 

The following table includes revenue, controllable 

income (loss), and net income (loss) and shows planned 

revenues and expenses by category for FY 2022 and 

FY 2021, as well as actual data for FY 2018-FY 2021 
FY 2021 Annual Report to Congress — United States Postal Service 47

Revenue and Expenses

(in billions, unaudited) 1

FY 2022 

Plan (IFP)

FY 2021 

Actual

Actual 

vs Plan

FY 2021 

Plan (IFP)

FY 2020 

Actual

FY 2019 

Actual

FY 2018 

Actual

First-Class Mail $ 24.2 $ 23.3 $ 0.5 $ 22.8 $ 23.8 $ 24.4 $ 25.0

Marketing Mail 15.2 14.6 2.6 12.0 13.9 16.4 16.5

Shipping and Packages 30.6 32.0 2.8 29.2 28.5 22.8 21.5

International 2.2 2.2 0.0 2.2 2.4 2.5 2.6

Periodicals 1.0 1.0 0.1 0.9 1.0 1.2 1.3

Other2 4.3 4.0 0.2 3.8 3.6 4.0 3.9

Total Revenue $ 77.5 $ 77.1 $ 6.2 $ 70.9 $ 73.2 $ 71.3 $ 70.8

52.2 51.4 1.9 49.5 50.0 48.9 47.9

4.4 4.1 0.0 4.1 3.8 3.5 3.5

4.3 3.9 0.0 3.9 4.0 4.0 3.5

9.6 9.7 1.0 8.7 8.8 8.2 7.9

1.7 1.7 0.0 1.7 1.7 1.7 1.7

3.2 2.9 (0.2) 3.1 3.1 2.8 3.0

Salaries and Benefits

FERS Normal Cost

PSRHBF Normal Cost (Controllable)3

Transportation

Depreciation

Supplies and Services

Rent, Utilities and Other4

6.2 5.8 0.3 5.5 5.6 5.6 5.3

Controllable Expenses $ 81.6 $ 79.5 $ 3.0 $ 76.5 $ 77.0 $ 74.7 $ 72.8

Controllable Income (Loss) $ (4.1) $ (2.4) $ 3.2 $ (5.6) $ (3.8) $ (3.4) $ (2.0)

PSRHBF Normal Cost Actuarial Revaluation3 0.0 (0.3) (0.3) 0.0 0.1 0.2 (0.1)

PSRHBF Unfunded Liability Amortization (1.0) (0.9) 0.0 (0.9) (0.8) (0.8) (0.8)

FERS Unfunded Liability Amortization (1.4) (1.4) 0.0 (1.4) (1.3) (1.1) (1.0)

CSRS Unfunded Liability Amortization (1.9) (1.9) (0.1) (1.8) (1.8) (1.6) (1.4)

Workers’ Comp. Fair Value and Other Non-Cash Adjustments 0.0 2.0 2.0 0.0 (1.6) (2.1) 1.4

Non-Controllable Items $ (4.3) $ (2.5) $ 1.6 $ (4.1) $ (5.4) $ (5.4) $ (1.9)

Net Income (Loss) $ (8.4) $ (4.9) $ 4.8 $ (9.7) $ (9.2) $ (8.8) $ (3.9)

1

 Numbers are rounded for additive purposes. 

2

 Includes investment and interest income, gain or loss on sale and income from the out-lease of property. 

3

Total PSRHBF normal cost is the sum of PSRHBF Normal Cost (Controllable) and PSRHBF Normal Cost Actuarial Revaluation. 

4

 Includes interest expense.
48

FY 2021 Performance Report

In FY 2021, Controllable Income (Loss) was $(2 4) 

billion, which was better than the FY 2021 target of 

$(5 6) billion The following table includes both the FY 

2021 Actual and FY 2021 Target for the Controllable 

Income (Loss) metric 

Measure

FY 2021 

Actual

FY 2021 

Target Delta

FY 2021 

Target 

(Met/

Not Met)

Controllable Income 

(Loss) ($, billions) (2.4) (5.6) 3.2 Met

The major factors that affect the organization’s 

controllable loss include overall customer demand; the 

mix of postal services and contribution associated with 

those services; the Postal Service’s ability to manage 

its cost structure in line with the shifting volume mix; 

an increasing number of delivery points; increased 

leave, transportation, and supplies and services costs 

associated with the COVID-19 pandemic; and legacy 

costs for retirement and retiree health benefits 

In FY 2021, total revenue, including interest and 

investment income, was $77 1 billion Total expenses, 

including interest expense, were $82 0 billion, resulting 

in a net loss of $4 9 billion This was $4 8 billion less 

than the $9 7 billion net loss planned in the FY 2021 

IFP The lower-than-anticipated net loss was primarily 

due to higher revenue than projected and $2 0 billion 

of non-cash adjustments to workers’ compensation 

liability, partially offset by higher controllable expenses 

than projected 

Revenue - Revenue includes funds received from 

the sale of postage, mailing and shipping services; 

passport processing; PO Box rentals; gain or loss on 

sale and income from the leasing of property; and 

interest and investment income The Postal Service’s 

FY 2021 total revenue of $77 1 billion was $6 2 billion 

more than planned, which was due to better-thanexpected mail volumes and a continued surge in 

package volumes 

First-Class Mail primarily consists of single-piece and 

presorted letters and postcards Revenue from FirstClass Mail was $23 3 billion, above the planned amount 

by $0 5 billion, mainly due to higher-than-expected 

volume recovery from the pandemic loss 

Marketing Mail consists of mail that weighs less than 

16 ounces and that is not required to use First-Class 

Mail service Marketing Mail is typically used for direct 

advertising to multiple delivery addresses Marketing 

Mail may include advertising, newsletters, catalogs, 

small marketing parcels, and other printed matter 

Revenue from Marketing Mail was $14 6 billion, 

exceeding the planned amount by $2 6 billion, primarily 

due to higher-than-expected volume recovery from the 

pandemic loss 

Shipping and Packages consist largely of Competitive 

services that can be priced to reflect current market 

conditions These include Priority Mail and Priority Mail 

Express, business-oriented services such as Parcel 

Select and Parcel Return, First-Class Mail parcels, 

and certain other package delivery services Revenue 

from Shipping and Packages was $32 0 billion, an 

increase of $2 8 billion above the planned amount, due 

to the continued surge in volumes resulting from the 

pandemic 

International Mail includes services that enable both 

domestic and international customers to send mail and 

packages through either standard or express delivery 

options to other countries Most International Mail 

revenue is generated from outbound services that allow 

customers in the U S to send mail and packages to 

other countries Revenue from International Mail was 

$2 2 billion, in line with plan 

Periodicals Mail is comprised primarily of newspapers, 

magazines and other periodic publications whose 

primary purpose is transmitting information to an 

established list of subscribers or requesters Revenue 

from Periodicals was $1 0 billion, above the planned 

amount by $0 1 billion Declines in hard-copy reading 

and advertising shifts away from print have depressed 

this segment for several years; financial pressures on 

publishers brought about by the pandemic exacerbated 

this trend in FY 2021 

Other revenue includes ancillary services, such as 

Certified Mail, PO Box services, Return Receipt 

services, and money order and passport services 

Other revenue was $4 0 billion, exceeding the plan 

amount by $0 2 billion 

Controllable Expenses - The Postal Service’s ability

to affect its amount of controllable expenses is limited

by various legal requirements, including the universal

service obligation, collective bargaining agreements, and

United States Postal
FY 2021 Annual Report to Congress — United States Postal Service 49

the obligation to participate in federal benefits programs 

This section describes the various categories of 

controllable expenses and their performance in FY 2021 

Salaries and benefits expenses include salaries, health 

benefit expenses for active employees, and workers’ 

compensation cash outlays These expenses were 

$51 4 billion, $1 9 billion more than the FY 2021 plan 

This was primarily due to an increase in work hours 

resulting from the continued surge in package volumes, 

especially during peak season 

FERS normal cost expense is the expense the 

organization incurs to fund retirement benefits for active 

employees The normal cost of $4 1 billion was in line 

with the planned amount 

PSRHBF normal cost expense is the expense the 

organization incurs to fund retirement health benefits 

for active employees The normal cost of $4 2 billion 

was $0 3 billion above the planned amount; however, 

this difference is considered a non-controllable benefit, 

as it is the result of revised actuarial assumptions used 

by OPM to calculate the final amount The controllable 

portion of PSRHBF normal costs was $3 9 billion 

Transportation expenses include the contractual costs 

incurred to transport mail and other products between 

Postal Service facilities, including highway, air, and 

international transportation contracts, plus contract 

delivery services Transportation expenses do not 

include the compensation and benefits of employees 

responsible for transporting mail and other products 

between facilities or to delivery points The nonpersonnel costs of transportation to delivery points, 

excluding contract delivery services, are included in 

rent, utilities, and other expenses Total transportation 

expenses were $9 7 billion, $1 0 billion more than 

plan This was primarily because of the increased 

need for transportation due to volume above plan and 

inflationary pressures in the trucking industry due to 

supply imbalances 

Depreciation expense allocates the cost of long-lived 

assets to the periods in which they are used These 

assets include items such as buildings, equipment, 

vehicles, leasehold improvements, and capitalized 

software Depreciation expense in FY 2021 was $1 7 

billion, in line with the IFP estimate 

Supplies and services expenses include minor 

equipment, spare parts, furniture, services, cost of 

sales, office supplies, and cleaning supplies and PPE 

Supplies and services expenses in FY 2021 were $2 9 

billion, $0 2 billion under plan, largely due to less-thanforecasted use of service contracts 

Rent, utilities and other expenses include the cost 

of leasing buildings, utilities, building repairs and 

alterations, vehicle fuel, information technology, 

interest expense, and all other miscellaneous items 

These items collectively cost $5 8 billion, which was 

$0 3 billion above plan, primarily due to higher-thananticipated vehicle costs and labor resolutions 

Reference the FY 2021–FY 2022 Targets and FY 2018–

FY 2021 Actuals for Corporate-wide Performance 

Outcomes table on page 33 for historical 

performance.

FY 2022 Performance Plan9

In FY 2022, the Postal Service anticipates a $4 1 

billion controllable loss, resulting from a projected $0 4 

billion increase in revenue and a $2 1 billion increase in 

controllable expenses compared to FY 2021 

Revenue - Revenue from mail is expected to increase 

by $1 8 billion In August 2021, the Postal Service 

implemented price increases of about 6 8 percent on 

these products, while underwater products, that is, 

those products that do not cover their costs, received 

additional 2 percent increases These price increases 

include the additional rate authority provided by PRC 

Order 5763, issued in November 2020 The increased 

prices are expected to offset the loss of revenue as 

a result of the effect of mail volume decline due to 

continued electronic diversion 

Shipping and Packages revenue is estimated to 

decrease by $1 4 billion because of a slowdown in 

e-commerce growth and attenuation of package

volume growth due to the pandemic Consumers are

expected to increase in-store shopping and the use of

pickup services instead of online shopping Moreover,

competitors are increasing their efforts to capture

sources of revenue International revenue is expected

to remain flat, while revenue from other sources is

expected to increase by about $0 3 billion 

Controllable Expenses - Total controllable expenses 

in FY 2022 are projected to be $81 6 billion Salaries 

and benefits expenses are planned to increase by 

$0 8 billion in FY 2022 due to wage increases from 

9

 The FY 2022 IFP information contained in this document will be revised if needed 

upon approval by the Board of Governors.
50 United States Postal Service — FY 2021 Annual Report to Congress

contractual general increases and high cost-of-living 

adjustments (COLA) based on increased inflation 

The cost-of-living payment issued in August 2021 

(the full impact of which will be reflected in FY 2022) 

was equivalent to approximately $1,935 per year for 

most full-time employees This is nearly equal to the 

impact of COLA payments for the three previous years 

combined Salary and benefit expenses are expected to 

increase despite a planned reduction in work hours 

FERS normal cost expense is expected to increase 

by $0 3 billion over FY 2021, in line with the increased 

employer compensation rate required by OPM 

PSRHBF normal cost (controllable) is expected to 

increase by $0 4 billion, in line with OPM’s most recent 

request for payment 

Transportation expenses are estimated to decrease 

by $0 1 billion, largely due to lower air transportation 

costs resulting from a decrease in package volumes, 

a shift of assigned transportation from air to surface, 

and increased usage of lower-cost commercial 

carriers An increase in surface transportation rates is 

expected to limit this reduction Depreciation expenses 

are expected to remain flat compared to FY 2021 

Supplies and services are expected to increase by 

$0 3 billion and rent, utilities, and other expenses are 

expected to increase by $0 4 billion, due to increased 

expenses to support modernization investments, as 

well as inflationary pressures including fuel Rent is also 

expected to increase due to an increased investment in 

annexes for processing packages 

Non-Controllable Expenses - The Postal Service’s FY 

2021 IFP included $3 9 billion for PSRHBF normal cost 

as part of controllable expenses, based on projections 

from OPM The actual amount billed by OPM was $4 2 

billion; the $0 3 billion difference was reflected as an 

offset to non-controllable expenses There is no plan for 

a normal cost revaluation expense, as the organization 

cannot predict calculation changes by OPM 

OPM calculates the PSRHBF amortization expense 

to allow the Postal Service to pay down its unfunded 

liability obligations in the PSRHBF program The FY 

2021 IFP included $0 9 billion in expenses, based 

on the most recent OPM data available at the time of 

publication The actual billed amount in FY 2021 was 

$0 9 billion Based on the latest available information, 

the FY 2022 IFP includes a $1 0 billion expense for 

PSRHBF unfunded liability amortization 

OPM calculates both FERS and CSRS amortization 

payments to allow the Postal Service to pay down its 

unfunded liability obligations to the FERS and CSRS 

programs These expenses depend on actuarial 

assumptions, including interest and inflation rates, over 

which the organization has no control FY 2021 planned 

expenses for FERS and CSRS amortization were $1 4 

billion and $1 8 billion, respectively, based on the most 

recent data available at the time of IFP publication The 

actual charged amounts in FY 2021 were $1 4 billion 

and $1 9 billion, respectively The FY 2022 IFP includes 

CSRS and FERS amortization expenses equal to their 

actual FY 2021 values 

GAAP requires the Postal Service to record its Sept 

30, 2021, workers’ compensation liability based on the 

prevailing interest rates on that date The adjustment 

is a function of events taking place in the economy 

and outside the organization’s control The Postal 

Service does not plan for this adjustment in its IFP, and 

therefore assumes no change in relevant discount rates, 

mortality rates, inflation rates, and other underlying 

determinants In FY 2021, the Postal Service recorded 

a $2 0 billion net non-cash workers’ compensation 

expense 

Reference the FY 2021–FY 2022 Targets and FY 2018–

FY 2021 Actuals for Corporate-wide Performance 

Outcomes table on page 33 for historical 

performance.
FY 2021 Annual Report to Congress — United States Postal Service 51

Measures of Productivity

Total Factor Productivity (TFP) measures how efficiently 

an organization uses its resources An increase in TFP 

indicates the ratio of work completed to the resources 

used is increasing, and the organization is operating 

more efficiently Correspondingly, a decrease in TFP 

indicates an organization is less efficient in the use of 

resources per unit of work Work completed depends 

on three primary components: the number of delivery 

points, mail volume weighted by product type, and 

miscellaneous output (such as other services the 

organization provides, including passport services) 

Labor productivity measures the efficiency of labor 

in producing a unit of workload per unit of labor An 

increase in the labor productivity index indicates more 

workload is being handled per unit of labor relative 

to the index year A decrease in labor productivity 

indicates labor is less efficient in workload generated 

per unit of labor In FY2021, labor productivity increased 

0 5 percent, marking the eleventh time in the last twelve 

years that labor productivity has been positive 

TFP had increased significantly between FY 2009 and 

FY 2015 but began declining in FY 2016 In FY2021, 

TFP improved at 0 7 percent The increase can largely 

be attributed to an increase in labor productivity 

from a more cost-effective workforce and additional 

volume Additionally, there were cost savings captured 

in supplies and services when compared to the 

initial stage of the COVID-19 pandemic in FY 2020 

Furthermore, an organizational restructure occurred in 

FY 2021 to improve operational efficiencies across the 

nation 

For both TFP and labor productivity, resource usage 

is based on the constant-dollar amounts of labor, 

capital, and materials used Because some productivity 

measures take years for the effects to be realized, it is 

more informative to consider changes in TFP and labor 

productivity over a period of years, rather than year-toyear 

The following chart10 shows the percent change in TFP 

and labor productivity each year relative to the index 

year (FY 1971) since FY 2007 

10 FY 2020 TFP and labor productivity were recast after the final Cost and Revenue

Analysis (CRA) was issued in February 2021. FY 2021 TFP and labor productivity 

is preliminary until the CRA report is released in early 2022.

Total Factor Productivity and Labor Productivity, Percent Change by Year Relative to Base Year (FY 1971)

 
52 United States Postal Service — FY 2021 Annual Report to Congress

Strategic Initiatives

The Postal Service established strategic goals as 

described in the Delivering for America plan To help 

achieve these goals, the organization has implemented 

a portfolio of strategic initiatives and a rigorous portfolio 

management process This process is based on wellestablished methods to apply strategic and financial 

rigor to decision making and navigate significant 

organizational changes 

Each strategic initiative has a specific set of measures 

to track performance aligned to optimize short-term 

performance and build long-term capabilities The 

portfolio of initiatives is dynamic and changes as 

priorities and resources change, and as programs are 

completed or adjusted based on external events 

As the Postal Service continues to implement the 

Delivering for America plan in FY 2022, the organization 

has refined the supporting initiatives to adapt to 

changing conditions in the market, feedback from 

customers and the PRC, input from employees, and 

lessons learned from FY 2021 progress For more 

information regarding the Delivering for America 

initiatives, visit about.usps.com/what/strategic-plans/

delivering-for-america.

The following table shows how the strategic initiatives 

started in FY 2021 and planned for FY 2022 align to the 

corporate-wide performance outcomes 

The Postal Service introduced its Mailin’ It! 

podcast in FY 2021 as a way to share postal 

news, fun facts and insights into the business. 

Postmaster General Louis DeJoy was one of 

the first guests, shown here with hosts Yasmine 

Di Giulio and Dale Parsan.
FY 2021 Annual Report to Congress — United States Postal Service 53

FY 2021 and FY 2022 Strategic Initiatives Matrix Accessible Matrix

FY 2021 DFA 

Strategic Initiatives

FY 2021 Corporate Outcomes Supported

Change 

from FY 

2021 to 

FY 2022

FY 2022 DFA 

Strategic Initiatives

FY 2022 Corporate Outcomes Supported

HighQuality 

Service

Excellent 

Customer 

Experience

Safe 

Workplace 

and 

Engaged 

Workforce

Financial 

Health

HighQuality 

Service

Excellent 

Customer 

Experience

Safe 

Workplace 

and 

Engaged 

Workforce

Financial 

Health

Strengthen the 

value of mail and 

sustain public service 

mission

X X Refined

Strengthen the 

value of mail and 

sustain public service 

mission

X X

Implement service 

standards X X Refined Implement service 

standards X X

Innovate and launch 

USPS Connect X X Refined Innovate and launch 

USPS Connect X X

Optimize surface and 

air transportation 

network

X X X Refined

Optimize surface and 

air transportation 

network

X X X

Modernize delivery 

vehicle fleet X X Refined Modernize delivery 

vehicle fleet X X

Implement best-inclass processing 

operations

X X Refined

Implement best-inclass processing 

operations

X X

Implement bestin-class delivery 

operations

X X X X Refined

Implement bestin-class delivery 

operations

X X X X

Modernize retail Post 

Offices X X X Refined Modernize retail Post 

Offices X X X

Stabilize and 

empower workforce X Refined Stabilize and 

empower workforce X

Align organizational 

structure X Refined Align organizational 

structure X

Implement a more 

rational pricing 

approach

X Refined

Implement a more 

rational pricing 

approach

X

Support legislative 

and administrative 

actions

X Refined

Support legislative 

and administrative 

actions

X

Note: The strategic initiatives identified in the Delivering for America plan are subject to change by the Board of Governors as changes in strategy become necessary or 

business conditions warrant
54 United States Postal Service — FY 2021 Annual Report to Congress

Additional Information

For more information on Postal Service products and 

services visit www.usps.com.

For additional information on USPS strategies, 

programs, and policies, visit www.about.usps.com.

Year References

Unless otherwise noted, all references to a specific 

year or “the year” refer to the Postal Service fiscal year 

ending Sept 30 However, specific month and year 

references pertain to the calendar dates 

Trademarks

The eagle logo, the trade dress of USPS packaging, 

the letter carrier uniform, trade dress of the round top 

collection box and the postal truck, and the following 

word marks are among the many trademarks owned 

by the United States Postal Service®: Certified Mail®, 

Click-N-Ship®, First-ClassTM, First-Class Mail®, 

First-Class Package®, Forever®, Global Express 

Guaranteed®, Informed Delivery®, Informed Visibility®, 

Parcel Select®, PO BoxTM, Post Office®, Postal 

Pulse®, Postal ServiceTM, Priority Mail®, Priority Mail 

Express®, Priority Mail Express International®, Priority 

Mail International®, Putting our Stamp on a Greener 

TomorrowTM, Standard Mail®, Standard PostTM, United 

States Postal Inspection Service®, United States Postal 

Service®, U S Mail®, U S Postal Service®, USPS®, 

USPS BlueEarth®, USPS ConnectTM, USPS Marketing 

Mail®, USPS Retail Ground®, USPS Tracking®, 

USPS com®, Village Post OfficeTM, and ZIP CodeTM