II 

112TH CONGRESS 

1ST SESSION S. 2014 

To reform the United States Postal Service, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 16, 2011 

Mr. AKAKA introduced the following bill; which was read twice and referred 

to the Committee on Homeland Security and Governmental Affairs 

A BILL 

To reform the United States Postal Service, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Postal Investment Act 

5 of 2011’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act, the following definitions shall apply: 

8 (1) COMMISSION.—The term ‘‘Commission’’ 

9 means the Postal Regulatory Commission. 

10 (2) POSTAL SERVICE.—The term ‘‘Postal Serv11 ice’’ means the United States Postal Service. 


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1 TITLE I—POSTAL SERVICE 

2 RETIREE HEALTH BENEFITS 

3 SEC. 101. SHORT TITLE. 

4 This title may be cited as the ‘‘Postal Service Retiree 

5 Health Benefits Act of 2011’’. 

6 SEC. 102. POSTAL SERVICE RETIREE HEALTH BENEFITS. 

7 (a) POSTAL SERVICE RETIREE HEALTH BENEFITS

8 FUND.—Chapter 89 of title 5, United States Code, is 

9 amended by striking section 8909a and inserting the fol10 lowing: 

11 ‘‘§ 8909a. Postal Service Retiree Health Benefits Fund 

12 ‘‘(a) There is in the Treasury of the United States 

13 a Postal Service Retiree Health Benefits Fund (in this 

14 section referred to as the ‘Fund’) which shall be adminis15 tered in accordance with this section. 

16 ‘‘(b) The Fund is available without fiscal year limita17 tion for payments required under section 8906(g)(2)(A). 

18 ‘‘(c)(1) Except as provided under paragraph (2)— 

19 ‘‘(A) the Secretary of the Treasury shall imme20 diately invest, in interest-bearing securities of the 

21 United States such currently available portions of 

22 the Fund as are not immediately required for pay23 ments from the Fund; and 


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1 ‘‘(B) such investments shall be made in the 

2 same manner as investments for the Civil Service 

3 Retirement and Disability Fund under section 8348. 

4 ‘‘(2) After the date of the enactment of the Postal 

5 Service Retiree Health Benefits Act of 2011 and the ap6 pointment of members to the Postal Service Retiree 

7 Health Benefits Investment Board under subsection (e) 

8 of this section, the Fund shall be managed and invested 

9 in accordance with that subsection. 

10 ‘‘(d)(1) Not later than June 30, 2007, and by June 

11 30 of each succeeding year, the Office shall compute the 

12 net present value of the future payments required under 

13 section 8906(g)(2)(A) and attributable to the service of 

14 Postal Service employees during the most recently ended 

15 fiscal year. 

16 ‘‘(2)(A) Not later than June 30, 2007, the Office 

17 shall compute, and by June 30 of each succeeding year, 

18 the Office shall recompute the difference between— 

19 ‘‘(i) the net present value of the excess of fu20 ture payments required under section 8906(g)(2)(A) 

21 for current and future United States Postal Service 

22 annuitants as of the end of the fiscal year ending on 

23 September 30 of that year; and 


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1 ‘‘(ii)(I) the value of the assets of the Postal Re2 tiree Health Benefits Fund as of the end of the fis3 cal year ending on September 30 of that year; and 

4 ‘‘(II) the net present value computed under 

5 paragraph (1). 

6 ‘‘(B) Not later than June 30, 2012, the Office shall 

7 compute, and by June 30 of each succeeding year shall 

8 recompute, a schedule including a series of annual install9 ments which provide for the liquidation of any liability or 

10 surplus by September 30, 2056, or within 15 years, which11 ever is later, of 80 percent of the net present value deter12 mined under subparagraph (A), including interest at the 

13 rate used in that computation. 

14 ‘‘(3)(A) The United States Postal Service shall pay 

15 into such Fund— 

16 ‘‘(i) $5,400,000,000, not later than September 

17 30, 2007; 

18 ‘‘(ii) $5,600,000,000, not later than September 

19 30, 2008; 

20 ‘‘(iii) $1,400,000,000, not later than September 

21 30, 2009; and 

22 ‘‘(iv) $5,500,000,000, not later than September 

23 30, 2010. 


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1 ‘‘(B) Not later than September 30, 2012, and by Sep2 tember 30 of each succeeding year, the United States 

3 Postal Service shall pay into such Fund the sum of— 

4 ‘‘(i) the net present value computed under para5 graph (1); and 

6 ‘‘(ii) except as provided under subparagraph 

7 (C), any annual installment computed under para8 graph (2)(B). 

9 ‘‘(C)(i) In this subparagraph, the term ‘available rev10 enues’ means the difference between the revenues of the 

11 United States Postal Service in any fiscal year and the 

12 expenses of the United States Postal Service in that fiscal 

13 year. 

14 ‘‘(ii) Except as provided under clause (iii), the pay15 ment under subparagraph (B)(ii) for any fiscal year shall 

16 be the lesser of— 

17 ‘‘(I) the amount which would otherwise be pay18 able under subparagraph (B)(ii) if not for this sub19 paragraph; or 

20 ‘‘(II) the amount of available revenues. 

21 ‘‘(iii) The United States Postal Service shall not 

22 make a payment under subparagraph (B)(ii) for any fiscal 

23 year for which the United States Postal Service has out24 standing debt under section 2005 of title 39. 


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1 ‘‘(4) Computations under this subsection shall be 

2 made consistent with the assumptions and methodology 

3 used by the Office for financial reporting under sub4 chapter II of chapter 35 of title 31. 

5 ‘‘(5)(A)(i) Any computation or other determination of 

6 the Office under this subsection shall, upon request of the 

7 United States Postal Service, be subject to a review by 

8 the Postal Regulatory Commission under this paragraph. 

9 ‘‘(ii) Upon receiving a request under clause (i), the 

10 Commission shall promptly procure the services of an ac11 tuary, who shall hold membership in the American Acad12 emy of Actuaries and shall be qualified in the evaluation 

13 of healthcare insurance obligations, to conduct a review 

14 in accordance with generally accepted actuarial practices 

15 and principles and to provide a report to the Commission 

16 containing the results of the review. The Commission, 

17 upon determining that the report satisfies the require18 ments of this subparagraph, shall approve the report, with 

19 any comments it may choose to make, and submit it with 

20 any such comments to the Postal Service, the Office of 

21 Personnel Management, and Congress. 

22 ‘‘(B) Upon receiving the report under subparagraph 

23 (A), the Office of Personnel Management shall reconsider 

24 its determination or redetermination in light of such re25 port, and shall make any appropriate adjustments. The 


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1 Office shall submit a report containing the results of its 

2 reconsideration to the Commission, the Postal Service, and 

3 Congress. 

4 ‘‘(6) After consultation with the United States Postal 

5 Service, the Office shall promulgate any regulations the 

6 Office determines necessary under this subsection. 

7 ‘‘(e) POSTAL SERVICE RETIREE HEALTH BENEFITS

8 INVESTMENT BOARD.— 

9 ‘‘(1) MEMBERSHIP.—The Fund shall have a 

10 Postal Service Retiree Health Benefits Investment 

11 Board (in this subsection referred to as the ‘Invest12 ment Board’) consisting of 5 members, all of whom 

13 shall be appointed by the Secretary of the Treasury 

14 in consultation with— 

15 ‘‘(A) the United States Postal Service; 

16 ‘‘(B) the Postal Regulatory Commission; 

17 ‘‘(C) the Office of Personnel Management; 

18 and 

19 ‘‘(D) the several employee groups and bar20 gaining unions representing postal employees. 

21 ‘‘(2) QUALIFICATIONS.—Members of the Board 

22 shall have substantial experience, training, and ex23 pertise in the management of financial investments 

24 and pension benefit plans. 

25 ‘‘(3) TERMS.— 


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1 ‘‘(A) IN GENERAL.—Except as provided 

2 under subparagraph (B), each member shall be 

3 appointed for a 3-year term. 

4 ‘‘(B) INITIATED APPOINTMENTS.—The ini5 tial members appointed under this paragraph 

6 shall be divided into equal groups so nearly as 

7 may be, of which 1 group will be appointed for 

8 a 1-year term, 1 for a 2-year term, and 1 for 

9 a 3-year term. 

10 ‘‘(C) VACANCIES.—A vacancy in the In11 vestment Board shall not affect the powers of 

12 the Investment Board and shall be filled in the 

13 same manner as the selection of the member 

14 whose departure caused the vacancy. 

15 ‘‘(D) CONTINUATION UNTIL SUCCESSOR

16 APPOINTED.—Upon the expiration of a term of 

17 a member of the Board, that member shall con18 tinue to serve until a successor is appointed. 

19 ‘‘(4) POWERS.—The Investment Board shall— 

20 ‘‘(A) carry out the duties of the Secretary 

21 in relation to the Fund; 

22 ‘‘(B) retain independent advisers to assist 

23 it in the formulation and adoption of its invest24 ment guidelines on the allocation of investment 


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1 to various types of broad based market indexes 

2 and government securities; 

3 ‘‘(C) retain independent investment man4 agers to invest the assets of the Fund in a 

5 manner consistent with such investment guide6 lines; 

7 ‘‘(D) direct investment of assets in the 

8 Fund, under the policies adopted under sub9 paragraph (B); 

10 ‘‘(E) pay administrative expenses of the 

11 Fund from the assets in the Fund; and 

12 ‘‘(F) transfer funds to the Office of Per13 sonnel Management to pay benefits payable 

14 under subsection (b) from the assets of the 

15 Fund. 

16 ‘‘(5) RULES AND ADMINISTRATIVE POWERS.— 

17 The Investment Board shall have the authority to 

18 make rules to govern its operations, utilize agency 

19 staff, and contract with outside advisers to provide 

20 legal, accounting, investment advisory, or other serv21 ices necessary for the proper administration of this 

22 subsection. In the case of contracts with investment 

23 advisory services, compensation for such services 

24 may be on a fixed contract fee basis or on such 


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1 other terms and conditions as are customary for 

2 such services. 

3 ‘‘(6) QUORUM.—Three members of the Invest4 ment Board constitute a quorum to do business. In5 vestment guidelines shall be adopted by a unanimous 

6 vote of the Investment Board. All other decisions of 

7 the Investment Board shall be decided by a majority 

8 vote of the quorum present. All decisions of the In9 vestment Board shall be entered upon the records of 

10 the Investment Board. 

11 ‘‘(7) FUNDING.—The expenses of the Invest12 ment Board incurred under this subsection shall be 

13 paid from the Fund, and shall not exceed 1 percent 

14 of the value of the assets of the Fund in any fiscal 

15 year. 

16 ‘‘(8) DELEGATED POWERS.—Nothing in this 

17 paragraph shall be construed to limit the Secretary’s 

18 authorities in administering the Fund. 

19 ‘‘(f) REPORTING REQUIREMENTS AND FIDUCIARY

20 STANDARDS.—The following reporting requirements and 

21 fiduciary standards shall apply with respect to the Fund: 

22 ‘‘(1) DUTIES OF THE INVESTMENT BOARD.— 

23 Members of the Investment Board shall discharge 

24 their duties (including the voting of proxies) with re25 spect to the assets of the Fund solely in the interest 


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1 of the participants and beneficiaries of the programs 

2 funded under this section— 

3 ‘‘(A) for the exclusive purpose of— 

4 ‘‘(i) providing benefits to participants 

5 and their beneficiaries; and 

6 ‘‘(ii) defraying reasonable expenses of 

7 administering the functions of the Fund; 

8 ‘‘(B) with the care, skill, prudence, and 

9 diligence under the circumstances then pre10 vailing that a prudent person acting in a like 

11 capacity and familiar with such matters would 

12 use in the conduct of an enterprise of a like 

13 character and with like aims; 

14 ‘‘(C) by diversifying investments so as to 

15 minimize the risk of large losses and to avoid 

16 disproportionate influence over a particular in17 dustry or firm, unless under the circumstances 

18 it is clearly prudent not to do so; and 

19 ‘‘(D) in accordance with governing docu20 ments and instruments insofar as such docu21 ments and instruments are consistent with this 

22 subsection. 

23 ‘‘(2) PROHIBITIONS WITH RESPECT TO MEM24 BERS OF THE INVESTMENT BOARD.—No member of 

25 the Investment Board shall— 


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1 ‘‘(A) deal with the assets of the Fund in 

2 the interest of that member or for that mem3 ber’s own account; 

4 ‘‘(B) in an individual or in any other ca5 pacity act in any transaction involving the as6 sets of the Fund on behalf of a person (or rep7 resent a person) whose interests are adverse to 

8 the interests of the Fund, the Postal Service, or 

9 the interests of participants or beneficiaries; or 

10 ‘‘(C) receive any consideration for the 

11 member’s own personal account from any per12 son dealing with the assets of the Fund. 

13 ‘‘(3) ETHICAL STANDARDS.—The Investment 

14 Board shall abide by all applicable laws and regula15 tions regarding investment decisions, including sec16 tion 208 of title 18. 

17 ‘‘(4) BONDING.—The Investment Board shall 

18 prescribe and publish in the Federal Register appro19 priate rules regarding bonding for any persons han20 dling funds or other property of the Fund. 

21 ‘‘(5) AUDIT AND REPORT.— 

22 ‘‘(A) IN GENERAL.—The Fund shall annu23 ally engage an independent qualified public ac24 countant to audit the financial statements of 

25 the Fund. 


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1 ‘‘(B) SUBMISSION.—Not later than 180 

2 days after the end of each of the Fund’s fiscal 

3 years, the Fund shall submit an annual man4 agement report to the Congress. 

5 ‘‘(C) COMMENT.—Each management re6 port under this subparagraph shall include— 

7 ‘‘(i) a statement of financial position; 

8 ‘‘(ii) a statement of operations; 

9 ‘‘(iii) a statement of cash flows; 

10 ‘‘(iv) a statement on internal account11 ing and administrative control systems; 

12 ‘‘(v) the report resulting from an 

13 audit of the financial statements of the 

14 Fund conducted under subparagraph (A); 

15 and 

16 ‘‘(vi) any other comments and infor17 mation necessary to inform the Congress 

18 about the operations and financial condi19 tion of the Fund. 

20 ‘‘(g) MEANS OF FINANCING.—For all purposes of the 

21 Congressional Budget Act of 1974, the Balanced Budget 

22 and Emergency Deficit Control Act of 1985, and chapter 

23 11 of title 31 and notwithstanding section 20 of the Office 

24 of Management and Budget Circular No. A–11, the pur25 chase or sale of non-Federal assets (other than gains or 


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1 losses from such transactions) by the Fund shall be treat2 ed as a means of financing.’’. 

3 (b) GOVERNMENT CONTRIBUTIONS.—Section 

4 8906(g)(2)(A) of title 5, United States Code, is amended 

5 by striking ‘‘September 30, 2016’’ and inserting ‘‘Sep6 tember 30, 2012’’. 

7 TITLE II—PRODUCT 

8 INNOVATION 

9 SEC. 201. MAIL PERFORMANCE INCENTIVES. 

10 Section 3622(c) of title 39, United States Code, is 

11 amended— 

12 (1) in paragraph (13), by striking ‘‘and’’ at the 

13 end; 

14 (2) by redesignating paragraph (14) as para15 graph (15); and 

16 (3) by inserting after paragraph (13) the fol17 lowing: 

18 ‘‘(14) the effect of increased customer satisfac19 tion and increased performance of services on the 

20 value of the mail for the general public, postal cus21 tomers, and enterprises in the private sector that are 

22 engaged in the delivery of mail other than letters; 

23 and’’. 


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1 SEC. 202. NEW MAIL CLASSES. 

2 (a) DEFINITION.—Section 102 of title 39, United 

3 States Code, is amended— 

4 (1) in paragraph (9), by striking ‘‘and’’ at the 

5 end; 

6 (2) in paragraph (10), by striking the period at 

7 the end and inserting ‘‘; and’’; and 

8 (3) by adding at the end the following: 

9 ‘‘(11) ‘class of mail’ means a grouping of simi10 lar products that is— 

11 ‘‘(A) differentiated by features, service lev12 els, postage prices, and sorting requirements; 

13 and 

14 ‘‘(B) that is— 

15 ‘‘(i) defined in the Domestic Mail 

16 Classification Schedule, as in effect on the 

17 date of enactment of the Postal Account18 ability and Enhancement Act (Public Law 

19 109–435; 120 Stat. 3198); or 

20 ‘‘(ii) established by the Postal Regu21 latory Commission under section 3643.’’. 

22 (b) ANNUAL LIMITATIONS.—Section 3622(d)(2)(A) 

23 of title 39, United States Code, is amended by striking 

24 ‘‘the Domestic Mail Classification Schedule as in effect on 

25 the date of enactment of the Postal Accountability and 

26 Enhancment Act’’ and inserting ‘‘section 102(11)’’. 


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1 (c) NEW CLASSES OF MAIL.— 

2 (1) IN GENERAL.—Subchapter III of chapter 

3 36 of title 39, United States Code, is amended by 

4 adding at the end the following: 

5 ‘‘§ 3643. New classes of mail 

6 ‘‘(a) IN GENERAL.—Upon request of the Postal Serv7 ice, the Postal Regulatory Commission may establish new 

8 classes of mail. 

9 ‘‘(b) CRITERIA.— 

10 ‘‘(1) MARKET-DOMINANT CLASSES OF MAIL.— 

11 The Postal Regulatory Commission may establish a 

12 new class of mail that contains market-dominant 

13 products if the Postal Regulatory Commission deter14 mines that the Postal Service exercises sufficient 

15 market power in the sale of the products to effec16 tively set the price of the products substantially 

17 above costs, raise prices for the products signifi18 cantly, decrease the quality of the products, or de19 crease output of the products, without risk of losing 

20 a significant share of the market to enterprises in 

21 the private sector offering similar products. 

22 ‘‘(2) PRODUCTS COVERED BY POSTAL MONOP23 OLY.—The Postal Regulatory Commission may es24 tablish a new class of mail that contains a product 

25 covered by the postal monopoly that is subject to the 


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1 requirements of section 3622(d)(1). For purposes of 

2 this paragraph, the term ‘product covered by the 

3 postal monopoly’ means a product the conveyance or 

4 transmission of which is reserved to the United 

5 States under section 1696 of title 18, subject to the 

6 exception set forth in the last sentence of section 

7 409(e)(1). 

8 ‘‘(3) ADDITIONAL CONSIDERATIONS.—In mak9 ing a determination under this section, the Postal 

10 Regulatory Commission shall consider— 

11 ‘‘(A) the availability and nature of enter12 prises in the private sector engaged in the deliv13 ery of the product involved; 

14 ‘‘(B) the views of postal customers that 

15 use the product involved on the appropriateness 

16 of the proposed action; and 

17 ‘‘(C) the likely impact of the proposed ac18 tion on small business concerns, as defined for 

19 purposes of section 3641(h). 

20 ‘‘(c) NOTIFICATION AND PUBLICATION REQUIRE21 MENTS.— 

22 ‘‘(1) NOTIFICATION REQUIREMENT.—At the 

23 time the Postal Service makes a request under sub24 section (a), the Postal Service shall file with the 

25 Postal Regulatory Commission and publish in the 


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1 Federal Register a notice describing the basis for 

2 the determination by the Postal Service that the new 

3 class of mail requested to be added satisfies the re4 quirements under subsection (b). Section 504(g) 

5 shall apply with respect to any information required 

6 to be filed under this paragraph. 

7 ‘‘(2) PUBLICATION REQUIREMENT.—The Postal 

8 Regulatory Commission shall publish in the Federal 

9 Register a revised list of classes of mail whenever 

10 the Postal Regulatory Commission changes the list 

11 of classes of mail containing market-dominant prod12 ucts. A revised list shall indicate in what manner 

13 and on which date any previous list is superseded. 

14 ‘‘(d) PROHIBITION.—Except as provided in section 

15 3641, a class of mail that involves the physical delivery 

16 of letters, printed matter, or packages may not be offered 

17 by the Postal Service unless it has been assigned as a new 

18 class of mail under this chapter or by or under any other 

19 provision of law. 

20 ‘‘(e) REGULATIONS.—Not later than 9 months after 

21 the date of enactment of this section, the Postal Regu22 latory Commission shall issue (and may from time to time 

23 thereafter revise) regulations to carry out this section.’’. 

24 (2) TECHNICAL AND CONFORMING AMEND25 MENT.—The table of sections for subchapter III of 


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1 chapter 36 of title 39, United States Code, is 

2 amended by adding at the end the following: 

‘‘3643. New classes of mail.’’. 

3 SEC. 203. EXPERIMENTAL PRODUCTS. 

4 Section 3641(e)(2) of title 39, United States Code, 

5 is amended by striking ‘‘if the total revenues that are an6 ticipated, or in fact received, by the Postal Service from 

7 such product do not exceed $50,000,000 in any year, sub8 ject to subsection (g)’’. 

9 SEC. 204. CHIEF PRODUCT INNOVATION OFFICER. 

10 (a) DESIGNATION.—The Postmaster General shall 

11 designate a senior officer within the Postal Service to 

12 serve as Chief Product Innovation Officer. 

13 (b) QUALIFICATIONS.—The individual designated as 

14 Chief Product Innovation Officer shall have experience 

15 that reflects a wide range of knowledge of the Postal Serv16 ice, postal customers, marketing, and product innovation. 

17 (c) DUTIES.—The Chief Product Innovation Officer 

18 shall lead the development or improvement of products 

19 that— 

20 (1) serve the public good; 

21 (2) increase the value of postal products and 

22 services; and 

23 (3) increase the volume of mail handled by the 

24 Postal Service. 


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1 (d) POSTAL INNOVATION REPORT.—The Chief Prod2 uct Innovation Officer shall submit an annual report to 

3 the Commission, the Committee on Homeland Security 

4 and Governmental Affairs of the Senate, and the Com5 mittee on Oversight and Government Reform of the House 

6 of Representatives that includes, at a minimum, a descrip7 tion of any products created or changed by the Postal 

8 Service during the preceding year, including any experi9 mental or nonpostal products. 

10 SEC. 205. UNCOLLECTED POSTAGE. 

11 The Postal Service, in consultation with the Chief 

12 Postal Inspector and the Inspector General of the Postal 

13 Service, shall develop a program to increase compliance 

14 with postage requirements, including compliance with 

15 fraud investigations, equipment review, and reinforcement 

16 of applicable policies. 

17 TITLE III—WORKFORCE 

18 SEC. 301. TREATMENT OF SURPLUS CONTRIBUTIONS TO 

19 FEDERAL EMPLOYEES RETIREMENT SYSTEM. 

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

21 amended— 

22 (1) by redesignating paragraph (5) as para23 graph (6); and 

24 (2) by inserting after paragraph (4) the fol25 lowing: 


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1 ‘‘(5)(A) In this paragraph, the term ‘surplus 

2 postal contributions’ means the amount by which the 

3 amount computed under paragraph (1)(B) is less 

4 than zero. 

5 ‘‘(B) For each fiscal year in which the amount 

6 computed under paragraph (1)(B) is less than zero, 

7 upon request of the Postmaster General, the Direc8 tor shall transfer to the United States Postal Service 

9 from the Fund an amount equal to the surplus post10 al contributions for that fiscal year for use in ac11 cordance with this paragraph. 

12 ‘‘(C) For each of fiscal years 2012, 2013, and 

13 2014, if the amount computed under paragraph 

14 (1)(B) is less than zero, a portion of the surplus 

15 postal contributions for the fiscal year shall be used 

16 by the United States Postal Service for the cost of 

17 providing payments to employees of the United 

18 States Postal Service who voluntarily separate from 

19 service before October 1, 2014. Notwithstanding sec20 tion 3523(b)(3)(B), payments under this subsection 

21 may be in the amount determined appropriate by the 

22 United States Postal Service. 

23 ‘‘(D) Any surplus postal contributions for a fis24 cal year not expended under subparagraph (C) may 


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1 be used by the United States Postal Service for the 

2 purposes of— 

3 ‘‘(i) repaying any obligation issued under 

4 section 2005 of title 39; or 

5 ‘‘(ii) making required payments to— 

6 ‘‘(I) the Employees’ Compensation 

7 Fund established under section 8147; 

8 ‘‘(II) the Employees Health Benefits 

9 Fund established under section 8909; or 

10 ‘‘(III) the Civil Service Retirement 

11 and Disability Fund.’’. 

12 SEC. 302. MEDICARE COORDINATION EFFORTS FOR POST13 AL SERVICE RETIREES. 

14 The Postmaster General, in consultation with the Di15 rector of the Office of Personnel Management and the Ad16 ministrator of the Centers for Medicare & Medicaid Serv17 ices, shall develop an educational program to encourage 

18 the voluntary use of the Medicare program for hospital 

19 insurance benefits under part A of title XVIII of the So20 cial Security Act (42 U.S.C. 1395c et seq.) (commonly 

21 known as ‘‘Medicare Part A’’) and the Medicare program 

22 for supplementary medical insurance benefits under part 

23 B of title XVIII of the Social Security Act (42 U.S.C. 

24 1395j et seq.) (commonly known as ‘‘Medicare Part B’’) 


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1 for eligible employees that may benefit from enrollment, 

2 the objective of which shall be to— 

3 (1) educate employees and retirees on how 

4 Medicare benefits can interact or supplement the 

5 benefits of the employee or retiree under the Federal 

6 Employee Health Benefit Program; and 

7 (2) reduce costs to the Federal Employee 

8 Health Benefit Program, beneficiaries, and the Post9 al Service by coordinating services with the Medicare 

10 program. 

11 SEC. 303. LABOR DISPUTES. 

12 Section 1207(c) of title 39, United States Code, is 

13 amended by adding at the end the following: 

14 ‘‘(4) Nothing in this title shall be construed to limit 

15 the factors an arbitration board may take into consider16 ation in rendering a decision under this subsection.’’. 

17 SEC. 304. SUPERVISORY AND OTHER MANAGERIAL ORGANI18 ZATIONS. 

19 Section 1004 of title 39, United States Code, is 

20 amended— 

21 (1) in subsection (b), in the second sentence, by 

22 inserting ‘‘as provided under subsection (d) and any 

23 changes in, or termination of, pay policies and 

24 schedules and fringe benefit programs for members 


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1 of the supervisors’ organization as provided under 

2 subsection (e)’’ before the period; and 

3 (2) in subsection (e)(1), by inserting ‘‘, or ter4 mination of,’’ after ‘‘any changes in’’. 

5 SEC. 305. APPLICABILITY OF PROVISIONS RELATING TO RE6 DUCTIONS IN FORCE. 

7 Section 1005 is amended by adding at the end the 

8 following: 

9 ‘‘(g)(1) Except as otherwise provided under a collec10 tive bargaining agreement entered into under chapter 12, 

11 subchapter I of chapter 35 of title 5 (including the regula12 tions implementing such subchapter) shall apply to em13 ployees of the Postal Service who hold positions that are 

14 represented by a bargaining representative recognized 

15 under section 1203. 

16 ‘‘(2) Before carrying out any reduction in force in 

17 accordance with paragraph (1), the Postmaster General 

18 shall submit a report to the Committee on Homeland Se19 curity and Governmental Affairs of the Senate, the Com20 mittee on Oversight and Government Reform of the House 

21 of Representatives, and Director of the Office of Personnel 

22 Management indicating the extent of the reduction in 

23 force and how the Postal Service will comply with section 

24 3502(a)(4) of title 5.’’. 


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1 SEC. 306. EXECUTIVE COMPENSATION. 

2 Section 3686(b) of title 39, United States Code, is 

3 amended— 

4 (1) in paragraph (1), by striking ‘‘payable to 

5 the Vice President under section 104 of title 3’’ and 

6 inserting ‘‘payable for a position on level I of the 

7 Executive Schedule under section 5312 of title 5’’; 

8 and 

9 (2) by striking subsection (c) and inserting the 

10 following: 

11 ‘‘(c) EXCEPTIONS FOR CRITICAL POSITIONS.— 

12 ‘‘(1) IN GENERAL.—The Board of Governors 

13 may allow not more than 12 officers or employees of 

14 the Postal Service in critical senior executive or 

15 equivalent positions to receive total annual com16 pensation in an amount not to exceed 135 percent 

17 of the amount determined under paragraph (2). 

18 ‘‘(2) AMOUNT.—The amount determined under 

19 this paragraph shall be the amount payable, as of 

20 the end of the calendar year in which the payment 

21 is received, for a position at— 

22 ‘‘(A) level I of the Executive Schedule 

23 under section 5312 of title 5, for the Post24 master General; 


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26 

•S 2014 IS

1 ‘‘(B) level II of the Executive Schedule 

2 under section 5313 of title 5, for the Deputy 

3 Postmaster General; and 

4 ‘‘(C) level III of the Executive Schedule 

5 under section 5314 of title 5, for any other offi6 cer or employee. 

7 ‘‘(3) NOTICE.—Not later than 30 days after the 

8 date on which the first payment is made at a rate 

9 of pay authorized under this subsection, the Board 

10 of Governors shall submit to the Director of the Of11 fice of Personnel Management and Congress a writ12 ten notice that shall include— 

13 ‘‘(A) the name of the officer or employee 

14 receiving the payment; 

15 ‘‘(B) a description of the critical nature of 

16 the duties and responsibilities of the officer or 

17 employee; and 

18 ‘‘(C) a discussion of the basis for deter19 mining that the amount of the payment is war20 ranted.’’. 

Æ 


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