II 

Calendar No. 424 

111TH CONGRESS 

2D SESSION S. 1507 

[Report No. 111–203] 

To amend chapter 89 of title 5, United States Code, to reform Postal 

Service retiree health benefits funding, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 23, 2009 

Mr. CARPER (for himself, Mr. LIEBERMAN, and Mr. INOUYE) introduced the 

following bill; which was read twice and referred to the Committee on 

Homeland Security and Governmental Affairs 

JUNE 9, 2010 

Reported by Mr. LIEBERMAN, with amendments 

[Omit the part struck through and insert the part printed in italic] 

A BILL 

To amend chapter 89 of title 5, United States Code, to 

reform Postal Service retiree health benefits funding, 

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 Service Retiree 

5 Health Benefits Funding Reform Act of 2009’’. 


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1 SEC. 2. GOVERNMENT CONTRIBUTIONS. 

2 Section 8906(g)(2)(A) of title 5, United States Code, 

3 is amended by striking ‘‘shall through September 30, 

4 2016, be paid by the United States Postal Service, and 

5 thereafter’’. 

6 SEC. 3. POSTAL SERVICE RETIREE HEALTH BENEFITS 

7 FUND. 

8 Section 8909a of title 5, United States Code, is 

9 amended— 

10 (1) in the section heading, by striking ‘‘Ben11 efit’’ and inserting ‘‘Benefits’’; and 

12 (2) in subsection (d)— 

13 (A) in paragraph (2)(B)— 

14 (i) by striking ‘‘2017’’ and inserting 

15 ‘‘2020’’; and 

16 (ii) by striking ‘‘2056’’ and inserting 

17 ‘‘2059’’; 

18 (B) in paragraph (3)— 

19 (i) by striking the matter preceding 

20 subparagraph (B) and inserting the fol21 lowing: 

22 ‘‘(3)(A) The United States Postal Service shall 

23 pay into such Fund— 

24 ‘‘(i) $5,400,000,000, not later than Sep25 tember 30, 2007; 


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1 ‘‘(ii) $5,600,000,000, not later than Sep2 tember 30, 2008; 

3 ‘‘(iii) $1,700,000,000, not later than Sep4 tember 30, 2009; 

5 ‘‘(iv) $1,700,000,000, not later than Sep6 tember 30, 2010; 

7 ‘‘(v) $3,100,000,000, not later than Sep8 tember 30, 2011; 

9 ‘‘(vi) $3,900,000,000, not later than Sep10 tember 30, 2012; 

11 ‘‘(vii) $4,100,000,000, not later than Sep12 tember 30, 2013; 

13 ‘‘(viii) $4,300,000,000, not later than Sep14 tember 30, 2014; 

15 ‘‘(ix) $4,500,000,000, not later than Sep16 tember 30, 2015; 

17 ‘‘(x) $4,700,000,000, not later than Sep18 tember 30, 2016; 

19 ‘‘(xi) $4,900,000,000, not later than Sep20 tember 30, 2017; 

21 ‘‘(xii) $5,100,000,000, not later than Sep22 tember 30, 2018; and 

23 ‘‘(xiii) $5,300,000,000, not later than Sep24 tember 30, 2019.’’; 


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1 (ii) by redesignating subparagraph 

2 (B) as subparagraph (C), and inserting 

3 after subparagraph (A) the following: 

4 ‘‘(B) Not later than September 30, 2009, 

5 and by September 30 of each succeeding year 

6 through 2019, the United States Postal Service 

7 shall pay into such Fund the net present value 

8 computed under paragraph (1).’’; and 

9 (iii) in subparagraph (C) (as redesig10 nated in this subparagraph), by striking 

11 ‘‘2017’’ and inserting ‘‘2020’’; and 

12 (C) in paragraph 4, by striking ‘‘financial 

13 reporting under subchapter II of chapter 35 of 

14 title 31’’ and inserting ‘‘valuations under chap15 ter 84’’. 

16 SEC. 4. TEMPORARY INCREASE TO POSTAL SERVICE BOR17 ROWING LIMITATIONS. 

18 (a) IN GENERAL.—For fiscal years 2009 and 2010, 

19 section 2005(a) of title 39, United States Code, shall be 

20 applied by substituting ‘‘$5,000,000,000’’ for the limita21 tion specified in paragraph (1). 

22 (b) MAXIMUM AMOUNT LIMITATION AND REPAY23 MENT.—Any amount borrowed under the increase in bor24 rowing authority provided under subsection (a) of this sec25 tion— 


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1 (1) shall not apply to the maximum amount al2 lowable under section 2005(a)(2) of title 39, United 

3 States Code; and 

4 (2) shall be repaid by the Postal Service to the 

5 United States Treasury by not later than the end of 

6 fiscal year 2019. 

7 (b) REPAYMENT AND LIMITATION ON OUTSTANDING

8 DEBT.—Any amount borrowed under the increase in bor9 rowing authority provided under subsection (a) of this sec10 tion shall be repaid by the Postal Service to the United 

11 States Treasury by not later than the end of fiscal year 

12 2019. The Postal Service’s total outstanding debt may not 

13 exceed the maximum amount allowable under section 

14 2005(a)(2) of title 39, United States Code. 

15 SEC. 5. CONSIDERATION OF POSTAL SERVICE FINANCIAL 

16 CONDITION. 

17 Section 1207(c)(2) of title 39, United states Code, is 

18 amended by inserting ‘‘The arbitration board shall consider 

19 the financial condition of the Postal Service in making any 

20 decision.’’ after the first sentence. 

21 SEC. 6. ASSESSMENT OF FUTURE BUSINESS MODEL OF THE 

22 POSTAL SERVICE. 

23 Section 710(a) of the Postal Accountability and En24 hancement Act (Public Law 109–435; 120 Stat. 3247) is 

25 amended by striking the first and second sentences and inVerDate Mar 15 2010 21:56 Jun 09, 2010 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6203 E:\BILLS\S1507.RS S1507

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1 serting ‘‘The Comptroller General of the United States shall 

2 prepare and submit to the President and Congress a report 

3 that evaluates the options and strategies for the long-term 

4 structural and operational reforms of the United States 

5 Postal Service necessary to achieve financial stability and 

6 long-term fiscal viability. The final report required by this 

7 section shall be submitted by March 31, 2010.’’. 

8 SEC. 7. PROHIBITION ON BONUSES. 

9 Section 3686 of title 39, United states Code, is amend10 ed— 

11 (1) by redesignating subsection (e) as subsection 

12 (f); and 

13 (2) by inserting after subsection (d) the fol14 lowing: 

15 ‘‘(e) PROHIBITION ON BONUSES.—Notwithstanding 

16 any provision of this section, including subsection (c), any 

17 bonus under this section— 

18 ‘‘(1) subject to paragraph (2), shall be paid on 

19 October 1 following the date such bonus would have 

20 otherwise been paid if not for this subsection; and 

21 ‘‘(2) shall not be paid if the Postal Service had 

22 a year-end net loss for the fiscal year preceding that 

23 October 1.’’. 


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1 SEC. 5. EFFECTIVE DATE AND APPLICATION. 

2 (a) IN GENERAL.—This Act, including the amend3 ments made by this Act, shall be effective as of October 

4 1, 2008. 

5 (b) APPLICATION TO FISCAL YEAR 2009 PAY6 MENTS.—Any payments made by the Postal Service under 

7 section 8906(g)(2)(A) of title 5, United States Code, for 

8 which the Postal Service is not obligated to pay by reason 

9 of the amendment made by section 2 of this Act shall be 

10 credited against the payments due by September 30, 2009, 

11 under section 8909a(d)(3) of title 5, United States Code, 

12 as amended by this Act. 

13 SEC. 8. EFFECTIVE DATES AND APPLICATION. 

14 (a) IN GENERAL.— 

15 (1) EFFECTIVE DATE.—Sections 2, 3, and 4, in16 cluding the amendments made by those sections, shall 

17 be effective as of October 1, 2008. 

18 (2) APPLICATION TO FISCAL YEAR 2009 PAY19 MENTS.—Any payments made by the Postal Service 

20 under section 8906(g)(2)(A) of title 5, United States 

21 Code, for which the Postal Service is not obligated to 

22 pay by reason of the amendment made by section 2 

23 of this Act shall be credited against the payments due 

24 by September 30, 2009, under section 8909a(d)(3) of 

25 title 5, United States Code, as amended by this Act. 


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1 (b) OTHER PROVISIONS.—The amendments made by 

2 sections 5, 6, and 7 shall take effect on the date of enactment 

3 of this Act. 


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hsrobinson on DSK69SOYB1PROD with BILLS
Calendar No. 424 

111TH CONGRESS 

2D SESSION S. 1507 

[Report No. 111–203] 

A BILL 

To amend chapter 89 of title 5, United States 

efits funding, and for other purposes. Code, to reform Postal Service retiree health benJUNE 9, 2010 

Reported with amendments 


hsrobinson on DSK69SOYB1PROD with BILLS