which the Office shall make its computations 
under paragraph (1); and 
(B) submit such plan to the Committee on 
Government Reform of the House of Representa-
tives and the Committee on Governmental Af-
fairs of the Senate. 
(3) REQUIREMENTS.—The plan shall be formu-
lated in consultation with the Postal Service and 
shall include the opportunity for the Postal Service to 
request reconsideration of computations under this 
subsection, and for the Board of Actuaries of the Civil 
Service Retirement System to review and make ad-
justments to such computations, to the same extent 
and in the same manner as provided under section 
8423(c) of title 5, United States Code. 
(c) REPORTING REQUIREMENT.—The Postal Service 
shall include in each report rendered under section 2402 
of title 39, United States Code, the amount applied toward 
reducing the postal debt, and the size of the postal debt be-
fore and after the application of subsection (a), during the 
period covered by such report. 
(d) SENSE OF CONGRESS.—It is the sense of the Con-
gress that—
(1) the savings accruing to the Postal Service as 
a result of the enactment of this Act will be sufficient
to allow the Postal Service to fulfill its commitment 
to hold postage rates unchanged until at least 2006; 
(2) because the Postal Service still faces substan-
tial obligations related to postretirement health bene-
fits for its current and former employees, some por-
tion of the savings referred to in paragraph (1) 
should be used to address those unfunded obligations; 
and 
(3) none of the savings referred to in paragraph 
(1) should be used in the computation of any bonuses 
for Postal Service executives. 
(e) POSTAL SERVICE PROPOSAL.—
(1) IN
GENERAL.—The United States Postal 
Service shall, by September 30, 2003, prepare and 
submit to the President and the Congress its proposal 
detailing how any savings accruing to the Postal 
Service as a result of the enactment of this Act, which 
are attributable to any fiscal year after fiscal year 
2005, should be expended. 
(2) MATTERS TO CONSIDER.—In preparing its 
proposal under this subsection, the Postal Service 
shall consider—
(A) whether, and to what extent, those fu-
ture savings should be used to address—
(i) debt repayment;
(ii) 
prefunding 
of 
postretirement 
healthcare benefits for current and former 
postal employees; 
(iii) productivity and cost saving cap-
ital investments; 
(iv) delaying or moderating increases 
in postal rates; and 
(v) any other matter; and 
(B) the work of the President’s Commission 
on the United States Postal Service under sec-
tion 5 of Executive Order 13278 (67 Fed. Reg. 
76672). 
(3) GAO REVIEW AND REPORT.—Not later than 
60 days after the Postal Service submits its proposal 
pursuant to paragraph (1), the General Accounting
Office shall prepare and submit a written evaluation 
of such proposal to the Committee on Government Re-
form of the House of Representatives and the Com-
mittee on Governmental Affairs of the Senate. 
(4) LEGISLATIVE ACTION.—Not later than 180 
days after it has received both the proposal of the 
Postal Service and the evaluation of such proposal by 
the General Accounting Office under this subsection, 
Congress shall revisit the question of how the savings
accruing to the Postal Service as a result of the enact-
ment of this Act should be used. 
(f) DETERMINATION AND DISPOSITION OF SURPLUS.—
(1) IN GENERAL.—If, as of the date under para-
graph (2), the Office of Personnel Management deter-
mines (after consultation with the Postmaster Gen-
eral) 
that 
the 
computation 
under 
section 
8348(h)(1)(A) of title 5, United States Code, yields a 
negative amount (hereinafter referred to as a ‘‘sur-
plus’’)—
(A) the Office shall inform the Postmaster 
General of its determination, including the size 
of the surplus so determined; and 
(B) the Postmaster General shall submit to 
the Congress a report describing how the Postal 
Service proposes that such surplus be used, in-
cluding a draft of any legislation that might be 
necessary. 
(2) DETERMINATION DATE.—The date to be used 
for purposes of paragraph (1) shall be September 30, 
2025, or such earlier date as, in the judgment of the 
Office, is the date by which all postal employees under 
the Civil Service Retirement System will have retired. 
(g) DEFINITIONS.—For purposes of this section—
(1) the savings accruing to the Postal Service as 
a result of the enactment of this Act shall, for any fis-
cal year, be equal to the amount (if any) by which—
(A) the contributions that the Postal Service 
would otherwise have been required to make to 
the Civil Service Retirement and Disability 
Fund for such fiscal year if this Act had not 
been enacted, exceed 
(B) the contributions made by the Postal 
Service to such Fund for such fiscal year; and 
(2) the term ‘‘postal debt’’ means the outstanding 
obligations of the Postal Service, as determined under 
chapter 20 of title 39, United States Code. 
SEC. 4. EFFECTIVE DATE. 
This Act and the amendments made by this Act shall 
become effective on the date of the enactment of this Act, 
except that the amendments made by section 2(b) shall 
apply with respect to pay periods beginning on or after 
such date.
Union Calendar No. 30
108TH CONGRESS 
1ST SESSION 
H. R. 735
[Report No. 108–49] 
A BILL 
To amend chapter 83 of title 5, United States 
Code, to reform the funding of benefits under the 
Civil Service Retirement System for employees of 
the United States Postal Service, and for other 
purposes. 
MARCH 27, 2003
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed