‘‘(A) shall issue its advisory opinion to the 
Postal Service; and 
‘‘(B) shall transmit a copy of such opinion, to-
gether with the original request, to— 
‘‘(i) the Committee on Oversight and Gov-
ernment Reform of the House of Representa-
tives; and 
‘‘(ii) the Committee on Homeland Security 
and Governmental Affairs of the Senate. 
‘‘(4) For purposes of this title, the term ‘nonpostal 
services’ means services and products other than postal 
services as defined in section 102(5), including— 
‘‘(A) check-cashing services; 
‘‘(B) new technology and media services; 
‘‘(C) warehousing and logistics; 
‘‘(D) facility leasing; and 
‘‘(E) public internet access services.’’. 
SEC. 103. REQUIREMENT THAT MARKET-DOMINANT PROD-
UCTS COVER ATTRIBUTABLE COSTS. 
(a) REPEAL.—Paragraph (2) of section 3622(c) is re-
pealed. 
(b) EACH CLASS TO BEAR ATTRIBUTABLE COSTS.— 
Section 3622(d)(1) is amended— 
(1) by redesignating subparagraphs (A) through 
(E) as subparagraphs (B) through (F); 
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(2) by inserting before subparagraph (B) (as so 
redesignated by paragraph (1)) the following: 
‘‘(A) require that each class or type of mail 
service shall bear the direct and indirect postal 
costs attributable to such class or type through 
reliably identified causal relationships plus that 
portion of all other costs of the Postal Service 
reasonably assignable to such class or type;’’; 
and 
(3) in subparagraph (B) (as so redesignated by 
paragraph (1)) by inserting ‘‘, excluding changes re-
quired to satisfy subparagraph (A),’’ before ‘‘to be 
set’’. 
SEC. 104. PRC TO REVISIT CPI CAP INSTITUTED UNDER 
PAEA. 
Section 3622 is amended— 
(1) in subsection (c)— 
(A) in paragraph (13), by striking ‘‘and’’ 
at the end; 
(B) by redesignating paragraph (14) as 
paragraph (15); and 
(C) by inserting after paragraph (13) the 
following: 
‘‘(14) the value to the Postal Service of having 
pricing flexibility that would apply a price cap across 
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all classes of market dominant products in compari-
son to a class-based price cap; and’’; and 
(2) in subsection (d)(3), by striking ‘‘Ten’’ and 
inserting ‘‘Seven’’. 
SEC. 105. ENHANCED PRODUCT INNOVATION. 
(a) DOLLAR-AMOUNT LIMITATION RELATING
TO 
MARKET TESTS OF EXPERIMENTAL PRODUCTS.—Section 
3641(e)(1) is amended by striking ‘‘$10,000,000’’ and in-
serting ‘‘$50,000,000’’. 
(b) DOLLAR-AMOUNT LIMITATION RELATING TO EX-
EMPTION AUTHORITY.—Section 3641(e)(2) is amended by 
striking ‘‘$50,000,000’’ and inserting ‘‘$100,000,000’’. 
SEC. 106. AUTHORITY TO SHIP BEER, WINE AND DISTILLED 
SPIRITS. 
(a) MAILABILITY.— 
(1) NONMAILABLE ARTICLES.—Section 1716(f) 
of title 18, United States Code, is amended by strik-
ing ‘‘mails’’ and inserting ‘‘mails, except to the ex-
tent that the mailing is allowable under section 
3001(p) of title 39’’. 
(2) APPLICATION OF LAWS.—Section 1161 of 
title 18, United States Code, is amended, by insert-
ing ‘‘, and, with respect to the mailing of distilled 
spirits, wine, or malt beverages (as those terms are 
defined in section 117 of the Federal Alcohol Admin-
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istration Act (27 U.S.C. 211)), is in conformity with 
section 3001(p) of title 39’’ after ‘‘Register’’. 
(b) REGULATIONS.—Section 3001 of title 39, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘(p)(1) In this subsection, the terms ‘distilled spirits’, 
‘wine’, and ‘malt beverage’ have the same meanings as in 
section 117 of the Federal Alcohol Administration Act (27 
U.S.C. 211). 
‘‘(2) Distilled spirits, wine, or malt beverages shall 
be considered mailable if mailed— 
‘‘(A) in accordance with the laws and regula-
tions of— 
‘‘(i) the State, territory, or district of the 
United States where the sender or duly author-
ized agent initiates the mailing; and 
‘‘(ii) the State, territory, or district of the 
United States where the addressee or duly au-
thorized agent takes delivery; and 
‘‘(B) to an addressee who is at least 21 years 
of age— 
‘‘(i) who provides a signature and presents 
a valid, government-issued photo identification 
upon delivery; or 
‘‘(ii) the duly authorized agent of whom— 
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‘‘(I) is at least 21 years of age; and 
‘‘(II) provides a signature and pre-
sents a valid, government-issued photo 
identification upon delivery. 
‘‘(3) The Postal Service shall prescribe such regula-
tions as may be necessary to carry out this subsection.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the earlier of— 
(1) the date on which the Postal Service issues 
regulations under section 3001(p) of title 39, United 
States Code, as amended by this section; or 
(2) 120 days after the date of enactment of this 
Act. 
SEC. 107. REPEAL OF UNIFORM RATE FOR BOOKS, FILMS, 
AND OTHER MATERIALS. 
(a) IN GENERAL.—Section 3683 is repealed. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of chapter 36 is amended by repealing 
the item relating to section 3683. 
Subtitle B—Postal Service 
Management 
SEC. 108. USPS BALANCED BUDGET MINIMUM REQUIRE-
MENT. 
Section 404(b) is amended— 
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(1) by striking ‘‘(b)’’ and inserting ‘‘(b)(1)’’; 
and 
(2) by adding at the end the following: 
‘‘(2) Notwithstanding subparagraphs (B) or (E) of 
section 3622(d)(1), within 180 days after the date of en-
actment of this paragraph, the Governors shall ensure that 
the rates and fees charged for market dominant products, 
and the level and quality of service provided by the Postal 
Service, shall be adjusted in accordance with current law 
so that the total revenues received by the Postal Service, 
in fiscal year 2014 and each subsequent fiscal year, from 
all sources are at least equal to the total costs incurred 
in the provision of postal services, except that the Gov-
ernors shall continue to provide all public services for 
which appropriations are made to the Postal Service under 
section 2401. 
‘‘(3) After the end of the 2-year period beginning on 
October 1, 2013, for any fiscal year that the Postal Serv-
ice is not in compliance with paragraph (2), the Governors 
shall not receive a salary or compensation of any kind for 
the following fiscal year, but shall be reimbursed for travel 
and reasonable expenses incurred in attending meetings 
of the Board.’’. 
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SEC. 109. REPORTING REQUIREMENT FOR BOARD OF GOV-
ERNORS AND POSTAL REGULATORY COMMIS-
SIONERS. 
(a) BOARD
OF
GOVERNORS.—Section 202(a) is 
amended by adding at the end the following: 
‘‘(3) Not later than 60 days after the end of 
each fiscal year, the Board of Governors shall sub-
mit an itemized report describing all travel and re-
imbursable business travel expenses paid to each 
Governor when performing Board duties to the Com-
mittee on Oversight and Government Reform of the 
House of Representatives and the Committee on 
Homeland Security and Governmental Affairs of the 
Senate. The report submitted under this paragraph 
shall include a detailed justification for any travel or 
reimbursable business travel expense that deviates 
from the Board’s travel and reimbursable business 
travel expense policies and guidelines under para-
graph (1).’’. 
(b) ADMINISTRATION.—Section 504(d) is amended— 
(1) by striking ‘‘(d)’’ and inserting ‘‘(d)(1)’’; 
and 
(2) by adding at the end the following: 
‘‘(2) Not later than 60 days after the end of 
each fiscal year, the Postal Regulatory Commis-
sioners shall submit an itemized report describing all 
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travel and reimbursable business travel expenses 
paid to each Commissioner, including the Chairman, 
when performing regulatory duties to the Committee 
on Oversight and Government Reform of the House 
of Representatives and the Committee on Homeland 
Security and Governmental Affairs of the Senate. 
The report submitted under this paragraph shall in-
clude a detailed justification for any travel or reim-
bursable business travel expense that deviates from 
the Commission’s travel and reimbursable business 
travel expense policies and guidelines.’’. 
SEC. 110. RESTRICTIONS ON POSTAL SERVICE EXECUTIVE 
COMPENSATION. 
(a) LIMITATIONS ON COMPENSATION.—Section 1003 
is amended— 
(1) in subsection (a), by striking the last sen-
tence; and 
(2) by adding at the end the following: 
‘‘(e) LIMITATIONS ON COMPENSATION.— 
‘‘(1) RATES OF BASIC PAY.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), an officer or employee of the Postal 
Service may not be paid at a rate of basic pay 
that exceeds the rate of basic pay for level II 
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of the Executive Schedule under section 5313 
of title 5. 
‘‘(B) VERY
SENIOR
EXECUTIVES.—Not 
more than 6 officers or employees of the Postal 
Service that are in very senior executive posi-
tions, as determined by the Board of Governors, 
may be paid at a rate of basic pay that does not 
exceed the rate of basic pay for level I of the 
Executive Schedule under section 5312 of title 
5. 
‘‘(2) BENEFITS.—An officer or employee of the 
Postal Service who is in a critical senior executive or 
equivalent position, as designated under section 
3686(c), may not receive fringe benefits (within the 
meaning given that term under section 1005(f)) that 
are greater than the fringe benefits received by su-
pervisory and other managerial personnel who are 
not subject to collective-bargaining agreements 
under chapter 12.’’. 
(b) LIMITATION
ON BONUS AUTHORITY.—Section 
3686 is amended— 
(1) in subsection (a), by striking ‘‘The Postal 
Service’’ and inserting ‘‘Subject to subsection (f), 
the Postal Service’’; and 
(2) by adding at the end the following: 
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‘‘(f) LIMITATION ON BONUS AUTHORITY.— 
‘‘(1) DETERMINATION.—Not later than 60 days 
after the end of fiscal year 2014 and each fiscal year 
thereafter, the Office of Management and Budget 
shall determine whether the Postal Service has, with 
respect to such fiscal year, implemented the meas-
ures needed to achieve long-term solvency and bal-
anced budgeting, as required under paragraphs (2) 
and (3) of section 404(b). In order to make such de-
termination, the Office of Management and Budget 
shall use the information provided under section 
2009. 
‘‘(2) LIMITATION.—The Postal Service may not 
provide a bonus or other reward under this section 
to an officer or employee of the Postal service in a 
critical senior executive or equivalent position, as 
designated under subsection (c), during a covered 
year. 
‘‘(3) DEFINITION.—In this subsection, the term 
‘covered year’ means the fiscal year following a fiscal 
year with respect to which the Office of Management 
and Budget determines under paragraph (1) that 
the Postal Service has not implemented the meas-
ures needed to achieve long-term solvency and bal-
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anced budgeting, as required under paragraphs (2) 
and (3) of section 404(b).’’. 
(c) EFFECTIVE DATE; APPLICABILITY.—The amend-
ments made by subsections (a) through (c) shall— 
(1) take effect on the date of enactment of this 
Act; and 
(2) apply to any contract entered or modified 
by the Postal Service on or after the date of enact-
ment of this Act. 
(d) SUNSET.—Effective 2 years after the date of en-
actment of this Act— 
(1) section 1003 is amended— 
(A) in subsection (a), by adding at the end 
the following: ‘‘No officer or employee shall be 
paid compensation at a rate in excess of the 
rate for level I of the Executive Schedule under 
section 5312 of title 5.’’; and 
(B) by striking subsection (e); and 
(2) section 3686 is amended— 
(A) in subsection (a), by striking ‘‘Subject 
to subsection (f), the Postal Service’’ and in-
serting ‘‘The Postal Service’’; and 
(B) by striking subsection (f). 
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SEC. 111. INVESTMENT OF COMPETITIVE PRODUCT MON-
EYS. 
Section 2003 is amended— 
(1) by redesignating subsections (d) through (h) 
as subsections (e) through (i), respectively; and 
(2) by inserting after subsection (c) the fol-
lowing: 
‘‘(d) Notwithstanding any other provision of this sec-
tion, if the Postal Service determines that the moneys of 
the Competitive Products Fund are in excess of current 
needs, it may invest such amounts as it considers appro-
priate in accordance with regulations which the Secretary 
of the Treasury shall prescribe within 180 days after the 
date of enactment of this subsection.’’. 
TITLE 
II—POSTAL 
SERVICE 
WORKFORCE 
REALIGNMENT 
AND RIGHT-SIZING 
SEC. 201. SEPARATE NORMAL-COST PERCENTAGE RECAL-
CULATION OF FEDERAL EMPLOYEES RETIRE-
MENT SYSTEM. 
(a) IN GENERAL.—Section 8423(a)(1) of title 5, 
United States Code, is amended— 
(1) in subparagraph (A)— 
(A) by striking ‘‘subparagraph (B))’’ and 
inserting ‘‘subparagraph (B) or (C))’’; and 
(B) by striking ‘‘and’’ at the end; 
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(2) in subparagraph (B), by striking the period 
and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(C) the product of— 
‘‘(i) the normal-cost percentage, as 
determined for employees of the United 
States Postal Service (and the Postal Reg-
ulatory Commission), multiplied by 
‘‘(ii) the aggregate amount of basic 
pay payable by the United States Postal 
Service (and the Postal Regulatory Com-
mission), for the period involved, to its em-
ployees.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall be carried out as soon as practicable, 
except that contributions shall be set in accordance with 
such amendments not later than the first applicable pay 
period beginning in the first fiscal year beginning at least 
180 days after the date of the enactment of this Act. 
SEC. 202. TREATMENT OF SURPLUS CONTRIBUTIONS TO 
FEDERAL EMPLOYEES RETIREMENT SYSTEM. 
(a) IN GENERAL.—Section 8423(b) of title 5, United 
States Code, is amended by adding at the end the fol-
lowing: 
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‘‘(6)(A) If, for any fiscal year to which this paragraph 
applies, the amount determined under paragraph (1)(B) 
is less than zero (hereinafter in this paragraph referred 
to as ‘excess postal contributions to FERS’), such amount 
shall be treated in accordance with the following: 
‘‘(i) In the case of the first fiscal year to which 
this paragraph applies and for which excess postal 
contributions to FERS are determined, the amount 
of such excess contributions shall be transferred by 
the Secretary of the Treasury to such account as the 
Secretary considers appropriate so that such amount 
shall be used for the payment of obligations issued 
by the United States Postal Service under section 
2005 of title 39. 
‘‘(ii) In the case of any subsequent fiscal year 
to which this paragraph applies and for which excess 
postal contributions to FERS are determined, the 
amount of such excess contributions shall be trans-
ferred by the Secretary of the Treasury to the ac-
count to which are credited any Government con-
tributions which are made by the United States 
Postal Service under section 8334(a)(1)(B) (or 
which would be made, but for clause (ii) thereof). 
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‘‘(B) This paragraph applies to the fiscal year last 
ending before the date of the enactment of this paragraph 
and each fiscal year thereafter. 
‘‘(C) In the case of any transfer under subparagraph 
(A)(ii) for a fiscal year corresponding to a fiscal year for 
which a determination of Postal surplus or supplemental 
liability is scheduled to be made under section 8348(h), 
the transfer under subparagraph (A)(ii) shall be made be-
fore such determination under section 8348(h) is made.’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
8348(h)(1)(B)(iii) of title 5, United States Code, is 
amended by striking ‘‘principles.’’ and inserting ‘‘prin-
ciples, including any amounts described in section 
8423(b)(6)(A)(ii).’’. 
SEC. 203. SENSE OF CONGRESS. 
It is the sense of Congress that the United States 
Postal Service should use its available authority as it 
deems necessary to provide early retirement or separation 
incentives to eligible Postal Service employees. 
SEC. 204. CONTRIBUTIONS TO THRIFT SAVINGS FUND OF 
VOLUNTARY SEPARATION INCENTIVE PAY-
MENTS. 
(a) Section 8351(b)(2) of title 5, United States Code, 
is amended— 
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(1) by striking the matter before subparagraph 
(C) and inserting the following: 
‘‘(2)(A) An employee or Member may contribute to 
the Thrift Savings Fund in any pay period any amount 
of such employee’s or Member’s basic pay for such pay 
period. 
‘‘(B) An employee may contribute (by direct transfer 
to the Fund) any part of any voluntary separation incen-
tive payment that the employee receives under section 
3523.’’; and 
(2) by adding at the end the following: 
‘‘(D) Notwithstanding section 2105(e), in this para-
graph, the term ‘employee’ includes an employee of the 
United States Postal Service or the Postal Regulatory 
Commission.’’. 
(b) Section 8432(a) of title 5, United States Code, 
is amended— 
(1) by redesignating paragraph (3) as (4); 
(2) by striking the matter before paragraph (4) 
(as so redesignated by paragraph (1)) and inserting 
the following: 
‘‘(a)(1) An employee or Member may contribute to 
the Thrift Savings Fund in any pay period, pursuant to 
an election under subsection (b), any amount of such em-
ployee’s or Member’s basic pay for such pay period. 
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‘‘(2) An employee may contribute (by direct transfer 
to the Fund) any part of any voluntary separation incen-
tive payment that the employee receives under section 
3523. 
‘‘(3) Contributions made under paragraph (1) pursu-
ant to an election under subsection (b) shall, with respect 
to each pay period for which such election remains in ef-
fect, be made in accordance with a program of regular 
contributions provided in regulations prescribed by the 
Executive Director.’’; and 
(3) by adding at the end the following: 
‘‘(5) Notwithstanding section 2105(e), in this sub-
section the term ‘employee’ includes an employee of the 
United States Postal Service or of the Postal Regulatory 
Commission.’’. 
(c) REGULATIONS.—The Executive Director of the 
Federal Retirement Thrift Investment Board shall pro-
mulgate regulations to carry out the amendments made 
by this section. 
SEC. 205. SERVICE CREDIT CONTRIBUTIONS OF VOL-
UNTARY SEPARATION INCENTIVE PAYMENTS. 
(a) VOLUNTARY
SEPARATION
INCENTIVE
PAY-
MENTS.—The Postal Service may provide voluntary sepa-
ration incentive payments to employees of the Postal Serv-
ice who voluntarily separate from service before October 
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1, 2016 (including payments to employees who retire 
under section 8336(d)(2) or 8414(b)(1)(B) of title 5, 
United States Code, before October 1, 2016), which may 
not exceed the maximum amount provided under section 
3523(b)(3)(B) of title 5, United States Code, for any em-
ployee. 
(b) ADDITIONAL SERVICE CREDIT.— 
(1) CIVIL SERVICE RETIREMENT SYSTEM.—Sec-
tion 8332 of title 5, United States Code, is amended 
by adding at the end the following: 
‘‘(p)(1)(A) For an employee of the United States 
Postal Service who is covered under this subchapter and 
voluntarily separates from service before October 1, 2016, 
the Office, if so directed by the United States Postal Serv-
ice, shall add not more than 1 year to the total creditable 
service of the employee for purposes of determining enti-
tlement to and computing the amount of an annuity under 
this subchapter (except for a disability annuity under sec-
tion 8337). 
‘‘(B) An employee who receives additional creditable 
service under this paragraph may not receive a voluntary 
separation incentive payment from the United States 
Postal Service. 
‘‘(2) The United States Postal Service shall ensure 
that the average actuarial present value of the additional 
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liability of the United States Postal Service to the Fund 
resulting from additional creditable service provided under 
paragraph (1) or section 8411(m)(1) is not more than 
$25,000 per employee provided additional creditable serv-
ice under paragraph (1) or section 8411(m)(1). 
‘‘(3)(A) Subject to subparagraph (B), and notwith-
standing any other provision of law, no deduction, deposit, 
or contribution shall be required for service credited under 
this subsection. 
‘‘(B) The actuarial present value of the additional li-
ability of the United States Postal Service to the Fund 
resulting from this subsection shall be included in the 
amount calculated under section 8348(h)(1)(A).’’. 
(2) FEDERAL
EMPLOYEES
RETIREMENT
SYS-
TEM.—Section 8411 of title 5, United States Code, 
is amended by adding at the end the following: 
‘‘(m)(1)(A) For an employee of the United States 
Postal Service who is covered under this chapter and vol-
untarily separates from service before October 1, 2016, 
the Office, if so directed by the United States Postal Serv-
ice, shall add not more than 2 years to the total creditable 
service of the employee for purposes of determining enti-
tlement to and computing the amount of an annuity under 
this chapter (except for a disability annuity under sub-
chapter V of that chapter). 
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‘‘(B) An employee who receives additional creditable 
service under this paragraph may not receive a voluntary 
separation incentive payment from the United States 
Postal Service. 
‘‘(2) The United States Postal Service shall ensure 
that the average actuarial present value of the additional 
liability of the United States Postal Service to the Fund 
resulting from additional creditable service provided under 
paragraph (1) or section 8332(p)(1) is not more than 
$25,000 per employee provided additional creditable serv-
ice under paragraph (1) or section 8332(p)(1). 
‘‘(3)(A) Subject to subparagraph (B), and notwith-
standing any other provision of law, no deduction, deposit, 
or contribution shall be required for service credited under 
this subsection. 
‘‘(B) The actuarial present value of the additional li-
ability of the United States Postal Service to the Fund 
resulting from this subsection shall be included in the 
amount calculated under section 8423(b)(1)(B).’’. 
(c) GOALS.— 
(1) IN
GENERAL.—The Postal Service shall 
offer incentives for voluntary separation under this 
section and the amendments made by this section as 
a means of ensuring that the size and cost of the 
workforce of the Postal Service is appropriate to the 
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work required of the Postal Service, including con-
sideration of— 
(A) the closure and consolidation of postal 
facilities; 
(B) the ability to operate existing postal 
facilities more efficiently, including by reducing 
the size or scope of operations of postal facili-
ties in lieu of closing postal facilities; and 
(C) the number of employees eligible, or 
projected in the near-term to be eligible, for re-
tirement, including early retirement. 
(2) DEFINITION.—In this subsection, the term 
‘‘career employee of the Postal Service’’ means an 
employee of the Postal Service— 
(A) whose appointment is not for a limited 
period; and 
(B) who is eligible for benefits, including 
retirement coverage under chapter 83 or 84 of 
title 5, United States Code. 
SEC. 206. MODIFICATION OF PREPAYMENT SCHEDULE RE-
LATING 
TO 
POSTAL 
SERVICE 
RETIREE 
HEALTH BENEFITS FUND. 
(a) CONTRIBUTIONS.—Section 8906(g)(2)(A) of title 
5, United States Code, is amended by striking ‘‘through 
September 30, 2016, be paid by the United States Postal 
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Service, and thereafter shall’’ and inserting ‘‘after the date 
of enactment of the Innovate to Deliver Act of 2013’’. 
(b) POSTAL SERVICE RETIREE HEALTH BENEFITS 
FUND.—Section 8909a(d) of title 5, United States Code, 
is amended— 
(1) by striking paragraph (2) and inserting the 
following: 
‘‘(2)(A) Not later than 180 days after the date of 
enactment of the Innovate to Deliver Act of 2013, the Of-
fice shall compute, and by June 30 of each succeeding 
year, the Office shall recompute, a schedule including a 
series of annual installments which provide for the liquida-
tion of the amount described under subparagraph (B) (re-
gardless of whether the amount is a liability or surplus) 
by September 30, 2053, or within 15 years, whichever is 
later, including interest at the rate used in the computa-
tions under this subsection. 
‘‘(B) The amount described in this subparagraph is 
the amount, as of the date on which the applicable com-
putation or recomputation under subparagraph (A) is 
made, that is equal to the difference between— 
‘‘(i) 80 percent of the Postal Service actuarial 
liability as of September 30 of the most recently 
ended fiscal year; and 
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‘‘(ii) the value of the assets of the Postal Re-
tiree Health Benefits Fund as of September 30 of 
the most recently ended fiscal year.’’; 
(2) in paragraph (3)— 
(A) in subparagraph (A)— 
(i) in clause (iii), by adding ‘‘and’’ at 
the end; 
(ii) in clause (iv), by striking the 
semicolon at the end and inserting a pe-
riod; and 
(iii) by striking clauses (v) through 
(x); and 
(B) in subparagraph (B), by striking 
‘‘2017’’ and inserting ‘‘2016’’; 
(3) by striking paragraph (4) and inserting the 
following: 
‘‘(4) Computations under this subsection shall be 
based on— 
‘‘(A) economic and actuarial methods and as-
sumptions consistent with the methods and assump-
tions used in determining the Postal surplus or sup-
plemental liability under section 8348(h); and 
‘‘(B) any other methods and assumptions, in-
cluding a health care cost trend rate, that the Direc-
tor of the Office determines to be appropriate.’’; and 
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(4) by adding at the end the following: 
‘‘(7) In this subsection, the term ‘Postal Service actu-
arial liability’ means the difference between— 
‘‘(A) the net present value of future payments 
required under section 8906(g)(2)(A) for current 
and future United States Postal Service annuitants; 
and 
‘‘(B) the net present value as computed under 
paragraph (1) attributable to the future service of 
United States Postal Service employees.’’. 
(c) UNPAID OBLIGATIONS OF THE POSTAL SERV-
ICE.—Any obligation of the Postal Service under section 
8909a(d)(3)(A) of title 5, United States Code, as in effect 
on the day before the date of enactment of this Act, that 
remains unpaid as of such date of enactment shall be in-
cluded in the recomputation requested in section 
8909a(d)(2) of such title (as amended by subsection (b) 
of this section). 
(d) TECHNICAL AND CONFORMING AMENDMENTS.— 
(1) HEADING.—The heading of section 8909a 
of title 5, United States Code, is amended by strik-
ing ‘‘Benefit’’ and inserting ‘‘Benefits’’. 
(2) TABLE OF SECTIONS.—The table of sections 
at the beginning of chapter 89 of such title is 
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amended by striking the item relating to section 
8909a and inserting the following: 
‘‘8909a. Postal Service Retiree Health Benefits Fund.’’. 
SEC. 207. STUDY ON USPS WORKFORCE REALIGNMENT AND 
RIGHT-SIZING OPTIONS. 
(a) IN GENERAL.—Not later than 1 year after the 
date of enactment of this Act, the Comptroller General 
shall submit to the Committee on Oversight and Govern-
ment Reform of the House of Representatives and the 
Committee on Homeland Security and Governmental Af-
fairs of the Senate a report on the workforce reduction 
or realignment methods used by the United States Postal 
Service to align its workforce with its needs. 
(b) CONTENTS OF THE REPORT.—The report re-
quired under subsection (a) shall include the following: 
(1) The projected workforce needs of the Postal 
Service over the next 5 fiscal years, given the cur-
rent mail volumes and the demand for Postal serv-
ices. 
(2) Possible options for allowing Postal Service 
employees who are eligible for voluntary early retire-
ment to deposit voluntary separation incentive pay-
ments to obtain service credit or to otherwise allow 
such payments to be credited in the computation of 
retirement annuity benefits. 
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(3) The terms and conditions for the voluntary 
separation incentive payments offered under section 
205. 
(4) The number of employees in each job cat-
egory and in each postal service area to whom the 
Postal Service has offered an incentive for voluntary 
separation, the number of offers of incentives for 
voluntary separation that have been accepted, the 
number of offers of incentives for voluntary separa-
tion that remain pending, and the number of em-
ployees in each job category and in each postal serv-
ice area projected to separate from service during 
each quarter through the end of the first quarter of 
2016. 
(5) The number of employees in each job cat-
egory who are covered under chapter 83 or 84 of 
title 5, United States Code, and who have accepted 
offers of incentives for voluntary separation, includ-
ing the number of employees covered under each 
chapter who voluntarily separated under subsection 
(a) of section 205 or the authority under subsection 
(b) of section 205. 
(6) The total savings and work hour reductions 
by job category and postal service area that have 
been realized by the Postal Service as of the date of 
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the report and that are projected to be realized dur-
ing each of the next 3 years as a result of the offers 
of incentives for voluntary separation. 
(7) The total expenditures made by the Postal 
Service to provide incentives for voluntary separa-
tion. 
(8) Any training, retraining, or hiring that may 
be required by the authority the Postal Service is 
granted under this Act to develop and offer for sale 
nonpostal products and services. 
SEC. 208. APPLICABILITY OF PROVISIONS RELATING TO RE-
DUCTIONS IN FORCE. 
Section 1005 is amended by adding at the end the 
following: 
‘‘(g)(1) Except as otherwise provided by any collective 
bargaining agreement entered into under chapter 12, the 
provisions of subchapter I of chapter 35 of title 5 and the 
regulations implementing such subchapter, shall apply to 
employees of the Postal Service who hold positions that 
are within bargaining units under section 1202. 
‘‘(2) Before using the authority provided in para-
graph (1), the Postal Service shall demonstrate to the Of-
fice of Personnel Management how it will comply with sec-
tion 3502(a)(4) of title 5.’’. 
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SEC. 209. ENHANCED REPORTING ON FACILITY NETWORK 
INITIATIVES. 
Section 404(d) is amended by adding at the end the 
following: 
‘‘(7)(A) The Postmaster General shall submit to the 
Committee on Homeland Security and Governmental Af-
fairs of the Senate and the Committee on Oversight and 
Government Reform of the House of Representatives and 
the Postal Regulatory Commission a report that details 
plans to close or suspend a Postal Service retail or proc-
essing facility during the period to which such report per-
tains. The first such report shall be submitted not later 
than 120 days after the date of enactment of this para-
graph. Reports shall be submitted semiannually there-
after. 
‘‘(B) Each report submitted by the Postal Service 
under subparagraph (A) shall address, at a minimum— 
‘‘(i) the specific retail and processing facilities 
the Postal Service plans to suspend or close; 
‘‘(ii) the anticipated date of suspension or clo-
sure of each such facility; 
‘‘(iii) the cost of continued operations at the fa-
cilities for which closure is planned; 
‘‘(iv) the purpose of each such suspension or 
closure, as determined by paragraph (2)(A); 
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‘‘(v) plans for the establishment of alternative 
access points for retail facilities listed in clause (i), 
including the date on which each such alternative ac-
cess point shall open for business and the planned 
location of each such alternative access point; 
‘‘(vi) how each facility closure conforms with 
previously filed actions for suspension or closure; 
‘‘(vii) the timeline for closure or suspension ac-
tivities described in paragraphs (1) and (3), and all 
other formal closure or suspension activities planned 
in connection with the retail facility closure; 
‘‘(viii) how work performed at mail processing 
facilities recommended for closure or consolidation 
will be transferred or absorbed by other facilities 
within the network; 
‘‘(ix) cost savings expected or achieved from 
consolidation of both retail and mail processing fa-
cilities; 
‘‘(x) the impact of each planned closure on 
postal employees, including relocation or reassign-
ment plans; and 
‘‘(xi) the status of ongoing suspensions or clo-
sures identified in previous reports.’’. 
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TITLE III—POSTAL SERVICE IM-
PROVEMENTS 
AND 
REGU-
LATORY RELIEF 
SEC. 301. PERMIT APPEAL RIGHTS FOR CLOSING OF POST-
AL STATIONS AND BRANCHES. 
Section 404(d) is amended by adding after paragraph 
(7) (as added by section 208 of this Act) the following: 
‘‘(8) The provisions of paragraphs (1) through (6) 
shall apply to postal stations and branches in the same 
manner as the provisions apply to post offices.’’. 
SEC. 302. INTRA-AGENCY COOPERATIVE AGREEMENTS. 
(a) IN GENERAL.—Section 411 is amended— 
(1) in the section heading, by inserting ‘‘; au-
thority for intra-service agreement’’ after 
‘‘agencies’’; 
(2) by inserting ‘‘(a)’’ before ‘‘Executive agen-
cies within’’; and 
(3) by adding at the end the following: 
‘‘(b) The Office of the Inspector General of the 
United States Postal Service and other components of the 
Postal Service may enter into intra-service agreements to 
furnish to each other property, both real and personal, and 
personal and nonpersonal services. The furnishing of prop-
erty and services under this section shall be under such 
terms and conditions, including reimbursability, as the 
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head of the component concerned and the Inspector Gen-
eral shall deem necessary.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of chapter 4 is amended by striking the 
item relating to section 411 and inserting the following: 
‘‘411. Cooperation with other Government agencies; authority for intra-service 
agreement.’’. 
SEC. 303. GROUPING OF NEGOTIATED SERVICE AGREE-
MENTS. 
Section 3622(d)(1) (as amended by section 107(b) of 
this Act) is further amended— 
(1) in subparagraph (E) (as so redesignated by 
section 107(b)), by striking ‘‘and’’ at the end; 
(2) in subparagraph (F) (as so redesignated by 
section 107(b)), by striking the period and inserting 
‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(G) treat similar or related agreements 
between the Postal Service and postal users col-
lectively as a single product for purposes of this 
section to the extent the Commission deems 
such treatment to be consistent with policies of 
this title.’’. 
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SEC. 304. SIMPLIFICATION OF PROCESS FOR CLASSIFICA-
TION OF COMPETITIVE PRODUCTS. 
Section 3642(b) is amended (in the matter before 
paragraph (1)) by striking ‘‘in accordance with’’ and in-
serting the following: ‘‘as expeditiously as practicable. The 
Commission shall promptly admit a product into the com-
petitive category if it meets’’. 
SEC. 305. DEVELOPMENT OF NEW MARKET-DOMINANT 
CLASSES OF MAIL. 
(a) Section 102 is amended— 
(1) in paragraph (9), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (10), by striking the period 
and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(11) ‘class of mail’ means a grouping of simi-
lar products, subject to section 3622(d)(2)(A), as 
further defined by the Postal Regulatory Commis-
sion.’’. 
(b) Section 3622(d)(2)(A) is amended by inserting 
‘‘or under section 3643’’ after ‘‘Act’’. 
(c)(1) Subchapter III of chapter 36 is amended by 
adding at the end the following: 
‘‘SEC. 3643. NEW CLASSES OF MAIL. 
‘‘(a) IN GENERAL.—Upon request of the Postal Serv-
ice or users of the mails, or upon its own initiative, the 
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Postal Regulatory Commission may change the classes of 
mail to which the annual limitation under section 
3622(d)(1) applies by adding new classes of mail. The 
Postal Regulatory Commission shall, within 18 months 
after the date of enactment of this section, promulgate 
(and may from time to time thereafter revise) regulations 
to carry out this section. 
‘‘(b) CRITERIA.—All determinations by the Postal 
Regulatory Commission under subsection (a) shall be 
made in accordance with the following criteria: 
‘‘(1) NEW MARKET.—Dominant classes of mail 
shall consist of products in the sale of which the 
Postal Service exercises sufficient market power that 
it can effectively set the price of such product sub-
stantially above costs, raise prices significantly, de-
crease quality, or decrease output, without risk of 
losing a significant level of business to other firms 
offering similar products. 
‘‘(2) PRODUCTS COVERED BY POSTAL MONOP-
OLY.—Any new classes of mail containing any prod-
ucts covered by the postal monopoly shall be subject 
to the requirements of section 3622(d)(1). For pur-
poses of the preceding sentence, the term ‘product 
covered by the postal monopoly’ means any product 
the conveyance or transmission of which is reserved 
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to the United States under section 1696 of title 18, 
subject to the same exception as set forth in the last 
sentence of section 409(e)(1). 
‘‘(3) ADDITIONAL CONSIDERATIONS.—In mak-
ing any decision under this section, due regard shall 
be given to— 
‘‘(A) the availability and nature of enter-
prises in the private sector engaged in the deliv-
ery of the product involved; 
‘‘(B) the views of those who use the prod-
uct involved on the appropriateness of the pro-
posed action; and 
‘‘(C) the likely impact of the proposed ac-
tion on small business concerns (within the 
meaning of section 3641(h)). 
‘‘(c) NOTIFICATION
AND PUBLICATION REQUIRE-
MENTS.— 
‘‘(1) NOTIFICATION REQUIREMENT.—The Post-
al Service shall, whenever it requests to add a new 
class of mail, file with the Postal Regulatory Com-
mission and publish in the Federal Register a notice 
setting out the basis for its determination that the 
product satisfies the criteria under subsection (b). 
The provisions of section 504(g) shall be available 
with respect to any information required to be filed. 
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‘‘(2) PUBLICATION REQUIREMENT.—The Postal 
Regulatory Commission shall, whenever it changes 
the list of market-dominant classes of mail, prescribe 
new lists of classes of mail. The revised lists shall 
indicate how and when any previous lists are super-
seded, and shall be published in the Federal Reg-
ister. 
‘‘(d) PROHIBITION.—Except as provided in section 
3641, a class of mail that involves the physical delivery 
of letters, printed matter, or packages may be offered by 
the Postal Service unless it has been assigned as a new 
class of mail— 
‘‘(1) under this subchapter; or 
‘‘(2) by or under any other provision of law.’’. 
(2) The table of sections at the beginning of chapter 
36 is amended by inserting after the item relating to sec-
tion 3642 the following: 
‘‘3643. New classes of mail.’’. 
SEC. 
306. 
EXPEDITED 
CONSIDERATION 
OF 
SERVICE 
CHANGES BY PRC. 
Section 3661 is amended— 
(1) by redesignating subsection (c) as sub-
section (d); and 
(2) by inserting after subsection (b) the fol-
lowing: 
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‘‘(c) If the Postal Service seeks expedited processing 
for time-sensitive advisory opinions, it shall state such re-
quest in its proposal filed under subsection (b) and the 
Commission, to the extent practical and in accordance 
with subsection (d), shall comply with the request for ex-
pedited consideration.’’. 
Æ 
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