121 
(3) by adding at the end the following: 
‘‘(n) In the administration of this section, matter that 
satisfies the circulation standards for requester publica-
tions shall not be excluded from being mailed at the rates 
for mail under former section 4358 solely because such 
matter is designed primarily for free circulation or for cir-
culation at nominal rates, or fails to meet the require-
ments of former section 4354(a)(5).’’. 
SEC. 809. HAZARDOUS MATTER. 
(a) NONMAILABILITY GENERALLY.—Section 3001 of 
title 39, United States Code, is amended— 
(1) by redesignating subsection (n) as sub-
section (o); and 
(2) by inserting after subsection (m) the fol-
lowing: 
‘‘(n)(1) Except as otherwise authorized by law or reg-
ulations of the Postal Service, hazardous material is non-
mailable. 
‘‘(2) In this subsection, the term ‘hazardous material’ 
means a substance or material designated by the Secretary 
of Transportation under section 5103(a) of title 49.’’. 
(b) MAILABILITY.—Chapter 30 of title 39, United 
States Code, is amended by adding at the end the fol-
lowing:
122 
‘‘§ 3018. Hazardous material 
‘‘(a) IN GENERAL.—The Postal Service shall pre-
scribe regulations for the safe transportation of hazardous 
material in the mail. 
‘‘(b) PROHIBITIONS.—No person may— 
‘‘(1) mail or cause to be mailed hazardous ma-
terial that has been declared by statute or Postal 
Service regulation to be nonmailable; 
‘‘(2) mail or cause to be mailed hazardous ma-
terial in violation of any statute or Postal Service 
regulation restricting the time, place, or manner in 
which hazardous material may be mailed; or 
‘‘(3) manufacture, distribute, or sell any con-
tainer, packaging kit, or similar device that— 
‘‘(A) is represented, marked, certified, or 
sold by such person for use in the mailing of 
hazardous material; and 
‘‘(B) fails to conform with any statute or 
Postal Service regulation setting forth stand-
ards for a container, packaging kit, or similar 
device used for the mailing of hazardous mate-
rial. 
‘‘(c) CIVIL PENALTY; CLEAN-UP COSTS AND DAM-
AGES.—
123 
‘‘(1) IN GENERAL.—A person who knowingly 
violates this section or a regulation prescribed under 
this section shall be liable for— 
‘‘(A) a civil penalty of at least $250, but 
not more than $100,000, for each violation; 
‘‘(B) the costs of any clean-up associated 
with each violation; and 
‘‘(C) damages. 
‘‘(2) KNOWING ACTION.—A person acts know-
ingly for purposes of paragraph (1) when— 
‘‘(A) the person has actual knowledge of 
the facts giving rise to the violation; or 
‘‘(B) a reasonable person acting in the cir-
cumstances and exercising reasonable care 
would have had that knowledge. 
‘‘(3) SEPARATE VIOLATIONS.— 
‘‘(A) VIOLATIONS OVER TIME.—A separate 
violation under this subsection occurs for each 
day hazardous material, mailed or caused to be 
mailed in noncompliance with this section, is in 
the mail. 
‘‘(B) SEPARATE ITEMS.—A separate viola-
tion under this subsection occurs for each item 
containing hazardous material that is mailed or
124 
caused to be mailed in noncompliance with this 
section. 
‘‘(d) HEARINGS.—The Postal Service may determine 
that a person has violated this section or a regulation pre-
scribed under this section only after notice and an oppor-
tunity for a hearing. Proceedings under this section shall 
be conducted in accordance with section 3001(m). 
‘‘(e) PENALTY CONSIDERATIONS.—In determining 
the amount of a civil penalty for a violation of this section, 
the Postal Service shall consider— 
‘‘(1) the nature, circumstances, extent, and 
gravity of the violation; 
‘‘(2) with respect to the person who committed 
the violation, the degree of culpability, any history of 
prior violations, the ability to pay, and any effect on 
the ability to continue in business; 
‘‘(3) the impact on Postal Service operations; 
and 
‘‘(4) any other matters that justice requires. 
‘‘(f) CIVIL ACTIONS TO COLLECT.— 
‘‘(1) IN GENERAL.—In accordance with section 
409(d), a civil action may be commenced in an ap-
propriate district court of the United States to col-
lect a civil penalty, clean-up costs, and damages as-
sessed under subsection (c).
125 
‘‘(2) COMPROMISE.—The Postal Service may 
compromise the amount of a civil penalty, clean-up 
costs, and damages assessed under subsection (c) be-
fore commencing a civil action with respect to such 
civil penalty, clean-up costs, and damages under 
paragraph (1). 
‘‘(g) CIVIL JUDICIAL PENALTIES.— 
‘‘(1) IN GENERAL.—At the request of the Post-
al Service, the Attorney General may bring a civil 
action in an appropriate district court of the United 
States to enforce this section or a regulation pre-
scribed under this section. 
‘‘(2) RELIEF.—The court in a civil action under 
paragraph (1) may award appropriate relief, includ-
ing a temporary or permanent injunction, civil pen-
alties as determined in accordance with this section, 
or punitive damages. 
‘‘(3) CONSTRUCTION.—A civil action under this 
subsection shall be in lieu of civil penalties for the 
same violation under subsection (c)(1)(A). 
‘‘(h) DEPOSIT OF AMOUNTS COLLECTED.— 
‘‘(1) POSTAL SERVICE FUND.—Except as pro-
vided under paragraph (2), amounts collected under 
subsection (c)(1)(B) and (C) shall be deposited into 
the Postal Service Fund under section 2003.
126 
‘‘(2) TREASURY.—Amounts collected under sub-
section (c)(1)(A) and any punitive damages collected 
under subsection (c)(1)(C) shall be deposited into 
the Treasury of the United States.’’. 
(c) 
CONFORMING
AMENDMENTS.—(1) 
Section 
2003(b) of title 39, United States Code, is amended— 
(A) in paragraph (7), by striking ‘‘and’’ after 
the semicolon; 
(B) in paragraph (8), by striking ‘‘purposes.’’ 
and inserting ‘‘purposes; and’’; and 
(C) by adding at the end the following: 
‘‘(9) any amounts collected under section 
3018.’’. 
(2) The analysis for chapter 30 of title 39, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘3018. Hazardous material.’’. 
(d) INJURIOUS ARTICLES AS NONMAILABLE.—Sec-
tion 1716(a) of title 18, United States Code, is amended 
by inserting after ‘‘explosives,’’ the following: ‘‘hazardous 
materials,’’. 
SEC. 810. PROVISIONS RELATING TO COOPERATIVE MAIL-
INGS. 
(a) DETERMINATION.—The Postal Regulatory Com-
mission shall examine section E670.5.3 of the Domestic 
Mail Manual to determine whether it contains adequate
127 
safeguards to protect against (1) abuses of rates for non-
profit mail and (2) deception of consumers. 
(b) REGULATIONS.—If the Postal Regulatory Com-
mission determines that section E670.5.3 of the Domestic 
Mail Manual does not contain adequate safeguards as de-
scribed in the preceding subsection, the Commission shall 
promulgate such regulations as may be necessary to en-
sure such safeguards. 
(c) TIMING.—The Postal Regulatory Commission 
shall complete the examination required by subsection (a) 
and the promulgation of any necessary regulations re-
quired by subsection (b) within one year after the date 
of the enactment of this section. 
SEC. 811. TECHNICAL AND CONFORMING AMENDMENTS. 
(a) REIMBURSEMENT.—Section 3681 of title 39, 
United States Code, is amended by striking ‘‘section 
3628’’ and inserting ‘‘sections 3662 through 3664’’. 
(b) SIZE AND WEIGHT LIMITS.—Section 3682 of title 
39, United States Code, is amended to read as follows: 
‘‘§ 3682. Size and weight limits 
‘‘The Postal Service may establish size and weight 
limitations for mail matter in the market-dominant cat-
egory of mail consistent with regulations the Postal Regu-
latory Commission may prescribe under section 3622. The 
Postal Service may establish size and weight limitations
128 
for mail matter in the competitive category of mail con-
sistent with its authority under section 3632.’’. 
(c) REVENUE FOREGONE, ETC.—Title 39, United 
States Code, is amended— 
(1) in section 503 (as so redesignated by sec-
tion 501), by striking ‘‘this chapter.’’ and inserting 
‘‘this title.’’; and 
(2) in section 2401(d), by inserting ‘‘(as last in 
effect before enactment of the Postal Accountability 
and Enhancement Act)’’ after ‘‘3626(a)’’ and after 
‘‘3626(a)(3)(B)(ii)’’. 
(d) APPROPRIATIONS
AND REPORTING REQUIRE-
MENTS.— 
(1) APPROPRIATIONS.—Subsection (e) of sec-
tion 2401 of title 39, United States Code, is amend-
ed— 
(A) by striking ‘‘Committee on Post Office 
and Civil Service’’ each place it appears and in-
serting ‘‘Committee on Government Reform’’; 
and 
(B) by striking ‘‘Not later than March 15 
of each year,’’ and inserting ‘‘Each year,’’. 
(2) 
REPORTING
REQUIREMENTS.—Sections 
2803(a) and 2804(a) of title 39, United States Code,
129 
are amended by striking ‘‘2401(g)’’ and inserting 
‘‘2401(e)’’. 
(e) AUTHORITY TO FIX RATES AND CLASSES GEN-
ERALLY; REQUIREMENT RELATING TO LETTERS SEALED 
AGAINST INSPECTION.—Section 404 of title 39, United 
States Code (as amended by section 102) is further 
amended by redesignating subsections (b) and (c) as sub-
sections (d) and (e), respectively, and by inserting after 
subsection (a) the following: 
‘‘(b) Except as otherwise provided, the Governors are 
authorized to establish reasonable and equitable classes of 
mail and reasonable and equitable rates of postage and 
fees for postal services in accordance with the provisions 
of chapter 36. Postal rates and fees shall be reasonable 
and equitable and sufficient to enable the Postal Service, 
under best practices of honest, efficient, and economical 
management, to maintain and continue the development 
of postal services of the kind and quality adapted to the 
needs of the United States. 
‘‘(c) The Postal Service shall maintain one or more 
classes of mail for the transmission of letters sealed 
against inspection. The rate for each such class shall be 
uniform throughout the United States, its territories, and 
possessions. One such class shall provide for the most ex-
peditious handling and transportation afforded mail mat-
130 
ter by the Postal Service. No letter of such a class of do-
mestic origin shall be opened except under authority of 
a search warrant authorized by law, or by an officer or 
employee of the Postal Service for the sole purpose of de-
termining an address at which the letter can be delivered, 
or pursuant to the authorization of the addressee.’’. 
(f) LIMITATIONS.—Section 3684 of title 39, United 
States Code, is amended by striking all that follows ‘‘any 
provision’’ and inserting ‘‘of this title.’’. 
(g) MISCELLANEOUS.—Title 39, United States Code, 
is amended— 
(1) in section 1005(d)(2)— 
(A) by striking ‘‘subsection (g) of section 
5532,’’; and 
(B) by striking ‘‘8344,’’ and inserting 
‘‘8344’’; 
(2) in the analysis for part III, by striking the 
item relating to chapter 28 and inserting the fol-
lowing: 
‘‘28. Strategic Planning and Performance Management .... 2801’’; 
(3) in section 3005(a)— 
(A) in the matter before paragraph (1), by 
striking all that follows ‘‘nonmailable’’ and pre-
cedes ‘‘(h),’’ and inserting ‘‘under section 
3001(d),’’; and
131 
(B) in the sentence following paragraph 
(3), by striking all that follows ‘‘nonmailable’’ 
and precedes ‘‘(h),’’ and inserting ‘‘under such 
section 3001(d),’’; 
(4) in section 3210(a)(6)(C), by striking the 
matter after ‘‘if such mass mailing’’ and before 
‘‘than 60 days’’ and inserting ‘‘is postmarked 
fewer’’; and 
(5) by striking the heading for section 3627 
and inserting the following: 
‘‘§ 3627. Adjusting free rates’’. 
TITLE 
IX—POSTAL 
PENSION 
FUNDING 
REFORM 
AMEND-
MENTS 
SEC. 901. CIVIL SERVICE RETIREMENT SYSTEM. 
(a) TERMINATION OF OBLIGATION TO PAY GOVERN-
MENT
CONTRIBUTIONS.—Section 8334(a)(1)(B)(ii) of 
title 5, United States Code, is amended by striking all that 
follows ‘‘be equal to’’ and inserting ‘‘zero.’’. 
(b) DETERMINATION AND DISPOSITION OF POSTAL 
SURPLUS
OR
SUPPLEMENTAL
LIABILITY.—Section 
8348(h) of title 5, United States Code, is amended to read 
as follows:
132 
‘‘(h)(1) For purposes of this subsection, a Postal sur-
plus (or supplemental liability) is the amount, as esti-
mated by the Office, by which— 
‘‘(A) the actuarial present value of all future 
benefits which are payable from the Fund under this 
subchapter to current or former employees of the 
United States Postal Service, or their survivors, and 
attributable to civilian employment with the Postal 
Service, is less than (or greater than) 
‘‘(B) the sum of— 
‘‘(i) the actuarial present value of deduc-
tions to be withheld from the future basic pay 
of employees of the Postal Service currently 
subject to this subchapter pursuant to section 
8334; 
‘‘(ii) that portion of the Fund balance, as 
of the date such surplus or supplemental liabil-
ity is determined, attributable to payments to 
the Fund by the Postal Service and its employ-
ees, plus the earnings on such amounts while in 
the Fund; and 
‘‘(iii) any other appropriate amount, as de-
termined by the Office in accordance with gen-
erally accepted actuarial practices and prin-
ciples.
133 
‘‘(2)(A)(i) Not later than June 15, 2006, the Office 
shall determine the Postal surplus or supplemental liabil-
ity as of September 30, 2005. 
‘‘(ii) If a supplemental liability is determined under 
this subparagraph for fiscal year 2005, the Office shall 
establish an amortization schedule, including a series of 
equal annual installments commencing September 30, 
2006, which provides for the liquidation of such liability 
by September 30, 2043. 
‘‘(iii) If a surplus is determined under this subpara-
graph for fiscal year 2005, the amount of the surplus shall 
be transferred to the Postal Service Retiree Health Bene-
fits Fund by June 30, 2006. 
‘‘(B)(i) For each of fiscal years 2006 through 2038, 
the Office shall determine the Postal surplus or supple-
mental liability as of the close of such fiscal year, with 
each such determination to be made by June 15th of the 
following fiscal year. 
‘‘(ii) If a supplemental liability is determined under 
this subparagraph for a fiscal year, the Office shall estab-
lish an amortization schedule, including a series of equal 
annual installments commencing on September 30 of the 
following fiscal year, which provides for the liquidation of 
such liability by September 30, 2043.
134 
‘‘(iii)(I) If a surplus of $500,000,000 or more is de-
termined under this subparagraph for a fiscal year, the 
amount of the surplus shall be transferred to the Postal 
Service Retiree Health Benefits Fund by June 30th of the 
following fiscal year. 
‘‘(II) If a surplus of less than $500,000,000 is deter-
mined under this subparagraph for a fiscal year, the sur-
plus shall remain in the Fund, subject to transfer in a 
subsequent fiscal year under subclause (I) or subpara-
graph (C)(iii). 
‘‘(C)(i) Not later than June 15, 2040, the Office shall 
determine the Postal surplus or supplemental liability as 
of September 30, 2039. 
‘‘(ii) If a supplemental liability is determined under 
this subparagraph for fiscal year 2039, the Office shall 
establish an amortization schedule, including a series of 
equal annual installments commencing September 30, 
2040, which provides for the liquidation of such liability 
by September 30, 2043. 
‘‘(iii) If a surplus is determined under this subpara-
graph for fiscal year 2039, the amount of the surplus— 
‘‘(I) shall be applied first toward reducing the 
amount of any supplemental liability described in 
section 8423(b)(1)(B); and
135 
‘‘(II) to the extent that any portion of such sur-
plus remains after the application of subclause (I), 
shall, not later than June 30, 2040, be transferred 
to the Postal Service Retiree Health Benefits Fund. 
‘‘(D) An amortization schedule under this para-
graph— 
‘‘(i) shall be established in accordance with gen-
erally accepted actuarial practices and principles, 
with interest computed at the rate used in the most 
recent valuation of the Civil Service Retirement Sys-
tem; 
‘‘(ii) shall supersede any amortization schedule 
previously established under this paragraph; and 
‘‘(iii) shall not be taken into account, for pur-
poses of any determination of Postal surplus or sup-
plemental liability, except to the extent of any 
amounts under such schedule actually paid. 
‘‘(E)(i) The Postal Service shall pay to the Office the 
amounts due under any amortization schedule established 
under this paragraph, to the extent not superseded or can-
celed. 
‘‘(ii) A determination under subparagraph (B)(i) or 
(C)(i) that no supplemental liability exists shall cancel any 
amortization schedule previously established under this 
paragraph, to the extent of any amounts first coming due
136 
after the close of the fiscal year to which such determina-
tion relates. 
‘‘(3) Notwithstanding any other provision of law, in 
computing the amount of any payment under any other 
subsection of this section that is based on the amount of 
the unfunded liability, such payment shall be computed 
disregarding that portion of the unfunded liability that the 
Office determines will be liquidated by payments under 
this subsection. 
‘‘(4) As used in this subsection, ‘Postal Service Re-
tiree Health Benefits Fund’ refers to the Postal Service 
Retiree Health Benefits Fund, as established by section 
8909a.’’. 
(c) PROVISIONS RELATING TO AMOUNTS FOR MILI-
TARY SERVICE.—In the application of paragraph (2) of 
section 8348(g) of title 5, United States Code, for fiscal 
year 2006, the Office of Personnel Management shall in-
clude, in addition to the amount otherwise computed 
under that paragraph, the amounts that would have been 
included for fiscal years 2003 through 2005 with respect 
to credit for military service of former employees of the 
United States Postal Service if Public Law 108-18 had 
not been enacted (including earnings thereon) and the 
Secretary of the Treasury shall make the required transfer
137 
to the Civil Service Retirement and Disability Fund based 
on that amount. 
(d) REVIEW.— 
(1) IN GENERAL.—Notwithstanding any other 
provision of this section, any determination or rede-
termination made by the Office of Personnel Man-
agement under this section shall, upon request of 
the United States Postal Service, be subject to re-
view by the Postal Regulatory Commission. The 
Commission shall submit a report containing the re-
sults of any such review to the Postal Service, the 
Office of Personnel Management, and the Congress. 
(2) RESPONSE.—Upon receiving the report of 
the Postal Regulatory Commission, the Office of 
Personnel Management shall reconsider its deter-
mination or redetermination in light of such report, 
and shall make any appropriate adjustments. The 
Office shall submit a report containing the results of 
its reconsideration to the Commission, the Postal 
Service, and the Congress. 
SEC. 902. HEALTH INSURANCE. 
(a) IN GENERAL.—Chapter 89 of title 5, United 
States Code, is amended— 
(1) in section 8906(g)(2)(A), by striking ‘‘by 
the United States Postal Service.’’ and inserting
138 
‘‘first from the Postal Service Retiree Health Bene-
fits Fund up to the amount contained therein, with 
any remaining amount paid by the United States 
Postal Service.’’; 
(2) by inserting after section 8909 the fol-
lowing: 
‘‘§ 8909a. Postal Service Retiree Health Benefits Fund 
‘‘(a) There is in the Treasury of the United States 
a Postal Service Retiree Health Benefits Fund (herein-
after in this section referred to as the ‘Fund’) which is 
administered by the Office of Personnel Management. Any 
amounts 
transferred 
to 
the 
Fund 
under 
section 
8348(h)(2) shall yield interest at a rate equal to the 
weighted average yield of all the investments in the Civil 
Service Retirement and Disability Fund as of the date of 
transfer. All other investments of amounts in the Fund 
shall be made in accordance with subsections (c)–(e) of 
section 8348. 
‘‘(b) The Fund is available without fiscal year limita-
tion for payments required by section 8906(g)(2). 
‘‘(c)(1) Not later than June 30, 2006, and by June 
30 of each succeeding year, the Office of Personnel Man-
agement shall compute the net present value of the excess 
of future payments required by section 8906(g)(2)(A) for 
current and future United States Postal Service annu-
139 
itants over the value of the assets of the Fund as of the 
end of the fiscal year ending on September 30 of that year. 
The actuarial costing method to be used by the Office and 
all actuarial assumptions shall be established by the Office 
after consultation with the United States Postal Service 
and must be in accordance with generally accepted actu-
arial practices and principles. 
‘‘(2) Not later than September 30, 2006, and by Sep-
tember 30 of each succeeding year, the Office shall com-
pute and the United States Postal Service shall pay into 
such Fund— 
‘‘(A) the portion of the net present value de-
scribed in paragraph (1) attributable to the current 
year’s service of Postal Service employees; and 
‘‘(B) interest on the net present value described 
in paragraph (1) for that fiscal year, at the interest 
rate used in computing that net present value; 
except that the amount otherwise payable by the Postal 
Service under the preceding provisions of this paragraph 
by not later than September 30, 2006, shall be reduced 
by the total contributions made by the Postal Service 
under section 8906(g)(2) and attributable to fiscal year 
2006 (as determined by the Office). 
‘‘(3)(A) Any computation or other determination of 
the Office under this subsection shall, upon request of the
140 
Postal Service, be subject to review by the Postal Regu-
latory Commission. The Commission shall submit a report 
containing the results of any such review to the Postal 
Service, the Office of Personnel Management, and the 
Congress. 
‘‘(B) Upon receiving the report of the Postal Regu-
latory Commission, the Office of Personnel Management 
shall reconsider its computation or other determination in 
light of such report, and shall make any appropriate ad-
justments. The Office shall submit a report containing the 
results of its reconsideration to the Commission, the Post-
al Service, and the Congress. 
‘‘(4) The Office shall promulgate, after consultation 
with the United States Postal Service, any regulations it 
deems necessary under this subsection.’’; and 
(3) in the analysis by inserting after the item 
relating to section 8909 the following: 
‘‘8909a. Postal Service Retiree Health Benefits Fund.’’. 
(b) REVIEW.— 
(1) IN GENERAL.—Any regulation established 
under section 8909a(c)(4) of title 5, United States 
Code (as amended by subsection (a)) shall, upon re-
quest of the Postal Service, be subject to review by 
the Postal Regulatory Commission. The Commission 
shall submit a report containing the results of any
141 
such review to the Postal Service, the Office of Per-
sonnel Management, and the Congress. 
(2) RESPONSE.—Upon receiving the report of 
the Postal Regulatory Commission, the Office of 
Personnel Management shall reconsider its regula-
tion in light of such report, and shall take such ac-
tion as it considers appropriate. The Office shall 
submit a report containing the results of its recon-
sideration to the Commission, the Postal Service, 
and the Congress. 
SEC. 903. REPEALER. 
Section 3 of Public Law 108–18 is repealed. 
SEC. 904. ENSURING APPROPRIATE USE OF ESCROW AND 
MILITARY SAVINGS. 
(a) DEFINITION.—For purposes of this section, the 
term ‘‘total savings’’ means, for any fiscal year, the 
amount equal to— 
(1) the amount of contributions that the Postal 
Service would otherwise have been required to make 
to the Civil Service Retirement and Disability Fund 
under subchapter III of chapter 83 of title 5, United 
States Code, for such fiscal year if Public Law 108- 
18 and this Act had not been enacted, minus
142 
(2) the amount of amortization payments (if 
any) required under section 8348(h)(2) of title 5, 
United States Code, for such fiscal year. 
(b) CALCULATIONS.—The following calculations shall 
be made for each of fiscal years 2006 through 2015: 
(1) Not later than January 31 of the fiscal year 
following the fiscal year involved, the Office of Per-
sonnel Management (in consultation with the Postal 
Service) shall determine the total savings for the fis-
cal year. 
(2) On the date of making its determination 
under paragraph (1), the Office shall also determine 
(in consultation with the Postal Service) the amount 
by which— 
(A) the amount the Postal Service paid for 
that fiscal year into the Postal Service Retiree 
Health Benefits Fund in accordance with 
8909a(c)(2) of title 5, United States Code, ex-
ceeds (if at all) 
(B) the amount of payments made by the 
Postal Service for that fiscal year from such 
Fund in order to satisfy the requirements of 
section 8906(g)(2) of such title 5. 
(c) REQUIREMENTS.—
143 
(1) IF THRESHOLD IS MET.—If the amount cal-
culated under subsection (b)(2) for a fiscal year is 
greater than or equal to two-thirds of the total sav-
ings in such fiscal year, no further action under this 
section is necessary with respect to such fiscal year. 
(2) IF THRESHOLD IS NOT MET.— 
(A) IN
GENERAL.—If the amount cal-
culated under subsection (b)(2) for a fiscal year 
is less than two-thirds of the total savings in 
such fiscal year, the Postal Service shall pay 
into the Postal Service Retiree Health Benefits 
Fund, by June 30 of the following fiscal year, 
an amount equal to the difference. 
(B) ALLOWABLE ALTERNATIVE.— 
(i) IN
GENERAL.—Notwithstanding 
subparagraph (A), and subject to clause 
(ii), the Postal Service may instead use the 
amount that it would otherwise be required 
to pay into the Postal Service Retiree 
Health Benefits Fund for a year (or any 
portion thereof) to reduce the postal debt. 
(ii) LIMITATION.—Amounts used to 
reduce the postal debt under this subpara-
graph 
may 
not 
exceed 
a 
total 
of 
$3,000,000,000.
144 
(3) AGGREGATION ALLOWED.—Notwithstanding 
paragraph (2), if the amount calculated under sub-
section (b)(2) for a fiscal year is less than two-thirds 
of the total savings in such fiscal year, but the sum 
of the amounts calculated under subsection (b)(2) 
for all fiscal years from 2006 to the fiscal year in-
volved is greater than or equal to two-thirds of the 
sum of the total savings for such years, no further 
action under this section is necessary with respect to 
such fiscal year. 
(d) REPORTING REQUIREMENT.—The Office of Per-
sonnel Management shall submit a report containing the 
results of its calculations under subsection (b) to the Post-
al Service, the Postal Regulatory Commission, and the 
Congress. 
(e) WAIVER AUTHORITY.—The requirements of sub-
section (c)(2)(A) may, upon application of the Postal Serv-
ice, be waived by the Postal Regulatory Commission, to 
the extent that the Commission determines that such 
waiver is reasonable and equitable and necessary to enable 
the Postal Service, under best practices of honest, effi-
cient, and economical management, to maintain and con-
tinue the development of postal services of the kind and 
quality adapted to the needs of the United States.
145 
SEC. 905. EFFECTIVE DATES. 
(a) IN GENERAL.—Except as otherwise provided, this 
title shall take effect on October 1, 2005. 
(b) GOVERNMENT CONTRIBUTIONS.—Section 901(a) 
shall take effect on the first day of the first pay period 
beginning on or after October 1, 2005. 
Æ