†
111
HR 22 EAS
fice shall study and submit to the Congress, the Board of
Governors of the Postal Service, and to the Postal Regu-
latory Commission a report concerning—
(1) the economic and environmental efficacy of
establishing rate incentives for mailers linked to the
use of recycled paper;
(2) a description of the accomplishments of the
Postal Service in each of the preceding 5 years involv-
ing recycling activities, including the amount of an-
nual revenue generated and savings achieved by the
Postal Service as a result of its use of recycled paper
and other recycled products and its efforts to recycle
undeliverable and discarded mail and other mate-
rials; and
(3) additional opportunities that may be avail-
able for the United States Postal Service to engage in
recycling initiatives and the projected costs and reve-
nues of undertaking such opportunities.
(b) RECOMMENDATIONS.—The report shall include rec-
ommendations for any administrative or legislative actions
that may be appropriate.
†
112
HR 22 EAS
TITLE VIII—POSTAL SERVICE RE-
TIREMENT AND HEALTH BEN-
EFITS FUNDING
SEC. 801. SHORT TITLE.
This title may be cited as the ‘‘Postal Civil Service
Retirement and Health Benefits Funding Amendments of
2004’’.
SEC. 802. CIVIL SERVICE RETIREMENT SYSTEM.
(a) IN GENERAL.—Chapter 83 of title 5, United States
Code, is amended—
(1) in section 8334(a)(1)(B), by striking clause
(ii) and inserting the following:
‘‘(ii) In the case of an employee of the United States
Postal Service, no amount shall be contributed under this
subparagraph.’’; and
(2) by amending section 8348(h) to read as fol-
lows:
‘‘(h)(1) In this subsection, the term ‘Postal surplus or
supplemental liability’ means the estimated difference, as
determined by the Office, between—
‘‘(A) the actuarial present value of all future
benefits payable from the Fund under this subchapter
to current or former employees of the United States
Postal Service and attributable to civilian employ-
ment with the United States Postal Service; and
†
113
HR 22 EAS
‘‘(B) the sum of—
‘‘(i) the actuarial present value of deduc-
tions to be withheld from the future basic pay of
employees of the United States Postal Service
currently subject to this subchapter under section
8334;
‘‘(ii) that portion of the Fund balance, as of
the date the Postal surplus or supplemental li-
ability is determined, attributable to payments
to the Fund by the United States Postal Service
and its employees, minus benefit payments at-
tributable to civilian employment with the
United States Postal Service, 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.
‘‘(2)(A) Not later than June 15, 2006, the Office shall
determine the Postal surplus or supplemental liability, as
of September 30, 2005. If that result is a surplus, the
amount of the surplus shall be transferred to the Postal
Service Retiree Health Benefits Fund established under sec-
tion 8909a by June 30, 2006. If the result is a supplemental
liability, the Office shall establish an amortization schedule,
†
114
HR 22 EAS
including a series of annual installments commencing Sep-
tember 30, 2006, which provides for the liquidation of such
liability by September 30, 2043.
‘‘(B) The Office shall redetermine the Postal surplus
or supplemental liability as of the close of the fiscal year,
for each fiscal year beginning after September 30, 2006,
through the fiscal year ending September 30, 2038. If the
result is a surplus, that amount shall remain in the Fund
until distribution is authorized under subparagraph (C),
and any prior amortization schedule for payments shall be
terminated. If the result is a supplemental liability, the Of-
fice shall establish a new amortization schedule, including
a series of annual installments commencing on September
30 of the subsequent fiscal year, which provides for the liq-
uidation of such liability by September 30, 2043.
‘‘(C) As of the close of the fiscal years ending Sep-
tember 30, 2015, 2025, 2035, and 2039, if the result is a
surplus, that amount shall be transferred to the Postal Serv-
ice Retiree Health Benefits Fund, and any prior amortiza-
tion schedule for payments shall be terminated.
‘‘(D) Amortization schedules established under this
paragraph shall be set in accordance with generally accept-
ed actuarial practices and principles, with interest com-
puted at the rate used in the most recent valuation of the
Civil Service Retirement System.
†
115
HR 22 EAS
‘‘(E) The United States Postal Service shall pay the
amounts so determined to the Office, with payments due
not later than the date scheduled by the Office.
‘‘(3) Notwithstanding any other provision of law, in
computing the amount of any payment under any other
subsection of this section that is based upon 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.’’.
(b) CREDIT ALLOWED FOR MILITARY SERVICE.—In
the application of section 8348(g)(2) of title 5, United
States Code, for the fiscal year 2006, the Office of Personnel
Management shall include, in addition to the amount other-
wise computed under that paragraph, the amounts that
would have been included for the fiscal years 2003 through
2005 with respect to credit for military service of former
employees of the United States Postal Service as though the
Postal Civil Service Retirement System Funding Reform
Act of 2003 (Public Law 108–18) had not been enacted,
and the Secretary of the Treasury shall make the required
transfer to the Civil Service Retirement and Disability
Fund based on that amount.
(c) REVIEW.—
(1) IN GENERAL.—
†
116
HR 22 EAS
(A) 
REQUEST
FOR
REVIEW.—Notwith-
standing any other provision of this section (in-
cluding any amendment made by this section),
any determination or redetermination made by
the Office of Personnel Management under this
section (including any amendment made by this
section) shall, upon request of the United States
Postal Service, be subject to a review by the Post-
al Regulatory Commission under this subsection.
(B) REPORT.—Upon receiving a request
under subparagraph (A), the Commission shall
promptly procure the services of an actuary, who
shall hold membership in the American Academy
of Actuaries and shall be qualified in the evalua-
tion of pension obligations, to conduct a review
in accordance with generally accepted actuarial
practices and principles and to provide a report
to the Commission containing the results of the
review. The Commission, upon determining that
the report satisfies the requirements of this para-
graph, shall approve the report, with any com-
ments it may choose to make, and submit it with
any such comments to the Postal Service, the Of-
fice of Personnel Management, and Congress.
†
117
HR 22 EAS
(2) RECONSIDERATION.—Upon receiving the re-
port from the Commission under paragraph (1), the
Office of Personnel Management shall reconsider its
determination or redetermination in light of such re-
port, 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 Congress.
SEC. 803. HEALTH INSURANCE.
(a) IN GENERAL.—
(1) FUNDING.—Chapter 89 of title 5, United
States Code, is amended—
(A) in section 8906(g)(2)(A), by striking
‘‘shall be paid by the United States Postal Serv-
ice.’’ and inserting ‘‘shall be paid first from the
Postal Service Retiree Health Benefits Fund up
to the amount contained in the Fund, with any
remaining amount paid by the United States
Postal Service.’’; and
(B) by inserting after section 8909 the fol-
lowing:
‘‘§ 8909a. Postal Service Retiree Health Benefit Fund
‘‘(a) There is in the Treasury of the United States a
Postal Service Retiree Health Benefits Fund which is ad-
ministered by the Office of Personnel Management.
†
118
HR 22 EAS
‘‘(b) The Fund is available without fiscal year limita-
tion for payments required under section 8906(g)(2)(A).
‘‘(c) The Secretary of the Treasury shall immediately
invest, in interest-bearing securities of the United States
such currently available portions of the Fund as are not
immediately required for payments from the Fund. Such
investments shall be made in the same manner as invest-
ments for the Civil Service Retirement and Disability Fund
under section 8348.
‘‘(d)(1) Not later than June 30, 2006, and by June
30 of each succeeding year, the Office shall compute the net
present value of the future payments required under section
8906(g)(2)(A) and attributable to the service of Postal Serv-
ice employees during the most recently ended fiscal year.
‘‘(2)(A) Not later than June 30, 2006, the Office shall
compute, and by June 30 of each succeeding year, the Office
shall recompute the difference between—
‘‘(i) the net present value of the excess of future
payments required under section 8906(g)(2)(A) for
current and future United States Postal Service an-
nuitants as of the end of the fiscal year ending on
September 30 of that year; and
‘‘(ii)(I) the value of the assets of the Postal Re-
tiree Health Benefits Fund as of the end of the fiscal
year ending on September 30 of that year; and
†
119
HR 22 EAS
‘‘(II) the net present value computed under para-
graph (1).
‘‘(B) Not later than June 30, 2006, the Office shall
compute, and by June 30 of each succeeding year shall re-
compute, an amortization schedule including a series of an-
nual installments which provide for the liquidation by Sep-
tember 30, 2045, or within 15 years, whichever is later, of
the net present value determined under subparagraph (A),
including interest at the rate used in that computation.
‘‘(3) Not later than September 30, 2006, and by Sep-
tember 30 of each succeeding year, the United States Postal
Service shall pay into such Fund—
‘‘(A) the net present value computed under para-
graph (1); and
‘‘(B) the annual installment computed under
paragraph (2)(B).
‘‘(4) Computations under this subsection shall be made
consistent with the assumptions and methodology used by
the Office for financial reporting under subchapter II of
chapter 35 of title 31.
‘‘(5)(A)(i) Any computation or other determination of
the Office under this subsection shall, upon request of the
United States Postal Service, be subject to a review by the
Postal Regulatory Commission under this paragraph.
†
120
HR 22 EAS
‘‘(ii) Upon receiving a request under clause (i), the
Commission shall promptly procure the services of an actu-
ary, who shall hold membership in the American Academy
of Actuaries and shall be qualified in the evaluation of
healthcare insurance obligations, to conduct a review in ac-
cordance with generally accepted actuarial practices and
principles and to provide a report to the Commission con-
taining the results of the review. The Commission, upon de-
termining that the report satisfies the requirements of this
subparagraph, shall approve the report, with any comments
it may choose to make, and submit it with any such com-
ments to the Postal Service, the Office of Personnel Manage-
ment, and Congress.
‘‘(B) Upon receiving the report under subparagraph
(A), the Office of Personnel Management shall reconsider
its determination or redetermination in light of such report,
and shall make any appropriate adjustments. The Office
shall submit a report containing the results of its reconsid-
eration to the Commission, the Postal Service, and Con-
gress.
‘‘(6) After consultation with the United States Postal
Service, the Office shall promulgate any regulations the Of-
fice determines necessary under this subsection.’’.
(2) 
TECHNICAL
AND
CONFORMING
AMEND-
MENT.—The table of sections for chapter 89 of title 5,
†
121
HR 22 EAS
United States Code, is amended by inserting after the
item relating to section 8909 the following:
‘‘8909a. Postal Service Retiree Health Benefits Fund.’’.
(b) REVIEW.—
(1) IN GENERAL.—
(A) REQUEST FOR REVIEW.—Any regula-
tion established under section 8909a(d)(5) of title
5, United States Code (as added by subsection
(a)), shall, upon request of the United States
Postal Service, be subject to a review by the Post-
al Regulatory Commission under this para-
graph.
(B) REPORT.—Upon receiving a request
under subparagraph (A), the Commission shall
promptly procure the services of an actuary, who
shall hold membership in the American Academy
of Actuaries and shall be qualified in the evalua-
tion of healthcare insurance obligations, to con-
duct a review in accordance with generally ac-
cepted actuarial practices and principles and to
provide a report to the Commission containing
the results of the review. The Commission, upon
determining that the report satisfies the require-
ments of this paragraph, shall approve the re-
port, with any comments it may choose to make,
and submit it with any such comments to the
†
122
HR 22 EAS
Postal Service, the Office of Personnel Manage-
ment, and Congress.
(2) RECONSIDERATION.—Upon receiving the re-
port under paragraph (1), the Office of Personnel
Management shall reconsider its determination or re-
determination 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 Congress.
(c) TRANSITIONAL ADJUSTMENT FOR FISCAL YEAR
2006.—For fiscal year 2006, the amounts paid by the Post-
al Service in Government contributions under section
8906(g)(2)(A) of title 5, United States Code, for fiscal year
2006 contributions shall be deducted from the initial pay-
ment otherwise due from the Postal Service to the Postal
Service Retiree Health Benefits Fund under section
8909a(d)(3) of such title as added by this section.
SEC. 804. REPEAL OF DISPOSITION OF SAVINGS PROVISION.
Section 3 of the Postal Civil Service Retirement Sys-
tem Funding Reform Act of 2003 (Public Law 108–18) is
repealed.
SEC. 805. EFFECTIVE DATES.
(a) IN GENERAL.—Except as provided under sub-
section (b), this title shall take effect on October 1, 2005.
†
123
HR 22 EAS
(b) TERMINATION OF EMPLOYER CONTRIBUTION.—The
amendment made by paragraph (1) of section 802(a) shall
take effect on the first day of the first pay period beginning
on or after October 1, 2005.
TITLE IX—COMPENSATION FOR
WORK INJURIES
SEC. 901. TEMPORARY DISABILITY; CONTINUATION OF PAY.
(a) TIME OF ACCRUAL OF RIGHT.—Section 8117 of
title 5, United States Code, is amended—
(1) by striking ‘‘An employee’’ and inserting
‘‘(a) An employee other than a Postal Service em-
ployee’’; and
(2) by adding at the end the following:
‘‘(b) A Postal Service employee is not entitled to com-
pensation or continuation of pay for the first 3 days of tem-
porary disability, except as provided under paragraph (3)
of subsection (a). A Postal Service employee may use an-
nual leave, sick leave, or leave without pay during that 3-
day period, except that if the disability exceeds 14 days or
is followed by permanent disability, the employee may have
their sick leave or annual leave reinstated or receive pay
for the time spent on leave without pay under this section.’’.
(b) TECHNICAL AND CONFORMING AMENDMENT.—Sec-
tion 8118(b)(1) of title 5, United States Code, is amended
to read as follows: