Postal Service Financial Improvement Act of 2016

Bill: 114-hr-5707
Sponsor: full_name: Rep. Lynch, Stephen F. [D-MA-8]
Introduced: 2016-07-11
Policy area: Government Operations and Politics
Subjects: Accounting and auditing

Employee benefits and pensions

Financial services and investments

Government employee pay, benefits, personnel management

Health care costs and insurance

Securities

U.S. Postal Service
Latest action: action_date: 2016-12-08
text: Placed on the Union Calendar, Calendar No. 672.

Summaries:
action_date: 2016-07-11
action_desc: Introduced in House
text: <p><strong>Postal Service Financial Improvement Act of 2016</strong></p> <p>This bill requires the Department of the Treasury to: (1) invest a specified percentage of the Postal Service Retiree Health Benefits Fund, using one or more qualified professional asset managers, in index funds modeled after those established for Thrift Savings Fund investments; and (2) ensure that the investment replicates the performance of the longest-term target date asset allocation investment fund established by the Federal Retirement Thrift Investment Board.</p> <p>The bill establishes the Postal Service Retiree Health Benefits Fund Investment Committee, which Treasury shall consult regarding such investments.</p> <p>The &quot;specified percentage&quot; to be invested is defined as 25% of the currently available portions of the fund as are not immediately required for payments from the fund, except that the committee may specify a higher percentage, not to exceed 30%, not earlier than five years after this bill's enactment and as appropriate thereafter. </p> <p>Treasury shall annually engage an independent qualified public accountant to audit the financial statements of such investments and shall submit an annual management report that includes:</p> <ul> <li> statements of financial position, operations, and cash flows;</li> <li> a statement on internal accounting and administrative control systems;</li> <li> the report resulting from the audit; and</li> <li> any other comments and information necessary to inform Congress about the operations and financial condition of the investments.</li> </ul>

action_date: 2016-12-08
action_desc: Reported to House without amendment, Part I
text: <p>(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)</p> <p><strong>Postal Service Financial Improvement Act of 2016</strong></p> <p>(Sec. 2) This bill requires the Department of the Treasury to: (1) invest a specified percentage of the Postal Service Retiree Health Benefits Fund, using one or more qualified professional asset managers, in index funds modeled after those established for Thrift Savings Fund investments; and (2) ensure that the investment replicates the performance of the longest-term target date asset allocation investment fund established by the Federal Retirement Thrift Investment Board.</p> <p>The bill establishes the Postal Service Retiree Health Benefits Fund Investment Committee, which Treasury shall consult regarding such investments.</p> <p>The &quot;specified percentage&quot; to be invested is defined as 25% of the currently available portions of the fund as are not immediately required for payments from the fund, except that the committee may specify a higher percentage, not to exceed 30%, not earlier than five years after this bill's enactment and as appropriate thereafter. </p> <p>Treasury shall annually engage an independent qualified public accountant to audit the financial statements of such investments and shall submit an annual management report that includes:</p> <ul> <li> statements of financial position, operations, and cash flows;</li> <li> a statement on internal accounting and administrative control systems;</li> <li> the report resulting from the audit; and</li> <li> any other comments and information necessary to inform Congress about the operations and financial condition of the investments.</li> </ul>

tv_txt: I 114th CONGRESS 2d Session H. R. 5707 IN THE HOUSE OF REPRESENTATIVES July 11, 2016 Mr. Lynch (for himself and Mr. McKinley ) introduced the following bill; which was referred to the Committee on Oversight and Government Reform A BILL To amend title 5, United States Code, to provide for certain index fund investments from the Postal Service Retiree Health Benefits Fund, and for other purposes.

1. Short title This Act may be cited as the Postal Service Financial Improvement Act of 2016 . 2. Investment of the Postal Service Retiree Health Benefits Fund Section 8909a(c) of title 5, United States Code, is amended— (1) by striking (c) The Secretary and inserting (c)(1) Subject to paragraph (2), the Secretary ; and (2) by adding at the end the following: (2) (A) The Secretary of the Treasury shall immediately invest a specified percentage of the Fund, using one or more qualified professional asset managers, in index funds modeled after those established under subparagraphs (B), (C), (D) and (E) of section 8438(b)(1). The Secretary shall ensure, to the maximum extent practicable, that the investment replicates the performance of the longest-term target date asset allocation investment fund established by the Federal Retirement Thrift Investment Board. Funds invested pursuant to this paragraph shall be considered a means of financing. (B) In exercising authority under subparagraph (A), including in the selection of specific qualified professional asset managers and in the development of specific investment guidelines to meet the requirement of such subparagraph, the Secretary shall consult with the Postal Service Retiree Health Benefits Fund Investment Committee. (C) (i) There is established a Postal Service Retiree Health Benefits Fund Investment Committee that shall consist of— (I) the Secretary; (II) the Chairman of the Board of Governors of the United States Postal Service; (III) the Chairman of the Federal Retirement Thrift Investment Board; and (IV) 2 members to represent the interests of Postal Service employees and annuitants who— (aa) are appointed by the President; (bb) have experience and expertise in the management of financial investments and Postal Service employee benefits; and (cc) shall serve for a term of 3 years. (ii) The Postal Service Retiree Health Benefits Fund Investment Committee and each member of such Committee shall be subject to the requirements of subsections (b)(1) and (c)(2) of section 8477, in the same manner as applied to a fiduciary with respect to the Thrift Savings Fund under such subsections. (D) (i) The Secretary shall annually engage an independent qualified public accountant to audit the financial statements of the investments made pursuant to subparagraph (A). (ii) The Secretary shall submit an annual management report to the Congress not later than 180 days after the end of the each fiscal year that includes— (I) a statement of financial position; (II) a statement of operations; (III) a statement of cash flows; (IV) a statement on internal accounting and administrative control systems; (V) the report resulting from an audit of the financial statements of the investments conducted under clause (i); and (VI) any other comments and information necessary to inform the Congress about the operations and financial condition of the investments. (E) In this paragraph— (i) specified percentage means 25 percent of the currently available portions of the Fund as are not immediately required for payments from the Fund, except that the Postal Service Retiree Health Benefits Fund Investment Committee may specify a higher percentage, not to exceed 30 percent, not earlier than 5 years after the date of enactment of the Postal Service Financial Improvement Act of 2016 , and as appropriate thereafter; and (ii) qualified professional asset manager has the meaning given that term in section 8438(a). .

tv_txt: IB Union Calendar No. 672 114th CONGRESS 2d Session H. R. 5707 [Report No. 114–859, Part I] IN THE HOUSE OF REPRESENTATIVES July 11, 2016 Mr. Lynch (for himself and Mr. McKinley ) introduced the following bill; which was referred to the Committee on Oversight and Government Reform December 8, 2016 Reported and referred to the Committee on the Budget for a period ending not later than December 8, 2016, for consideration of such provisions of the bill as fall within the jurisdiction of that committee pursuant to clause 1(d) of rule X December 8, 2016 The Committee on the Budget discharged; committed to the Committee of the Whole House on the State of the Union and ordered to be printed A BILL To amend title 5, United States Code, to provide for certain index fund investments from the Postal Service Retiree Health Benefits Fund, and for other purposes.

1. Short title This Act may be cited as the Postal Service Financial Improvement Act of 2016 . 2. Investment of the Postal Service Retiree Health Benefits Fund Section 8909a(c) of title 5, United States Code, is amended— (1) by striking (c) The Secretary and inserting (c)(1) Subject to paragraph (2), the Secretary ; and (2) by adding at the end the following: (2) (A) The Secretary of the Treasury shall immediately invest a specified percentage of the Fund, using one or more qualified professional asset managers, in index funds modeled after those established under subparagraphs (B), (C), (D) and (E) of section 8438(b)(1). The Secretary shall ensure, to the maximum extent practicable, that the investment replicates the performance of the longest-term target date asset allocation investment fund established by the Federal Retirement Thrift Investment Board. Funds invested pursuant to this paragraph shall be considered a means of financing. (B) In exercising authority under subparagraph (A), including in the selection of specific qualified professional asset managers and in the development of specific investment guidelines to meet the requirement of such subparagraph, the Secretary shall consult with the Postal Service Retiree Health Benefits Fund Investment Committee. (C) (i) There is established a Postal Service Retiree Health Benefits Fund Investment Committee that shall consist of— (I) the Secretary; (II) the Chairman of the Board of Governors of the United States Postal Service; (III) the Chairman of the Federal Retirement Thrift Investment Board; and (IV) 2 members to represent the interests of Postal Service employees and annuitants who— (aa) are appointed by the President; (bb) have experience and expertise in the management of financial investments and Postal Service employee benefits; and (cc) shall serve for a term of 3 years. (ii) The Postal Service Retiree Health Benefits Fund Investment Committee and each member of such Committee shall be subject to the requirements of subsections (b)(1) and (c)(2) of section 8477, in the same manner as applied to a fiduciary with respect to the Thrift Savings Fund under such subsections. (D) (i) The Secretary shall annually engage an independent qualified public accountant to audit the financial statements of the investments made pursuant to subparagraph (A). (ii) The Secretary shall submit an annual management report to the Congress not later than 180 days after the end of the each fiscal year that includes— (I) a statement of financial position; (II) a statement of operations; (III) a statement of cash flows; (IV) a statement on internal accounting and administrative control systems; (V) the report resulting from an audit of the financial statements of the investments conducted under clause (i); and (VI) any other comments and information necessary to inform the Congress about the operations and financial condition of the investments. (E) In this paragraph— (i) specified percentage means 25 percent of the currently available portions of the Fund as are not immediately required for payments from the Fund, except that the Postal Service Retiree Health Benefits Fund Investment Committee may specify a higher percentage, not to exceed 30 percent, not earlier than 5 years after the date of enactment of the Postal Service Financial Improvement Act of 2016 , and as appropriate thereafter; and (ii) qualified professional asset manager has the meaning given that term in section 8438(a). .

December 8, 2016 Reported and referred to the Committee on the Budget for a period ending not later than December 8, 2016, for consideration of such provisions of the bill as fall within the jurisdiction of that committee pursuant to clause 1(d) of rule X December 8, 2016 The Committee on the Budget discharged; committed to the Committee of the Whole House on the State of the Union and ordered to be printed