Repeal of ½% Retirement Contribution Increase

The balanced budget act of 1997 requires increases in the amount of money federal and postal employees contribute toward their own retirement. The contribution is a series of steps to increase to an additional ½% by 2002. The increase was approved as a measure to assist in balancing the federal budget, however now that the budget is balanced NRLCA and other employee groups have demanded it’s repeal. 

Congressmen Steny Hoyer (D-MD) & Frank Wolf (R-VA) passed an amendment to the Treasury Postal Appropriations bill granting immediate repeal of the contribution increase. Senator Ted Stevens (R-AK) Chairman of the Senate Appropriations

Committee followed suit and passed a like amendment in the Senate bill. 

When the President threatened to veto the Treasury Postal Appropriations bill, Senator Stevens included the repeal provision in the Transportation Appropriations bill that passed on October 23. The repeal of the ½% will take effect on December 31, 2000. This means that federal and postal employees will pay the original 7% instead of 7.5%. This means more of your money goes back into your pocket. On average, $7.11 was taken out of each paycheck or $185 per year to help balance the budget. Over 5 years this adds up to $925, over 10 years--$1925, over 15 years--$3025. The federal/postal community was afraid that once this provision was passed into law, that Congress would extend the increase beyond 2002. Now that the federal budget is balanced, you will see your money back into your pocket.

Long-term Care and Erroneous Retirement Corrections Legislation

President Steve Smith was invited to the White House Rose Garden ceremony when President Clinton signed into law the Long Term Care & Erroneous Retirement Corrections Legislation. The Long Term Care bill will offer to federal/postal/military employees and their families a insurance plan that will have such a large pool of enrollees that premiums should be reduced by 15 to 20% less than regular rates available elsewhere. Employees will pay the full cost of premiums, but OPM will administer the program. 

Many employees have been placed in the wrong retirement system through no fault of their own. In the early 1980’s when Congress was developing a new retirement system (FERS) human resource officers in government agencies made mistakes. This legislation attempts to offer the aggrieved employees options to improve their retirement benefits. It is not perfect, but NRLCA and other employee organizations have been trying for years to pass this type of legislation. 

Many employees have had their problems corrected by the Postal Service. If you have questions or if you’ve had problems, try the OPM Error Correction website at: www.opm.gov/benefits/correction.

 

 Thrift Savings Plan Improvements

Legislation by Congresswoman Connie Morella (R-MD) has passed the House and the Senate. It will allow newly hired regular carriers to immediately join the TSP and to rollover a qualified 401-K plan from their previous employer into their TSP. 

President Clinton signed this bill into law on October 27, 2000. The Thrift Savings Board is expected to implement this law sometime next year.  

EMA Improvements

Senator Grassley (R-IA) has introduced S 2608 to provide the option of using the actual expense method in computing your vehicle expenses. Congressman Clay Shaw (R-FL) has introduced an identical bill in the house, HR 4715. The state presidents and state associations have been very successful in gaining support (cosponsors). Over half of the senators on the Senate Finance Committee are cosponsors and over half of the House Ways and Means Committee are cosponsors of our EMA bill. 

Because Congress is coming back to Washington on November 14, there is a small possibility that our EMA bill will be included in a comprehensive tax bill before the end of this year. At the present time, we believe it is more likely that we will have to try again next Congress to have our provision included in a comprehensive tax bill. 

Postal Reform

The PMG has endorsed HR 22, as has the NRLCA. However, UPS has managed to block the legislation. So efforts to grant pricing flexibility-product flexibility-volume discounts to enable USPS to better compete in the current business environment have been blocked by our competitor UPS. 

The nonprofit postage rate relief legislation, S 2686, passed the Senate on October 6 and the House version, HR 4636, passed the House on October 11. These bills are identical and were signed into law by President Clinton on October 27, 2000. Basically, this bill changes the formula by which nonprofit postage rates are determined. Without this legislation, nonprofit mailers would be “locked in” to a tremendous rate increase in January 2001 and in future rate increases and the postal service’s volume would have been further threatened.

 

TOP TEN PAC LEADERS 8/1/2000 - 6/30/2001

	Top Ten Per Capita
1	Kansas	$   8.83
2	South Dakota	$   8.62
3	Oklahoma	$   7.57
4	Idaho	$   7.54
5	Illinois	$   6.60
6	Colorado	$   5.47
7	Iowa	$   5.46
8	New York	$   5.29
9	Vermont	$   4.91
10	Nebraska	$   4.60

 

	Aggregate
1	Illinois	$ 29,619.39
2	North Carolina	$ 17,922.29
3	Florida	$ 17,785.61
4	Texas	$ 17,621.80
5	New York	$ 16,686.25
6	Michigan	$ 16,286.05
7	Oklahoma	$ 15,652.34
8	Iowa	$ 15,298.63
9	Georgia	$ 14,747.58
10	Kansas	$ 14,330.50

Updated April 28, 2001