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  For Immediate Release  
  Contact: Matt Bisbee  
  Phone: (217) 403-4690 / (217) 649-1754  
July 27, 2005
 
Rep. Johnson Hails New Postal Plan
 

 

 

Washington, D.C. - U.S. Rep. Tim Johnson said today that House approval of a new postal reform bill returns accountability to postal services and helps ensure those services remain in place for rural America.

          The Postal Accountability and Enhancement Act passed Tuesday on a vote of 410-20. The measure, some 10 years in the making, represents the first significant reform to the Postal Service since 1970.

          "A vote for this bill was a vote for the preservation of the United States Postal Service and its mission of universal service," Rep. Johnson said. "The bottom line is that this measure will allow the preservation of small-town post offices throughout our district and the country. In many places, these post offices are part of the heart and soul of our small towns. They're doing a fantastic job and this bill will allow them to continue that mission."

          Among other provisions, the legislation allows the Post Service to access $6 billion from a special escrow account thereby eliminating the need for a rate increase projected for January.

          The legislation also gives the Postal Service greater latitude in adjusting stamp rates in the future. The current process can take more than a year, but language in the new legislation transfers that authority to an 11-member board of governors, which can independently raise rates as long as the increase does not exceed the Consumer Price Index.

          The bill also transfers responsibility for billions of dollars in pension benefits owed to military retires who are still working as postal employees from the Postal Service to the Treasury. The Postal Service is the only government agency that has to cover military benfits.

          In commenting on the legislation, Johnson read into the Congressional Record a statement praising the hard work of the thousands of postal workers throughout the 15th Congressional District.

          "I think sometimes we take their efforts for granted. Their work is not only stressful at times, but it is their efforts in keeping all of our correspondence flowing smoothly that provides the glue that hold our communities together," Rep. Johnson said.

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