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February 24, 2012

Higgins, Slaughter & Hochul Push for House Action on Bill Lifting Pension Prefunding

Requirement for USPS WNY Representatives Say Measure Could Help Keep Buffalo Facility Open

Congressmembers Brian Higgins (NY-27), Louise Slaughter (NY-28) and Kathy Hochul (NY-26) sent a letter calling on the Speaker of the House of Representatives to bring H.R. 1351, the United States Postal Service Pension Obligation Recalculation and Restoration Act of 2011, to the House Floor for a vote.

“We have a bipartisan legislative vehicle that can dramatically change the balance sheet of the Postal Service; there is no reason why this shouldn’t be taken up immediately,” said Congressman Higgins.  “This is an economic issue that stretches far beyond the USPS institution.  Congress should step up, put aside politics, and do what’s right for small businesses, working families and postal customers nationwide.” 
 
“The Postal Service needs our help and it’s long past time that this bipartisan legislation move forward,” said Congresswoman Slaughter. 
 
"The reliable, cost effective service provided by the USPS is part of the foundation of our economy," said Congresswoman Hochul. "It's time to move past the politics and pass this bipartisan legislation that will not only strengthen the postal service, but ensure that American businesses, families, and seniors continue to receive the quality mail service they rely on."
 
 On February 23, 2012 the USPS announced plans to move forward with their proposal to move mail processing operations from the Buffalo Processing and Distribution Center to the Rochester Processing and Distribution Center. Approximately 700 employees at the William Street site would be impacted by the plant closing.  
 
A 2006 law requires the USPS to pre-fund one hundred percent of its pension obligations seventy-five years in advance, costing the Postal Service billions of dollars each year.  H.R. 1351, a bipartisan bill sponsored by Rep. Steve Lynch and cosponsored by Reps. Higgins, Slaughter and Hochul, would recalculate the pension funding, significantly easing USPS budget strains causing drastic closings.  The legislation is cosponsored by 228 members – a majority of the House of Representatives – indicating broad support and likely approval if presented for a vote.  
 
Below is a copy of the letter sent by Higgins, Slaughter and Hochul: 
 
February 23, 2012
 
The Honorable John Boehner
Speaker, House of Representatives
H-232, The Capitol
Washington, D.C. 20515
 
Dear Speaker Boehner: 
 
We are writing to urge that you schedule for immediate consideration by the House bipartisan legislation that will recalculate the United States Postal Service (USPS) pension funding requirements.  A majority of the House of Representatives – 228 Members – have cosponsored H.R. 1351, which if passed could help keep open the William Street Area Mail Processing Facility in Buffalo and prevent the loss of its 700 jobs.
 
This story is not one that is limited to Western New York. Across the country 267 USPS processing facilities, big and small, are being evaluated for merger, closure and consolidation. The strength of our economic recovery is dependent on billing, medical prescriptions, Social Security checks, payroll checks and package delivery. Businesses in our districts rely on the USPS for bulk mailing and business discounts that would be difficult to realize with the closure of the Buffalo facility.    
 
The USPS is in desperate need of operational funds in order to realize enough savings to maintain these facilities. H.R. 1351 would begin to address the onerous requirement that the USPS pre fund retiree benefits 75 years in the future. This policy has the unrealistic and draconian impact of requiring USPS to set aside billions of dollars today for the benefits of postal workers who have not yet been born. This legislation would allow the USPS flexibility in closing or consolidating facilities until Congress can act on a larger reform package. 
 
The impact on our communities will be felt immediately if we fail to act. Across the nation thousands will soon be out of work and businesses will suffer from newly added costs and delays in logistic chains. We ask that you bring this bill up for consideration as expeditiously as possible.  
 
 
Sincerely, 
 
 
 
BRIAN HIGGINS                                  
Member of Congress
 
 
LOUISE M. SLAUGHTER                                  
Member of Congress
 
 
KATHY HOCHUL
Member of Congress
 
 

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