On March 8, the Senate passed legislation that includes several provisions, including providing the USPS relief on retirement prefunding obligations and requiring the use of Medicare. On March 14, the USPS filed with the PRC to reduce the retirement rate authority, assuming that the legislation is signed into law. This would reduce the July Price Change increase by 0.286%. The President officially received the bill on Monday and is expected to sign the legislation this week or next week.
What does it mean to you? First, there will be a reduction of 0.286% in the July Price Change. This should encourage the PRC to review the additional authority it granted the USPS as part of the 10-Year Review and make adjustments, given that most of the USPS debt has been eliminated from their books.
Below are some links for further reading: