Retiree Health Care

The United States Postal Service faces the most dire economic
conditions in its history. A requirement that the USPS pre-fund
retiree health care benefits for future retirees, as well as
continue to pay for current retirees has placed the postal
service in a serious financial position that is difficult to
sustain.

A provision of The Postal Accountability and Enhancement Act of
2006 (PAEA) requires the postal service to pay into the Retiree
Health Benefits Fund upwards of $5.4 billion per year until
2016. No other agency or major American company is required to
pre-fund the retiree health benefits of its employees. This bill
simply allows the USPS to make these payments from the fund now
when the relief is needed most, rather than wait until 2016 to
begin funding these benefits from the Retiree Health Benefits
Fund as provided for in the PAEA.

The fund currently has a balance of over $32 billion.

Representatives John McHugh (R-NY) and Danny K. Davis (D-IL)
have introduced H.R. 22, legislation that would permit the
Postal Service to make the payments for pre-funding future
retirees health benefits from the Retiree Health Benefits Fund.
If passed, H.R. 22 would provide needed financial relief to the
Postal Service, while at the same time continuing to pay
mandated payments for retiree health benefits.

What You Can Do
We have provided a message to your elected Representatives on
the APWU Legislative Information Center for your use. Please go
to that message by clicking on the link below this message and
send an e-mail asking them to cosponsor, support, and vote for
H.R. 22. As always, working together we can make a difference.
If you have any questions, please contact the Legislative
Department at (202)842-4211.