Call on Senate to Include Measures to Constrain Future Postage Increases so Consumers Receive Maximum Benefits of Reforms
Washington, D.C., February 10, 2022 – MPA – the Association of Magazine Media – today applauded the U.S. House of Representatives for passing bipartisan legislation that would address long-standing financial problems with the United States Postal Service (USPS).
The Postal Service Reform Act of 2022 (H.R. 3076) would integrate Postal Service retirees into the Medicare system and eliminate the requirement that the USPS annually prepay future retirement health benefits, something no other government agency – or U.S. company – is required to do.
“We applaud the House for taking this bipartisan step toward comprehensive reform that will place the USPS on firm financial footing for the future,” said Brigitte Schmidt Gwyn, CEO of MPA. “In addition to the USPS retirement system reforms, we support the provision that requires a study of the long-standing failings and inefficiency in the handling of flat-shaped mail, including magazines.”
MPA has consistently advocated for the enactment of comprehensive reform and modernization legislation that would ensure affordable and predictable postage rates, efficient and productive network operations, consistent and reliable service levels, and long-term viability for the Postal Service.
“We commend both chambers for their bipartisan leadership in addressing yearslong issues for mailers and look forward to working with the Senate to further advance this legislation,” continued Schmidt Gwyn. “We believe that the bill can be improved in the Senate with the inclusion of pricing ‘guardrails’ to keep future postage increases in check so that they do not undermine the benefits of this important legislation for consumers and mailers alike.”
Additional double-digit price increases, such as the devastating August rate hike that raised prices five times the rate of inflation at the time, will cause deep volume losses and hurt the Postal Service’s ability to hold the line on costs and maintain service levels, undermining USPS’ future viability. Simple limits on the magnitude of future postage increases will ensure a bright future for the Postal Service, mailers and the American public.