H.R.735 - Postal Civil Service Retirement System Funding Reform Act of 2003108th Congress (2003-2004)
Summary: H.R.735 — 108th Congress (2003-2004)
Postal Civil Service Retirement System Funding Reform Act of 2003 - (Sec. 2) Amends Federal civil service law to revise the statutory formula for funding benefits under the Civil Service Retirement System for U.S. Postal Service employees (according to the model for funding the Federal Employee Retirement System (FERS)). Requires: (1) within the computation of the actuarial present value of future benefits, the full value of benefits attributable to military and volunteer service for Postal Service employees first employed after June 30, 1971, and a prorated share of the value of benefits attributable to military and volunteer service for Postal Service employees first employed before July 1, 1971; and (2) amortization schedules for liquidation of Postal supplemental pension benefit liability set with interest computed at the rate used in the most recent dynamic actuarial valuation of the Civil Service Retirement System.
Reported to House amended (03/27/2003)
(Sec. 3) Requires that savings accruing to the Postal Service and attributable to FY 2003 and 2004 be used to reduce the postal debt.
Prohibits the Postal Service from incurring additional debt to offset the use of the savings to reduce the postal debt in FY 2003 and 2004.
Requires that: (1) savings attributable to FY 2005 be used to continue holding postage rates unchanged and to reduce the postal debt; and (2) savings attributable to any fiscal year after FY 2005 be considered Postal Service operating expenses and, until otherwise provided for by law, be held in escrow and not be obligated or expended.
Expresses the sense of the Congress that: (1) the savings accruing to the Postal Service as a result of the enactment of this Act will be sufficient to allow the Postal Service to fulfill its commitment to hold postage rates unchanged until at least 2006; (2) because the Postal Service still faces substantial obligations related to postretirement health benefits for its current and former employees, some portion of those savings should be used to address the unfunded obligations; and (3) none of the savings should be used to pay bonuses to Postal Service executives.
Directs the Postal Service to submit to the President and Congress its proposal detailing how any savings accruing to it as a result of the enactment of this Act, which are attributable to any fiscal year after FY 2005, should be expended. Requires the General Accounting Office to evaluate such proposal for specified congressional committees, and Congress, after receiving both proposal and evaluation, to revisit the question of how the savings should be used.
Requires the Postmaster General to report to Congress how the Postal Service proposes to use any surplus determined by the Office of Management and Budget as of the end of FY 2025, or any earlier date by which all postal employees under the Civil Service Retirement System will have retired.