New Postage Prices Effective January 8 - tanTALK

gripmarketing · 11-16-2005, 01:53 PM

The Governors of the U.S. Postal Service voted November 14 to accept the Postal Rate Commission's recommendation to increase most postal rates and fees by approximately 5.4 percent.

This price increase – the first since 2002 – is needed to fulfill a federal law passed in 2003 that requires the Postal Service to place $3.1 billion in an escrow account by October 1, 2006. Without this federal mandate, it would not have been necessary to raise prices in 2006.

The rate case was unique in that the decision to seek an increase was based solely on a requirement of the Postal Civil Service Retirement System Funding Reform Act of 2003 that the USPS establish a $3.1 billion escrow fund. Though the act helped the postal service avoid overfunding its Civil Service retirement obligation by reducing its payments to the program, it also called for the creation of the escrow account starting in 2006, and use of that money is subject to Congress' direction.

"These rates will not pay for anything that has anything to do with the operation of the postal service or the delivery of mail -- salaries, benefits, operations, fuel, buildings," USPS spokesman Gerry McKiernan said. "They are simply needed to fulfill an obligation created by a law that was passed three years ago."

Among the adjustments, the single-piece rate for First-Class Mail will increase from 37 cents to 39 cents, and the postcard rate will increase by one cent, to 24 cents.

The Board of Governors set Sunday, January 8, 2006, as the effective date for the new rates and fees.

totaleclipse1 · 11-16-2005, 01:57 PM

OK.. but the post office just extended ALL their hours... Hmmm overtime anyone? Why dont we just write them a paycheck...

gripmarketing · 11-16-2005, 02:44 PM

The postal service didn't want this increase and didn't want the law passed as they were more than easily meeting their retirement fund obligation. A bill sponsored by a few congressman sought to repeal this law but didn't pass in time.

OF course, this just another way Congress says, 'we didn't raise taxes' at the same time they passed a law to force the postal service to create an escrow fund that wasn't needed...so congress could just raid it whenever they want to. A built in tax increase in the form of postage stamps. Clever. But now YOU KNOW. Vote accordingly.

_________________
Gary[ This Message was edited by: gripmarketing on 2005-11-16 14:45 ]

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11-16-2005, 01:53 PM	#1 (permalink)
gripmarketing Join Date: May 25 2002 Posts: 970 Rep Power: 22	The Governors of the U.S. Postal Service voted November 14 to accept the Postal Rate Commission's recommendation to increase most postal rates and fees by approximately 5.4 percent. This price increase – the first since 2002 – is needed to fulfill a federal law passed in 2003 that requires the Postal Service to place $3.1 billion in an escrow account by October 1, 2006. Without this federal mandate, it would not have been necessary to raise prices in 2006. The rate case was unique in that the decision to seek an increase was based solely on a requirement of the Postal Civil Service Retirement System Funding Reform Act of 2003 that the USPS establish a $3.1 billion escrow fund. Though the act helped the postal service avoid overfunding its Civil Service retirement obligation by reducing its payments to the program, it also called for the creation of the escrow account starting in 2006, and use of that money is subject to Congress' direction. "These rates will not pay for anything that has anything to do with the operation of the postal service or the delivery of mail -- salaries, benefits, operations, fuel, buildings," USPS spokesman Gerry McKiernan said. "They are simply needed to fulfill an obligation created by a law that was passed three years ago." Among the adjustments, the single-piece rate for First-Class Mail will increase from 37 cents to 39 cents, and the postcard rate will increase by one cent, to 24 cents. The Board of Governors set Sunday, January 8, 2006, as the effective date for the new rates and fees.

11-16-2005, 01:57 PM	#2 (permalink)
totaleclipse1 I love Derf!! Join Date: Feb 21 2005 Location: NEw York Age: 47 Posts: 1,035 Rep Power: 27	OK.. but the post office just extended ALL their hours... Hmmm overtime anyone? Why dont we just write them a paycheck...

11-16-2005, 02:44 PM	#3 (permalink)
gripmarketing Join Date: May 25 2002 Posts: 970 Rep Power: 22	The postal service didn't want this increase and didn't want the law passed as they were more than easily meeting their retirement fund obligation. A bill sponsored by a few congressman sought to repeal this law but didn't pass in time. OF course, this just another way Congress says, 'we didn't raise taxes' at the same time they passed a law to force the postal service to create an escrow fund that wasn't needed...so congress could just raid it whenever they want to. A built in tax increase in the form of postage stamps. Clever. But now YOU KNOW. Vote accordingly. _________________ Gary[ This Message was edited by: gripmarketing on 2005-11-16 14:45 ]

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