[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 380 Reported in Senate (RS)]






                                                        Calendar No. 58
108th CONGRESS
  1st Session
                                 S. 380

   To amend chapter 83 of title 5, United States Code, to reform the 
   funding of benefits under the Civil Service Retirement System for 
 employees of the United States Postal Service, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 12, 2003

 Ms. Collins (for herself, Mr. Carper, Mr. Brownback, Mr. Stevens, Mr. 
   Voinovich, Mr. Lieberman, Mr. Durbin, Mr. Allen, Mr. Bennett, Mr. 
 Pryor, Mr. Jeffords, Mr. Sununu, Mr. Coleman, Mr. Johnson, Mr. Akaka, 
Mr. Warner, Mr. Leahy, Mr. Biden, Mr. Talent, Mr. Hatch, Mr. Hagel, and 
 Mr. Bunning) introduced the following bill; which was read twice and 
           referred to the Committee on Governmental Affairs

                             April 1, 2003

 Reported by Ms. Collins, from the Committee on Governmental Affairs, 
                           with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
   To amend chapter 83 of title 5, United States Code, to reform the 
   funding of benefits under the Civil Service Retirement System for 
 employees of the United States Postal Service, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Postal Civil Service 
Retirement System Funding Reform Act of 2003''.</DELETED>

<DELETED>SEC. 2. CIVIL SERVICE RETIREMENT SYSTEM.</DELETED>

<DELETED>    (a) Definitions.--Section 8331 of title 5, United States 
Code, is amended--</DELETED>
        <DELETED>    (1) in paragraph (17)--</DELETED>
                <DELETED>    (A) by striking ``normal cost'' the first 
                place that term appears and inserting ``normal cost 
                percentage''; and</DELETED>
                <DELETED>    (B) by inserting ``and standards (using 
                dynamic assumptions)'' after ``practice'';</DELETED>
        <DELETED>    (2) by striking paragraph (18) and inserting the 
        following:</DELETED>
        <DELETED>    ``(18) `Fund balance'--</DELETED>
                <DELETED>    ``(A) means the current net assets of the 
                Fund available for payment of benefits, as determined 
                by the Office in accordance with appropriate accounting 
                standards; and</DELETED>
                <DELETED>    ``(B) shall not include any amount 
                attributable to--</DELETED>
                        <DELETED>    ``(i) the Federal Employees' 
                        Retirement System; or</DELETED>
                        <DELETED>    ``(ii) contributions made under 
                        the Federal Employees' Retirement Contribution 
                        Temporary Adjustment Act of 1983 by or on 
                        behalf of any individual who became subject to 
                        the Federal Employees' Retirement 
                        System;'';</DELETED>
        <DELETED>    (3) in paragraph (27), by striking ``and'' at the 
        end;</DELETED>
        <DELETED>    (4) in paragraph (28), by striking the period and 
        inserting ``; and''; and</DELETED>
        <DELETED>    (5) by adding at the end the following:</DELETED>
        <DELETED>    ``(29) `dynamic assumptions' means economic 
        assumptions that are used in determining actuarial costs and 
        liabilities of a retirement system and in anticipating the 
        effects of long-term future--</DELETED>
                <DELETED>    ``(A) investment yields;</DELETED>
                <DELETED>    ``(B) increases in rates of basic pay; 
                and</DELETED>
                <DELETED>    ``(C) rates of price 
                inflation.''.</DELETED>
<DELETED>    (b) Deductions, Contributions, and Deposits.--Section 8334 
of title 5, United States Code, is amended by striking the matter 
following the section heading through paragraph (1) and inserting the 
following:</DELETED>
<DELETED>    ``(a)(1)(A) The employing agency shall deduct and withhold 
from the basic pay of an employee, Member, congressional employee, law 
enforcement officer, firefighter, bankruptcy judge, judge of the United 
States Court of Appeals for the Armed Forces, United States magistrate 
judge, Court of Federal Claims judge, member of the Capitol Police, 
member of the Supreme Court Police, or nuclear materials courier, as 
the case may be, the percentage of basic pay applicable under 
subsection (c).</DELETED>
<DELETED>    ``(B)(i) Except in the case of an employee of the United 
States Postal Service, an equal amount shall be contributed from the 
appropriation or fund used to pay the employee or, in the case of an 
elected official, from an appropriation or fund available for payment 
of other salaries of the same office or establishment. When an employee 
in the legislative branch is paid by the Chief Administrative Officer 
of the House of Representatives, the Chief Administrative Officer may 
pay from the applicable accounts of the House of Representatives the 
contribution that otherwise would be contributed from the appropriation 
or fund used to pay the employee.</DELETED>
<DELETED>    ``(ii) In the case of an employee of the United States 
Postal Service, an amount shall be contributed from the appropriation 
or fund used to pay the employee equal to the difference between--
</DELETED>
        <DELETED>    ``(I) the product of--</DELETED>
                <DELETED>    ``(aa) the basic pay of that employee; 
                and</DELETED>
                <DELETED>    ``(bb) the normal cost percentage 
                applicable to the employee category of that employee 
                under paragraph (1)(A); and</DELETED>
        <DELETED>    ``(II) the product of--</DELETED>
                <DELETED>    ``(aa) the basic pay of that employee; 
                and</DELETED>
                <DELETED>    ``(bb) the percentage applicable to that 
                employee under subsection (c) deducted from basic pay 
                under paragraph (1)(A).''.</DELETED>
<DELETED>    (c) Civil Service Retirement and Disability Fund.--
</DELETED>
        <DELETED>    (1) In general.--Section 8348 of title 5, United 
        States Code, is amended by striking subsection (h) and 
        inserting the following:</DELETED>
<DELETED>    ``(h)(1)(A) In this subsection, the term `Postal 
supplemental liability' means the estimated excess, as determined by 
the Office of Personnel Management, of the difference between--
</DELETED>
        <DELETED>    ``(i) the actuarial present value of all future 
        benefits payable from the Fund under this subchapter 
        attributable to the service of current or former employees of 
        the United States Postal Service; and</DELETED>
        <DELETED>    ``(ii) the sum of--</DELETED>
                <DELETED>    ``(I) the actuarial present value of 
                deductions to be withheld from the future basic pay of 
                employees of the United States Postal Service currently 
                subject to this subchapter under section 
                8334;</DELETED>
                <DELETED>    ``(II) the actuarial present value of the 
                future contributions to be made under section 8334 with 
                respect to employees of the United States Postal 
                Service currently subject to this subchapter;</DELETED>
                <DELETED>    ``(III) that portion of the Fund balance, 
                as of the date the Postal supplemental liability is 
                determined, attributable to payments to the Fund by the 
                United States Postal Service and employees of the 
                United States Postal Service, including earnings on 
                those payments; and</DELETED>
                <DELETED>    ``(IV) any other appropriate amount, as 
                determined by the Office in accordance with generally 
                accepted actuarial practices and principles.</DELETED>
<DELETED>    ``(B)(i) In computing the actuarial present value of 
future benefits, the Office shall include the full value of benefits 
attributable to military and volunteer service for United States 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 United States Postal Service employees first employed 
before July 1, 1971.</DELETED>
<DELETED>    ``(ii) Military service included in the computation under 
clause (i) shall not be included in computation of the payment required 
under subsection (g)(2).</DELETED>
<DELETED>    ``(2)(A) Not later than June 30, 2004, the Office of 
Personnel Management shall determine the Postal supplemental liability, 
as of September 30, 2003. The Office shall establish an amortization 
schedule, including a series of equal annual installments commencing 
September 30, 2004, which provides for the liquidation of such 
liability by September 30, 2043.</DELETED>
<DELETED>    ``(B) The Office shall redetermine the Postal supplemental 
liability as of the close of the fiscal year, for each fiscal year 
beginning after September 30, 2003, through the fiscal year ending 
September 30, 2038, and shall establish a new amortization schedule, 
including a series of equal annual installments commencing on September 
30 of the subsequent fiscal year, which provides for the liquidation of 
such liability by September 30, 2043.</DELETED>
<DELETED>    ``(C) The Office shall redetermine the Postal supplemental 
liability as of the close of the fiscal year for each fiscal year 
beginning after September 30, 2038, and shall establish a new 
amortization schedule, including a series of equal annual installments 
commencing on September 30 of the subsequent fiscal year, which 
provides for the liquidation of such liability over 5 years.</DELETED>
<DELETED>    ``(D) Amortization schedules established under this 
paragraph shall be set in accordance with generally accepted actuarial 
practices and principles, with interest computed at the rate used in 
the most recent valuation of the Civil Service Retirement 
System.</DELETED>
<DELETED>    ``(E) The United States Postal Service shall pay the 
amounts determined under this paragraph for deposit in the Fund, with 
payments due not later than the date scheduled by the Office.</DELETED>
<DELETED>    ``(3) Notwithstanding any other provision of law, in 
computing the amount of any payment under any provision other than this 
subsection that is based upon the amount of the unfunded liability, 
such payment shall be computed disregarding that portion of the 
unfunded liability that the Office determines will be liquidated by 
payments under this subsection.''.</DELETED>
        <DELETED>    (2) Technical and conforming amendment.--Section 
        8334 of title 5, United States Code, is amended by striking 
        subsection (m).</DELETED>
<DELETED>    (d) Other Payments.--</DELETED>
        <DELETED>    (1) In general.--Section 7101(c) of the Omnibus 
        Budget Reconciliation Act of 1990 (5 U.S.C. 8348 note; Public 
        Law 101-508; 104 Stat. 1388-331) is repealed.</DELETED>
        <DELETED>    (2) Effect on prior payments.--The repeal under 
        paragraph (1) shall have no effect on payments made under the 
        repealed provisions before the date of enactment of this 
        Act.</DELETED>

<DELETED>SEC. 3. DISPOSITION OF SAVINGS ACCRUING TO THE UNITED STATES 
              POSTAL SERVICE.</DELETED>

<DELETED>    (a) In General.--Savings accruing to the United States 
Postal Service as a result of the enactment of this Act shall be used 
to reduce the postal debt to such extent and in such manner as the 
Secretary of the Treasury shall specify, consistent with succeeding 
provisions of this section.</DELETED>
<DELETED>    (b) Amounts Saved.--</DELETED>
        <DELETED>    (1) In general.--The amounts representing any 
        savings accruing to the Postal Service in any fiscal year as a 
        result of the enactment of this Act shall be computed by the 
        Office of Personnel Management in accordance with paragraph 
        (2).</DELETED>
        <DELETED>    (2) Methodology.--Not later than July 31, 2003, 
        for fiscal year 2003, and October 1 of the fiscal year before 
        each fiscal year beginning after September 30, 2003, and before 
        the date specified in paragraph (4), the Office of Personnel 
        Management shall--</DELETED>
                <DELETED>    (A) formulate a plan specifically 
                enumerating the methods by which the Office shall make 
                its computations under paragraph (1); and</DELETED>
                <DELETED>    (B) submit such plan to the Committee on 
                Government Reform of the House of Representatives and 
                the Committee on Governmental Affairs of the 
                Senate.</DELETED>
        <DELETED>    (3) Requirements.--Each such plan shall be 
        formulated in consultation with the Postal Service and shall 
        include the opportunity for the Postal Service to request 
        reconsideration of computations under this subsection, and for 
        the Board of Actuaries of the Civil Service Retirement System 
        to review and make adjustments to such computations, to the 
        same extent and in the same manner as provided under section 
        8423(c) of title 5, United States Code.</DELETED>
        <DELETED>    (4) Duration.--Nothing in this subsection or 
        subsection (a) shall be considered to apply with respect to any 
        fiscal year beginning on or after October 1, 2007.</DELETED>
<DELETED>    (c) Reporting Requirement.--The Postal Service shall 
include in each report which is rendered under section 2402 of title 
39, United States Code, and which relates to any period after the date 
of the enactment of this Act and before the date specified in 
subsection (b)(4), the amount applied toward reducing the postal debt, 
and the size of the postal debt before and after the application of 
subsection (a), during the period covered by such report.</DELETED>
<DELETED>    (d) Postal Debt Defined.--For purposes of this section, 
the term ``postal debt'' means the outstanding obligations of the 
Postal Service, as determined under chapter 20 of title 39, United 
States Code.</DELETED>
<DELETED>    (e) Sense of Congress.--It is the sense of the Congress 
that--</DELETED>
        <DELETED>    (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;</DELETED>
        <DELETED>    (2) because the Postal Service still faces 
        substantial obligations related to postretirement health 
        benefits for its current and former employees, some portion of 
        the savings referred to in paragraph (1) should be used to 
        address those unfunded obligations; and</DELETED>
        <DELETED>    (3) none of the savings referred to in paragraph 
        (1) should be used to pay bonuses to Postal Service 
        executives.</DELETED>
<DELETED>    (f) Report Relating to Unfunded Healthcare Costs.--
</DELETED>
        <DELETED>    (1) In general.--The United States Postal Service 
        shall, by December 31, 2003, in consultation with the General 
        Accounting Office, prepare and submit to the President and the 
        Congress a report describing how the Postal Service proposes to 
        address its obligations relating to unfunded postretirement 
        healthcare costs of current and former postal 
        employees.</DELETED>
        <DELETED>    (2) President's commission.--In preparing its 
        report under this subsection, the Postal Service should 
        consider the report of the President's Commission on the United 
        States Postal Service under section 5 of Executive Order 13278 
        (67 Fed. Reg. 76672).</DELETED>
        <DELETED>    (3) GAO review and report.--Not later than 30 days 
        after the Postal Service submits its report pursuant to 
        paragraph (1), the General Accounting Office shall prepare and 
        submit a written evaluation of such report to the Committee on 
        Government Reform of the House of Representatives and the 
        Committee on Governmental Affairs of the Senate.</DELETED>
<DELETED>    (g) Determination and Disposition of Surplus.--</DELETED>
        <DELETED>    (1) In general.--If, as of the date under 
        paragraph (2), the Office of Personnel Management determines 
        (after consultation with the Postmaster General) that the 
        computation under section 8348(h)(1)(A) of title 5, United 
        States Code, yields a negative amount (hereinafter referred to 
        as a ``surplus'')--</DELETED>
                <DELETED>    (A) the Office shall inform the Postmaster 
                General of its determination, including the size of the 
                surplus so determined; and</DELETED>
                <DELETED>    (B) the Postmaster General shall submit to 
                the Congress a report describing how the Postal Service 
                proposes that such surplus be used, including a draft 
                of any legislation that might be necessary.</DELETED>
        <DELETED>    (2) Determination date.--The date to be used for 
        purposes of paragraph (1) shall be September 30, 2025, or such 
        earlier date as, in the judgment of the Office, is the date by 
        which all postal employees under the Civil Service Retirement 
        System will have retired.</DELETED>

<DELETED>SEC. 4. EFFECTIVE DATE.</DELETED>

<DELETED>    (a) In General.--This Act shall take effect on the date of 
enactment of this Act.</DELETED>
<DELETED>    (b) Application.--Section 8334(a)(1)(B)(ii) of title 5, 
United States Code (as added by section 2(b) of this Act), shall apply 
only with respect to pay periods beginning on or after the date of 
enactment of this Act.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Postal Civil Service Retirement 
System Funding Reform Act of 2003''.

SEC. 2. CIVIL SERVICE RETIREMENT SYSTEM.

    (a) Definitions.--Section 8331 of title 5, United States Code, is 
amended--
            (1) in paragraph (17)--
                    (A) by striking ``normal cost'' the first place 
                that term appears and inserting ``normal cost 
                percentage''; and
                    (B) by inserting ``and standards (using dynamic 
                assumptions)'' after ``practice'';
            (2) by striking paragraph (18) and inserting the following:
            ``(18) `Fund balance'--
                    ``(A) means the current net assets of the Fund, as 
                determined by the Office in accordance with appropriate 
                accounting standards; and
                    ``(B) shall not include any amount attributable 
                to--
                            ``(i) the Federal Employees' Retirement 
                        System; or
                            ``(ii) contributions made under the Federal 
                        Employees' Retirement Contribution Temporary 
                        Adjustment Act of 1983 by or on behalf of any 
                        individual who became subject to the Federal 
                        Employees' Retirement System;'';
            (3) in paragraph (27), by striking ``and'' at the end;
            (4) in paragraph (28), by striking the period and inserting 
        ``; and''; and
            (5) by adding at the end the following:
            ``(29) `dynamic assumptions' means economic assumptions 
        that are used in determining actuarial costs and liabilities of 
        a retirement system and in anticipating the effects of long-
        term future--
                    ``(A) investment yields;
                    ``(B) increases in rates of basic pay; and
                    ``(C) rates of price inflation.''.
    (b) Deductions, Contributions, and Deposits.--Section 8334 of title 
5, United States Code, is amended by striking the matter following the 
section heading through paragraph (1) and inserting the following:
    ``(a)(1)(A) The employing agency shall deduct and withhold from the 
basic pay of an employee, Member, congressional employee, law 
enforcement officer, firefighter, bankruptcy judge, judge of the United 
States Court of Appeals for the Armed Forces, United States magistrate 
judge, Court of Federal Claims judge, member of the Capitol Police, 
member of the Supreme Court Police, or nuclear materials courier, as 
the case may be, the percentage of basic pay applicable under 
subsection (c).
    ``(B)(i) Except in the case of an employee of the United States 
Postal Service, an equal amount shall be contributed from the 
appropriation or fund used to pay the employee or, in the case of an 
elected official, from an appropriation or fund available for payment 
of other salaries of the same office or establishment. When an employee 
in the legislative branch is paid by the Chief Administrative Officer 
of the House of Representatives, the Chief Administrative Officer may 
pay from the applicable accounts of the House of Representatives the 
contribution that otherwise would be contributed from the appropriation 
or fund used to pay the employee.
    ``(ii) In the case of an employee of the United States Postal 
Service, an amount shall be contributed from the appropriation or fund 
used to pay the employee equal to the difference between--
            ``(I) the product of--
                    ``(aa) the basic pay of that employee; and
                    ``(bb) the normal cost percentage applicable to the 
                employee category of that employee under paragraph 
                (1)(A); and
            ``(II) the product of--
                    ``(aa) the basic pay of that employee; and
                    ``(bb) the percentage applicable to that employee 
                under subsection (c) deducted from basic pay under 
                paragraph (1)(A).''.
    (c) Civil Service Retirement and Disability Fund.--
            (1) In general.--Section 8348 of title 5, United States 
        Code, is amended by striking subsection (h) and inserting the 
        following:
    ``(h)(1)(A) In this subsection, the term `Postal supplemental 
liability' means the estimated excess, as determined by the Office of 
Personnel Management, of the difference between--
            ``(i) the actuarial present value of all future benefits 
        payable from the Fund under this subchapter attributable to the 
        service of current or former employees of the United States 
        Postal Service; and
            ``(ii) the sum of--
                    ``(I) the actuarial present value of deductions to 
                be withheld from the future basic pay of employees of 
                the United States Postal Service currently subject to 
                this subchapter under section 8334;
                    ``(II) the actuarial present value of the future 
                contributions to be made under section 8334 with 
                respect to employees of the United States Postal 
                Service currently subject to this subchapter;
                    ``(III) that portion of the Fund balance, as of the 
                date the Postal supplemental liability is determined, 
                attributable to payments to the Fund by the United 
                States Postal Service and employees of the United 
                States Postal Service, including earnings on those 
                payments; and
                    ``(IV) any other appropriate amount, as determined 
                by the Office in accordance with generally accepted 
                actuarial practices and principles.
    ``(B)(i) In computing the actuarial present value of future 
benefits, the Office shall include the full value of benefits 
attributable to military and volunteer service for United States 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 United States Postal Service employees first employed 
before July 1, 1971.
    ``(ii) Military service included in the computation under clause 
(i) shall not be included in computation of the payment required under 
subsection (g)(2).
    ``(2)(A) Not later than June 30, 2004, the Office of Personnel 
Management shall determine the Postal supplemental liability, as of 
September 30, 2003. The Office shall establish an amortization 
schedule, including a series of equal annual installments commencing 
September 30, 2004, which provides for the liquidation of such 
liability by September 30, 2043.
    ``(B) The Office shall redetermine the Postal supplemental 
liability as of the close of the fiscal year, for each fiscal year 
beginning after September 30, 2003, through the fiscal year ending 
September 30, 2038, and shall establish a new amortization schedule, 
including a series of equal annual installments commencing on September 
30 of the subsequent fiscal year, which provides for the liquidation of 
such liability by September 30, 2043.
    ``(C) The Office shall redetermine the Postal supplemental 
liability as of the close of the fiscal year for each fiscal year 
beginning after September 30, 2038, and shall establish a new 
amortization schedule, including a series of equal annual installments 
commencing on September 30 of the subsequent fiscal year, which 
provides for the liquidation of such liability over 5 years.
    ``(D) Amortization schedules established under this paragraph shall 
be set in accordance with generally accepted actuarial practices and 
principles based on the dynamic interest rate.
    ``(E) The United States Postal Service shall pay the amounts 
determined under this paragraph for deposit in the Fund, with payments 
due not later than the date scheduled by the Office.
    ``(3) Notwithstanding any other provision of law, in computing the 
amount of any payment under any provision other than this subsection 
that is based upon the amount of the unfunded liability, such payment 
shall be computed disregarding that portion of the unfunded liability 
that the Office determines will be liquidated by payments under this 
subsection.''.
            (2) Technical and conforming amendment.--Section 8334 of 
        title 5, United States Code, is amended by striking subsection 
        (m).
    (d) Other Payments.--
            (1) In general.--Section 7101(c) of the Omnibus Budget 
        Reconciliation Act of 1990 (5 U.S.C. 8348 note; Public Law 101-
        508; 104 Stat. 1388-331) is repealed.
            (2) Effect on prior payments.--The repeal under paragraph 
        (1) shall have no effect on payments made under the repealed 
        provisions before the date of enactment of this Act.

SEC. 3. DISPOSITION OF SAVINGS ACCRUING TO THE UNITED STATES POSTAL 
              SERVICE.

    (a) Definition.--In this section, the term ``postal debt'' means 
the outstanding obligations of the Postal Service, as determined under 
chapter 20 of title 39, United States Code.
    (b) In General.--Savings accruing to the United States Postal 
Service as a result of the enactment of this Act shall be used to 
reduce the postal debt to such extent and in such manner as the 
Secretary of the Treasury, in consultation with the United States 
Postal Service, shall specify, consistent with this section.
    (c) Amounts Saved.--
            (1) In general.--The amounts representing any savings 
        accruing to the Postal Service in any fiscal year as a result 
        of the enactment of this Act shall be computed by the Office of 
        Personnel Management in accordance with paragraph (2).
            (2) Methodology.--Not later than July 31, 2003, the Office 
        of Personnel Management shall--
                    (A) formulate a plan specifically enumerating the 
                actuarial methods and assumptions by which the Office 
                shall make its computations under paragraph (1); and
                    (B) submit the plan to the Committee on 
                Governmental Affairs of the Senate and the Committee on 
                Government Reform of the House of Representatives.
            (3) Requirements.--The plan shall be formulated in 
        consultation with the Postal Service and shall include the 
        opportunity for the Postal Service to request reconsideration 
        of computations under this subsection, and for the Board of 
        Actuaries of the Civil Service Retirement System to review and 
        make adjustments to such computations, to the same extent and 
        in the same manner as provided under section 8423(c) of title 
        5, United States Code.
            (4) Duration.--Nothing in this subsection or subsection (b) 
        shall be considered to apply with respect to any fiscal year 
        beginning on or after October 1, 2007.
    (d) Reporting Requirement.--The Postal Service shall include in 
each report which is rendered under section 2402 of title 39, United 
States Code, and which relates to any period after the date of the 
enactment of this Act and before the date specified in subsection 
(c)(4), the amount applied toward reducing the postal debt, and the 
size of the postal debt before and after the application of subsection 
(b), during the period covered by the report.
    (e) Sense of Congress.--It is the sense of 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 calendar year 2006;
            (2) because the Postal Service still faces substantial 
        obligations related to postretirement health benefits for its 
        current and former employees, some portion of the savings 
        referred to under paragraph (1) should be used to address those 
        unfunded obligations; and
            (3) none of the savings referred to under paragraph (1) 
        should be used in the computation of bonuses to Postal Service 
        executives or managers.
    (f) Report Relating to Unfunded Healthcare Costs.--
            (1) In general.--Not later than December 31, 2003, the 
        United States Postal Service shall prepare and submit to the 
        President and Congress a report that--
                    (A) describes how the Postal Service proposes to 
                address its obligations relating to unfunded 
                postretirement healthcare costs of current and former 
                postal employees; and
                    (B) outlines how prior and future actuarial accrued 
                costs for postretirement healthcare benefits and the 
                amounts necessary to prefund those costs are treated 
                for purposes of financial statement reporting and 
                establishing rates of postage and fees for postal 
                services.
            (2) President's commission.--In preparing the report under 
        this subsection, the Postal Service should consider the report 
        of the President's Commission on the United States Postal 
        Service under section 5 of Executive Order 13278 (67 Fed. Reg. 
        76672).
            (3) GAO review and report.--Not later than 60 days after 
        the Postal Service submits the report under paragraph (1), the 
        General Accounting Office shall prepare and submit a written 
        evaluation of the report to the Committee on Governmental 
        Affairs of the Senate and the Committee on Government Reform of 
        the House of Representatives.
    (g) Determination and Disposition of Surplus.--
            (1) In general.--If, as of the date under paragraph (2), 
        the Office of Personnel Management determines (after 
        consultation with the Postmaster General) that the computation 
        under section 8348(h)(1)(A) of title 5, United States Code, 
        yields a negative amount (hereinafter referred to as a 
        ``surplus'')--
                    (A) the Office shall inform the Postmaster General 
                of its determination, including the size of the surplus 
                so determined; and
                    (B) the Postmaster General shall submit to Congress 
                a report describing how the Postal Service proposes 
                that surplus be used, including a draft of any 
                necessary legislation.
            (2) Determination date.--The date to be used for purposes 
        of paragraph (1) shall be September 30, 2025, or such earlier 
        date as, in the judgment of the Office, is the date by which 
        all postal employees under the Civil Service Retirement System 
        will have retired.
    (h) Disposition of Savings Reports.--
            (1) In general.--Not later than December 31, 2004, and 
        after that date, not later than 8 months preceding the date on 
        which the Postal Service submits any request for a recommended 
        decision of rate adjustments under section 3622 of title 39, 
        United States Code, the Postal Service shall submit to the 
        Committee on Governmental Affairs of the Senate, the Committee 
        on Government Reform of the House of Representatives, and the 
        General Accounting Office a report (including a letter of 
        comment on the report from the Secretary of the Treasury) on 
        recommendations for the disposition of future savings accruing 
        to the Postal Service as a result of the enactment of this Act 
        that considers--
                    (A) whether, and to what extent, those future 
                savings should be used to address--
                            (i) debt repayment;
                            (ii) prefunding of postretirement 
                        healthcare benefits for current and former 
                        postal employees;
                            (iii) productivity and cost saving capital 
                        investments;
                            (iv) maintaining postal rate stability; and
                            (v) any other matter; and
                    (B) the report of the President's Commission on the 
                United States Postal Service under section 5 of 
                Executive Order 13278 (67 Fed. Reg. 76672).
            (2) GAO review and report.--Not later than 45 days after 
        the Postal Service submits a report under paragraph (1), the 
        General Accounting Office shall prepare and submit a written 
        evaluation of the report to the Committee on Governmental 
        Affairs of the Senate and the Committee on Government Reform of 
        the House of Representatives.
            (3) Postal service action on recommendations.--The Postal 
        Service may not take any action to implement any recommendation 
        for the disposition of future savings in any report submitted 
        under paragraph (1), until 90 days after the date on which that 
        report is submitted.

SEC. 4. EFFECTIVE DATE.

    (a) In General.--This Act shall take effect on the date of 
enactment of this Act.
    (b) Application.--Section 8334(a)(1)(B)(ii) of title 5, United 
States Code (as added by section 2(b) of this Act), shall apply only 
with respect to pay periods beginning on or after the date of enactment 
of this Act.




                                                        Calendar No. 58

108th CONGRESS

  1st Session

                                 S. 380

_______________________________________________________________________

                                 A BILL

   To amend chapter 83 of title 5, United States Code, to reform the 
   funding of benefits under the Civil Service Retirement System for 
 employees of the United States Postal Service, and for other purposes.

_______________________________________________________________________

                             April 1, 2003

                       Reported with an amendment