II Calendar No. 424 111th CONGRESS 2d Session S. 1507 [Report No. 111–203] IN THE SENATE OF THE UNITED STATES July 23, 2009 Mr. Carper (for himself, Mr. Lieberman, and Mr. Inouye) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs June 9, 2010 Reported by Mr. Lieberman, with amendments Omit the part struck through and insert the part printed in italic A BILL To amend chapter 89 of title 5, United States Code, to reform Postal Service retiree health benefits funding, and for other purposes.

1.

Short title

This Act may be cited as the Postal Service Retiree Health Benefits Funding Reform Act of 2009.

2.

Government contributions

Section 8906(g)(2)(A) of title 5, United States Code, is amended by striking shall through September 30, 2016, be paid by the United States Postal Service, and thereafter.

3.

Postal Service Retiree Health Benefits Fund

Section 8909a of title 5, United States Code, is amended— (1)in the section heading, by striking Benefit and inserting Benefits; and (2)in subsection (d)— (A)in paragraph (2)(B)— (i)by striking 2017 and inserting 2020; and (ii)by striking 2056 and inserting 2059; (B)in paragraph (3)— (i)by striking the matter preceding subparagraph (B) and inserting the following: (3)(A)The United States Postal Service shall pay into such Fund— (i)$5,400,000,000, not later than September 30, 2007; (ii)$5,600,000,000, not later than September 30, 2008; (iii)$1,700,000,000, not later than September 30, 2009; (iv)$1,700,000,000, not later than September 30, 2010; (v)$3,100,000,000, not later than September 30, 2011; (vi)$3,900,000,000, not later than September 30, 2012; (vii)$4,100,000,000, not later than September 30, 2013; (viii)$4,300,000,000, not later than September 30, 2014; (ix)$4,500,000,000, not later than September 30, 2015; (x)$4,700,000,000, not later than September 30, 2016; (xi)$4,900,000,000, not later than September 30, 2017; (xii)$5,100,000,000, not later than September 30, 2018; and (xiii)$5,300,000,000, not later than September 30, 2019. ; (ii)by redesignating subparagraph (B) as subparagraph (C), and inserting after subparagraph (A) the following: (B)Not later than September 30, 2009, and by September 30 of each succeeding year through 2019, the United States Postal Service shall pay into such Fund the net present value computed under paragraph (1). ; and (iii)in subparagraph (C) (as redesignated in this subparagraph), by striking 2017 and inserting 2020; and (C)in paragraph 4, by striking financial reporting under subchapter II of chapter 35 of title 31 and inserting valuations under chapter 84.

4.

Temporary increase to Postal Service borrowing limitations

(a)

In general

For fiscal years 2009 and 2010, section 2005(a) of title 39, United States Code, shall be applied by substituting $5,000,000,000 for the limitation specified in paragraph (1). (b)

Maximum amount limitation and repayment

Any amount borrowed under the increase in borrowing authority provided under subsection (a) of this section— (1)shall not apply to the maximum amount allowable under section 2005(a)(2) of title 39, United States Code; and (2)shall be repaid by the Postal Service to the United States Treasury by not later than the end of fiscal year 2019. (b)

Repayment and limitation on outstanding debt

Any amount borrowed under the increase in borrowing authority provided under subsection (a) of this section shall be repaid by the Postal Service to the United States Treasury by not later than the end of fiscal year 2019. The Postal Service's total outstanding debt may not exceed the maximum amount allowable under section 2005(a)(2) of title 39, United States Code.

5.

Consideration of Postal Service financial condition

Section 1207(c)(2) of title 39, United states Code, is amended by inserting The arbitration board shall consider the financial condition of the Postal Service in making any decision. after the first sentence.

6.

Assessment of future business model of the postal service

Section 710(a) of the Postal Accountability and Enhancement Act (Public Law 109–435; 120 Stat. 3247) is amended by striking the first and second sentences and inserting The Comptroller General of the United States shall prepare and submit to the President and Congress a report that evaluates the options and strategies for the long-term structural and operational reforms of the United States Postal Service necessary to achieve financial stability and long-term fiscal viability. The final report required by this section shall be submitted by March 31, 2010..

7.

Prohibition on bonuses

Section 3686 of title 39, United states Code, is amended— (1)by redesignating subsection (e) as subsection (f); and (2)by inserting after subsection (d) the following: (e)

Prohibition on bonuses

Notwithstanding any provision of this section, including subsection (c), any bonus under this section— (1)subject to paragraph (2), shall be paid on October 1 following the date such bonus would have otherwise been paid if not for this subsection; and (2)shall not be paid if the Postal Service had a year-end net loss for the fiscal year preceding that October 1. .

5.

Effective date and application

(a)

In general

This Act, including the amendments made by this Act, shall be effective as of October 1, 2008. (b)

Application to fiscal year 2009 payments

Any payments made by the Postal Service under section 8906(g)(2)(A) of title 5, United States Code, for which the Postal Service is not obligated to pay by reason of the amendment made by section 2 of this Act shall be credited against the payments due by September 30, 2009, under section 8909a(d)(3) of title 5, United States Code, as amended by this Act.

8.

Effective dates and application

(a)

In general

(1)

Effective date

Sections 2, 3, and 4, including the amendments made by those sections, shall be effective as of October 1, 2008. (2)

Application to fiscal year 2009 payments

Any payments made by the Postal Service under section 8906(g)(2)(A) of title 5, United States Code, for which the Postal Service is not obligated to pay by reason of the amendment made by section 2 of this Act shall be credited against the payments due by September 30, 2009, under section 8909a(d)(3) of title 5, United States Code, as amended by this Act. (b)

Other provisions

The amendments made by sections 5, 6, and 7 shall take effect on the date of enactment of this Act.

June 9, 2010 Reported with amendments