Short title

This Act may be cited as the

United States Postal Service Pension Obligation Recalculation and Restoration Act of 2011

Modified methodology

(a)

In general

Section 8348(h) of title 5, United States Code, is amended by adding at the end the following:

(4)(A)To the extent that a determination under paragraph (1), relating to benefits attributable to civilian employment with the United States Postal Service, is based on any provision of law under subparagraph (C), such determination shall be made in accordance with such provision and any otherwise applicable provisions of law, subject to the following: (i)The average pay used in the case of any individual shall be a single amount, determined in accordance with section 8331(4), taking into account the rates of basic pay in effect for such individual during the periods of creditable service performed by such individual. Nothing in this subsection shall be considered to permit or require— (I)one determination of average pay with respect to service performed with the United States Postal Service; and (II)a separate determination of average pay with respect to service performed with its predecessor entity in function. (ii)To determine the portion of an annuity attributable to civilian employment with the United States Postal Service, the appropriate percentage to apply under any provision of law under subparagraph (C) with respect to such employment is, in the case of— (I)any period of employment with the United States Postal Service which follows (II)any other period of employment creditable under section 8332 (whether with the entity referred to in clause (i)(II) or otherwise),

the applicable percentage under such provision, determined after taking into account any periods of employment described in subclause (II) which precede the period of employment (described in subclause (I)) as to which the determination of the appropriate percentage to apply under such provision is being made.

(B)(i)Not later than the date which occurs 6 months after the date of enactment of this paragraph, the Office shall determine (or, if applicable, redetermine) the amount of the Postal surplus or supplemental liability as of the close of the fiscal year most recently ending before such date of enactment, in conformance with the methodology required under subparagraph (A). (ii)(I)If the result of the determination (or redetermination) under clause (i) is a surplus, the Office shall transfer the amount of such surplus to the Postal Service Retiree Health Benefits Fund within 15 days after the date of such determination (or redetermination). (II)If a determination under clause (i) is made before a determination under paragraph (2)(B) is made with respect to the same fiscal year, no determination shall be made with respect to such fiscal year under paragraph (2)(B). (C)The provisions of law under this subparagraph are— (i)the first sentence of section 8339(a); and (ii)section 8339(d)(1). (5)For purposes of this subsection— (A)the term Postal Service Retiree Health Benefits Fund refers to the fund described in section 8909a; and (B)the term Postal Service Fund refers to the fund described in section 2003 of title 39.

(b)

Coordination provisions

(1)Section 8909a of title 5, United States Code, is amended by adding at the end the following:

(e)Notwithstanding any other provision of law, the amount payable by the Postal Service under subsection (d) in any fiscal year ending on or before September 30, 2021, shall be determined as if section 2(a) of the United States Postal Service Pension Obligation Recalculation and Restoration Act of 2011 had never been enacted.

(2)Nothing in this Act shall affect the amount of any benefits otherwise payable from the Civil Service Retirement and Disability Fund to any individual. (c)

Technical amendment

The heading for section 8909a of title 5, United States Code, is amended by striking

Benefit

and inserting

Benefits

Additional provisions

(a)

In general

Section 8348(h)(2) of title 5, United States Code, is amended by adding at the end the following:

(F)Notwithstanding any other provision of this subsection, for purposes of determining the Postal surplus or supplemental liability for each of fiscal years 2016, 2017, 2018, 2019, and 2020, any determination under paragraph (1) shall be made by disregarding paragraph (4)(A) and by instead applying the methodology that was used to carry out this paragraph with respect to the fiscal year preceding the fiscal year referred to in paragraph (4)(B)(i).

(b)

Relating to a postal surplus

Section 8348(h)(2)(C) of title 5, United States Code, is amended— (1)by inserting 2021, after 2015,; and (2)by striking if the result is and all that follows through terminated. and inserting the following:

if the result is a surplus—(i)that amount shall be transferred— (I)to the Postal Service Retiree Health Benefits Fund, except as provided in subclause (II); and (II)if the surplus is for fiscal year 2021 or a subsequent fiscal year, to the Postal Service Fund; and (ii)any prior amortization schedule for payments shall be terminated.

Treatment of certain surplus retirement contributions

Section 8423(b) of title 5, United States Code, is amended— (1)by redesignating paragraph (5) as paragraph (6); and (2)by inserting after paragraph (4) the following:

(5)If, for fiscal year 2010, the amount computed under paragraph (1)(B) is less than zero (in this section referred to as surplus postal contributions), the amount of those surplus postal contributions shall be transferred— (A)to the Postal Service Retiree Health Benefits Fund to pay any liability to the Postal Service Retiree Health Benefits Fund for fiscal year 2011; (B)if all liability to the Postal Service Retiree Health Benefits Fund for fiscal year 2011 has been paid, to the Employees’ Compensation Fund (as established under section 8147); and (C)if all liability of the United States Postal Service to the Employees’ Compensation Fund (as so established) has been paid, to the United States Postal Service for the repayment of any obligation issued under section 2005 of title 39.

Effective date

(a)

In general

This Act and the amendments made by this Act shall take effect on the date of enactment of this Act. (b)

Intent of Congress

It is the intent of Congress that this Act apply with respect to the allocation of past, present, and future benefit liabilities between the United States Postal Service and the Treasury of the United States.