<enum>I</enum><header>Postal Service Retiree Health Benefits</header> <section id="id7F7E5CB5C5224789A29B92CE281BF71E"><enum>101.</enum><header>Short title</header><text display-inline="no-display-inline">This title may be cited as the <quote><short-title>Postal Service Retiree Health Benefits Act of 2011</short-title></quote>.</text> </section><section commented="no" display-inline="no-display-inline" id="idECD74208B8604602B16D50A5F9D5C8B4"><enum>102.</enum><header>Postal Service Retiree Health Benefits</header> <subsection commented="no" display-inline="no-display-inline" id="idCD4BA6DDEA8C4A1DB2BE9427C9BE14D3"><enum>(a)</enum><header>Postal Service Retiree Health Benefits Fund</header><text display-inline="yes-display-inline">Chapter 89 of title 5, United States Code, is amended by striking section 8909a and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id9AED74DC4B8245129F5C6B77C7F3A429" style="USC"> <section id="ID9e67127cf3ae4b2d80c1d308d16ec811"><enum>8909a.<?LEXA-Enum 8909a.?></enum><header>Postal Service Retiree Health Benefits Fund</header> <subsection id="IDfe7b0299791a47019ab474fa0d803d77"><enum>(a)</enum><text>There is in the Treasury of the United States a Postal Service Retiree Health Benefits Fund (in this section referred to as the <quote>Fund</quote>) which shall be administered in accordance with this section.</text> </subsection><subsection id="IDa0030f4ceb304579ade0b6496f6a6816"><enum>(b)</enum><text>The Fund is available without fiscal year limitation for payments required under section 8906(g)(2)(A).</text> </subsection><subsection id="ID5ee96cc5562e454cb480acce244acb96"><enum>(c)</enum><paragraph commented="no" display-inline="yes-display-inline" id="id76DE8376EB4846AABEF37561C18BCAE8"><enum>(1)</enum><text>Except as provided under paragraph (2)—</text> <subparagraph id="idBC6CC3BA694A40F28286A3013F38766D" indent="up1"><enum>(A)</enum><text>the Secretary of the Treasury shall immediately invest, in interest-bearing securities of the United States such currently available portions of the Fund as are not immediately required for payments from the Fund; and</text> </subparagraph><subparagraph id="idEB4B0E06123B430A9AA5317C519FE854" indent="up1"><enum>(B)</enum><text>such investments shall be made in the same manner as investments for the Civil Service Retirement and Disability Fund under section 8348.</text> </subparagraph></paragraph><paragraph id="id98F46EF19AE84DF497D149847030D0ED" indent="up1"><enum>(2)</enum><text>After the date of the enactment of the Postal Service Retiree Health Benefits Act of 2011 and the appointment of members to the Postal Service Retiree Health Benefits Investment Board under subsection (e) of this section, the Fund shall be managed and invested in accordance with that subsection.</text> </paragraph></subsection><subsection id="ID385c3bdc664940efba795c899b01e57e"><enum>(d)</enum><paragraph commented="no" display-inline="yes-display-inline" id="idAD8D81AAAF5F42E09376EFAEF246E768"><enum>(1)</enum><text>Not later than June 30, 2007, and by June 30 of each succeeding year, the Office shall compute the net present value of the future payments required under section 8906(g)(2)(A) and attributable to the service of Postal Service employees during the most recently ended fiscal year.</text> </paragraph><paragraph id="id2FC877D0062A466FB281CF034A225EC0" indent="up1"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id232608ED1C0648B8A946FE3CF307DF41"><enum>(A)</enum><text>Not later than June 30, 2007, the Office shall compute, and by June 30 of each succeeding year, the Office shall recompute the difference between—</text> <clause id="idCF2FE9F6478F4C139E032651B56DE6DE" indent="up1"><enum>(i)</enum><text>the net present value of the excess of future payments required under section 8906(g)(2)(A) for current and future United States Postal Service annuitants as of the end of the fiscal year ending on September 30 of that year; and</text> </clause><clause id="id5187D6107BA64F44A2999908DBD90AAD" indent="up1"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="idAE3B6921B5A344EE874E664B663CF750"><enum>(I)</enum><text>the value of the assets of the Postal Retiree Health Benefits Fund as of the end of the fiscal year ending on September 30 of that year; and</text> </subclause><subclause id="id623D12F4EF7A409890A0054666D9A23D" indent="up1"><enum>(II)</enum><text>the net present value computed under paragraph (1).</text> </subclause></clause></subparagraph><subparagraph id="id941BEEB63F1F4269BC1397F1893F1CF7" indent="up1"><enum>(B)</enum><text>Not later than June 30, 2012, the Office shall compute, and by June 30 of each succeeding year shall recompute, a schedule including a series of annual installments which provide for the liquidation of any liability or surplus by September 30, 2056, or within 15 years, whichever is later, of 80 percent of the net present value determined under subparagraph (A), including interest at the rate used in that computation.</text> </subparagraph></paragraph><paragraph id="id0425812C9DB54363A04C1870AD22D7F7" indent="up1"><enum>(3)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="idBDA0621D921544B0A4E31830B3692313"><enum>(A)</enum><text>The United States Postal Service shall pay into such Fund—</text> <clause id="idC01C0FD5CE2B43A883A64AF041553CC1" indent="up1"><enum>(i)</enum><text>$5,400,000,000, not later than September 30, 2007;</text> </clause><clause id="id438B68F540A64096BA939CD0559588CD" indent="up1"><enum>(ii)</enum><text>$5,600,000,000, not later than September 30, 2008;</text> </clause><clause id="id9BD3EE0DA6A146A8A71DC999D00A555A" indent="up1"><enum>(iii)</enum><text>$1,400,000,000, not later than September 30, 2009; and</text> </clause><clause id="id431A1C7F9DD444279A8CFC0E55058B82" indent="up1"><enum>(iv)</enum><text>$5,500,000,000, not later than September 30, 2010.</text> </clause></subparagraph><subparagraph id="idD0BBD5693B824AF585626D66851AE0C6" indent="up1"><enum>(B)</enum><text>Not later than September 30, 2012, and by September 30 of each succeeding year, the United States Postal Service shall pay into such Fund the sum of—</text> <clause id="idEC68CD76A73F4B909B122C774F97FD2A"><enum>(i)</enum><text>the net present value computed under paragraph (1); and</text> </clause><clause id="id332286E38FA548F4A2B7B75BCF125B12"><enum>(ii)</enum><text>except as provided under subparagraph (C), any annual installment computed under paragraph (2)(B).</text> </clause></subparagraph><subparagraph id="id3A4C8009145A4561A9E32A1C3EC3F0EA" indent="up1"><enum>(C)</enum><clause commented="no" display-inline="yes-display-inline" id="idF0044DDD951E4030BF68883DB0B7112D"><enum>(i)</enum><text>In this subparagraph, the term <term>available revenues</term> means the difference between the revenues of the United States Postal Service in any fiscal year and the expenses of the United States Postal Service in that fiscal year.</text> </clause><clause id="idF9C75C7EBA4D431EA1C062518FE614B1" indent="up1"><enum>(ii)</enum><text>Except as provided under clause (iii), the payment under subparagraph (B)(ii) for any fiscal year shall be the lesser of—</text> <subclause id="idB2E3ABC06C014920B6AE460C10D322BD"><enum>(I)</enum><text>the amount which would otherwise be payable under subparagraph (B)(ii) if not for this subparagraph; or</text> </subclause><subclause id="id62C5062D477D4915AD550A86297635AD"><enum>(II)</enum><text>the amount of available revenues.</text> </subclause></clause><clause id="id4444B7AD7C564110BA98C7AB11970D93" indent="up1"><enum>(iii)</enum><text>The United States Postal Service shall not make a payment under subparagraph (B)(ii) for any fiscal year for which the United States Postal Service has outstanding debt under section 2005 of title 39.</text> </clause></subparagraph></paragraph><paragraph id="idD4B55CCE349F48B7A4772D1A0C622B50" indent="up1"><enum>(4)</enum><text>Computations under this subsection shall be made consistent with the assumptions and methodology used by the Office for financial reporting under subchapter II of chapter 35 of title 31.</text> </paragraph><paragraph id="id3A35B848E9624F9886F77C120335C41E" indent="up1"><enum>(5)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id346B5DB16675475E80639F7048436F90"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="id53D914B3608046AEA9E18B99C8AC22FC"><enum>(i)</enum><text>Any computation or other determination of the Office under this subsection shall, upon request of the United States Postal Service, be subject to a review by the Postal Regulatory Commission under this paragraph.</text> </clause><clause id="id887ED4F376504EEBAA44E889222FD42D" indent="up2"><enum>(ii)</enum><text>Upon receiving a request under clause (i), the Commission shall promptly procure the services of an actuary, who shall hold membership in the American Academy of Actuaries and shall be qualified in the evaluation of healthcare insurance obligations, to conduct a review in accordance with generally accepted actuarial practices and principles and to provide a report to the Commission containing the results of the review. The Commission, upon determining that the report satisfies the requirements of this subparagraph, shall approve the report, with any comments it may choose to make, and submit it with any such comments to the Postal Service, the Office of Personnel Management, and Congress.</text> </clause></subparagraph><subparagraph id="id315FAE1598D545FF9B36D4AF88042219" indent="up1"><enum>(B)</enum><text>Upon receiving the report under subparagraph (A), the Office of Personnel Management shall reconsider its determination or redetermination in light of such report, and shall make any appropriate adjustments. The Office shall submit a report containing the results of its reconsideration to the Commission, the Postal Service, and Congress.</text> </subparagraph></paragraph><paragraph id="id1FD856D4E0C3406E8138400A9280D989" indent="up1"><enum>(6)</enum><text>After consultation with the United States Postal Service, the Office shall promulgate any regulations the Office determines necessary under this subsection.</text> </paragraph></subsection><subsection id="ID30fec32c3bcc476fb7e9cb64b7329532"><enum>(e)</enum><header>Postal Service Retiree Health Benefits Investment Board</header> <paragraph id="ID8dbb8a42d2264ebfb39547450432d716"><enum>(1)</enum><header>Membership</header><text>The Fund shall have a Postal Service Retiree Health Benefits Investment Board (in this subsection referred to as the <quote>Investment Board</quote>) consisting of 5 members, all of whom shall be appointed by the Secretary of the Treasury in consultation with—</text> <subparagraph id="ID8459e638435444a49295258fe6a94ac6"><enum>(A)</enum><text>the United States Postal Service;</text> </subparagraph><subparagraph id="ID9933e49bbab541a0901c0e2fbbab0899"><enum>(B)</enum><text>the Postal Regulatory Commission;</text> </subparagraph><subparagraph id="IDb2bfdfdfea6a479aa75150dd17eea0f0"><enum>(C)</enum><text>the Office of Personnel Management; and</text> </subparagraph><subparagraph id="ID280bd55faf2a4448983d08c75525b15d"><enum>(D)</enum><text>the several employee groups and bargaining unions representing postal employees.</text> </subparagraph></paragraph><paragraph id="ID3b2a65c6639b44b782cbb5e20f932a34"><enum>(2)</enum><header>Qualifications</header><text>Members of the Board shall have substantial experience, training, and expertise in the management of financial investments and pension benefit plans.</text> </paragraph><paragraph id="ID698adf78ad78411cad6da1a95a559703"><enum>(3)</enum><header>Terms</header> <subparagraph id="id8FBA1C60924C45FDB691F443C8083948"><enum>(A)</enum><header>In general</header><text>Except as provided under subparagraph (B), each member shall be appointed for a 3-year term.</text> </subparagraph><subparagraph id="idEE69DE5D3215443C997BE78A0F8877EF"><enum>(B)</enum><header>Initiated appointments</header><text>The initial members appointed under this paragraph shall be divided into equal groups so nearly as may be, of which 1 group will be appointed for a 1-year term, 1 for a 2-year term, and 1 for a 3-year term.</text> </subparagraph><subparagraph id="id77CF5FE8FDCB45AC93FE3444953ECF60"><enum>(C)</enum><header>Vacancies</header><text>A vacancy in the Investment Board shall not affect the powers of the Investment Board and shall be filled in the same manner as the selection of the member whose departure caused the vacancy.</text> </subparagraph><subparagraph id="idE789CD5C496F465986ABB97E46C820DA"><enum>(D)</enum><header>Continuation until successor appointed</header><text>Upon the expiration of a term of a member of the Board, that member shall continue to serve until a successor is appointed.</text> </subparagraph></paragraph><paragraph id="ID97db3498e7614a158f50449e063b9109"><enum>(4)</enum><header>Powers</header><text>The Investment Board shall—</text> <subparagraph id="ID4af5b3fa1abf45e9ad68cfee6056d676"><enum>(A)</enum><text>carry out the duties of the Secretary in relation to the Fund;</text> </subparagraph><subparagraph id="ID373ba85fd8884bd0bcfe42966c724b03"><enum>(B)</enum><text>retain independent advisers to assist it in the formulation and adoption of its investment guidelines on the allocation of investment to various types of broad based market indexes and government securities;</text> </subparagraph><subparagraph id="IDe7286736fa814541aa8932f9a45dc24d"><enum>(C)</enum><text>retain independent investment managers to invest the assets of the Fund in a manner consistent with such investment guidelines;</text> </subparagraph><subparagraph id="ID0bebae2cb3234b55af154ce727663ea6"><enum>(D)</enum><text>direct investment of assets in the Fund, under the policies adopted under subparagraph (B);</text> </subparagraph><subparagraph id="ID7616fd99d6024500818485cc0e9df3df"><enum>(E)</enum><text>pay administrative expenses of the Fund from the assets in the Fund; and</text> </subparagraph><subparagraph id="ID9769b2c6c8fe4e078819968d2d0bafae"><enum>(F)</enum><text>transfer funds to the Office of Personnel Management to pay benefits payable under subsection (b) from the assets of the Fund.</text> </subparagraph></paragraph><paragraph id="IDb2ddbbf013b3463e8e17249536866876"><enum>(5)</enum><header>Rules and administrative powers</header><text>The Investment Board shall have the authority to make rules to govern its operations, utilize agency staff, and contract with outside advisers to provide legal, accounting, investment advisory, or other services necessary for the proper administration of this subsection. In the case of contracts with investment advisory services, compensation for such services may be on a fixed contract fee basis or on such other terms and conditions as are customary for such services.</text> </paragraph><paragraph id="ID93ad80f1db914c689df3e2a5b372b917"><enum>(6)</enum><header>Quorum</header><text>Three members of the Investment Board constitute a quorum to do business. Investment guidelines shall be adopted by a unanimous vote of the Investment Board. All other decisions of the Investment Board shall be decided by a majority vote of the quorum present. All decisions of the Investment Board shall be entered upon the records of the Investment Board.</text> </paragraph><paragraph id="ID056cc6737928403b9570d56f90f4590e"><enum>(7)</enum><header>Funding</header><text>The expenses of the Investment Board incurred under this subsection shall be paid from the Fund, and shall not exceed 1 percent of the value of the assets of the Fund in any fiscal year.</text> </paragraph><paragraph id="IDc13d0faaab1c4f8a8d54dbac9344c7e4"><enum>(8)</enum><header>Delegated powers</header><text>Nothing in this paragraph shall be construed to limit the Secretary’s authorities in administering the Fund.</text> </paragraph></subsection><subsection id="ID127e82b735e041069c01f416b01e541f"><enum>(f)</enum><header>Reporting requirements and fiduciary standards</header><text>The following reporting requirements and fiduciary standards shall apply with respect to the Fund:</text> <paragraph id="ID93a70f325e4e4107b3e2eff5e665cbe4"><enum>(1)</enum><header>Duties of the Investment Board</header><text>Members of the Investment Board shall discharge their duties (including the voting of proxies) with respect to the assets of the Fund solely in the interest of the participants and beneficiaries of the programs funded under this section—</text> <subparagraph id="ID56ea0816c9264dc18af96ccd2c2d81d7"><enum>(A)</enum><text>for the exclusive purpose of—</text> <clause id="IDd327b726cac5443bbdc3722fae7c93b2"><enum>(i)</enum><text>providing benefits to participants and their beneficiaries; and</text> </clause><clause id="ID00fd6f1485eb40a6b923947e8fa223fa"><enum>(ii)</enum><text>defraying reasonable expenses of administering the functions of the Fund;</text> </clause></subparagraph><subparagraph id="ID991dc69ab24d4bae8ebcc4a2f6b94faa"><enum>(B)</enum><text>with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims;</text> </subparagraph><subparagraph id="ID10bf7917dff649aaa94478185b52374f"><enum>(C)</enum><text>by diversifying investments so as to minimize the risk of large losses and to avoid disproportionate influence over a particular industry or firm, unless under the circumstances it is clearly prudent not to do so; and</text> </subparagraph><subparagraph id="IDbd7900ec55cf42a3a322e37ed0804fb9"><enum>(D)</enum><text>in accordance with governing documents and instruments insofar as such documents and instruments are consistent with this subsection.</text> </subparagraph></paragraph><paragraph id="ID4753eafefff3447fb988b8d8f54c9056"><enum>(2)</enum><header>Prohibitions with respect to members of the Investment Board</header><text>No member of the Investment Board shall—</text> <subparagraph id="ID82db9d20c2934030a889afb74093599f"><enum>(A)</enum><text>deal with the assets of the Fund in the interest of that member or for that member's own account;</text> </subparagraph><subparagraph id="ID6ea5b2a0a7244519ac29e4ceadfc5677"><enum>(B)</enum><text>in an individual or in any other capacity act in any transaction involving the assets of the Fund on behalf of a person (or represent a person) whose interests are adverse to the interests of the Fund, the Postal Service, or the interests of participants or beneficiaries; or</text> </subparagraph><subparagraph id="ID99caa973573c487bacacafcb7bfed6f3"><enum>(C)</enum><text>receive any consideration for the member’s own personal account from any person dealing with the assets of the Fund.</text> </subparagraph></paragraph><paragraph id="ID72690c91f2244d2fb61ec3d44ce14140"><enum>(3)</enum><header>Ethical standards</header><text>The Investment Board shall abide by all applicable laws and regulations regarding investment decisions, including section 208 of title 18.</text> </paragraph><paragraph id="ID1bbf69e9e6d34160becd78fdc9371b64"><enum>(4)</enum><header>Bonding</header><text>The Investment Board shall prescribe and publish in the Federal Register appropriate rules regarding bonding for any persons handling funds or other property of the Fund.</text> </paragraph><paragraph id="ID14e8bf0bd797436fbddf15f0d01f1e1f"><enum>(5)</enum><header>Audit and report</header> <subparagraph id="IDfc209d6b01cd4768b0acb734f23c1110"><enum>(A)</enum><header>In general</header><text>The Fund shall annually engage an independent qualified public accountant to audit the financial statements of the Fund.</text> </subparagraph><subparagraph id="ID0acdcbf6484e4a5398fb13325a8de9ff"><enum>(B)</enum><header>Submission</header><text>Not later than 180 days after the end of each of the Fund's fiscal years, the Fund shall submit an annual management report to the Congress.</text> </subparagraph><subparagraph id="idFB0797D29A964B4DBD861ABC307089E2"><enum>(C)</enum><header>Comment</header><text>Each management report under this subparagraph shall include—</text> <clause id="ID84c91630ab36458e96d30fc4ad49e454"><enum>(i)</enum><text>a statement of financial position;</text> </clause><clause id="ID7e46ba1f9af044ce866e7711ebf160fa"><enum>(ii)</enum><text>a statement of operations;</text> </clause><clause id="IDaa87df3ceb2f4de5b21d934377574fac"><enum>(iii)</enum><text>a statement of cash flows;</text> </clause><clause id="ID6de8ac76f72f4aa9afda2a8df9b0dff3"><enum>(iv)</enum><text>a statement on internal accounting and administrative control systems;</text> </clause><clause id="ID3bd41b61ac4f4e3bb16e8c51e15a4182"><enum>(v)</enum><text>the report resulting from an audit of the financial statements of the Fund conducted under subparagraph (A); and</text> </clause><clause id="IDde189d52c0904a82ab610bd6a2923f83"><enum>(vi)</enum><text>any other comments and information necessary to inform the Congress about the operations and financial condition of the Fund.</text> </clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDaecf098e5e524faa8df2f662756f3ab8"><enum>(g)</enum><header>Means of financing</header><text>For all purposes of the Congressional Budget Act of 1974, the Balanced Budget and Emergency Deficit Control Act of 1985, and chapter 11 of title 31 and notwithstanding section 20 of the Office of Management and Budget Circular No. A–11, the purchase or sale of non-Federal assets (other than gains or losses from such transactions) by the Fund shall be treated as a means of financing.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="id58F48CCAF48D4D969BCF1A32DD7BD530"><enum>(b)</enum><header>Government contributions</header><text>Section 8906(g)(2)(A) of title 5, United States Code, is amended by striking <quote>September 30, 2016</quote> and inserting <quote>September 30, 2012</quote>.</text> </subsection></section>

Short title

This Act may be cited as the

Postal Investment Act of 2011

Definitions

In this Act, the following definitions shall apply: (1)

Commission

The term Commission means the Postal Regulatory Commission. (2)

Postal Service

The term Postal Service means the United States Postal Service.

<enum>I</enum><header>Postal Service Retiree Health Benefits</header> <section id="id7F7E5CB5C5224789A29B92CE281BF71E"><enum>101.</enum><header>Short title</header><text display-inline="no-display-inline">This title may be cited as the <quote><short-title>Postal Service Retiree Health Benefits Act of 2011</short-title></quote>.</text> </section><section commented="no" display-inline="no-display-inline" id="idECD74208B8604602B16D50A5F9D5C8B4"><enum>102.</enum><header>Postal Service Retiree Health Benefits</header> <subsection commented="no" display-inline="no-display-inline" id="idCD4BA6DDEA8C4A1DB2BE9427C9BE14D3"><enum>(a)</enum><header>Postal Service Retiree Health Benefits Fund</header><text display-inline="yes-display-inline">Chapter 89 of title 5, United States Code, is amended by striking section 8909a and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id9AED74DC4B8245129F5C6B77C7F3A429" style="USC"> <section id="ID9e67127cf3ae4b2d80c1d308d16ec811"><enum>8909a.<?LEXA-Enum 8909a.?></enum><header>Postal Service Retiree Health Benefits Fund</header> <subsection id="IDfe7b0299791a47019ab474fa0d803d77"><enum>(a)</enum><text>There is in the Treasury of the United States a Postal Service Retiree Health Benefits Fund (in this section referred to as the <quote>Fund</quote>) which shall be administered in accordance with this section.</text> </subsection><subsection id="IDa0030f4ceb304579ade0b6496f6a6816"><enum>(b)</enum><text>The Fund is available without fiscal year limitation for payments required under section 8906(g)(2)(A).</text> </subsection><subsection id="ID5ee96cc5562e454cb480acce244acb96"><enum>(c)</enum><paragraph commented="no" display-inline="yes-display-inline" id="id76DE8376EB4846AABEF37561C18BCAE8"><enum>(1)</enum><text>Except as provided under paragraph (2)—</text> <subparagraph id="idBC6CC3BA694A40F28286A3013F38766D" indent="up1"><enum>(A)</enum><text>the Secretary of the Treasury shall immediately invest, in interest-bearing securities of the United States such currently available portions of the Fund as are not immediately required for payments from the Fund; and</text> </subparagraph><subparagraph id="idEB4B0E06123B430A9AA5317C519FE854" indent="up1"><enum>(B)</enum><text>such investments shall be made in the same manner as investments for the Civil Service Retirement and Disability Fund under section 8348.</text> </subparagraph></paragraph><paragraph id="id98F46EF19AE84DF497D149847030D0ED" indent="up1"><enum>(2)</enum><text>After the date of the enactment of the Postal Service Retiree Health Benefits Act of 2011 and the appointment of members to the Postal Service Retiree Health Benefits Investment Board under subsection (e) of this section, the Fund shall be managed and invested in accordance with that subsection.</text> </paragraph></subsection><subsection id="ID385c3bdc664940efba795c899b01e57e"><enum>(d)</enum><paragraph commented="no" display-inline="yes-display-inline" id="idAD8D81AAAF5F42E09376EFAEF246E768"><enum>(1)</enum><text>Not later than June 30, 2007, and by June 30 of each succeeding year, the Office shall compute the net present value of the future payments required under section 8906(g)(2)(A) and attributable to the service of Postal Service employees during the most recently ended fiscal year.</text> </paragraph><paragraph id="id2FC877D0062A466FB281CF034A225EC0" indent="up1"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id232608ED1C0648B8A946FE3CF307DF41"><enum>(A)</enum><text>Not later than June 30, 2007, the Office shall compute, and by June 30 of each succeeding year, the Office shall recompute the difference between—</text> <clause id="idCF2FE9F6478F4C139E032651B56DE6DE" indent="up1"><enum>(i)</enum><text>the net present value of the excess of future payments required under section 8906(g)(2)(A) for current and future United States Postal Service annuitants as of the end of the fiscal year ending on September 30 of that year; and</text> </clause><clause id="id5187D6107BA64F44A2999908DBD90AAD" indent="up1"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="idAE3B6921B5A344EE874E664B663CF750"><enum>(I)</enum><text>the value of the assets of the Postal Retiree Health Benefits Fund as of the end of the fiscal year ending on September 30 of that year; and</text> </subclause><subclause id="id623D12F4EF7A409890A0054666D9A23D" indent="up1"><enum>(II)</enum><text>the net present value computed under paragraph (1).</text> </subclause></clause></subparagraph><subparagraph id="id941BEEB63F1F4269BC1397F1893F1CF7" indent="up1"><enum>(B)</enum><text>Not later than June 30, 2012, the Office shall compute, and by June 30 of each succeeding year shall recompute, a schedule including a series of annual installments which provide for the liquidation of any liability or surplus by September 30, 2056, or within 15 years, whichever is later, of 80 percent of the net present value determined under subparagraph (A), including interest at the rate used in that computation.</text> </subparagraph></paragraph><paragraph id="id0425812C9DB54363A04C1870AD22D7F7" indent="up1"><enum>(3)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="idBDA0621D921544B0A4E31830B3692313"><enum>(A)</enum><text>The United States Postal Service shall pay into such Fund—</text> <clause id="idC01C0FD5CE2B43A883A64AF041553CC1" indent="up1"><enum>(i)</enum><text>$5,400,000,000, not later than September 30, 2007;</text> </clause><clause id="id438B68F540A64096BA939CD0559588CD" indent="up1"><enum>(ii)</enum><text>$5,600,000,000, not later than September 30, 2008;</text> </clause><clause id="id9BD3EE0DA6A146A8A71DC999D00A555A" indent="up1"><enum>(iii)</enum><text>$1,400,000,000, not later than September 30, 2009; and</text> </clause><clause id="id431A1C7F9DD444279A8CFC0E55058B82" indent="up1"><enum>(iv)</enum><text>$5,500,000,000, not later than September 30, 2010.</text> </clause></subparagraph><subparagraph id="idD0BBD5693B824AF585626D66851AE0C6" indent="up1"><enum>(B)</enum><text>Not later than September 30, 2012, and by September 30 of each succeeding year, the United States Postal Service shall pay into such Fund the sum of—</text> <clause id="idEC68CD76A73F4B909B122C774F97FD2A"><enum>(i)</enum><text>the net present value computed under paragraph (1); and</text> </clause><clause id="id332286E38FA548F4A2B7B75BCF125B12"><enum>(ii)</enum><text>except as provided under subparagraph (C), any annual installment computed under paragraph (2)(B).</text> </clause></subparagraph><subparagraph id="id3A4C8009145A4561A9E32A1C3EC3F0EA" indent="up1"><enum>(C)</enum><clause commented="no" display-inline="yes-display-inline" id="idF0044DDD951E4030BF68883DB0B7112D"><enum>(i)</enum><text>In this subparagraph, the term <term>available revenues</term> means the difference between the revenues of the United States Postal Service in any fiscal year and the expenses of the United States Postal Service in that fiscal year.</text> </clause><clause id="idF9C75C7EBA4D431EA1C062518FE614B1" indent="up1"><enum>(ii)</enum><text>Except as provided under clause (iii), the payment under subparagraph (B)(ii) for any fiscal year shall be the lesser of—</text> <subclause id="idB2E3ABC06C014920B6AE460C10D322BD"><enum>(I)</enum><text>the amount which would otherwise be payable under subparagraph (B)(ii) if not for this subparagraph; or</text> </subclause><subclause id="id62C5062D477D4915AD550A86297635AD"><enum>(II)</enum><text>the amount of available revenues.</text> </subclause></clause><clause id="id4444B7AD7C564110BA98C7AB11970D93" indent="up1"><enum>(iii)</enum><text>The United States Postal Service shall not make a payment under subparagraph (B)(ii) for any fiscal year for which the United States Postal Service has outstanding debt under section 2005 of title 39.</text> </clause></subparagraph></paragraph><paragraph id="idD4B55CCE349F48B7A4772D1A0C622B50" indent="up1"><enum>(4)</enum><text>Computations under this subsection shall be made consistent with the assumptions and methodology used by the Office for financial reporting under subchapter II of chapter 35 of title 31.</text> </paragraph><paragraph id="id3A35B848E9624F9886F77C120335C41E" indent="up1"><enum>(5)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id346B5DB16675475E80639F7048436F90"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="id53D914B3608046AEA9E18B99C8AC22FC"><enum>(i)</enum><text>Any computation or other determination of the Office under this subsection shall, upon request of the United States Postal Service, be subject to a review by the Postal Regulatory Commission under this paragraph.</text> </clause><clause id="id887ED4F376504EEBAA44E889222FD42D" indent="up2"><enum>(ii)</enum><text>Upon receiving a request under clause (i), the Commission shall promptly procure the services of an actuary, who shall hold membership in the American Academy of Actuaries and shall be qualified in the evaluation of healthcare insurance obligations, to conduct a review in accordance with generally accepted actuarial practices and principles and to provide a report to the Commission containing the results of the review. The Commission, upon determining that the report satisfies the requirements of this subparagraph, shall approve the report, with any comments it may choose to make, and submit it with any such comments to the Postal Service, the Office of Personnel Management, and Congress.</text> </clause></subparagraph><subparagraph id="id315FAE1598D545FF9B36D4AF88042219" indent="up1"><enum>(B)</enum><text>Upon receiving the report under subparagraph (A), the Office of Personnel Management shall reconsider its determination or redetermination in light of such report, and shall make any appropriate adjustments. The Office shall submit a report containing the results of its reconsideration to the Commission, the Postal Service, and Congress.</text> </subparagraph></paragraph><paragraph id="id1FD856D4E0C3406E8138400A9280D989" indent="up1"><enum>(6)</enum><text>After consultation with the United States Postal Service, the Office shall promulgate any regulations the Office determines necessary under this subsection.</text> </paragraph></subsection><subsection id="ID30fec32c3bcc476fb7e9cb64b7329532"><enum>(e)</enum><header>Postal Service Retiree Health Benefits Investment Board</header> <paragraph id="ID8dbb8a42d2264ebfb39547450432d716"><enum>(1)</enum><header>Membership</header><text>The Fund shall have a Postal Service Retiree Health Benefits Investment Board (in this subsection referred to as the <quote>Investment Board</quote>) consisting of 5 members, all of whom shall be appointed by the Secretary of the Treasury in consultation with—</text> <subparagraph id="ID8459e638435444a49295258fe6a94ac6"><enum>(A)</enum><text>the United States Postal Service;</text> </subparagraph><subparagraph id="ID9933e49bbab541a0901c0e2fbbab0899"><enum>(B)</enum><text>the Postal Regulatory Commission;</text> </subparagraph><subparagraph id="IDb2bfdfdfea6a479aa75150dd17eea0f0"><enum>(C)</enum><text>the Office of Personnel Management; and</text> </subparagraph><subparagraph id="ID280bd55faf2a4448983d08c75525b15d"><enum>(D)</enum><text>the several employee groups and bargaining unions representing postal employees.</text> </subparagraph></paragraph><paragraph id="ID3b2a65c6639b44b782cbb5e20f932a34"><enum>(2)</enum><header>Qualifications</header><text>Members of the Board shall have substantial experience, training, and expertise in the management of financial investments and pension benefit plans.</text> </paragraph><paragraph id="ID698adf78ad78411cad6da1a95a559703"><enum>(3)</enum><header>Terms</header> <subparagraph id="id8FBA1C60924C45FDB691F443C8083948"><enum>(A)</enum><header>In general</header><text>Except as provided under subparagraph (B), each member shall be appointed for a 3-year term.</text> </subparagraph><subparagraph id="idEE69DE5D3215443C997BE78A0F8877EF"><enum>(B)</enum><header>Initiated appointments</header><text>The initial members appointed under this paragraph shall be divided into equal groups so nearly as may be, of which 1 group will be appointed for a 1-year term, 1 for a 2-year term, and 1 for a 3-year term.</text> </subparagraph><subparagraph id="id77CF5FE8FDCB45AC93FE3444953ECF60"><enum>(C)</enum><header>Vacancies</header><text>A vacancy in the Investment Board shall not affect the powers of the Investment Board and shall be filled in the same manner as the selection of the member whose departure caused the vacancy.</text> </subparagraph><subparagraph id="idE789CD5C496F465986ABB97E46C820DA"><enum>(D)</enum><header>Continuation until successor appointed</header><text>Upon the expiration of a term of a member of the Board, that member shall continue to serve until a successor is appointed.</text> </subparagraph></paragraph><paragraph id="ID97db3498e7614a158f50449e063b9109"><enum>(4)</enum><header>Powers</header><text>The Investment Board shall—</text> <subparagraph id="ID4af5b3fa1abf45e9ad68cfee6056d676"><enum>(A)</enum><text>carry out the duties of the Secretary in relation to the Fund;</text> </subparagraph><subparagraph id="ID373ba85fd8884bd0bcfe42966c724b03"><enum>(B)</enum><text>retain independent advisers to assist it in the formulation and adoption of its investment guidelines on the allocation of investment to various types of broad based market indexes and government securities;</text> </subparagraph><subparagraph id="IDe7286736fa814541aa8932f9a45dc24d"><enum>(C)</enum><text>retain independent investment managers to invest the assets of the Fund in a manner consistent with such investment guidelines;</text> </subparagraph><subparagraph id="ID0bebae2cb3234b55af154ce727663ea6"><enum>(D)</enum><text>direct investment of assets in the Fund, under the policies adopted under subparagraph (B);</text> </subparagraph><subparagraph id="ID7616fd99d6024500818485cc0e9df3df"><enum>(E)</enum><text>pay administrative expenses of the Fund from the assets in the Fund; and</text> </subparagraph><subparagraph id="ID9769b2c6c8fe4e078819968d2d0bafae"><enum>(F)</enum><text>transfer funds to the Office of Personnel Management to pay benefits payable under subsection (b) from the assets of the Fund.</text> </subparagraph></paragraph><paragraph id="IDb2ddbbf013b3463e8e17249536866876"><enum>(5)</enum><header>Rules and administrative powers</header><text>The Investment Board shall have the authority to make rules to govern its operations, utilize agency staff, and contract with outside advisers to provide legal, accounting, investment advisory, or other services necessary for the proper administration of this subsection. In the case of contracts with investment advisory services, compensation for such services may be on a fixed contract fee basis or on such other terms and conditions as are customary for such services.</text> </paragraph><paragraph id="ID93ad80f1db914c689df3e2a5b372b917"><enum>(6)</enum><header>Quorum</header><text>Three members of the Investment Board constitute a quorum to do business. Investment guidelines shall be adopted by a unanimous vote of the Investment Board. All other decisions of the Investment Board shall be decided by a majority vote of the quorum present. All decisions of the Investment Board shall be entered upon the records of the Investment Board.</text> </paragraph><paragraph id="ID056cc6737928403b9570d56f90f4590e"><enum>(7)</enum><header>Funding</header><text>The expenses of the Investment Board incurred under this subsection shall be paid from the Fund, and shall not exceed 1 percent of the value of the assets of the Fund in any fiscal year.</text> </paragraph><paragraph id="IDc13d0faaab1c4f8a8d54dbac9344c7e4"><enum>(8)</enum><header>Delegated powers</header><text>Nothing in this paragraph shall be construed to limit the Secretary’s authorities in administering the Fund.</text> </paragraph></subsection><subsection id="ID127e82b735e041069c01f416b01e541f"><enum>(f)</enum><header>Reporting requirements and fiduciary standards</header><text>The following reporting requirements and fiduciary standards shall apply with respect to the Fund:</text> <paragraph id="ID93a70f325e4e4107b3e2eff5e665cbe4"><enum>(1)</enum><header>Duties of the Investment Board</header><text>Members of the Investment Board shall discharge their duties (including the voting of proxies) with respect to the assets of the Fund solely in the interest of the participants and beneficiaries of the programs funded under this section—</text> <subparagraph id="ID56ea0816c9264dc18af96ccd2c2d81d7"><enum>(A)</enum><text>for the exclusive purpose of—</text> <clause id="IDd327b726cac5443bbdc3722fae7c93b2"><enum>(i)</enum><text>providing benefits to participants and their beneficiaries; and</text> </clause><clause id="ID00fd6f1485eb40a6b923947e8fa223fa"><enum>(ii)</enum><text>defraying reasonable expenses of administering the functions of the Fund;</text> </clause></subparagraph><subparagraph id="ID991dc69ab24d4bae8ebcc4a2f6b94faa"><enum>(B)</enum><text>with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims;</text> </subparagraph><subparagraph id="ID10bf7917dff649aaa94478185b52374f"><enum>(C)</enum><text>by diversifying investments so as to minimize the risk of large losses and to avoid disproportionate influence over a particular industry or firm, unless under the circumstances it is clearly prudent not to do so; and</text> </subparagraph><subparagraph id="IDbd7900ec55cf42a3a322e37ed0804fb9"><enum>(D)</enum><text>in accordance with governing documents and instruments insofar as such documents and instruments are consistent with this subsection.</text> </subparagraph></paragraph><paragraph id="ID4753eafefff3447fb988b8d8f54c9056"><enum>(2)</enum><header>Prohibitions with respect to members of the Investment Board</header><text>No member of the Investment Board shall—</text> <subparagraph id="ID82db9d20c2934030a889afb74093599f"><enum>(A)</enum><text>deal with the assets of the Fund in the interest of that member or for that member's own account;</text> </subparagraph><subparagraph id="ID6ea5b2a0a7244519ac29e4ceadfc5677"><enum>(B)</enum><text>in an individual or in any other capacity act in any transaction involving the assets of the Fund on behalf of a person (or represent a person) whose interests are adverse to the interests of the Fund, the Postal Service, or the interests of participants or beneficiaries; or</text> </subparagraph><subparagraph id="ID99caa973573c487bacacafcb7bfed6f3"><enum>(C)</enum><text>receive any consideration for the member’s own personal account from any person dealing with the assets of the Fund.</text> </subparagraph></paragraph><paragraph id="ID72690c91f2244d2fb61ec3d44ce14140"><enum>(3)</enum><header>Ethical standards</header><text>The Investment Board shall abide by all applicable laws and regulations regarding investment decisions, including section 208 of title 18.</text> </paragraph><paragraph id="ID1bbf69e9e6d34160becd78fdc9371b64"><enum>(4)</enum><header>Bonding</header><text>The Investment Board shall prescribe and publish in the Federal Register appropriate rules regarding bonding for any persons handling funds or other property of the Fund.</text> </paragraph><paragraph id="ID14e8bf0bd797436fbddf15f0d01f1e1f"><enum>(5)</enum><header>Audit and report</header> <subparagraph id="IDfc209d6b01cd4768b0acb734f23c1110"><enum>(A)</enum><header>In general</header><text>The Fund shall annually engage an independent qualified public accountant to audit the financial statements of the Fund.</text> </subparagraph><subparagraph id="ID0acdcbf6484e4a5398fb13325a8de9ff"><enum>(B)</enum><header>Submission</header><text>Not later than 180 days after the end of each of the Fund's fiscal years, the Fund shall submit an annual management report to the Congress.</text> </subparagraph><subparagraph id="idFB0797D29A964B4DBD861ABC307089E2"><enum>(C)</enum><header>Comment</header><text>Each management report under this subparagraph shall include—</text> <clause id="ID84c91630ab36458e96d30fc4ad49e454"><enum>(i)</enum><text>a statement of financial position;</text> </clause><clause id="ID7e46ba1f9af044ce866e7711ebf160fa"><enum>(ii)</enum><text>a statement of operations;</text> </clause><clause id="IDaa87df3ceb2f4de5b21d934377574fac"><enum>(iii)</enum><text>a statement of cash flows;</text> </clause><clause id="ID6de8ac76f72f4aa9afda2a8df9b0dff3"><enum>(iv)</enum><text>a statement on internal accounting and administrative control systems;</text> </clause><clause id="ID3bd41b61ac4f4e3bb16e8c51e15a4182"><enum>(v)</enum><text>the report resulting from an audit of the financial statements of the Fund conducted under subparagraph (A); and</text> </clause><clause id="IDde189d52c0904a82ab610bd6a2923f83"><enum>(vi)</enum><text>any other comments and information necessary to inform the Congress about the operations and financial condition of the Fund.</text> </clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDaecf098e5e524faa8df2f662756f3ab8"><enum>(g)</enum><header>Means of financing</header><text>For all purposes of the Congressional Budget Act of 1974, the Balanced Budget and Emergency Deficit Control Act of 1985, and chapter 11 of title 31 and notwithstanding section 20 of the Office of Management and Budget Circular No. A–11, the purchase or sale of non-Federal assets (other than gains or losses from such transactions) by the Fund shall be treated as a means of financing.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="id58F48CCAF48D4D969BCF1A32DD7BD530"><enum>(b)</enum><header>Government contributions</header><text>Section 8906(g)(2)(A) of title 5, United States Code, is amended by striking <quote>September 30, 2016</quote> and inserting <quote>September 30, 2012</quote>.</text> </subsection></section><enum>II</enum><header>Product innovation</header> <section id="idAB08090DEC6844FE9C332E2CBE823DF0"><enum>201.</enum><header>Mail performance incentives</header><text display-inline="no-display-inline">Section 3622(c) of title 39, United States Code, is amended—</text> <paragraph id="id0BF059CD9CFC4AFC82AE2511E763DD67"><enum>(1)</enum><text>in paragraph (13), by striking <quote>and</quote> at the end;</text> </paragraph><paragraph id="idD7AA16A46BA04A9189A5919003B2E78B"><enum>(2)</enum><text>by redesignating paragraph (14) as paragraph (15); and</text> </paragraph><paragraph id="id7EC8A7CA43A440989D53EA116E70CFDA"><enum>(3)</enum><text>by inserting after paragraph (13) the following:</text> <quoted-block display-inline="no-display-inline" id="id2140843F79E244F59B2D12A51F33D350" style="OLC"> <paragraph id="ID76cf2f5fd25f41d3b2a8dffcfce8b6ca"><enum>(14)</enum><text>the effect of increased customer satisfaction and increased performance of services on the value of the mail for the general public, postal customers, and enterprises in the private sector that are engaged in the delivery of mail other than letters; and</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="ID7cb8a50dd27e44d892e494a39371faa4"><enum>202.</enum><header>New mail classes</header> <subsection id="IDbd9482440147486eadb6f50cb01c7843"><enum>(a)</enum><header>Definition</header><text>Section 102 of title 39, United States Code, is amended—</text> <paragraph id="id01A6B6836639437EAF7ED838A6C91C1B"><enum>(1)</enum><text>in paragraph (9), by striking <quote>and</quote> at the end;</text> </paragraph><paragraph id="id55BB37D05D084AAFA7F805B347FF1116"><enum>(2)</enum><text>in paragraph (10), by striking the period at the end and inserting <quote>; and</quote>; and</text> </paragraph><paragraph id="idD66D2D6A3A1E4C14B91FFF24B29FE9C4"><enum>(3)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id7B2D0CA5C4BD47FF838EE9FFADB8084C" style="OLC"> <paragraph commented="no" id="IDfc45b7619bcd43e7acdc835a86189c01"><enum>(11)</enum><text><term>class of mail</term> means a grouping of similar products that is—</text> <subparagraph commented="no" id="idEA7962C8552744A1803CD3E554084FE4"><enum>(A)</enum><text>differentiated by features, service levels, postage prices, and sorting requirements; and</text> </subparagraph><subparagraph commented="no" id="id900193945C5945D4B31EA1CDBC9B2DD5"><enum>(B)</enum><text>that is—</text> <clause commented="no" id="idB040D71C2FA14A79924F9E2F52CE8AB7"><enum>(i)</enum><text>defined in the Domestic Mail Classification Schedule, as in effect on the date of enactment of the Postal Accountability and Enhancement Act (Public Law 109–435; 120 Stat. 3198); or</text> </clause><clause commented="no" id="id2F1B07C670304387B92D806324AE8408"><enum>(ii)</enum><text>established by the Postal Regulatory Commission under section 3643.</text> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="ID18d9a9c3f79d4b38aad9afa874e24bcf"><enum>(b)</enum><header>Annual limitations</header><text>Section 3622(d)(2)(A) of title 39, United States Code, is amended by striking <quote>the Domestic Mail Classification Schedule as in effect on the date of enactment of the Postal Accountability and Enhancment Act</quote> and inserting <quote>section 102(11)</quote>.</text> </subsection><subsection id="IDf5533cb7e1314835ba8cbe6cbf4d7b35"><enum>(c)</enum><header>New classes of mail</header> <paragraph id="id6648C5A528BA4384B8E176C4D840D272"><enum>(1)</enum><header>In general</header><text>Subchapter III of chapter 36 of title 39, United States Code, is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idCB28004170B64C5CA09A93BDCA982824" style="USC"> <section id="ID45d7c25bf94a4fdfb68098215c9b022e"><enum>3643.</enum><header>New classes of mail</header> <subsection id="ID9a01ad1bed3349b8a8d27e0b8978be01"><enum>(a)</enum><header>In general</header><text>Upon request of the Postal Service, the Postal Regulatory Commission may establish new classes of mail.</text> </subsection><subsection id="IDbd92944d68c04eb78e406a6e28c280aa"><enum>(b)</enum><header>Criteria</header> <paragraph id="ID41b757e82642483a86060caef106bb6a"><enum>(1)</enum><header>Market-dominant classes of mail</header><text>The Postal Regulatory Commission may establish a new class of mail that contains market-dominant products if the Postal Regulatory Commission determines that the Postal Service exercises sufficient market power in the sale of the products to effectively set the price of the products substantially above costs, raise prices for the products significantly, decrease the quality of the products, or decrease output of the products, without risk of losing a significant share of the market to enterprises in the private sector offering similar products.</text> </paragraph><paragraph id="ID88dfe145cd17402bbe2d5f50ecac7a12"><enum>(2)</enum><header>Products covered by postal monopoly</header><text>The Postal Regulatory Commission may establish a new class of mail that contains a product covered by the postal monopoly that is subject to the requirements of section 3622(d)(1). For purposes of this paragraph, the term <term>product covered by the postal monopoly</term> means a product the conveyance or transmission of which is reserved to the United States under section 1696 of title 18, subject to the exception set forth in the last sentence of section 409(e)(1).</text> </paragraph><paragraph id="ID01e3f1bae47d48faa847d89179db8441"><enum>(3)</enum><header>Additional considerations</header><text>In making a determination under this section, the Postal Regulatory Commission shall consider—</text> <subparagraph id="ID10fc87aa4acd4a6294b7aa42a0f30d3a"><enum>(A)</enum><text>the availability and nature of enterprises in the private sector engaged in the delivery of the product involved;</text> </subparagraph><subparagraph id="IDb3ee48fa33da40ff9ee0659e0c6c0b8c"><enum>(B)</enum><text>the views of postal customers that use the product involved on the appropriateness of the proposed action; and</text> </subparagraph><subparagraph id="IDd5b2145418254dde94f9902caa14a671"><enum>(C)</enum><text>the likely impact of the proposed action on small business concerns, as defined for purposes of section 3641(h).</text> </subparagraph></paragraph></subsection><subsection id="ID4f3be758529f4601bb0b2808d3cb64e2"><enum>(c)</enum><header>Notification and publication requirements</header> <paragraph id="ID9da4b3f84e1b4ce7995c1746b2ad9a14"><enum>(1)</enum><header>Notification requirement</header><text>At the time the Postal Service makes a request under subsection (a), the Postal Service shall file with the Postal Regulatory Commission and publish in the Federal Register a notice describing the basis for the determination by the Postal Service that the new class of mail requested to be added satisfies the requirements under subsection (b). Section 504(g) shall apply with respect to any information required to be filed under this paragraph.</text> </paragraph><paragraph id="ID52e724b965304456a0e7069a275b64cf"><enum>(2)</enum><header>Publication requirement</header><text>The Postal Regulatory Commission shall publish in the Federal Register a revised list of classes of mail whenever the Postal Regulatory Commission changes the list of classes of mail containing market-dominant products. A revised list shall indicate in what manner and on which date any previous list is superseded.</text> </paragraph></subsection><subsection id="ID1c5ee0da910048afb7594d4ecd3a9bff"><enum>(d)</enum><header>Prohibition</header><text>Except as provided in section 3641, a class of mail that involves the physical delivery of letters, printed matter, or packages may not be offered by the Postal Service unless it has been assigned as a new class of mail under this chapter or by or under any other provision of law.</text> </subsection><subsection id="id55482ADFBADF4DE48B6F684F116F880D"><enum>(e)</enum><header>Regulations</header><text>Not later than 9 months after the date of enactment of this section, the Postal Regulatory Commission shall issue (and may from time to time thereafter revise) regulations to carry out this section.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="id587A43CCE91A4F379BF38BBF0A76B001"><enum>(2)</enum><header>Technical and conforming amendment</header><text display-inline="yes-display-inline">The table of sections for subchapter III of chapter 36 of title 39, United States Code, is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id47258C2CA9B341C2A3BFF96BF2BF2AA4" style="OLC"> <toc> <toc-entry bold="off" level="section">3643. New classes of mail.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section><section id="ID8ccde37fd8344e839ec3918d2375ced1"><enum>203.</enum><header>Experimental products</header><text display-inline="no-display-inline">Section 3641(e)(2) of title 39, United States Code, is amended by striking <quote>if the total revenues that are anticipated, or in fact received, by the Postal Service from such product do not exceed $50,000,000 in any year, subject to subsection (g)</quote>.</text> </section><section id="ID6f812c230d1741f8b658cfe012db5163"><enum>204.</enum><header>Chief Product Innovation Officer</header> <subsection id="ID0260670abbad428fbdbe0877d5076bea"><enum>(a)</enum><header>Designation</header><text>The Postmaster General shall designate a senior officer within the Postal Service to serve as Chief Product Innovation Officer.</text> </subsection><subsection id="IDc0a8c8cd7a0945a096b72ad617845056"><enum>(b)</enum><header>Qualifications</header><text>The individual designated as Chief Product Innovation Officer shall have experience that reflects a wide range of knowledge of the Postal Service, postal customers, marketing, and product innovation.</text> </subsection><subsection id="ID1168145e5eb742988665f6fc81eac3ed"><enum>(c)</enum><header>Duties</header><text>The Chief Product Innovation Officer shall lead the development or improvement of products that—</text> <paragraph id="IDb62687eb05f44ffdbcbc08f311a77264"><enum>(1)</enum><text>serve the public good;</text> </paragraph><paragraph id="IDd95cc9324c334e1881d4ecc0f537811d"><enum>(2)</enum><text>increase the value of postal products and services; and</text> </paragraph><paragraph id="ID52a61c2ca26846129539a5f68e53646b"><enum>(3)</enum><text>increase the volume of mail handled by the Postal Service.</text> </paragraph></subsection><subsection id="ID0931bfaa94ab49be811ea791bbb56333"><enum>(d)</enum><header>Postal innovation report</header><text>The Chief Product Innovation Officer shall submit an annual report to the Commission, the Committee on Homeland Security and Governmental Affairs of the Senate, and the Committee on Oversight and Government Reform of the House of Representatives that includes, at a minimum, a description of any products created or changed by the Postal Service during the preceding year, including any experimental or nonpostal products.</text> </subsection></section><section id="IDb0f3f15181e44532b20e3fbb063af0f9"><enum>205.</enum><header>Uncollected postage</header><text display-inline="no-display-inline">The Postal Service, in consultation with the Chief Postal Inspector and the Inspector General of the Postal Service, shall develop a program to increase compliance with postage requirements, including compliance with fraud investigations, equipment review, and reinforcement of applicable policies.</text> </section><enum>III</enum><header>Workforce</header> <section id="id9F9FAFEBDC5340EF9495DE7DCE010EDD"><enum>301.</enum><header>Treatment of surplus contributions to Federal employees retirement system</header><text display-inline="no-display-inline">Section 8423(b) of title 5, United States Code, is amended—</text> <paragraph id="IDbaf6df5e5a9e460faa23fba5a5140cad"><enum>(1)</enum><text>by redesignating paragraph (5) as paragraph (6); and</text> </paragraph><paragraph id="ID5e530d1ed4d54e06a63b9ab92011491b"><enum>(2)</enum><text>by inserting after paragraph (4) the following:</text> <quoted-block display-inline="no-display-inline" id="id6543BD67D6AE4AADBFAA36922E12D1C6" style="OLC"> <paragraph id="IDf38ee3e332cf4cd98d5f6776fa53a2c7"><enum>(5)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id70E117CD18C446FF9D5FD68211092D44"><enum>(A)</enum><text>In this paragraph, the term <quote>surplus postal contributions</quote> means the amount by which the amount computed under paragraph (1)(B) is less than zero.</text> </subparagraph><subparagraph id="id04B7138B65DF47C4BBA75AC9811DD6EF" indent="up1"><enum>(B)</enum><text>For each fiscal year in which the amount computed under paragraph (1)(B) is less than zero, upon request of the Postmaster General, the Director shall transfer to the United States Postal Service from the Fund an amount equal to the surplus postal contributions for that fiscal year for use in accordance with this paragraph.</text> </subparagraph><subparagraph id="idB52F8869FC264ED18549957472F37826" indent="up1"><enum>(C)</enum><text>For each of fiscal years 2012, 2013, and 2014, if the amount computed under paragraph (1)(B) is less than zero, a portion of the surplus postal contributions for the fiscal year shall be used by the United States Postal Service for the cost of providing payments to employees of the United States Postal Service who voluntarily separate from service before October 1, 2014. Notwithstanding section 3523(b)(3)(B), payments under this subsection may be in the amount determined appropriate by the United States Postal Service.</text> </subparagraph><subparagraph id="id1302FB00942748158BD53EAE51F4AF0D" indent="up1"><enum>(D)</enum><text>Any surplus postal contributions for a fiscal year not expended under subparagraph (C) may be used by the United States Postal Service for the purposes of—</text> <clause id="id4B1E0EFBBAAB4BC480B481F5F3FE8F6C"><enum>(i)</enum><text>repaying any obligation issued under section 2005 of title 39; or</text> </clause><clause id="idFF6C96CBA08D432CB8C16ADAFDF4781D"><enum>(ii)</enum><text>making required payments to—</text> <subclause id="idB4E095638FFE4A2D9357AD98B457C6E8"><enum>(I)</enum><text>the Employees’ Compensation Fund established under section 8147;</text> </subclause><subclause id="id9A1D63578A3D42649451D84ACD765185"><enum>(II)</enum><text>the Employees Health Benefits Fund established under section 8909; or</text> </subclause><subclause id="id8E1AEA8C239D4A90A7090579999B2596"><enum>(III)</enum><text>the Civil Service Retirement and Disability Fund.</text> </subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="IDe37b0a69daa64fb7a367e3c7b7af72c1"><enum>302.</enum><header>Medicare coordination efforts for postal service retirees</header><text display-inline="no-display-inline">The Postmaster General, in consultation with the Director of the Office of Personnel Management and the Administrator of the Centers for Medicare & Medicaid Services, shall develop an educational program to encourage the voluntary use of the Medicare program for hospital insurance benefits under part A of title XVIII of the Social Security Act (42 U.S.C. 1395c et seq.) (commonly known as <quote>Medicare Part A</quote>) and the Medicare program for supplementary medical insurance benefits under part B of title XVIII of the Social Security Act (42 U.S.C. 1395j et seq.) (commonly known as <quote>Medicare Part B</quote>) for eligible employees that may benefit from enrollment, the objective of which shall be to—</text> <paragraph id="IDb5bd296b22da488d91b56e8897e8f655"><enum>(1)</enum><text>educate employees and retirees on how Medicare benefits can interact or supplement the benefits of the employee or retiree under the Federal Employee Health Benefit Program; and</text> </paragraph><paragraph id="ID2f6c9a56b00c4b9d81cee571e5284435"><enum>(2)</enum><text>reduce costs to the Federal Employee Health Benefit Program, beneficiaries, and the Postal Service by coordinating services with the Medicare program.</text> </paragraph></section><section id="IDae494696c43643e19aca57e865a60842"><enum>303.</enum><header>Labor disputes</header><text display-inline="no-display-inline">Section 1207(c) of title 39, United States Code, is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idC2E01AE92B534090A6DF60590EA831A7" style="OLC"> <paragraph id="ID0ff1b2341ee54bb384fb980d0aa8fc70" indent="up1"><enum>(4)</enum><text>Nothing in this title shall be construed to limit the factors an arbitration board may take into consideration in rendering a decision under this subsection.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="IDccf59ec78e854deeb171e02c38f70cb5"><enum>304.</enum><header>Supervisory and other managerial organizations</header><text display-inline="no-display-inline">Section 1004 of title 39, United States Code, is amended—</text> <paragraph id="IDa5afc80d86e74f8cb0f29c89222f1b02"><enum>(1)</enum><text>in subsection (b), in the second sentence, by inserting <quote>as provided under subsection (d) and any changes in, or termination of, pay policies and schedules and fringe benefit programs for members of the supervisors’ organization as provided under subsection (e)</quote> before the period; and</text> </paragraph><paragraph id="ID70001dee27264c8d84e196ecfbfd286f"><enum>(2)</enum><text>in subsection (e)(1), by inserting <quote>, or termination of,</quote> after <quote>any changes in</quote>.</text> </paragraph></section><section id="ID3a51be2f2fd145b987179024d3fad9a1"><enum>305.</enum><header>Applicability of provisions relating to reductions in force</header><text display-inline="no-display-inline">Section 1005 is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idDC0F74F8DEAC4D259B912EFE7E019D0A" style="OLC"> <subsection id="IDd953dffecf8444fd8e2f4bd159f2a736"><enum>(g)</enum><paragraph commented="no" display-inline="yes-display-inline" id="id6C20C9DC62EC484BBF482A4E1698D540"><enum>(1)</enum><text>Except as otherwise provided under a collective bargaining agreement entered into under chapter 12, subchapter I of chapter 35 of title 5 (including the regulations implementing such subchapter) shall apply to employees of the Postal Service who hold positions that are represented by a bargaining representative recognized under section 1203.</text> </paragraph><paragraph id="ID238fc8eb3b9940b4aaa1eb8d94387e14" indent="up1"><enum>(2)</enum><text>Before carrying out any reduction in force in accordance with paragraph (1), the Postmaster General shall submit a report to the Committee on Homeland Security and Governmental Affairs of the Senate, the Committee on Oversight and Government Reform of the House of Representatives, and Director of the Office of Personnel Management indicating the extent of the reduction in force and how the Postal Service will comply with section 3502(a)(4) of title 5.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="ID40912126af374d92bd1f024de411e3b6"><enum>306.</enum><header>Executive compensation</header><text display-inline="no-display-inline">Section 3686(b) of title 39, United States Code, is amended—</text> <paragraph id="id9E2BDC2C46634C3EBCA6786CD146E8BC"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1), by striking <quote>payable to the Vice President under section 104 of title 3</quote> and inserting <quote>payable for a position on level I of the Executive Schedule under section 5312 of title 5</quote>; and</text> </paragraph><paragraph id="id84AF07564A62427192F2B723C9760F64"><enum>(2)</enum><text>by striking subsection (c) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id803E164649F64A279ECF87FDCBCE449C" style="OLC"> <subsection id="ID370083576daf499eaafc8a34ee52a3e1"><enum>(c)</enum><header>Exceptions for critical positions</header> <paragraph id="idE905DA6FEC9C4F498E707CC51B5243B7"><enum>(1)</enum><header>In general</header><text>The Board of Governors may allow not more than 12 officers or employees of the Postal Service in critical senior executive or equivalent positions to receive total annual compensation in an amount not to exceed 135 percent of the amount determined under paragraph (2).</text> </paragraph><paragraph id="id94A0B3CEE62544D7AB83DDAA529E955E"><enum>(2)</enum><header>Amount</header><text>The amount determined under this paragraph shall be the amount payable, as of the end of the calendar year in which the payment is received, for a position at—</text> <subparagraph id="ID29966b518cdb41e3b344392876d98018"><enum>(A)</enum><text>level I of the Executive Schedule under section 5312 of title 5, for the Postmaster General;</text> </subparagraph><subparagraph id="ID9430ddc1dab44eafac892ae15e032f24"><enum>(B)</enum><text>level II of the Executive Schedule under section 5313 of title 5, for the Deputy Postmaster General; and</text> </subparagraph><subparagraph id="ID7fa860ad59ec4826a8e0ef50dd46d856"><enum>(C)</enum><text>level III of the Executive Schedule under section 5314 of title 5, for any other officer or employee.</text> </subparagraph></paragraph><paragraph id="idB29C29C73C73410B88D5A4CBB0B6D0FE"><enum>(3)</enum><header>Notice</header><text>Not later than 30 days after the date on which the first payment is made at a rate of pay authorized under this subsection, the Board of Governors shall submit to the Director of the Office of Personnel Management and Congress a written notice that shall include—</text> <subparagraph id="id0D025F853B244701AD60977F964254CD"><enum>(A)</enum><text>the name of the officer or employee receiving the payment;</text> </subparagraph><subparagraph id="id8892B62A8F034AEDB6A08E9BD3033D23"><enum>(B)</enum><text>a description of the critical nature of the duties and responsibilities of the officer or employee; and</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idB3E8E46F3D8642C097EBDA1E887F9FC6"><enum>(C)</enum><text>a discussion of the basis for determining that the amount of the payment is warranted.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section>