[Congressional Record Volume 149, Number 53 (Wednesday, April 2, 2003)]
[Senate]
[Pages S4726-S4729]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       POSTAL CIVIL SERVICE RETIREMENT SYSTEM FUNDING ACT OF 2003

  Mr. FRIST. Mr. President, I ask unanimous consent that the Senate now 
proceed to the consideration of calendar No. 58, S. 380.
  The PRESIDING OFFICER. The clerk will state the bill by title.
  The legislative clerk read as follows:

       A bill (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.

  There being no objection, the Senate proceeded to consider the bill, 
which was reported from the Committee on Governmental Affairs, with an 
amendment.
  [Strike out all after the enacting clause and insert the part printed 
in italic.]

[[Page S4727]]

                                 S. 380

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

     [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 available 
     for payment of benefits, 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, with interest computed at 
     the rate used in the most recent valuation of the Civil 
     Service Retirement System.
       [``(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) 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.
       [(b) 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, 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--
       [(A) formulate a plan specifically enumerating the methods 
     by which the Office shall make its computations under 
     paragraph (1); and
       [(B) submit such plan to the Committee on Government Reform 
     of the House of Representatives and the Committee on 
     Governmental Affairs of the Senate.
       [(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.
       [(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.
       [(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

[[Page S4728]]

     debt before and after the application of subsection (a), 
     during the period covered by such report.
       [(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.
       [(e) Sense of Congress.--It is the sense of the 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 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 in paragraph (1) should be used to address those 
     unfunded obligations; and
       [(3) none of the savings referred to in paragraph (1) 
     should be used to pay bonuses to Postal Service executives.
       [(f) Report Relating to Unfunded Healthcare Costs.--
       [(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.
       [(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).
       [(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.
       [(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 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.
       [(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.

     [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.]

     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.--

[[Page S4729]]

       (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.


                           Amendment No. 469

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

  Mr. FRIST. Mr. President, on behalf of Senators Collins, Lieberman, 
and Carper, I send a substitute amendment to the desk and ask for its 
immediate consideration.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       The Senator from Tennessee [Mr. Frist], for Ms. Collins, 
     for herself, Mr. Lieberman, and Mr. Carper, proposes an 
     amendment numbered 469.

  Mr. FRIST. Mr. President, I ask unanimous consent that further 
reading of the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  (The amendment is printed in today's Record under ``Text of 
Amendments.'')
  Mr. FRIST. Mr. President, I ask unanimous consent that the amendment 
be agreed to; the committee amendment, as amended, be agreed to; the 
bill, as amended, be read the third time and passed; the motion to 
reconsider be laid upon the table, and that any statements relating to 
the bill be printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 469) was agreed to.
  The committee amendment, as amended, was agreed to.
  The bill (S. 380), as amended, was read the third time and passed.

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