[Congressional Record (Bound Edition), Volume 149 (2003), Part 3]
[Extensions of Remarks]
[Pages 4108-4109]
[From the U.S. Government Publishing Office, www.gpo.gov]




   POSTAL CIVIL SERVICE RETIREMENT SYSTEM FUNDING REFORM ACT OF 2003

                                 ______
                                 

                          HON. HENRY A. WAXMAN

                             of california

                    in the house of representatives

                      Wednesday, February 12, 2003

  Mr. WAXMAN. Mr. Speaker, as the Ranking member of the House Committee 
on Government Reform, I join Chairman Tom Davis, Representative John 
McHugh and Subcommittee Ranking member, Representative Danny K. Davis, 
in introducing the ``Postal Civil Service Retirement System Funding 
Reform Act of 2003.''
  The legislation we introduced today corrects the calculation of the 
Postal Service's contributions to its pension fund and provides 
immediate and needed financial relief to the Postal Service. It allows 
the Postal Service to reduce its debt and hold off on rate increases 
until at least 2006. It does this by crediting the

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Postal Service for the real value of contributions it made in the past 
and changing how contributions will be computed in the future.
  This legislation is being introduced quickly because, without it, the 
Postal Service faces an increasing financial crisis. The Postal Service 
has suggested that, in the absence of such a change, a rate increase 
will be necessary within a year. While there is a need for action to be 
taken quickly, the issue requires more measured consideration than we 
are able to give it in this short time. That is why the bill includes a 
mechanism for Congress to revisit this issue. The bill requires the 
Postal Service to report on the ways in which the savings can best be 
used so that Congress can make an informed decision on such use. Given 
the many serious concerns about the Postal Service's future 
obligations, our legislation is only the first step in addressing much 
larger problems.
  The legislation that we introduced today, however, is not perfect and 
we are still working on areas of disagreement. For instance, the bill 
requires the Postal Service to pay the pension costs associated with 
military service both before and after the change from the old Post 
Office Department to the new Postal Service. I do not believe this is a 
good idea; I am not convinced that the Postal Service, which is 
supposed to run like a private business, should be paying the costs of 
military service for employees in the Civil Service Retirement System. 
I am confident we will continue to be able to work together to resolve 
this important issue.
  In closing, I want to commend Chairman Davis, Rep. McHugh, and Rep. 
Danny Davis for their efforts in addressing this problem and for 
working in a bipartisan manner. The Postal Service faces many 
challenges and I look forward to working together on strengthening our 
nation's Postal Service.

                          ____________________