How changes in U.S. Postal Service will affect you

The first comprehensive reforms of the U.S. Postal Service in 35 years was signed into law by President Bush Dec. 20. The principal sponsor of the Postal Accountability and Enhancement Act in the House was Rep. John McHugh, R-Pierrepont Manor, who fought for the measure for 12 years.

Here’s what the bill means to you:
1. The cost of mailing a letter
The bill prohibits the Postal Service from raising its rates above inflation for the next 10 years. Only an independent regulator can allow higher increases.

2. The cost of Express Mail, Priority Mail and parcels.
– The Postal Service will be given pricing freedom for these products, which compete against shippers such as UPS and FedEx.
– The legislation prohibits the Postal Service from regulating areas in which it competes.

3. Universal service
The Postal Service will be required to give everyone in the nation access to affordable postal service and delivery. The Postal Service must assess scope and standards for universal service, which could ensure continuance of rural post offices.

4. Saturday delivery
Likely to continue.

5. Incentives for better service
– The Postal Service would no longer operate under a break-even mandate.
– Any earnings could be distributed as incentives to management and employees.

6. Oversight
For the first time, regulators can hold the Postal Service accountable for delivering mail on time.

By the numbers
– More than 9 million jobs in a USD900 billion per year industry depend upon mail and package delivery.
– For the first time in the history of the U.S. Postal Service, first-class mail now accounts for less than half of all mail, as people write fewer letters and pay more bills online.
– Direct-mail advertising, or junk mail, now accounts for about 49 percent of all mail.

Source: Office of Rep. John McHugh, 23rd Congressional District.