US Postal Service to seek rate hikes in '04

The U.S. Postal Service plans to request a postage rate increase of at least 10 percent in October 2004.

The Federal Times reported Wednesday that Deputy Postmaster General John Nolan told an audience Tuesday at the National Postal Forum in Kansas City that the Postal Service will apply for the rate increase, which likely would take effect a year later in October 2005.

Whether the proposed increase takes effect is less certain. The agency could use an expected pension payment surplus of $2.9 billion in fiscal 2003 and $2.6 billion in subsequent years to shore up rates, although Congressional approval would be required.