Tag: USA

Americans will be spared another rise in the price of stamps for three years under legislation en route to President Bush for signature into law. The legislation takes advantage of a discovery that the money-losing post office was paying far too much into the Civil Service Retirement System, a program that covers employees who joined the force before 1984. The bill, which passed the House 424-0 on Tuesday, allows the Postal Service to correct its payment formula, but under the condition that the savings be used to pay off the agency’s debts and to stop any further rate increases until at least 2006. The bill passed the Senate last week.

The U.S. Postal Service might defer an increase in postage rates until 2006 in light of a House measure that would change how it contributes to a pension fund for employees hired before 1984. The House is expected to pass on Tuesday a proposal that would allow the agency to lower the payments it makes to a worker retirement fund. If passed, the measure will reduce the Postal Service’s debt, free up extra funds and hold rates steady.