Tag: USA

Despite a $1 billion profit in the first quarter of its fiscal year, the U.S Postal Service may have to request authority for another rate increase if Congress does not pass legislation reforming its pension payments.

Postmaster General John Potter told the new Presidential Commission on the U.S. Postal Service Wednesday that legislation is needed to change the amount the Postal Service pays into the Civil Service Retirement System or ratepayers would be overpaying into the fund by $71 billion. With legislative change, rates could remain stable through 2006.

The US post office is beginning the process of seeking a rate increase even as it awaits congressional action that would make the step unnecessary.

The internal process of preparing for a new rate case has started, postal vice president Azeezaly Jaffer confirmed Thursday.

Last fall, a financial review discovered that the Postal Service had paid too much into a retirement program for workers who joined the agency before 1983.

Postmaster General John E. Potter this week shifted the Postal Service’s IT organization around by naming Robert Otto the new chief technology officer.

Otto replaces Charlie Bravo, who became senior vice president for Intelligent Mail and Address Quality. Otto also will retain the title of senior vice president for Information Technology, essentially making him the CIO and CTO.