Postal Rates Could Stabilize

WASHINGTON, DC—A future postage rate increase could be delayed until at least 2006 thanks to a review of the United States Postal Service (USPS) employees' retirement plan, says Post Master General John E. Potter.

This revelation comes after a review of the USPS' pension liabilities by the U.S. Office of Personnel Management. The review found that the current formula contained overly conservative interest assumptions under which the USPS contributes for its employees' retirement, creating an overpayment of pension liabilities.