Postal Reform -- Congress Must Deliver

The 5.4 percent increase requested by the USPS to the Postal Rate Commission—which would likely take effect in 2006—could pale in comparison to future hikes. And the increase doesn't even reflect a rise in the cost of doing business.

OK, we'll back up for a second and relate the riveting tale of the civil service retirement system (CSRS) account. In 2003, the USPS learned that it was slated to overpay the retirement fund for its employees by a mere $80 billion. The U.S. government rectified the situation (sort of), but tacked a two-headed monster onto the so-called correction: the retirement fund overpayment amount was shifted into an escrow fund. Additionally, the postal service was mandated to pick up the portion of retirement annuities based on their employees' military service. The 5.4 percent increase request only addresses the pension escrow.