CBO | H.R. 2309, Postal Reform Act of 2011 – savings totaling about $28 billion

H.R. 2309 would change the laws that govern the operation of the United States Postal Service (USPS). Major provisions of the bill would:

• Permit the Postal Service to reduce mail delivery from six to five days per week;
• Transfer about $11 billion in surplus retirement contributions from the Civil Service Retirement and Disability Fund (CSRDF) to the Postal Service Fund;
• Reduce the contribution made by the Postal Service for employees’ health and life insurance premiums;
• Change the payments that the Postal Service is required to make to the Postal Service Retiree Health Benefits Fund (PSRHBF); and
• Eliminate annual appropriations made to the Postal Service for free and reduced rate mail.

In addition, other provisions of H.R. 2309 would aim to help the Postal Service reduce its costs and increase its income.

CBO estimates that enacting the bill would result in off-budget savings totaling about $28 billion and on-budget costs of about $8 billion over the 2012-2022 period.