Maximum Available Rate Authority by Class
Inflation sped up in April as consumer prices leaped 4.2%, which was the fastest since 2008 - this now makes the new available CPI amount available to the USPS in a second filing 1.244% (last month it was 0.688%).
This brings the maximum of a possible second postage increase this summer from 6.8%-8.8% due to the additional rate authorities granted to the USPS by the Postal Regulatory Commission.
Maximum Available Rate Authority by Class
| Class |
CPI-U |
Density |
Retirement |
Non-Compensatory |
Bank |
Total |
| First-Class |
1.244% |
4.500% |
1.062% |
NA |
0.012% |
6.818% |
| Periodicals |
1.244% |
4.500% |
1.062% |
2.00% |
0.002% |
8.808% |
| USPS Marketing Mail |
1.244% |
4.500% |
1.062% |
NA |
0.010% |
6.816% |
| Package Services |
1.244% |
4.500% |
1.062% |
2.00% |
0.006% |
8.812% |
| Special Services |
1.244% |
4.500% |
1.062% |
NA |
0.007% |
6.813% |
Committee Advances Bipartisan Postal Reform Act
On May 12th the House Oversight and Reform Committee unanimously approved the 2021 Postal Reform Act underscoring its bipartisanship. The bill (H.R. 3076) will now need to go to a vote by the full House of Representatives. The Senate would need to pass a similar bill that would be reconciled with the House version and sent to the President.
The bill addresses some of the key items identified as necessary for postal reform, such as repealing the requirement for the Postal Service to pre-fund retiree health benefits, require medicare integration of Postal Service employees, and require the Postal Service to operate six days per week using an integrated network.
The bill does NOT provide any relief from the anticipated second postal rate increase as allowed through the PRC additional rate authorities that can be upwards of 8%
How Can our voices be Heard?
The Collation for a 21st Century Postal Service (C21) has provided a web link to make easy messaging to the appropriate members of Congress and Senate as well as the chairwoman and ranking member of the House Oversight and Reform Committee. The web form, based on your address will direct an email to the appropriate representatives.
We encourage you, and your organization to make your voices heard by our lawmakers through this messaging platform
Sample text below can be used, with personalization added identifying your company and the impacts you will experience if a 6%-8% second rate increase goes through this year:
The "Postal Service Reform Act of 2021" is absent a crucial element, addressing the additional rate authorities granted to the USPS by the Postal Rate Commission. The PRC has given the USPS the ability to increase rates in excess of the inflation-based cap instituted by PAEA in a way that will compound over the next five years to be upwards of a 30% increase over today's rates.
We need the PRC to be remanded to open the docket on rate-making rules and consider all objectives and factors enumerated in PAEA, such as 'to create predictability and stability in rates.'
Without this consideration, we forecast significant mail volume losses and considerable industry job cutbacks."
