January 1, 2003
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. Changes in the payment schedule will require a modification of the current law by Congress. This necessary change in the law would mean a reduction of postal
