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Getting There May Get Easier

USPS, APWU Discuss Commuter-Costs Benefit

Summary: Legislation to include Postal Employees in transit subsidies program

 
 
Congress:
S.619 Repeal Government Pension Offset and Windfall Elimination
S.484 'A bill to amend the Internal Revenue Code of 1986 to allow Federal civilian and military retirees to pay health insurance premiums on a pretax basis and to allow a deduction for TRICARE supplemental premiums.'
H.R.1739 FERS Redeposit Act
H.R.994 'To amend the Internal Revenue Code of 1986 to allow Federal civilian and military retirees to pay health insurance premiums on a pretax basis and to allow a deduction for TRICARE supplemental premiums.'
H.R.147 Repeal Government Pension Offset and Windfall Elimination
H.R.22 Postal Reform
 
 

Congressman Introduces Bill to Require Door-to-Door Mail Delivery for Seniors -Congressman Jim Saxton (R-NJ)  introduced a bill  requiring USPS to deliver mail to the homes of senior citizens age 55+ living in age-restricted developments. Saxton’s bill directs that housing facilities intended for seniors age 55 and up with at least 80 percent occupancy  to be serviced with door-to-door delivery. Ray Daiutolo, spokesman for  USPS South Jersey District, said delivering door-to-door takes longer and costs more than delivering to cluster boxes.. Saxton introduced a similar bill last year, but it never reached the House floor. This bill is likely to be attached to a postal-reform package under consideration in the Senate . Carriers would not be required to deliver door-to-door in high rises with cluster boxes in the lobby, said Jeff Sagnip Hollendonner, a spokesman for Saxton. The Congressional Budget Office will determine how much a change in delivery methods would cost the Postal Service, Hollendonner said. (4/7)

Saxton Introduces Bill for Mail Delivery for Seniors


WASHINGTON, D.C. - With the U.S. Congress poised to consider postal reform legislation, Congressman Jim Saxton today introduced a bill to require the U.S. Postal Service to deliver mail to the homes of senior citizens living in age-restricted developments.

"There’s a good chance postal reform may be taken up in the 109th Congess, and I want to make sure this bill is on the table," Saxton said.

Saxton has advocated legislation to require the U.S. Postal Service to deliver mail directly to seniors’ door steps. His bill, introduced on the House floor last night, is H.R. 1475.

"Seniors who have to walk to get their mail can put their health at risk," said Saxton (NJ-3rd). "Icy walkways, curbs, leaves and snow pose dangers for seniors who are less mobile. One slip can lead to severe disability. It can end their independent living at home."

Saxton’s bill directs that housing facilities intended for seniors age 55 and up with at least 80 percent occupancy of seniors 55 and older to be serviced with door-to-door delivery. The postal service would plan its own means of implementation. Delivery would be required within six-months of enactment of the law.

The increasing popularity of senior communities in New Jersey and across the country means more and more seniors will be denied daily access to send or receive letters, pay their bills and do other business conducted through the mail.

"Daily mail can be a main source of communication with the outside world for older Americans," he said. "Mail order medicine, shopping, paying bills and other business is often done by mail."

As folks get older, they can have physical limitations that keep them from outdoor activities, particularly during inclement weather, Saxton said.

Senior citizens in the congressman’s Third Congressional District came up with the idea, and Saxton wants policy-makers at the Postal Service to consider their needs.



###


To require door delivery of mail sent to persons residing in senior communities. (Introduced in House)

109th CONGRESS

1st Session

H. R. 1475

To require door delivery of mail sent to persons residing in senior communities.

IN THE HOUSE OF REPRESENTATIVES

April 5, 2005

Mr. SAXTON introduced the following bill; which was referred to the Committee on Government Reform

A BILL

To require door delivery of mail sent to persons residing in senior communities.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. DOOR DELIVERY OF MAIL REQUIRED FOR INDIVIDUALS RESIDING IN SENIOR COMMUNITIES.

    (a) In General- The United States Postal Service shall take such measures as may be necessary to ensure that all individuals residing in senior communities shall receive their mail through door delivery service.

    (b) Senior Community Defined- As used in this section, the term `senior community' means a housing facility or community which is intended and operated for occupancy by individuals 55 years of age or older, and at least 80 percent of the occupied units of which are occupied by at least one individual who is 55 years of age or older.

    (c) Exception- Nothing in this section shall be considered to require door delivery service for persons residing in a structure that consists of or contains 2 or more dwelling units if delivery is made in a manner that allows such persons to receive or retrieve their mail without having to exit such structure.

    (d) Effective Date- This section shall apply with respect to mail delivered after the end of the 6-month period beginning on the date of enactment of this Act.


    H.R.1810
    Title: To require door delivery of mail sent to persons residing in senior communities.
    Sponsor: Rep Saxton, Jim [NJ-3] (introduced 4/11/2003)      Cosponsors (None)
    Latest Major Action: 4/11/2003 Referred to House committee. Status: Referred to the House Committee on Government Reform.

    SUMMARY AS OF:
    4/11/2003--Introduced.

    Requires the Postal Service to take measures to ensure that all individuals residing in senior communities receive their mail through door delivery service, except for persons residing in a structure that consists of or contains four or more dwelling units


 
     
 

Tax-Break ‘Commuter Program’ Launched for Postal Workers

December 8, 2004

Working with a company called WageWorks, the Postal Service has set up a plan that allows employees to pay commuting expenses on a pre-tax basis.

Under this program, no federal income, Social Security, Medicare, or (in most cases), state or local income taxes are withheld from the pre-tax amount of eligible commuting expenses.

APWU-represented employees are now eligible under IRS rules to purchase as much as $100 per month, pre-tax, in public-transportation fares. These purchases can be used for anything classified as mass transit: buses, trains, van-pools, or any combination of these. Employees can also be reimbursed as much as $195 per month for work-related parking expenses.

Through the WageWorks Commuter Program, you can purchase transport-related expense items beyond these limits. But any amount over the $100/$195 cap will be paid with taxed dollars.

To enroll, postal employees can call WageWorks at 877-924-3967 (toll-free) or go to www.wageworks.com. After completing the required information online, consumers create their own usernames and passwords, and can place an order for whatever is needed in terms of tokens, paper passes, swipe cards, etc.

The transportation-expense elections need to be made before 11:59 Eastern Time on the 10th of the month, two months before the commuting month (to start receiving this benefit in February, you need to enroll by Dec. 10). You can change your order at any time; it just won’t go into effect until about two months later.

WageWorks sends transit chits directly to the employee and lets the USPS know how many pre-tax dollars to deduct from your pay. By the way, this special payroll deduction does not affect the total number of allowable allotments.


USPS, APWU Discuss Commuter-Costs Benefit

April 13, 2004

The APWU is holding discussions with the Postal Service concerning a pre-tax “Commuter Benefit.” Working with a company called WageWorks, the Postal Service is setting up a plan that would allow commuting-related expense items on a pre-tax basis.

 APWU-represented employees would be eligible under IRS rules to purchase from WageWorks as much as $100 per month’s worth of “pre-tax” public-transportation fares. These purchases typically are for use on anything classified as mass transit: buses, trains, van-pools, or any combination of these.

 Employees also could be reimbursed as much as $195 per month for parking as a work-related expense. If a worker’s actual expenses are greater than that, employees could still purchase whatever they needed through WageWorks. Any amount over the expense cap, however, would have to be paid with taxed dollars.

 Participating employees would either call a toll-free number or go to www.WageWorks.com, and place an order for tokens, paper passes, swipe cards, etc. WageWorks then sends the chits to the employees and lets the USPS know how much to deduct from their pay.  (The system, of course, would have to have been tested and proven secure.)

 The commuter benefit would be paid by a special payroll deduction and would not affect the total number of allowable allotments currently available.

 The proposed program is similar to Flexible Spending Accounts except that there is no “use it or lose it” provision. Because of this, the Commuter Benefits program should prove to be very valuable. 

(source: APWU)


Getting There May Get Easier

Mike Causey FederalNews Radio

Getting to, and parking at, major postal service facilities might be a lot easier, and less costly under a plan being worked out by the U.S. Postal Service and the American Postal Workers Union. The union represents most of the "inside" rank-and-file workers of the largest federal agency.

The APWU says its talking with the USPS about a pre-tax commuter benefit program coupled with a plan that will reimburse some employees up to $195 per month for parking as a work-related expense. This would be a giant step forward for the USPS which often lags behind other federal agencies whenit comes to perks.

The union says the USPS is working with a company called WageWorks to administer the program. It currently acts as the vendor for a variety of commuter-choice programs including the Washington metro area SmarTrip card program, as well as commuter discounted programs in San Francisco and New York City. To check out the benefits, click here.


 
 

House Subcommittee Passes Bill to End TSP Open Season & Revise CSRS Benefits for Part-Time Workers

The bill revises the Civil Service Retirement System (CSRS) annuity computation with respect to part-time civil service before April 7, 1986, to credit all service of such employees, no matter when performed, as full-time for purposes of such computation. The bill also eliminates open seasons for TSP. The open season language must clear the full House and the House-Senate conference before it is signed into law.

More info from Congressional Budget Office

Bill # H. R. 1601 & S 129

Civil Service Retirement Benefits for Part-Time Service. Section 103 would alter the way retirement benefits under the Civil Service Retirement System (CSRS) are calculated for workers with part-time service. The bill would apply to workers who performed work prior to April 7, 1986, have some part-time service, and retire after the bill is enacted.

Under current law, benefits for CSRS workers with part-time service are calculated using a two-step process. For workers with service prior to April 7, 1986, the current formula uses the highest salary the worker actually earned to reflect the part-time employment. For work on or after April 7, 1986, the formula uses a deemed salary (what the worker would have been earning if the worker had been working full time) to determine benefits and applies a pro-rata factor to adjust for part-time service. In effect, the current formula tends to treat new retirees with part-time service early in their careers more favorably than those whose part-time service comes at the end of their careers.

Section 103 would calculate CSRS benefits for all part-time service according to the formula currently used to determine benefits for service performed on or after April 7, 1986. The legislation also contains a hold-harmless provision to ensure that no one receives a smaller annuity under the proposal than they would get under current law. CBO estimates section 103 would affect benefits for several thousand new CSRS retirees each year. Depending on an individual employee's work history, benefits for those retirees could be more than 30 percent higher than they would be if calculated under the current formula.

Allow Time Spent at Service Academies to Be Creditable For Civilian Retirement. Section 104 would continue to allow time spent at any of the four U.S. military academies be considered creditable service under CSRS and the Federal Employees' Retirement System (FERS). These two pension programs, which cover most civilian federal workers, allow time served as an active-duty member of the U.S. armed forces to be used as creditable service provided that it is not already being credited toward military retirement benefits and a deposit to purchase the credits is made to the Civil Service Retirement and Disability Fund (CSRDF). Virtually all civilian employees who have performed military service and are not collecting military retirement benefits choose to have their military service credited toward their civilian pensions.

Although current law is silent about whether time spent at a military service academy--typically four years--should be treated as creditable military service under CSRS and FERS, OPM historically has allowed such service to be credited. Following several court rulings, however, OPM has indicated that it no longer believes such treatment is permissible under the law. As a result, at some point in the near future, time spent at military academies will no longer be creditable under either civilian retirement program. CBO assumes this change will take place in early 2005.

Based on data from OPM and the Department of Defense, CBO estimates that, of the current federal civilian workforce (including Postal Service employees), approximately 2,200 employees or just less than 1 percent have graduated from a U.S. service academy. Of the 120,000 federal employees who begin collecting retirement benefits each year, we further estimate that about 100 will have graduated from a service academy. For those retiring with CSRS benefits, four years of creditable service represents 8 percentage points of their annuity. For those retiring under FERS, four years of service represents between 4.0 percentage points and 4.4 percentage points of their annuity. By allowing time spent at a service academy to continue being used as creditable service under CSRS and FERS, this bill would increase retirement benefits above what they would be once OPM stops crediting such service. CBO estimates this section of the bill would increase direct spending on retirement benefits by less than $500,000 in 2005, $5 million during the 2005-2008 period, and $28 million over the 2005-2013 period.

In order to have military service credited toward civilian retirement benefits, a deposit must be made by the employee into the CSRDF. For those under the CSRS program, the deposit equals 7 percent of the basic pay received while performing the service, and under the FERS the deposit equals 3 percent of basic pay. Once OPM stops crediting time spent at an academy as military service, refunds will be made to employees who already made such deposits.

Related Links: 

- Switching to Part-Time Late in Career Can Trim Size of Retirement Annuity -APWU Retiree Director John Smith

- CLOSING Open Seasons-GovExec.com

- Panel passes bill to increase benefits and hiring incentives -GovExec.com

 

Text of bill

 

H. R. 1601
Title I: Reforms Relating to Federal Human Capital Management

SEC. 103. CIVIL SERVICE RETIREMENT SYSTEM COMPUTATION FOR PART-TIME SERVICE.

    Section 8339(p) of title 5, United States Code, is amended by adding at the end the following:

      `(3) In the administration of paragraph (1)--

        `(A) subparagraph (A) of such paragraph shall apply to any service performed before, on, or after April 7, 1986;

        `(B) subparagraph (B) of such paragraph shall apply to all service performed on a part-time or full-time basis on or after April 7, 1986; and

    `(C) any service performed on a part-time basis before April 7, 1986, shall be credited as service performed on a full-time basis.'.

    SEC. 104. RETIREMENT SERVICE CREDIT FOR CADET OR MIDSHIPMAN SERVICE.

      (a) CIVIL SERVICE RETIREMENT SYSTEM- Section 8331(13) of title 5, United States Code, is amended by striking `but' and inserting `and includes service as a cadet at the United States Military Academy, the United States Air Force Academy, or the United States Coast Guard Academy, or as a midshipman at the United States Naval Academy, but'.

      (b) FEDERAL EMPLOYEES' RETIREMENT SYSTEM- Section 8401(31) of title 5, United States Code, is amended by striking `but' and inserting `and includes service as a cadet at the United States Military Academy, the United States Air Force Academy, or the United States Coast Guard Academy, or as a midshipman at the United States Naval Academy, but'.

      (c) EFFECTIVE DATE AND APPLICATION- The amendments made by this section shall apply to--

        (1) any annuity, eligibility for which is based upon a separation occurring before, on, or after the date of enactment of this Act; and

        (2) any period of service as a cadet or midshipman at the military service academy of the Army, Air Force, Coast Guard, or Navy, occurring before, on, or after the date of enactment of this Act.

 

 

Legislation to include Postal Employees in transit subsidies program Re-Introduced

 

Congressman Jim Moran, Virginia Democrat, on March 14, 2005 re-introduced legislation expanding the availability of transit benefits for federal employees operating in the Washington metropolitan area.

"Using transit is one of the most cost-effective, environmentally sound, and efficient ways for federal employees to get to their workplace," Moran said. "As the region’s largest employer, the federal government should set an example by providing this benefit to all qualified federal employees in this region regardless of whether they work for the executive branch, the judicial branch or an independent agency."

In October of 2000, an executive order signed by President Clinton directed that employees of executive branch departments and agencies, like the Justice and Defense Departments, be given access to transit vouchers, now valued at $100 a month. These popular "Metrocheks" are also available to other federal employees and private sector employees, but at the full discretion of the employer.  Many employees do not receive the benefit and the executive order could be rescinded at any time. 

If this legislation became law, transit benefits would become a mandatory benefit offered to employees of the legislative and judicial branches as well as independent agencies. The legislation also codifies the existing Executive Order 13150 that required the mandatory tax-free transit benefit for executive branch employees.

"When the executive order was signed, about 55,000 executive branch employees were starting to take advantage of these vouchers," Moran said. "That number has swelled to more than 155,000 participants in the program, reducing the amount of vehicle miles traveled by federal employees by over 40 million.  With the Washington area having the nation’s second worst traffic and the federal government being the largest employer in the region, we have an opportunity to make a significant impact on our already overcrowded roads."

The legislation will also remove current law restrictions and enable federal agencies to offer their employees shuttle services between their office and transit centers like Metro, MARC, and Virginia Railway Express.   Under current law, federal agencies are prohibited from providing shuttle services to their employees if it is not a part of official business.   

"Providing pay parity in salaries and benefits for all federal workers has been one of my top priorities in Congress. This legislation furthers that effort by restoring parity in transit benefits for civil service employees," Moran said.

The Moran transit legislation was unanimously approved by the House Government Reform Committee last session (H.R. 1151 in the 108th).


Summary: Legislation to include Postal Employees in transit subsidies program -

Rep. James P. Moran Jr. (D-Va.) and Sen. Paul S. Sarbanes (D-Md.) are seeking to expand the program to parts of the government such as the Postal Service in Northern Capital Region  (DC, Maryland & Virginia) that were not covered under former President Clinton's 2000 Executive Order 13150. Moran's version of the bill has been approved by the House Government Reform Committee. The CBO estimated that Moran's legislation would cost the Postal Service $12 million in 2005 & 2006.

H.R.1151
Title: To provide that transit pass transportation fringe benefits be made available to all qualified Federal employees in the National Capital Region; to allow passenger carriers which are owned or leased by the Government to be used to transport Government employees between their place of employment and mass transit facilities, and for other purposes.
Sponsor: Rep Moran, James P. [VA-8] (introduced 3/6/2003) Cosponsors: 7
Latest Major Action: 9/25/2003 House committee/subcommittee actions. Status: Ordered to be Reported by Voice Vote.

source: http://www.cbo.gov/

Congressional Budget Office
Cost Estimate
October 29, 2003
H.R. 1151
A bill to provide that transit pass transportation fringe benefits be made available to all qualified federal employees in the National Capital Region; to allow passenger carriers which are owned or leased by the government to be used to transport government employees between their place of employment and mass transit facilities, and for other purposes
As ordered reported by the House Committee on Government Reform on September 25, 2003

SUMMARY

H.R. 1151 would codify and expand Executive Order 13150 to provide a tax-free transportation benefit to federal employees in the National Capital Region, beginning in fiscal year 2005. Issued in April 2000, Executive Order 13150 directed all executive branch agencies to provide employees in the National Capital Region who use public transportation to commute to work with free transit passes (known as METROcheks) with a value equal to actual commuting costs but not more than $100 per month. H.R. 1151 would expand this program to include employees with the legislative and judicial branches, the Smithsonian Institution, and the U.S. Postal Service. In addition, the legislation would allow federal agencies to extend existing transit services to take employees between work sites and public transportation centers.

CBO estimates that expanding the transportation benefit program to postal employees in the National Capital Region would increase direct spending by the U.S. Postal Service by about $12 million over the 2005-2006 period. (Postal Service spending is classified as off-budget.) CBO estimates that extending the program to other federal employees in the region would cost $3 million annually, beginning in fiscal year 2005, subject to the availability of appropriated funds. This legislation would codify existing agency practices and policies; therefore, this estimate excludes executive, legislative, and judicial branch employees who can currently participate in the transportation benefit program.

H.R. 1151 contains no intergovernmental or private-sector mandates as defined by the Unfunded Mandates Reform Act (UMRA), and CBO estimates that the bill would have no significant impact on state, local, or tribal governments.
 

ESTIMATED COST TO THE FEDERAL GOVERNMENT

The estimated budgetary impact of S. 606 is shown in the following table. The costs of this legislation fall within budget functions 372 (postal service), 500 (education, training, employment, and social services) and 800 (general government).

             

  By Fiscal Year, in Millions of Dollars
  2004 2005 2006 2007 2008

CHANGES IN DIRECT SPENDING
 
Off-Budget Effects--Postal Service  
  Estimated Budget Authority 0 6 6 0 0
  Estimated Outlays 0 6 6 0 0
 
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
 
Commuting Benefit for Nonpostal Federal Employees  
  Estimated Authorization Level 0 3 3 3 3
  Estimated Outlays 0 3 3 3 3

 

BASIS OF ESTIMATE

For this estimate, CBO assumes that the legislation will be enacted by the start of fiscal year 2005, that the necessary amounts will be appropriated for each fiscal year, and that outlays will occur at historical patterns for similar programs.

Direct Spending

According to the Washington Metropolitan Area Transportation Authority (WMATA) and the Department of Transportation, the average annual benefit provided to federal employees in the National Capital Region is $1,080. CBO estimates that 25 percent of the 22,000 Postal Service employees in the National Capital Region would apply for the new benefit. That estimate is based on information by WMATA, which expects that Postal Service employees would use transportation benefits much less than other local federal employees because of their decentralized locations and varying office hours. About 40 percent of federal workers in the region currently use this transportation benefit. CBO estimates that enacting this legislation would cost the Postal Service about $6 million in each of the years 2005 and 2006. Beginning in fiscal year 2007, there would be no net cost from the provision because the Postal Service is required to set rates to cover its costs, and CBO expects that the next rate increase will occur in 2006. At that time, it is possible that the Postal Service would also seek to recover prior unanticipated costs and that this provision could have no net cost over several years.

Spending Subject to Appropriation

Transit Pass Transportation Fringe Benefits. To estimate the bill's impact on nonpostal federal employees in the region, CBO reviewed the experiences of offices within the three branches of government that already provide transit benefits and estimates provided by WMATA. Using that information, CBO found that in the National Capital Region, approximately 4,000 federal employees are not eligible to receive the tax-free transportation benefit, and most of those employees work for the Smithsonian Institution. Using estimates provided by WMATA and the experiences of agencies that are similar in size and location to the Smithsonian Institution, we estimate that 75 percent of those employees would participate in the program. That estimate is higher than the average for the area because of the limited parking and nearby METRO stations available to these employees. Hence, we estimate that providing the transportation benefit to other federal employees that are currently ineligible to participate would cost approximately $3 million a year or $12 million over the 2005-2008 period, subject to appropriation of the necessary amounts.

Use of Government Vehicles. Section 2 also would authorize federal agencies to use government-owned or leased passenger carriers to transport employees between their offices and public transportation centers. Under current law, the use of most government vehicles is only authorized for official purposes. If an agency chooses to provide additional transportation services under the bill, the legislation would require agencies to absorb the costs from funds already available; use alternative fueled vehicles if possible; and coordinate transportation routes with other federal agencies.

For this estimate, CBO assumes that section 2 would affect only agencies in the National Capital Region because it would require agencies to consult with the National Planning Commission before offering expanded transportation services. CBO estimates that allowing federal agencies in the region to provide transportation from work places to public transportation centers would have no significant net impact on the federal budget. Under the bill, agencies could not provide employees with a combined monthly benefit from METROcheks and the use of government-provided transportation of greater than $100 per month. Consequently, we expect that the authority to use government vehicles to travel between public transportation centers and government work places would not be used extensively.
 

INTERGOVERNMENTAL AND PRIVATE-SECTOR IMPACT

The bill contains no intergovernmental or private-sector mandates as defined by UMRA, and CBO estimates that the bill would have no significant impact on state, local, or tribal governments.
 

ESTIMATE PREPARED BY:

Federal Costs: Matthew Pickford and Mark Grabowicz
Impact on State, Local, and Tribal Governments: Sarah Puro
Impact on the Private-Sector: Selena Caldera
 

ESTIMATE APPROVED BY:

Peter H. Fontaine
Deputy Assistant Director for Budget Analysis


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