House passes postal legislation

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Washington, D.C.--In welcome news to commercial mailers, the U.S. House of Representatives Tuesday passed legislation to change the Civil Service Retirement System funding formula.

The change is expected to save the USPS $3 billion a year and postpone any postage rate increase until 2006.

Now that both houses of Congress have passed the Postal Civil Service Retirement Funding Reform Act of 2003, it moves on to President Bush for his signature. The Postal Service said it would have overpaid into the fund by $78 billion without the change. The problem was discovered late in 2002.

American Business Media, the Direct Marketing Association and the Magazine Publishers of America all lobbied in support of the legislation.

The ABM estimates its membership will save $60 million in postal costs between 2004 and 2006 if the bill becomes law.

--Carol Krol

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