Written by Donna Hanbery Executive Director, Saturation Mailers Coalition

Transcription

1 Written by Donna Hanbery Executive Director, Saturation Mailers Coalition SENATE APPROVES 1789 AS AMENDED On April 25, 2012, the Senate in a 62 to 27 vote approved senate bill 1789, the 21st Century Postal Service Act. This bipartisan legislation, authored by Senators Lieberman (I-CT), Tom Carper (D-DE), Susan Collins (R-ME) and Scott Brown (R-MA) was passed after the addition of approximately 20 amendments and the defeat of an almost equal number including suggestions to end the mailbox monopoly, increase postal rates, and an effort by Senor John McCain to substitute the original Senate 1789 for a bill that looked a lot like Congressman Issa s postal reform House bill. Key provisions of the bill of interest to publishers that mail include the following: 1. Maintain 6-day delivery for at least two years with significant obstacles to reduce to 5-day. 1 / 7

2 2. Immediately returns $13B in pension over-payments to the USPS with direction that the funds be used to provide incentives to encourage 100,000 eligible employees to retire. 3. It excuses the 2012 $11.8B retiree health care pre-payment currently due under existing law and replaces the pre-funding requirement with a new 40-year amortization payoff. Thi s change from the current 10-year mandate produces a $4.5B a year savings. 4. Largely maintains current delivery and processing standards. 5. Requires the USPS to set standards for retail service across the country and consider alternative options before closing post offices. 6. Allows the USPS to sell non-postal products and services in appropriate cases. 7. Allows the USPS to ship beer, wine and distilled spirits. 8. Reforms the Federal Employees Compensation Act and the Federal Workers Compensation program. In a statement issued in response to the bill, the Postal Board of Governors expressed regret that the Senate bill did not back the Postal Service s comprehensive business plan. The Governors said: We are disappointed that the Senate s bill would not enable the Postal Service to return to financial viability. Given the volume of losses we have experienced over the past five years, along with expected future trends, it is inappropriate to keep unneeded facilities open. The Board was also disappointed in the Senate s delay of the Service s implementation of 5-day delivery. Predictably, the voice of labor maintained the opposite concern, expressing disappointment that the Senate bill gave the Postal Service the opportunity to downsize its network and head count too soon. 2 / 7

3 The focus on postal reform now turns to the House that will consider the drastically different bill of Darrel Issa (R-CA) and the Senate bill to determine if a final bill can be negotiated, reconciled, approved and sent to the President. EDDM RULE CHANGES An April Postal Bulletin announced revisions in the mailing standards and rules that apply to saturation flats with a simplified address also known by the Postal Service brand EDDM (Every Door Direct Mail). Changes were made to expand dimensions that will qualify for simplified mail treatment. The old eligibility for saturation mail simplified address flats required that one of the following dimensions was needed to distinguish a flat piece from a letter-sized piece. Old Definition: More than 11-1/2 inches in length; OR More than 6-1/8 inches in length; OR More than ¼ inch thick. 3 / 7

4 The new dimension eligibility standard provides that a piece must be more than 10-1/2 inches in length, as opposed to the 11-1/2 inch definition. (The other eligibility alternatives are unchanged.) This change will give mailers more flexibility in the type of pieces that can be mailed, like menus and doorhangers, and will allow mail service providers and printers to make more efficient use of their presses. A second revision will allow the use of Business Customer as a simplified address to city routes with 100% business deliveries. Previously these routes were excluded from simplified address delivery. A final change permits mailers using EDDM commercial that have the option of entering mail at a DDU or BMEU not to have to print the delivery city, state and zip code on the pieces. Alth ough the Postal Service recommends that mailers and printers continue to include the city/state/zip code on pieces for bundles entered upstream from the DDU, as this will help ensure accurate delivery in case bundles break, this is no longer a requirement. These revisions in the EDDM dimensions and preparation requirements went into effect May 7, / 7

5 PRC APPROVES PICTURE PERMIT PRICE CATEGORY Effective June 24, 2012, the Postal Service will offer commercial mailers of pre-sorted first class mail letters and cards, and standard mail letters using full service intelligent mail bar codes (IMBs), the option of requesting the Postal Service to approve a customized permit imprint indicia that could include the mailer s logo, product promotions, or brand. Postal Service officials have been talking about efforts to enhance and expand the value of the mail and to encourage customers to use the mail in different ways. One of the ideas that was tested and discussed during the past year was giving mailers the option to work with the Postal Service and seek pre-approval of a mailer-specific permit indicia that might include such varied images as a corporate brand, a picture, or a product that would serve the dual purpose of showing the postal permit on the upper right side of the envelope or mail piece and add interest and impact to the mailing. The proposal filed by the Postal Service, and approved by the USPS, includes the following limits and requirements: 1. All mailings must use full service intelligent mail bar codes. 2. The picture permit imprint indicia must be pre-approved by the Postal Service and customers will need to defend the service against any legal challenges should the use of a particular image be challenged. 3. The Postal Service has posted specifications, regulations, and directions for allowable images and its procedures for seeking prior approval. 4. There is an additional charge for this service of 1 per piece for first class mail and 2 for 5 / 7

6 standard mail. The same additional changes apply to non-profit pieces. Businesses and associations commenting about the proposal were generally supportive but criticized the Postal Service for adding an additional price tag to the program. The PRC Public Representative noted that a 2 price might be too large a percentage increase for price-sensitive standard mailers. Other associations commented that the Postal Service s efforts to retain mail volume and stimulate growth were discouraged by the additional costs. The PRC indicated that it would not substitute its judgment for the Postal Service s pricing decisions in this voluntary program. This PRC approved the Postal Service proposal in April. Mailers seeking information on registration and program requirements can check usps.com and the RIBBS websites. Donna E. Hanbery, Executive Director Saturation Mailers Coalition 33 South Sixth Street, Suite 4160 Minneapolis, MN (612) Direct Line 6 / 7

7 (612) Fax 7 / 7