01/19/2017

Postal Regulatory Committee Approves Postage Rate Hike

The new rate, which goes into effect Jan. 22, will be 49 cents

The Postal Regulatory Commission (PRC) has approved new rate increases to be implemented by the Postal Service on Jan. 22, including 49 cents for a new stamp and an overall increase of .9 percent across all classes and categories of mail.

While this is expected to be the only rate change in 2017, the PRC indicates in its annual report to Congress released last week that legislation is needed to address the “volatile financial condition” of the United States Postal Service (USPS).

After accounting for $5.8 billion retiree health benefit prefunding obligation, the USPS posted a net loss of about $5.6 billion for fiscal year 2016 after posting a $5.1 billion loss the previous year.

Postal service officials say that losses are likely to persist for the foreseeable future because of mandated costs, such as a retiree health benefits program the agency says it can’t afford and an ineffective pricing system.

“This is why legislative and regulatory reforms remain critical for us to meet the needs of the American public now and well into the future,” said Postmaster General and CEO Megan Brennan.

This article was provided to OSAE by ASAE's The Power of A.