CSRS LEGISLATION
OIG report says plan unfair to customers

Congress passed Civil Service Retirement System (CSRS) legislation last year, and while it saved the Postal Service from overfunding the retirement system by billions, the law’s funding plan is unfair to postal customers, according to a report by the Postal Service Office of Inspector General (OIG).

The OIG concluded that any CSRS overpayments being held in escrow should be released to the Postal Service, and that USPS shouldn’t be saddled with pension costs for military service. Such a requirement constitutes a “hidden tax” on Postal Service customers, the OIG said. Those costs aren’t borne by any other federal agency.

The report noted that Postal Service revenues shouldn’t be subject to outside control, since these revenues are essentially “other people’s money” — not tax dollars — and should be used for operations and capital investment. “We believe postal customers must be the beneficiaries of lowered payments,” the OIG’s report said.

Additionally, the report supported a review of the Office of Personnel Management’s calculation of CSRS retirement costs, including reevaluating whether the costs associated with postal employees’ prior government service should be included in the calculation. The Postal Service was scheduled to overpay the CSRS fund by $105 billion, primarily due to higher than expected interest earnings, when Congress passed CSRS legislation. However, the legislation added a new requirement that the Postal Service fund $27 billion to cover military service time for its employees.

POTTER: MAIL IS THE BEST VALUE

PMG Jack Potter addressed the New England Mail EXPO on May 26. Following are his comments about the value of mail.

Today’s Postal Service is excited about the future. We’re ready to deliver your growing business! Mail is still very much a vital part of this nation’s economy. And mail will remain valuable for years to come!

How do I know that? Because it’s all about economics — and reliable, convenient and affordable service. And when you come right down to it, it’s all about dollars.

Dollars count in this business. But it’s also about who offers the better deal.

I’m here to tell you, mail is still the better deal.

A while back, we did research on what consumers thought about the mail. We learned that the American public still has a love affair with hard copy mail.

Nine out of 10 households actually sort and review the mail the same day it’s received. We also found that advertising mail - First Class or Standard - has value for most households. Seventy-four percent of direct mail is read by the consumer. Fifty-two percent of households order products and services based on the direct mail pieces they receive.

In fact, 21 percent of all consumers have actually taken a direct mail piece with them when shopping at a store.

And get this: over twice as many households order products and services from catalogs than from information received on the internet.

Overall, mail was - and is - the highest rated medium when compared with magazine, newspaper, radio, billboard and Internet advertising.

So what about television? Let me share this datapoint. In 1965, a business could reach 85 percent of American households by placing three prime-time ads on TV. Today, to reach that same 85 percent saturation, you would have to place 115 prime-time ads on the networks — 115 prime-time ads on networks!! If you think the internet has had impact on our business, look what cable and other technologies have done to broadcast television advertising.

AND THE WINNER IS
Postal Service earns 19 Communicator Awards

Lord of the Rings might have won 11 Oscars, but the Postal Service was a big winner in the 2004 Communicator Awards international competition — picking up 19 awards in the Print Media category.

Communicator Awards honor outstanding work in the communication field. The Postal Service won 10 Crystal Awards of Excellence — more than any other participant. Crystals are the competition’s most prestigious award.

Marketing made an impressive showing, winning five Crystal Awards of Excellence, six Awards of Distinction and three Honorable Mentions.

Government Relations picked up three Crystal Awards and the Postal Inspection Service earned two Crystal Awards of Excellence.

The Postal Service is delivering results — writing, designing, and producing award-winning communications that are setting standards for the industry.

CUSTOMIZED MARKETMAIL
Shaping the future of direct mail

Last August, the Postal Service introduced Customized MarketMail (CMM), bringing to life the dreams of creative advertising mail designers nationwide. Perhaps you have seen the donuts, jet airplanes, giant quarters, or reindeer antlers in your mailbox, promoting products and services in your community. These creative mailpieces can take virtually any shape and design to demand attention, deliver high impact, and generate greater response rates.

CMM is now an even more effective marketing tool for businesses. As of March 4, 2004, business mailers can attach Standard Mail matter — such as business reply cards and envelopes, coupons and coupon booklets, thin merchandise samples, promotional magnets, and other marketing material — to their CMM pieces.

Another enhancement to CMM allows mailers to use standard delivery addresses in addition to the “Occupant” and “Exceptional” address formats. Changes in the CMM mail preparation procedures also have recently taken effect.

CMM is just one of the value-added services that the Postal Service provides to meet the direct mail needs of business customers. Other direct mail products and services from the Postal Service include repositionable notes and reply mail services.