GovernmentExecutive.com

By voice votes in both chambers, the Senate and House approved legislation overhauling the U.S. Postal Service's rate-making operation and retirement program in the final hours of this year's session.

House Government Reform Committee Chairman Tom Davis, R-Va., and ranking member Henry Waxman, D-Calif., drafted the legislation to help satisfy Senate objections to the bills originally passed, particularly in ensuring that a new rate cap will not allow the Postal Service from raising its rates by more than the rate of inflation over the next decade.

"As part of the reform, the legislation updates the Postal Service's antiquated, costly regulatory system, toughens oversight, and allows the Postal Service to both act and compete as a modern business," said Rep. John McHugh, R-N.Y., one of the key legislators pushing the bill.

One major element of the bill is that the Postal Service will be relieved from paying retirement benefits earned by its employees during the years they were in military service. Those costs will be paid by the Treasury, lifting a burden that could have contributed to higher postal costs.

"This, combined with release of escrow funds, will be used for retiree health benefits," said Postmaster General John Potter in a statement.

"After working for more than a decade to ensure that the U.S. Postal Service has the tools it needs for the 21st century, we applaud today's efforts and urge the president to quickly sign the measure into law," added Direct Marketing Association President and CEO John Greco Jr.