Associated Mail & Parcel Centers Blog

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On July 1st the Postal Service issued a Press Advisory that it will be announcing its price proposals for Mailing Services products on July 6th.

The proposal goes to the Postal Regulatory Commission (PRC) for its consideration.  The Postal Service has indicated it hopes to implement price increases next January (see http://shipp.in/g/1bn and http://shipp.in/g/1c0) . A broad group of mailers and mail associations has vowed to oppose any price increase, arguing that there is no legal basis for increasing prices in this manner.

In a related (and helpful) development, the actuarial firm commissioned by the PRC to study the question of the adequacy of funding for postal retiree pensions opined earlier this week that the Postal Service is over-funding its pension plan by more the $50 billion. If the Congress and the Administration accept this conclusion (which they have not in the past), that could diminish the need for near term price increases.

Expect that Congress will provide some short term financial relief for the Postal Service late this summer, but price increases as well as the other cost cutting initiatives previously announced by the Postal Service, will still be necessary.