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Senate HSGAC committee releases reconciliation text with no cuts to FERS, calls for eliminating USPS electric vehicle funding

Senate Committee on Homeland Security and Governmental Affairs (HSGAC) Chairman Rand Paul (R-KY) released its portion of the Senate reconciliation bill. While the proposal is not the same as the House-passed legislation, threats remain as the process unfolds over the next few weeks.

As a direct result of NALC’s action in the Senate, HSGAC’s text does not include the provision in the House-passed reconciliation bill that would eliminate the Federal Employee Retirement System (FERS) Special Annuity Supplement, a critical benefit for FERS-covered letter carriers who retire before they are eligible for Social Security at 62.  

Unfortunately, the committee is seeking to take back any unspent money designated for Postal Service electric vehicles and require the agent to sell all its electric vehicles and associated infrastructure.

“While we are pleased that no cuts to letter carrier retirement benefits were included in the Senate proposal, the fight is far from over," NALC President Brian Renfroe said.  “This ridiculous effort to slow down or stop the Postal Service from procuring new delivery vehicles for letter carriers threatens our safety and the service we provide. New delivery vehicles are already long overdue. Letter carriers work in dangerously high temperatures inside most postal vehicles, and keeping the current fleet operating becomes more difficult every day.”

Like the House-passed bill, HSGAC also included language imposing a fee for Merit Systems Protection Board Claims and Appeals, which will impact Postal Service employees. NALC opposes this provision.

Though they do not apply to the Postal Service or letter carriers, the HSGAC proposal also includes other anti-federal employee provisions that threaten unions, such as requiring unions to reimburse 10 percent of any funds received through payroll deduction to the Department of the Treasury, elimination of official time, and forcing new federal hires to choose between at-will employment or increasing their FERS contribution, just to name a few.

“This package is full of anti-labor provisions that set a dangerous precedent for federal unions and all federal and postal employees,” Renfroe said. “We stand in solidarity with our fellow federal employees in their fight.”

Next steps 

Each Senate committee will continue to release its priorities. So far, nine of 16 committees have released their text. Once all Senate committees release their text, full Senate consideration will follow. Notably, the Senate Budget Committee released text that does not include the government-wide provisions mentioned above. Whether HSGAC or the budget committee’s text will be used in the final version is unclear.

If the Senate can pass its legislation, which only needs a simple majority as opposed to the usual 60 votes, the House and Senate will go to conference to reconcile the differences in their bills and vote on a final package. 

"NALC has been fully engaged throughout the reconciliation process. As it continues to unfold, we will keep fighting like hell to ensure our retirement benefits stay off the table, new postal vehicles are protected, and that anti-labor proposals get shut down," Renfroe said. “Thank you to every letter carrier who has joined the fight. Let’s work together to finish the job.”

Check nalc.org for future updates.