Federal Manager's Daily Report

Office of Personnel Management Deputy Director Dan G.

Blair testified before the Senate Committee on

Governmental Affairs opposing further relief — $27

billion of it — for the U.S. Postal Service in paying

retirement costs associated with employee military service.

The Postal Civil Service Retirement System Funding Reform

Act of 2003 grants the Postal Service $78 billion in pension

fund relief and full funding of postal Civil Service

Retirement System costs, said Blair, who argued that the

right governmental response to agency under-funding is to

require agencies to pay the full cost of CSRS.

In commenting on a recommendation to transfer pension

liabilities elsewhere — part of a broader package of

recommendations on postal reform developed under President

Clinton — Blair pointed out that a CSRS bailout would

likely lead to a FERS bailout in the future and argued

that making an exception for the Postal Service in the

case of pension obligations is a move in the wrong direction.