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.