- The U.S. Postal Service could start seeking approval
for its next increase in postage rates as soon as next month, about two
years earlier than anticipated, Tuesday's Wall Street Journal reported,
citing postal officials.
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- The move, the officials said, stems from the fact that
the Postal Service hasn't yet persuaded Congress to change how the agency
contributes to a federal- government retirement fund.
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- Boosting the price of letter and package deliveries would
hurt consumers and businesses already hit with three rounds of rate increases
since early 2001 that far exceeded the country's overall inflation rate.
First-class stamps have jumped 12%, including a three-cent increase to
37 cents last summer. Another rate increase would make it harder for the
post office to keep customers from paying bills electronically or steering
package shipments to private-sector rivals such as United Parcel Service
Inc.
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- The likelihood of a rate increase has grown during the
past several weeks, because Congress has refused to back legislation drafted
by the Bush administration that would allow the Postal Service to make
smaller contributions than it expected to a pension fund for workers hired
before 1984. Shrinking those payments could free up extra funds to reduce
the Postal Service's debt by $3 billion in the fiscal year ending Sept.
30 and postpone the next rate increase until about 2006.
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- The change being sought wouldn't affect future worker
retirement benefits and was triggered by higher-than-expected returns on
investments made by the Treasury Department.
- Wall Street Journal Staff Reporter Rick Brooks contributed
to this report.
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