Postal Info

NEWS

9/1/2008 - Important Postal Information for Mailers

Effective November 23, 2008, the Postal Service will require all mailing lists to be updated within 95 days of a standard or first class discounted mailing. The Postal Service is taking this action in order to cut down on the amount of undeliverable mail it processes each year. Undeliverable mail is a major issue for the Postal Service, since it spends billions of dollars each year attempting to deliver, forward, or return it.

One of the simplest, easiest, and least expensive methods for updating your mailing lists to meet the Postal Service’s Move Update requirement is to process your mailing lists through our National Change of Address list update service. NCOA Link compares your electronic list to a current Postal Service database and updates the records in your list. Using the NCOA Link service to update your mailing lists benefits you in the following ways:

It satisfies the Postal Service’s Move Update requirement
More of your mail pieces are delivered, giving you better results from your mailing.
You minimize the number of mail pieces that don’t get delivered, which saves you money on postage, printing, and mailing.
It is good for the environment, since less mail is wasted and discarded.

Call your Direct Connection account representative at (800) 420-9937 for more details and information.

5/4/2008 - New information about intellegent barcode

The Intelligent Mail barcode, formerly referred to as the 4-State Customer barcode, is a new Postal Service barcode used to sort and track letters and flats. The Postal Service is promoting use of the Intelligent Mail barcode because it expands the ability to track individual mailpieces and provides customers with more options and information about the mail.

More information found on this document

10/10/07-- USPS Proposes Rules for Letters and Flats

The Postal Service proposed significant new requirements for the preparation of addresses on letter-size mail, and for the preparation and placement of addresses and barcodes on flat-size mail. The proposed standards would apply to pieces at automation, presort, and carrier route rates.

New letter-mail requirements

The Postal Service stated that all letters mailed at discount rates must be addressed using a minimum of 8-point type, and the characters in the address must not touch or overlap. Each element on the address line may be separated by no more than three blank character spaces.

The Postal Service also announced that it was proposing these changes to improve address readability for their high-speed processing systems and for letter carriers during delivery.

New flat-mail requirements

The Postal Service also proposed new address placement requirements for Periodicals, Standard Mail, Bound Printed Matter, Media Mail, and Library Mail flat-size pieces sent at automation, presorted, and carrier route rates. It further proposed to require an 11digit POSTNET barcode or an IMB on flat-size First-Class Mail, Periodicals, Standard Mail, and Bound Printed Matter. Currently only a 9 digit barcode is required.

The Postal Service related its proposal for an 11-digit barcode or IMB to the deployment of flats sequencing systems. The existing standard for a ZIP+4 code is adequate for the current depth of sort performed by USPS flat-sorters, but FSS will require the longer code to enable automated sortation to carrier routes and sequencing for delivery. The use of an 11 digit barcode in lieu of a zip+4 (9-digit) will help expedite mail delivery for flat sized mail.

3/19/07--USPS Governors Approve most PRC rates

The Governors of the U.S. Postal Service today approved the Postal Regulatory Commission’s proposed 7.6 percent rate increase, including an increase in the price of a First-Class stamp to 41 cents, authorizing the issuance of the Forever Stamp, approving shape-based pricing and set May 14 — 75 days from today — as the date for implementation of these changes.

However, the Governors requested reconsideration of the PRC’s rate recommendations for Standard mail flats, the Non-Machinable Surcharge for First-Class mail letters and the Priority Mail Flat-Rate Box.

“We are asking the PRC to reconsider certain issues that we believe [need their attention],” said James C. Miller III, chairman of the USPS Board of Governors, in a teleconference earlier today. “It’s possible that the commission could change the rates … that you could have a different set of rates than that are presently going into effect.”

However, he said that the Board of Governors might be too optimistic with this idea.

“The PRC might say, ‘Thank You. I know you have concerns, but we chose not to make any changes,’” he said.

When asked why the Board of Governors chose May 14, Mr. Miller said the board thought the date “offers sufficient advanced warning while making sure that we are not affected by the revenue shortfall [of not implementing the increase].”

The Postal Service proposed new rates May 3, 2006, and the PRC issued its recommendation Feb. 26. The Governors spent considerable time deliberating the PRC’s recommendations — meeting six times and rewriting several drafts of their decision over the past 22 days — before voting earlier today. The Board is made up of many new members, five of whom have been sitting less than two years.

The Governors also approved the Forever Stamp, which will sell at the new 41-cent First-Class mail one-ounce letter rate. The value on these stamps will always be the one-ounce letter rate and can be used for any future one-ounce letter mailing without extra postage.

The new prices also reflect differences in the costs of handling letters, large envelopes (flats) and packages, the Governors said. Mailers are encouraged to consider options available to reduce postage costs. For example, if the contents of a First-Class large envelope are folded and placed in a letter-sized envelope, mailers can reduce postage by as much as 39 cents per piece.

The rates that were sent back in protest include the following.

— Standard Mail Flats — The Governors are concerned that price increases recommended by the PRC may impose an unnecessary degree of “rate shock” on the catalog industry and small businesses particularly. The recommended increase for some catalog mailers is as much as 40 percent, which is more than double what the Postal Service had proposed.

— Non-Machinable Surcharge — The PRC decision on First-Class two- and three-once letters does not differentiate between machinable and non-machinable. The Governors believe this warrants further analysis to ensure there are incentives for mailers to provide letters that can be processed at lower cost on efficient sorting equipment.

— Priority Mail Flat-Rate Box — The PRC recommended a rate of $9.15 for the Priority Mail Flat-Rate Box, which is $1.05 above the current rate and 35 cents higher than the Postal Service’s proposal of $8.80. The Governors believe a rate below $9 would be more appropriate for this popular consumer and business product and would be cost-justified.

The Board of Governors also delayed until July 15 the implementation of the new prices for Periodicals (magazines and newspapers) to allow time for the publishing industry to update computer software and adjust to the complexity of the PRC-recommended rate structure for periodicals. The USPS had proposed a single container charge for periodicals to encourage efficiency, but the PRC recommended 55 different prices based on container type, entry point and level of sortation.

Mike Plunkett, the USPS’ acting vice president for pricing and classification, said that the cost to the USPS for such a delay is “$15 million per month.”

Whether a new rate case will be field under the current regime was also discussed. Mr. Miller said he “would like to see one more rate case before the new regime begins” mainly because he believes the new regime may limit the USPS’ ability to propose rates to better reflect cost.

2/26/07--PRC recommends 7.6% Rate Increase

In a surprising decision, the Postal Rate Commission today has recommended rates that are either equal to or below those requested by the U.S. Postal Service, while still providing the agency with sufficient revenue to meet all its needs.

The decision was made by Dan G. Blair, the new chairman of the new Postal Regulatory Commission. The recommendation, which was delivered a week before deadline, came as a unanimous decision.

"In nearly every category of mail, including nonprofits, the Commission approved rate increases equal to or below the postal service’s request, while still meeting the Service’s revenue requirement," Mr. Blair said.

The decision follows an administrative proceeding involving mailers, employee organizations, consumer representatives and competitors. While the rate increase will impact numerous classes of mail to varying degrees, the average rate increase will be 7.6 percent. The rates proposed by the postal service equate, on average, to an 8.1 percent increase.

The USPS filed May 3 with the PRC for an average 8.5 percent rate increase, explaining it would otherwise lose $5.9 billion in 2008. The PRC found additional income necessary to satisfy the "breakeven" requirement that postal revenues match costs.

The PRC, for example, has recommended a 2 cents rather than 3 cents increase in the price of a First-Class stamp. The PRC adopted USPS proposal for Standard Mail shape-based rates.

The PRC also approved the USPS’ "Forever Stamp" proposal specifically designed to ease the public’s transition to new single-piece letter rates. Forever Stamps will be sold in reasonably limited quantities for the price of a First-Class one-ounce letter and continue to be worth the price of a First-Class, one-ounce letter even if that price changes.

"This is a prime example of the Postal Regulatory Commission working together with the postal service in the best interests of the citizen mailer," Mr. Blair said.

The USPS governors can either accept the decision and the recommendation, protest it and implement the rates, or protest it and go back to the commission and ask for a second decision. Historically, the board of governors has tended to accept the PRC's decisions, though on occasion they have made small changes to them.

While no final date has been announced regarding the governors' decision, Postmaster General John E. Potter told USPS customers last year that they should prepare for a possible May 6 rate change date.

"The postal service has a minimum of 60 days before they can implement rates" Mr. Blair said. "The earliest will be May."

12/20/06--Bush signs historic postal reform bill into law

President George W. Bush today signed into law today new postal legislation that will benefit customers by ensuring predictable price increases tied to the rate of inflation.
The Postal Accountability and Enhancement Act is the first major change to the Postal Service since 1971. The law enables the organization to continue its transformation efforts and cost-cutting measures.
“I was excited to be there for the signing,” said Jerry Cerasale, who was in attendance at the signing ceremony, which took place at 1:15 pm today at the Eisenhower Executive Office Building. “I also felt relieved that it was over, and proud to be among many of my colleagues in the mailing industry who helped make this happen.”
On the podium beside Mr. Bush when he sigend the landmrk legistion were: Reps. Tom Davis (R-VA), Danny Davis (D-IL) and John McHugh (R-NY), as well as Sens. Susan Collins (R-ME) and Tom Carper (D-DE), Postmaster General John E. Potter, and James C. Miller, chairmain of the USPS Board of Governors. Besides Mr. Cerasale, many important people in the mailing indusry were also in attendance. They included: DMA president/CEO John A. Greco, Jr., Edward J. Gleiman, DMA postal consultant and former Postal Rate Commission chairman, representatives from the Association of Postal Commerce, Magazine Publishers Association, Alliance of Nonprofit Mailers, and the Envelope Manufacturers Association. Also in attendance were representatives from the print and paper industries, the Postal Rate Commission , Pitney Bowes, unions and employee associations.
The law is the culmination of a 12-year effort by Congress to secure changes to the laws governing the USPS. It will link future rate increases to the Consumer Price Index and give the USPS more flexibility for pricing competitive products. The Act also reconstitutes the existing Postal Rate Commission into a regulatory body with greater authority and responsibility. The current rate case under consideration will proceed as scheduled, and the USPS will be able to file one last rate case under the current rules.

The new law directs the Department of the Treasury to resume the funding of military pensions for postal employees and abolishes a federally mandated escrow requirement directing those monies to pre-fund retiree health benefits.

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8/4/06--New Windows for Number 10 Envelope Standard

The window on the front of the standard number 10 envelope is moving on up.

In a presentation at the quarterly Mailers' Technical Advisory Committee Aug. 3, John Schlich, senior vice president, process improvement, at National Envelope, Smyrna, GA, told attendees that the change will come in January.

The standard position of the window on a number ten envelope is 7/8 of an inch from the left side and 1/2 of an inch from the bottom of the envelope, said Mr. Schlich. The standard number 10 envelope is the most popular type of envelope used for business mailings and direct mail, measuring 4 and 1/8 inches by 9 and 1/3 inches.

"The [current window position] hasn’t created as much of a problem with automation as we thought it would," said Mr. Schlich, who is also the MTAC representative for the Envelope Manufacturers Association. "But when mailers use some of the older equipment that still has a 1/16th of an inch variance in the placement of that window, that creates some intermittent problems with automation." The problems involve printing addresses and barcodes on envelopes without getting in the way of the window during the automated process.

“We [the EMA] are changing what we consider to be the standard window position on a standard number 10 envelope to 7/8th of an inch to left, which it is now, and 5/8th of an inch from the bottom of the envelope,” Mr. Schlich said. The change takes place Jan. 1, 2007.

After the change mailers will still be able to buy large quantities of envelopes that they can customize with any size window they’d like—-and in any position they’d like, he said.

"But if you are buying off the shelf, this will be the new standard," Mr. Schilch said. "We hope this solves problems with automaton."

The overall size of the window will stay the same, he said, adding that the change does not require approval from the U.S. Postal Service.

Schilch said later that the change would most likely help smaller mailers, who generally buy envelopes off the shelf and use older equipment. They often have problems with getting their address on the envelopes correctly and have to spend time and money to get the data to fit in the proper place around the window.

In general, mailers welcomed the change.

5/2/06--Postal Rate Case Filed

The Postal Service has filed for a rate increase that raises all rates and fees by a volume-weighted average of 8.5%. Average increases by class are: First-Class 7.1%, Periodicals 11.7%, Standard Mail 9%, Package Services 13.4%, Express Mail 12.5%. Priority Mail is going up an average of 13.8%, and special service fees will rise an average of 11.2%.

Among the notable features of the filing are:

-- The contingency is only 1%, meaning the Postal Service is allowing very little room for unforeseen cost increases (such as labor or fuel) in nits test year (2008) forecast. This mitigates the impact on mailers, but makes it more important for the agency to keep costs in check.

-- Single-piece First-Class Mail will rise to $0.42 (+7.7%) while Presort rates will go up 7.1% and automation rates by 6.8%. Carrier route rates for automation FCM will be eliminated.

-- Standard Mail rates will rise sharply for small parcels, and less sharply for flats, compared to letter-size pieces. A flat mailed with a detached address label will also cost more than the same flat would be if addressed on-piece.

-- Periodicals rates will include an $0.85 container charge, applicable to a pallet or a sack. The charge highlights the Postal Service’s urging of mailers to move out of sacks.

The Postal Service noted it is emphasizing shape more than weight in its proposed rate structures, and giving mailers incentives to redesign mail and alter preparation methods to make their mailpieces more efficient. Automated letter mail will do much better than non-automated flats, for example.

Also, by reducing or eliminating some charges for address correction, the Postal Service is demonstrating its expectation that address quality and accuracy will contribute to reduced costs for undeliverable-as-addressed mail.

The Postal Service will be filing its case with the Postal Rate Commission later today, and more details of its content will be available once the rate schedules and other information can be analyzed more completely.

11/15/2005 - USPS Rate Hike Effective January 8, 2006

The U.S. Postal Service Board of Governors voted yesterday to accept the Postal Rate Commission's recommendations to increase most postal rates and fees 5.4 percent. The new rates take effect Jan. 8.

This rate increase, the first since 2002, is needed to fulfill the requirement of a federal law enacted in 2003 requiring the postal service to establish a $3.1 billion escrow account. Without this federal mandate, a rate increase in 2006 would have been unnecessary, the USPS has said.

Among the rate adjustments, the single-piece rate for First-Class mail will rise from 37 cents to 39 cents and the postcard rate will increase 1 cent to 24 cents.

"The governors take this action mindful of our obligation to assure the financial integrity of the nation's postal system," board chairman Jim Miller said in a statement. "These increases will allow the postal service to meet the obligation established by Congress to place funds in escrow in 2006."

The governors voted by fax yesterday to approve the rates. They still are scheduled to have a closed meeting tomorrow to discuss other postal matters.

Though the PRC recommendation called for a rate and fee increase around 5.4 percent for nearly all mail classes and subclasses, different rate changes were necessary in some areas to comply with statutory requirements. For example:

* Rates for small local newspapers will decrease 2.3 percent.

* Rates for solicitations from nonprofit organizations also vary. Generally, Nonprofit Standard Mail will rise 3 percent while Nonprofit Enhanced Carrier Route mail will increase 12.3 percent. In all, nonprofits will pay $17 million less than requested by the postal service.

* The book rate will increase 12.7 percent. By law, all classes of mail must cover their direct cost of service, and books, CDs and library materials would otherwise violate this requirement.

In general, regular Standard mail will increase 5.4 percent and Enhanced Carrier Route Standard mail will rise 5.5 percent. Priority Mail will increase 5.4 percent, Express Mail 5.5 percent, Outside County Periodicals 5.5 percent, Parcel Post 7.1 percent and Bound Printed Matter 5.5 percent.

11/2/2005 - PRC OKs, Sends 5.4% Rate Hike to USPS Board

The Postal Rate Commission approved a 5.4 percent across-the-board postage rate increase with some exceptions. The matter now goes to the U.S. Postal Service Board of Governors, which said it would vote on final approval Monday.

If approved, the rates likely would take effect Jan. 16, though some in the industry have asked for a delay so mailing software can be updated.

Meanwhile, postal watchers hope reform legislation is passed that would make the increase unnecessary.

PRC chairman George Omas said the 5.4 percent increase is well below the rate of inflation for the past 3 1/2 years, which is the last time rates rose.

"The last rate case came just after the Sept. 11 attacks and the discovery of letters containing anthrax," he said. "Everyone had concerns about the financial stability of the postal service, and the commission suggested that prompt action on that request was particularly important. Not only was a settlement reached in that case, but the postal service and the rate commission then sponsored a joint summit to find ways to simplify the system for adjusting postal rates."

As a result, Omas said, the USPS has focused on mailers' preference for small increases.

"In this case, it chose not to request funds for more speculative, contingent expenses, instead limiting its request to the amount needed to fund a statutory obligation," he said.

7/27/2005 - House Passes Postal Reform Bill

(July 27, 2005)--- Last night, the House of Representatives passed HR 22, the Postal Accountability and Enhancement Act, by a vote of 410-20. Such a lopsided majority indicates a significant level of support for the measure, but the Administration has already indicated its opposition to those portions of the bill that the mailing industry wants most – deletion of the escrow and return of "military service credit" responsibility to the Treasury. The Senate is expected to act on its bill, S 662, after the August recess. If that proposal is passed, the two different bills would go to a conference committee so that a single piece of legislation could be developed and returned for action by each house.

Click on link below for more information.

http://www.postcom.org/public/reform/hr22.passes.htm

Nonprofits, USPS Agree on Standard Mail Rule

(APRIL, 2005) --- Nonprofit mailers are celebrating an agreement with the U.S. Postal Service regarding the interpretation of an impending rule that seeks to clarify the application of Standard mail rates in mail that includes personalization.

Slated to take effect June 1, the rule requires that mail including personal information for any purpose other than a solicitation must be sent at the First-Class rate rather than the cheaper Standard rate. After several test rulings from the USPS, nonprofits feared that solicitations would be meant to include requests for monetary donations only.

Because the First-Class rate is three times as expensive in some cases, nonprofit mailers worried that mail including common types of personalization for reasons other than asking for money -- such as a request for volunteers -- would get hit with the higher rate.

On April 22 and throughout last week, nonprofit mailers met with the postal service. The USPS reached an agreement with the nonprofits that expands the definition of solicitations, the Alliance of Nonprofit Mailers said. According to the group, a solicitation can include requests for any kind of monetary or non-monetary support, including for:

· Volunteer services.

· Joining or renewing membership.

· Enrollment in educational institutions and programs.

· Buying or leasing goods.

· Donating or buying by visiting a Web site.

· Acknowledgments of donations that also include an invitation to make a purchase.

· Filling out a survey or petition.

· Reading of literature or educational materials.

· Providing support for third parties that advances the purpose of the nonprofit, such as prayers.

In addition to a clarification, the USPS is expected to release a flow chart to assist nonprofit mailers, Boone said. The USPS will train its business mail entry personnel on the clarification this week.

POSTAGE RATE INCREASE EXPECTED JAN.1, 2006

---Postage rates should increase on Jan. 1, 2006 by approximately 6% across all classes of mail, including first class, regular standard bulk mail, non-profit bulk mail, and periodicals. We will post exact rate information on our website as it becomes known from the Postal Service over the next few months.

RATE INCREASE UNCLEAR

---The amount of any rate increase still remains uncertain and is contingent greatly upon postal reform legislation that Congress failed to pass this year. That legislation would repeal a provision requiring that money owed to the USPS because of an overpayment into the Civil Service Retirement System fund be held in an escrow account. The repeal would free up $78 billion over 60 years, letting the postal service pay off debt to the U.S. Treasury, fund its healthcare liabilities and mitigate rate increases.

If that money isn't released, postal officials have said they will seek a double-digit rate increase for 2006. Some industry sources say the increase could be 12 percent for First-Class mailers, while Periodical publishers could face an increase of 18 percent to 22 percent. Direct mailers' increase would be somewhere in the middle.

The reform legislation also would return responsibility for funding CSRS pension benefits related to the military service of postal retirees -- a $27 billion obligation -- to the Treasury Department. No other federal agency has to make this payment.

One reason that postal reform failed to pass is because it lacked White House support. In a Nov. 10 memo to lawmakers, the administration stated, "Both the House and Senate bills fail to meet the president's reform principles."

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