Johnwicki Mailing will continually update this page with relevant news and information about price changes and mailing requirements from the United States Postal Service.
JANUARY 22, 2012 MAILING SERVICES PRICE CHANGE
Prices for most Postal Service mailing services will change on January 22, 2012. Mailing services includes First-Class Mail, Standard Mail, Periodicals, Package Services and Extra Services. Prices for shipping services will also change on January 22. We will provide customers the new shipping services prices later this fall. While actual percentage price increases for various products and services varies, the overall average price increase across all maling services is capped by law at 2.1 percent, the rate of inflation as measured by the Consumer Price Index.
FIRST-CLASS MAIL HIGHLIGHTS:
Letters (1 oz.) – 1-cent increase to 45 cents. This is the first increase in the price of a
First-Class Mail stamp since May 2009.
Single-piece letters additional ounce rate – unchanged at 20 cents.
Postcards – 3-cent increase to 32 cents
Letters to Canada or Mexico (1 oz.) – 5-cent increase to 85 cents
Letters to other international destinations – 7-cent increase to $1.05
The second ounce will be free for First-Class Mail Presort pieces weighing between one and two ounces.
ADDITIONAL PRICE ADJUSTMENT HIGHLIGHTS:
The price increase for Standard Mail Letters is slightly below the overall average at less than 1.9 percent
A new 3-month pricing option will be available to rent PO Boxes for people on the move and others that need a PO Box for a shorter time period.
Delivery Confirmation will be free for several parcel products as the Postal Service continues to make tracking an integral component of parcels mailed at commercial rates.
A new 3-month pricing option will be available to rent PO Boxes for people on the move and others that need a PO Box for a shorter time period.
Delivery Confirmation will be free for several parcel products as the Postal Service continues to make tracking an integral component of parcels mailed at commercial rates.
PERCENTAGE OF PRICE CHANGE BY CLASS OF MAIL:
First-Class Mail 2.133
Standard Mail 2.124
Periodicals 2.133
Package Services 2.133
Extra Services -0.663*
*With the exception of Delivery Confirmation and Confirm, most Extra Services prices increase at about 2.1 %.
Adding Delivery Confirmation and Confirm services as included services for some parcels results in the overall price reduction for Extra Services.
Postal Service Faces New Reality
Faced with a massive nationwide infrastructure that is no longer financially
sustainable, the U.S. Postal Service today proposed sweeping changes designed to
save the organization up to $3 billion a year by cutting its network of
processing facilities by over half and adjusting service standards.
Proposals under consideration include studying nearly 250 processing
facilities for possible consolidation or closure, reducing mail processing
equipment by as much as 50 percent, dramatically decreasing the nationwide
transportation network, adjusting the workforce size by as many as 35,000
positions, and revising service standards for First-Class Mail.
sustainable, the U.S. Postal Service today proposed sweeping changes designed to
save the organization up to $3 billion a year by cutting its network of
processing facilities by over half and adjusting service standards.
Proposals under consideration include studying nearly 250 processing
facilities for possible consolidation or closure, reducing mail processing
equipment by as much as 50 percent, dramatically decreasing the nationwide
transportation network, adjusting the workforce size by as many as 35,000
positions, and revising service standards for First-Class Mail.
The Postal Service faces default
Without enactment of legislation by the end of this month, the Postal Service faces default, as funds will be insufficient to make a congressionally mandated $5.5 billion payment to pre-fund retiree health
benefits, Postmaster General Patrick Donahoe told a Senate committee today.
benefits, Postmaster General Patrick Donahoe told a Senate committee today.
“The Postal Service is in a crisis today because it operates within a
restrictive business model and has limited flexibility to respond to a changing
marketplace,” Donahoe testified before the Committee on Homeland Security and
Governmental Affairs. “We need the ability to operate more as a business does.
This applies to the way we provide products and services, allocate resources,
configure our retail, delivery and mail processing networks and manage our
workforce.”
restrictive business model and has limited flexibility to respond to a changing
marketplace,” Donahoe testified before the Committee on Homeland Security and
Governmental Affairs. “We need the ability to operate more as a business does.
This applies to the way we provide products and services, allocate resources,
configure our retail, delivery and mail processing networks and manage our
workforce.”
The combination of weak economic conditions and diversion to electronic forms
of communications continues to result in significant declines in the use of
First-Class Mail and weakness in the use of Standard Mail. Future mail volume
projections show this trend continuing, requiring even greater efforts to reduce
costs.
of communications continues to result in significant declines in the use of
First-Class Mail and weakness in the use of Standard Mail. Future mail volume
projections show this trend continuing, requiring even greater efforts to reduce
costs.
In the past four fiscal years, the Postal Service has reduced costs by more
than $12 billion and reduced its career workforce by 110,000 employees. “As
impressive as these reductions have been, we must significantly accelerate the
pace of cost reduction in the next four years,” said Donahoe. Based on current
revenue and cost trends, the Postal Service must reduce its annual costs by $20
billion by 2015 to return to profitability.
than $12 billion and reduced its career workforce by 110,000 employees. “As
impressive as these reductions have been, we must significantly accelerate the
pace of cost reduction in the next four years,” said Donahoe. Based on current
revenue and cost trends, the Postal Service must reduce its annual costs by $20
billion by 2015 to return to profitability.
“We do not currently have the flexibility in our business model to achieve
all of these cost reductions. To do so, the Postal Service requires the
enactment of comprehensive, long-term legislation to provide it with needed
flexibility,” Donahoe added.
all of these cost reductions. To do so, the Postal Service requires the
enactment of comprehensive, long-term legislation to provide it with needed
flexibility,” Donahoe added.
Specifically, legislation is needed that would do the following:
- Resolve a unique law requiring the Postal Service to make $5.5 billion
annual payments to prefund retirement health benefits - Return $6.9 billion in Federal Employees Retirement System overpayments
- Grant the Postal Service the authority to determine delivery frequency
- Allow the Postal Service to restructure its healthcare system to make it
independent of federal programs - Grant the Postal Service the authority to provide a defined contribution
retirement plan for new hires, rather than today’s defined benefit plan - Streamline the process for product development and pricing.
Donahoe also said the size of the Postal Service workforce needs to be
addressed. In order to return to profitability, the Postal Service needs to
reduce its career workforce by approximately 220,000 by 2015, but cannot do so
under the terms of existing collective bargain agreements. To accelerate
workforce reductions, the Postal Service is asking Congress to allow it to
utilize the Reduction-in-Force (RIF) provisions currently applicable to federal
competitive service employees for positions held by bargaining unit
employees.
addressed. In order to return to profitability, the Postal Service needs to
reduce its career workforce by approximately 220,000 by 2015, but cannot do so
under the terms of existing collective bargain agreements. To accelerate
workforce reductions, the Postal Service is asking Congress to allow it to
utilize the Reduction-in-Force (RIF) provisions currently applicable to federal
competitive service employees for positions held by bargaining unit
employees.
“We have advanced these and other proposals to provide Congress with a range
of legislative options while we aggressively do what we can within our current
business model,” Donahoe said. “We need the flexibility to operate more as a
business would, in order to return to sound financial footing so we can meet
America’s evolving mailing and shipping needs for generations to come.
of legislative options while we aggressively do what we can within our current
business model,” Donahoe said. “We need the flexibility to operate more as a
business would, in order to return to sound financial footing so we can meet
America’s evolving mailing and shipping needs for generations to come.
The Postmaster General’s written testimony is available at http://about.usps.com/news/testimony-speeches/welcome.htm.
FOLDED SELF-MAILER STUDY
Collaborating with the mailing industry, the Postal Service implemented a Lean Six Sigma test study in April 2009 with the goal of finding a balance between design innovation and machinability of folded self-mailers (FSM). Valuable feedback from the study has prompted the Postal Service and participants to take another look at potential updated mailing standards. A revised framework — with industry input incorporated — will be presented to study participants in the near future.It is expected that proposed rule changes will be shared through a Federal Register notice in early summer, with an expected effective date sometime in 2012. Until then, current FSM standards remain in place.
Dont miss your opertunity to comment on or before September 14, 2011.
Dont miss your opertunity to comment on or before September 14, 2011.
The complete proposed rule Federal Registercan be found on the Postal Explorer® website at pe.usps.com.
Postal Service To Salute Girl Scouts in 2012
The Postal Service will salute the Girls Scouts in 2012 by commemorating the
100th anniversary of an organization credited with helping girls build character
and leadership skills. The Celebrate Scouting Forever Stamp can be seen on
social media and will be issued next year as part of the centennial
celebration.
Using social media to reach broader, more diverse audiences is an initiative
that began this month to engage more interest in stamp collecting. Select stamps
from the 2012 commemorative program will be previewed one at a time throughout
the summer.
100th anniversary of an organization credited with helping girls build character
and leadership skills. The Celebrate Scouting Forever Stamp can be seen on
social media and will be issued next year as part of the centennial
celebration.
Using social media to reach broader, more diverse audiences is an initiative
that began this month to engage more interest in stamp collecting. Select stamps
from the 2012 commemorative program will be previewed one at a time throughout
the summer.
“Celebrate Scouting, the ‘sister’ stamp to the 2010 Scouting stamp, pays
tribute to scouting organizations for the opportunities and pleasures they have
provided millions of youths worldwide,” said Stephen Kearney, manager, Stamp
Services.
tribute to scouting organizations for the opportunities and pleasures they have
provided millions of youths worldwide,” said Stephen Kearney, manager, Stamp
Services.
The stamp features the silhouette of a girl with binoculars looking into the
distance. A scene within the silhouette features a girl in mid-stride with a
walking stick and backpack on a summer trek. The environment is composed of
large redwoods, a lake and a distant forested mountainside with small ferns in
the foreground. The sky has a dramatic blue gradation as it appears in early
morning or late evening.
distance. A scene within the silhouette features a girl in mid-stride with a
walking stick and backpack on a summer trek. The environment is composed of
large redwoods, a lake and a distant forested mountainside with small ferns in
the foreground. The sky has a dramatic blue gradation as it appears in early
morning or late evening.
The stamp art was created by Craig Frazier of Mill Valley, CA, under the
guidance of art director Derry Noyes of Washington, DC.
guidance of art director Derry Noyes of Washington, DC.
Customers may preview the stamps on Facebook at facebook.com/USPSStamps,
through Twitter @USPSstamps or on the website
Beyond the Perf at beyondtheperf.com/2012-preview.
through Twitter @USPSstamps or on the website
Beyond the Perf at beyondtheperf.com/2012-preview.
How Did The Postal Service Begin?
Three weeks after the battles of Lexington and Concord, the Second Continental Congress
met in Philadelphia in May 1775 to plan for the defense of the colonies against British aggression and “to take into consideration the state of America.”4 The conveyance of letters and intelligence was essential to the cause of liberty. A committee, chaired by Benjamin Franklin and including Samuel Adams, Richard Henry Lee, Philip Livingston, Thomas Lynch, and Thomas Willing, was named to consider the creation of a postal system.
met in Philadelphia in May 1775 to plan for the defense of the colonies against British aggression and “to take into consideration the state of America.”4 The conveyance of letters and intelligence was essential to the cause of liberty. A committee, chaired by Benjamin Franklin and including Samuel Adams, Richard Henry Lee, Philip Livingston, Thomas Lynch, and Thomas Willing, was named to consider the creation of a postal system.
The committee reported back to Congress on July 25, 1775. The Continental Congress agreed to the committee’s recommendations on the following day, creating the position of Postmaster General, and naming Franklin to it. Richard Bache, Franklin’s son-in-law, was named comptroller, and William Goddard was appointed surveyor. Under Franklin and his immediate successors, the postal system mainly carried communications between Congress and the armies. Postmasters and post riders were exempt from military duties so service would not be interrupted.
Benjamin Franklin served as Postmaster General until November 7, 1776. He was in office when the Declaration of Independence created the United States in July 1776, making Franklin the first Postmaster General of the United States. America’s present Postal Service descends from the system Franklin placed in operation.
Postal Service Asks Congress for Action
The U.S. Postal Service (USPS) has asked
members of Congress — including Senator Carl Levin, a Member of the Postal
Service’s Senate oversight committee and Congressman Justin Amash, a Member of
the Postal Service’s House oversight committees — to enact legislation
to return the organization to financial stability.
members of Congress — including Senator Carl Levin, a Member of the Postal
Service’s Senate oversight committee and Congressman Justin Amash, a Member of
the Postal Service’s House oversight committees — to enact legislation
to return the organization to financial stability.
In a letter signed jointly by Board of Governors Chairman Louis Giuliano and
Postmaster General Patrick Donahoe, USPS urged Senator Levin and Congressman
Amash to support action to:
Postmaster General Patrick Donahoe, USPS urged Senator Levin and Congressman
Amash to support action to:
- Eliminate current mandates requiring $5.5 billion annual retiree health
benefit pre-payments; - Allow the Postal Service to access Civil Service Retirement System and
Federal Employee Retiree System (FERS) surpluses; and - Give the Postal Service the authority to determine the frequency of mail
delivery.
USPS is in “a dire financial predicament” according to Giuliano and Donahoe,
despite ongoing aggressive cost-reduction initiatives. Over the last four fiscal
years, the Postal Service has reduced its size by 110,000 career positions and
saved $12 billion in costs.
despite ongoing aggressive cost-reduction initiatives. Over the last four fiscal
years, the Postal Service has reduced its size by 110,000 career positions and
saved $12 billion in costs.
Absent legislation this fiscal year, Giuliano and Donahoe said making the
mandated $5.5 billion pre-payment due Sept. 30 will not be possible. “This
pre-payment for future retiree health benefits is no longer tenable given
present-day financial challenges,” they said.
mandated $5.5 billion pre-payment due Sept. 30 will not be possible. “This
pre-payment for future retiree health benefits is no longer tenable given
present-day financial challenges,” they said.
Federal retirement law also has resulted in a $6.9 billion surplus for Postal
Service contributions into the Federal Employees Retirement System (FERS). The
letter calls for these funds to be restored to the Postal Service to help avoid
insolvency. The Postal Service informed the Office of Personnel Management (OPM)
that it is suspending employer contributions for the defined benefit portion of
FERS annuities effective June 24.
Service contributions into the Federal Employees Retirement System (FERS). The
letter calls for these funds to be restored to the Postal Service to help avoid
insolvency. The Postal Service informed the Office of Personnel Management (OPM)
that it is suspending employer contributions for the defined benefit portion of
FERS annuities effective June 24.
The Postal Service will continue to transmit employees’ FERS contributions to
OPM, as well as employer automatic and matching contributions and employee
contributions to the Thrift Savings Plan, and employees will continue to receive
service credit. The annuity payment suspension is an emergency cash conservation
measure expected to free about $800 million in the current fiscal year.
OPM, as well as employer automatic and matching contributions and employee
contributions to the Thrift Savings Plan, and employees will continue to receive
service credit. The annuity payment suspension is an emergency cash conservation
measure expected to free about $800 million in the current fiscal year.
The letter states a cash shortfall is projected to occur as early as October:
“The Postal Service is facing the real prospect that it will not be able to meet
payroll next (fiscal) year, thus disrupting mail delivery.”
“The Postal Service is facing the real prospect that it will not be able to meet
payroll next (fiscal) year, thus disrupting mail delivery.”
The Postal Service has been communicating regularly with Senator Levin,
Congressman Amash, and others in Congress and the Administration about its
serious financial position, expressing support for provisions of two separate
pieces of legislation introduced by Sen. Tom Carper (D-DE) and by Sen. Susan
Collins (R-ME), respectively.
Congressman Amash, and others in Congress and the Administration about its
serious financial position, expressing support for provisions of two separate
pieces of legislation introduced by Sen. Tom Carper (D-DE) and by Sen. Susan
Collins (R-ME), respectively.
“The need for legislative change is immediate,” Giuliano and Donahoe said.
“We urge your support of this vital postal legislation and ask that you work for
immediate enactment this fiscal year to avoid the possibility of mail and
package delivery disruptions.”
“We urge your support of this vital postal legislation and ask that you work for
immediate enactment this fiscal year to avoid the possibility of mail and
package delivery disruptions.”
The Postal Service receives no tax dollars for operating expenses, and relies
on the sale of postage, products and services to fund its operations.
on the sale of postage, products and services to fund its operations.
Postal Service Wins the Gold
Greenhouse Gas Emissions Reduction Recognized
The U.S. Postal Service was recently awarded
Climate Registered Gold status by The Climate Registry (TCR) for its leadership
in reducing greenhouse gas (GHG) emissions by 8 percent. The Postal Service is
among the first of TCR’s 430 members, and the first government agency, to
achieve this recognition.
Climate Registered Gold status by The Climate Registry (TCR) for its leadership
in reducing greenhouse gas (GHG) emissions by 8 percent. The Postal Service is
among the first of TCR’s 430 members, and the first government agency, to
achieve this recognition.
“Winning Climate Registered Gold status will help motivate the Postal Service
to do even more to reduce greenhouse gases,” said Deputy Postmaster General Ron
Stroman. “It is especially important for us to be a sustainable organization,
because we touch virtually every community in America. We have the largest
civilian fleet in the country, and our Post Offices and processing plants are
nationwide. So we intend to continue our already considerable efforts to further
reduce our carbon footprint.”
to do even more to reduce greenhouse gases,” said Deputy Postmaster General Ron
Stroman. “It is especially important for us to be a sustainable organization,
because we touch virtually every community in America. We have the largest
civilian fleet in the country, and our Post Offices and processing plants are
nationwide. So we intend to continue our already considerable efforts to further
reduce our carbon footprint.”
TCR helps organizations measure and manage their GHG emissions. To be
recognized with Climate Registered status, members submit their GHG emissions
data and reduction strategies for evaluation. This information is integrated
into a best practices database as a resource to members. Gold status is awarded
to organizations which demonstrate GHG emissions reductions of more than 5
percent.
recognized with Climate Registered status, members submit their GHG emissions
data and reduction strategies for evaluation. This information is integrated
into a best practices database as a resource to members. Gold status is awarded
to organizations which demonstrate GHG emissions reductions of more than 5
percent.
Earlier in June, USPS reported its 8 percent reduction in GHG emissions from
a fiscal year 2008 baseline, which places the agency more than one third of the
way to its goal of 20 percent by fiscal year 2020. The reduction of 1,067,834
metric tons of CO2 is an amount equal to the annual emissions of approximately
204,000 passenger vehicles.
a fiscal year 2008 baseline, which places the agency more than one third of the
way to its goal of 20 percent by fiscal year 2020. The reduction of 1,067,834
metric tons of CO2 is an amount equal to the annual emissions of approximately
204,000 passenger vehicles.
U.S. Postal Service Institutes Cash Conservation Plan
Payment to FERS suspended
The U.S. Postal Service has informed the Office
of Personnel Management (OPM) of its intention to suspend its employer’s
contributions for the defined benefit portion of the Federal Employees
Retirement System (FERS) to conserve cash and preserve liquidity. The Postal
Service has a FERS account surplus valued at $6.9 billion.
of Personnel Management (OPM) of its intention to suspend its employer’s
contributions for the defined benefit portion of the Federal Employees
Retirement System (FERS) to conserve cash and preserve liquidity. The Postal
Service has a FERS account surplus valued at $6.9 billion.
“We will continue to transmit to OPM employees’ contributions to FERS and
also will continue to transmit employer automatic and matching contributions and
employee contributions to the Thrift Savings Plan,” said Anthony Vegliante,
chief human resources officer and executive vice president.
also will continue to transmit employer automatic and matching contributions and
employee contributions to the Thrift Savings Plan,” said Anthony Vegliante,
chief human resources officer and executive vice president.
The Postal Service pays about $115 million every other week to OPM for the
FERS annuity. Suspension of payments, effective June 24, will free about $800
million in the current fiscal year.
FERS annuity. Suspension of payments, effective June 24, will free about $800
million in the current fiscal year.
The Postal Service continues to cut costs significantly with initiatives to
reduce the size of its labor force, the number of mail processing facilities and
administrative overhead. Over the last four fiscal years, the Postal Service has
reduced its size by 110,000 career positions and saved $12 billion in costs.
reduce the size of its labor force, the number of mail processing facilities and
administrative overhead. Over the last four fiscal years, the Postal Service has
reduced its size by 110,000 career positions and saved $12 billion in costs.
The Postal Service also is generating new revenue by opening cost-effective
new retail locations in places where people already shop, including grocery
stores, drug stores and office supply stores, and introducing other new product
and pricing initiatives.
new retail locations in places where people already shop, including grocery
stores, drug stores and office supply stores, and introducing other new product
and pricing initiatives.
Despite significant cost reductions in areas within its control, and even
with this emergency action, the Postal Service needs Congress to enact
legislation that would do the following to return the Postal Service to
financial stability:
with this emergency action, the Postal Service needs Congress to enact
legislation that would do the following to return the Postal Service to
financial stability:
- Eliminate the current mandates requiring retiree health benefit
pre-payments. - Allow the Postal Service to access Civil Service Retirement System and FERS
overpayments. - Give the Postal Service the authority to determine the frequency of mail
delivery.
The Postal Service receives no tax dollars for operating expenses, and relies
on the sale of postage, products and services to fund its operations.
on the sale of postage, products and services to fund its operations.
Postal Service Challenges PRC Five-Day Analysis
WASHINGTON — In a report issued today and delivered to
Congress, the U.S. Postal Service asserted that the Postal Regulatory Commission
(PRC) based a recent advisory opinion on a questionable analysis of the
potential cost savings that could be achieved by implementing a five-day
delivery schedule to street addresses.
Congress, the U.S. Postal Service asserted that the Postal Regulatory Commission
(PRC) based a recent advisory opinion on a questionable analysis of the
potential cost savings that could be achieved by implementing a five-day
delivery schedule to street addresses.
The Postal Service has estimated that making the move would yield a net
annual cost reduction of $3.1 billion based on extensive market research and
financial estimates provided to the PRC March 30, 2010. The PRC issued a
nonbinding advisory opinion March 24, 2011 that concluded that transitioning
from a six-day delivery schedule to a five-day street delivery schedule would
only achieve $1.7 billion in net annual savings.
annual cost reduction of $3.1 billion based on extensive market research and
financial estimates provided to the PRC March 30, 2010. The PRC issued a
nonbinding advisory opinion March 24, 2011 that concluded that transitioning
from a six-day delivery schedule to a five-day street delivery schedule would
only achieve $1.7 billion in net annual savings.
The $1.4 billion discrepancy between the respective estimates results from:
- the Commission’s unwillingness to recognize about $760 million in savings
from increased city carrier productivity and efficiency under a five-day
schedule; - the Commission’s failure to account for more than $260 million in highway
transportation and mail processing economies associated with one less day of
street delivery; and - the Commission’s summary dismissal of the unrefuted testimony of market
research experts to reach its conclusion that the Postal Service estimate of
annual revenue loss resulting from the change was understated by $386 million.
The Complete USPS report is available at:
http://www.usps.com/communications/five-daydelivery/assets/pdf/USPS-Report-re-PRC-Advisory-Opinion.pdf
http://www.usps.com/communications/five-daydelivery/assets/pdf/USPS-Report-re-PRC-Advisory-Opinion.pdf
