February 6, 2014 - The Senate Homeland Security and Governmental Affairs Committee finished work on postal reform legislation, S. 1486, allowing the bill to move to the full Senate. The measure would make major changes in benefits under the federal employees' workers' compensation program and require the Office of Personnel Management to create a separate health care program for USPS employees.

In regard to workers' compensation, the bill would:
· Reduce maximum FECA payments for those who reach retirement age to 50 percent of their pay. The bill exempts any enrollee who reaches retirement age by the date the law is effective, has an exempt disability condition, or is a member of a household that meets eligibility requirements for the supplemental nutrition assistance programs.
· Eliminate supplemental payments for dependents. Those with qualifying total disabilities would be exempt, and there would be a three-year transition period for others.
· Require, in most cases, workers' comp recipients to begin vocational rehabilitation within six months after the date of injury. This would not apply to those who have reached retirement age. Employees would also have to undergo a physical exam after receiving compensation for total disability for six months.
· Require USPS to pay down its unfunded liability for future workers' compensation payments if net income exceeds $1 billion.

The committee narrowly voted down another attempt by Sen. Jon Tester, D-Mont., to modify the workers' comp provisions. Tester's proposal would have applied the provisions only to employees hired after the bill was enacted into law.

The committee, however, did approve an amendment by Sen. Mark Pryor, D-Ark., that would extend the right to appeal adverse personnel actions to the Merit Systems Protection Board to approximately 7,500 USPS mid-level managers.

The bill would also:
· Allow postal unions and USPS to negotiate TSP contributions for new employees.
· Allow an arbitration board to consider the financial condition of USPS when reaching a decision on a labor-management dispute.
· Require OPM to create a new Postal Service Health Benefits Program as part of the Federal Employees Health Benefits Plan.
· Allow USPS to reduce letter mail delivery from six to five days-per-week if mail volume fell below a certain level -- 140 billion pieces for four consecutive quarters.

The committee failed to approve a proposal to end USPS restrictions on the carrying of a gun into a post office, but a compromise amendment was approved that would allow people to have guns in their cars in USPS parking lots.