Direct Marketers Focus On Unusual Expenses

Representatives of the Direct Marketing Association (DMA), a supporter of postal reform, attended the hearings as well. "DMA is very pleased that a range of voices, from catalogers to charities—organizations that rely on sending direct mail—were invited to share their concerns and make recommendations to the committee," said H. Robert Wientzen, president and chief executive of the association. "The Postal Service's outdated business model, established by the Postal Reform Act of 1970, significantly limits its ability to operate competitively in the 21st century."

Wientzen notes that there are two aspects of the current law governing the USPS that must be addressed. First, he says, the federal law that requires USPS to divert funds totaling $19.4 billion to an escrow account, starting in 2006 and ending in 2010, to fund pensions that are no longer needed, should be changed. Wientzen argues that USPS should be allowed to incorporate that money into its business plan. Also, he says, requiring the postal service to underwrite retirement costs associated with military service time of its employees is unfair because no other federal agency is compelled to do so.