USPS BOG Nominees Confirmed (Possible January CPI Rate Increase)

08/29/2018

In an evening session on August 28, 2018, the United States Senate confirmed both nominees for the USPS Board of Governors: https://www.senate.gov/legislative/LIS/floor_activity/floor_activity.htm.

We anticipate that the Postal Service will seek a rate increase for January 2018. Over the summer, USPS leaders publicly stated that they were preparing a CPI-based rate increase for early 2019. The barrier to filing was the lack of board to approve a rate increase.

The cycle of filing in October, based on August CPI, with a January implementation has become the typical timeline over the last years.

As a point of reference, CPI in March was 2.051%, 2.073% in April, increased by .2% in May and June CPI came in at 2.254%. Note that the rating authority is not necessarily applied as a flat charge across rate cells, instead, some rates may be greater than CPI and others lower.

New Board:

  • David C. Williams of Illinois, for the remainder of a seven-year term expiring December 8, 2019. Williams was sworn in as the second independent Inspector General (IG) for the U.S. Postal Service on August 20, 2003.
  • Robert M. Duncan of Kentucky, for the remainder of a seven-year term expiring December 8, 2018, and an additional term expiring December 8, 2025. A 40-year political strategist and veteran of Republican politics, served as the 60th chairman of the Republican National Committee (RNC) from 2007-2009.

There is also additional breaking news regarding the USPS Board of Governors. President Donald J. Trump today announced his intent to nominate the following individuals to key positions in his Administration:

  • Ron A. Bloom of New York, to be a Member of the Board of Governors of the United States Postal Service, for the remainder of a seven-year term expiring December 8, 2020.
  • Roman Martinez IV of Florida, to be a Member of the Board of Governors of the United States Postal Service, for the remainder of a seven-year term expiring December 8, 2024.