Congressman John Kline Visits The Instant Web Companies
(IWCO) in Support of Postal Reform
Chanhassen, MN (January 19, 2004) — Congressman John
Kline (R-MN) recently visited The Instant Web Companies (IWCO), an integrated
direct mail services company, to demonstrate his support of IWCO’s
position on PL108-18, the Postal Civil Service Retirement System (CSRS)
Funding Reform Act of 2003. The purpose of his visit was to see firsthand
the industry and its workers who would be impacted if the issue was left
unresolved.
In late November, Jim Andersen, IWCO President and CEO,
met with Minnesota legislators to gain support for legislative action
to correct shortcomings in PL108-18, mostly concerning the funding of
postal employee military pensions and the escrow of retirement "savings"
(i.e. the difference between the corrected and uncorrected annual payment
for CSRS retirement). The Washington, D.C. meetings included Congressmen
Kline and James Oberstar, Senator Mark Dayton, and Joseph V. Kennedy,
General Counsel of the Permanent Subcommittee on Investigations, on behalf
of Senator Norm Coleman. Andersen, as part of a delegation from Printing
Industry of Minnesota, also recently met with Senator Coleman in St. Paul,
Minn. to discuss the CSRS issue.
"I share the concern of The Instant Web Companies regarding
the solvency of the postal retirement system and the inequitable funding
of postal employee military pensions," said Congressman John Kline.
"I am working with Congressman John McHugh (R-NY), the immediate
past chairman of the Postal Service Subcommittee and the current chairman
of the Special Panel on Postal Reform and Oversight, to resolve this issue
in an upcoming postal reform bill, which will have a provision to eliminate
the escrow account and allow the United States Postal Service to operate
under the new retirement payment formula."
"We commend Congressman Kline on his responsiveness
to the industry and the people potentially impacted by this issue,"
said Jim Andersen, IWCO President and CEO. "It is vital for Congress
to realize the devastating effects PL108-18 would have on the entire industry."
The CSRS Act resulted in a policy change transferring $27
billion in postal employee military pension payments from taxpayers to
postage ratepayers. Kline and IWCO support legislation that would return
responsibility for these payments to the Treasury Department as is the
case for all other government agencies.
The CSRS Act also created a revised retirement funding formula
that requires billions of dollars to be held in escrow causing postage
costs to rise sooner and by a larger amount. Business mailers could expect
an increase in postage rates in 2006 of more than 10 percent (double the
anticipated increase without the escrow provision), and additional increases
would occur for every year the escrow account is maintained. Left unresolved,
the CSRS issue is expected to lead to double-digit postage increases,
which often results in reduced mail volumes affecting paper companies,
printers, envelope manufacturers and mailers — companies that provide
9 million jobs, $900 billion in commerce and 9 percent of the gross domestic
product.
The Instant Web Companies, headquartered in Chanhassen,
MN, has served the needs of North American direct marketers for more than
34 years. IWCO provides direct marketing like no one else by seamlessly integrating
direct mail services from a primary campus resulting in streamlined production
for all components – printing, plastics, envelope conversion and
mailing. IWCO’s industry experience and technology along with proprietary
IWCO P.O.S.T. (Postal Optimization Strategy and Technologies) and RideShare™
commingling and logistics management programs deliver dramatic postage
savings and faster time to market.
-end-
Editor’s Note: Jim Andersen, IWCO president and CEO,
is available for further comment on PL108-18 and the impact of escrow
and military service issues on the direct mail industry.
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