S. 5373: USPS Executive Benefit and Bonus Removal Act

This bill would change how the U.S. Postal Service can pay and reward its top executives. It would bar the Postal Service from giving certain fringe benefits to “covered executive officers,” which includes the Postmaster General, the Deputy Postmaster General, and certain senior Postal Service executives, but not the Postal Service Inspector General.

What benefits would be restricted

The bill would prohibit the Postal Service from directly or indirectly paying for or reimbursing these kinds of benefits for covered executive officers:

• Wellness reimbursements or similar wellness incentive payments, unless they are offered on the same terms to most career employees
• Parking or parking allowances, unless provided on the same terms as to non-executive employees at the same location
• Personal financial planning, tax preparation, or estate planning services
• Retirement counseling services, unless broadly available to most career employees
• Fees for TSA PreCheck, Global Entry, CLEAR, or similar expedited-screening programs
• Membership dues or fees for airline clubs, airport lounges, hotel loyalty tiers, or similar travel perks
• Relocation-related expenses, allowances, bonuses, or benefits tied to hiring, retirement, separation, or other changes in job status

The bill would still allow reimbursement for ordinary and necessary travel expenses when executives are traveling for official Postal Service business, as long as the reimbursement follows federal travel rules.

No swapping benefits for other pay

The bill says the Postal Service could not get around these restrictions by replacing the banned benefits with higher base pay, bonuses, deferred compensation, or other forms of compensation. It also says the Postal Service would still be allowed to set base pay under existing law.

Repayment if prohibited benefits are received

If a covered executive officer receives one of the banned benefits after the new rule takes effect, that person would have to repay the Postal Service for the fair market value of the benefit.

Ban on premium-class air travel

The bill would also prohibit the Postal Service from paying for or reimbursing first-class or business-class air travel for covered executive officers. If such travel is provided anyway after the law takes effect, the executive would have to repay the Postal Service for its value.

Overall compensation cap

Another provision would say that no Postal Service officer, executive, or employee could receive total compensation greater than the President’s salary. It would also bar the Postal Service from using bonuses, deferred compensation, or similar payments to work around that cap for covered executive officers.

Postmaster General bonuses during losses

The bill would further restrict the Postal Service Governors from approving any bonus, award, or other extra monetary compensation for the Postmaster General in any fiscal year when the Postal Service’s total spending was greater than its total revenue, including both appropriated and non-appropriated funds.

What the bill would not change

The bill says it should not be interpreted to affect:

• Benefits generally available to non-executive Postal Service employees
• Benefits provided to bargaining-unit employees under collective bargaining agreements
• Certain compensation described in another federal statute

Relevant Companies

None found