POSITIONS MAN-YRS. AMOUNT POSITIONS MAN-YRS.
This account includes the delivery of special delivery mail
within prescribed delivery limits and hours. Services are
performed by special delivery messengers or other postal
employees at first-class post offices. These services are
performed on a fee-per-piece basis at second-, third-, and
fourth-class post offices, and by rural and star route carriers
at all classes of post offices. Program costs include employee
travel, training, uniform allowances, and reimbursements
paid to special delivery messengers for use of their privately
owned vehicles, and salaries and related expenses of super-
visors, special delivery messengers and other employees
serving as messengers.
The $2,118,000 increase in program costs for Fiscal Year 1971 covers the following:
Mandatory Salary Increases of $1,020,000:
Annualization of Phase III Increase, $82,000: This increase
represents the cost for the 11 days in Fiscal Year 1970 this
pay increase was not in effect.
Within-grade Salary Increase, $822,000: The annual rate
of step increases for supervisors in PFS level 9 is $281 and
for clerks in PFS level 5 is $206. After considering the
effect of varying employee eligibility dates and the antici-
pated savings resulting from employee turnover, the estimate
for within-grade salary increases averages $113 per man-
year for supervisors and special delivery messengers.
Cost of Retirement Legislation Increase, $116,000: Public
Law 91-93 approved on October 20, 1969, increased the re-
tirement contribution from 6. 5 percent to 7.0 percent
beginning January 10, 1970. The full year cost of $235,000
in 1971 is an increase of $116,000 over the half year cost
in 1970.
Workload Increases of $1,098, 000:
Employment Increase for Workload, $1,084,000: The em-
ployment for this account is predicated on the area served
and the number of special delivery articles to be delivered.
The number of special delivery articles to be delivered in
Fiscal Year 1971 is estimated to be 106 million pieces, a
decrease of 1.0 percent over the Fiscal Year 1970 estimate.
Offsetting this volume decrease is more than a 4.0 percent
anticipated increase in the city delivery area to be served
by special delivery messengers resulting in a net estimated
increase in workload. The cost of labor alone is estimated
to increase 3.3 percent in Fiscal Year 1971, resulting in an
increase in cost per piece delivered from 58.0 cents in 1970
to 60. 4 cents in 1971. This increased workload will require
an additional 216 special delivery man-years at a cost of
$1,641,000 and 17 supervisor man-years at a cost of
$140,000. While the employment increase for Fiscal Year
1971 reflects the same growth as workload, it is anticipated
that by more effective scheduling 64 man-years of over-
time at a savings of $697,000 will be absorbed by employees
working at basic pay rates, resulting in a net employment
increase of 2.3 percent, or 169 man-years, at a cost of
$1,084,000.
Other Workload Increases, $14,000:
Equipment Allowance Increases, $22,000: The increase
of 1.4 percent in equipment allowances will be paid to
special delivery messsngers for use of privately owned
vehicles. This increase is directly related to Government
vehicles not being available for special delivery. The
total 1971 cost of this item is $1,544,000.
Special Delivery Fees Decrease, $8,000: This decrease
of 1.0 percent reflects the reduction in fees paid to rural
and star route carriers. This reduction coincides with
the decrease in the number of articles to be delivered. The
total cost for special delivery fees will be $822,000 in 1971.
The funds requested reflect a total of $8,000 for employee
travel and $7,000 for training travel, the same amounts
provided in 1970.
The following estimate schedule summarizes the resource
requirements for this function:
Analysis of Increase of Personnel Compensation and Benefits
FY 1970 POSITIONS MAN-YEARS AMOUNT POSITIONS MAN-YEARS
• This account includes postal services provided in rural and suburban areas by rural carriers. Services include delivering and collecting mail; providing money order and stamp sales, insured and C. O. D. services; and providing special services that are normally available through city post offices.
Over 2, 300 contract rural stations in small communities also are serviced by rural carriers. Program costs cover travel, training, equipment allowances, and salaries and related costs of rural carriers.
The $4,739,000 increase in program costs for Fiscal Year 1971 covers the following:
Mandatory Salary Increases of $3,574, 000:
Annualization of Phase III Increase, $412,000: This
increase represents the cost for the 11 days in Fiscal
Year 1970 this pay increase was not in effect.
Within-grade Salary Increase, $2,502,000: The annual rate of step increases for supervisors in PFS level 9 is $281 and for clerks in PFS level 5 is $206. After considering the effect of varying employee eligibility dates and the anticipated savings resulting from employee turnover, the estimate for within-grade salary increases averages $68 per man-year for rural carriers.
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