81 FR 523 - FY 2015 Annual Compliance Report
POSTAL REGULATORY COMMISSION Federal Register Volume 81, Issue 3 (January 6, 2016)
Federal Register Volume 81, Issue 3 (January 6, 2016)
| Page Range | 523-525 | |
| FR Document | 2015-33192 |
[Federal Register Volume 81, Number 3 (Wednesday, January 6, 2016)] [Notices] [Pages 523-525] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-33192] ======================================================================= ----------------------------------------------------------------------- POSTAL REGULATORY COMMISSION [Docket Nos. ACR2015; Order No. 2968] FY 2015 Annual Compliance Report AGENCY: Postal Regulatory Commission. ACTION: Notice. ----------------------------------------------------------------------- SUMMARY: The Postal Service has filed an Annual Compliance Report on the costs, revenues, rates, and quality of service associated with its products in fiscal year 2015. Within 90 days, the Commission must evaluate that information and issue its determination as to whether rates were in compliance with title 39, chapter 36, and whether service standards in effect were met. To assist in this, the Commission seeks public comments on the Postal Service's Annual Compliance Report. DATES: Comments are due: February 2, 2016. Reply Comments are due: February 12, 2016. ADDRESSES: Submit comments electronically via the Commission's Filing Online system at http://www.prc.gov. Those who cannot submit comments electronically should contact the person identified in the FOR FURTHER INFORMATION CONTACT section by telephone for advice on filing alternatives. FOR FURTHER INFORMATION CONTACT: David A. Trissell, General Counsel, at 202-789-6820. SUPPLEMENTARY INFORMATION: Table of Contents I. Introduction II. Overview of the Postal Service's FY 2015 ACR III. Procedural Steps IV. Ordering Paragraphs I. Introduction On December 29, 2015, the United States Postal Service (Postal Service) filed with the Commission, pursuant to 39 U.S.C. 3652, its Annual Compliance Report (ACR) for fiscal year (FY) 2015.\1\ Section 3652 requires submission of data and information on the costs, revenues, rates, and quality of service associated with postal products within 90 days of the closing of each fiscal year. In conformance with other statutory provisions and Commission rules, the ACR includes the Postal Service's FY 2015 Comprehensive Statement, its FY 2015 annual report to the Secretary of the Treasury on the Competitive Products Fund, and certain related Competitive Products Fund material. See respectively, 39 U.S.C. 3652(g), 39 U.S.C. 2011(i), and 39 CFR 3060.20- 23. In line with past practice, some of the material in the FY 2015 ACR appears in non-public annexes. --------------------------------------------------------------------------- \1\ United States Postal Service FY 2015 Annual Compliance Report, December 29, 2015 (FY 2015 ACR). Public portions of the Postal Service's filing are available on the Commission's Web site at http://www.prc.gov. --------------------------------------------------------------------------- The filing begins a review process that results in an Annual Compliance Determination (ACD) issued by the Commission to determine whether Postal Service products offered during FY 2015 were in compliance with applicable title 39 requirements. II. Overview of the Postal Service's FY 2015 ACR Contents of the filing. The Postal Service's FY 2015 ACR consists of a 73-page narrative; extensive additional material appended as separate folders and identified in Attachment One; and an application for non-public treatment of certain materials, along with supporting rationale, filed as Attachment Two. The filing also includes the Comprehensive Statement,\2\ Report to the Secretary of the Treasury, and information on the Competitive Products Fund filed in response to Commission rules. This [[Page 524]] material has been filed electronically with the Commission, and some also has been filed in hard-copy form. --------------------------------------------------------------------------- \2\ In years prior to 2013, the Commission reviewed the Postal Service's reports prepared pursuant to 39 U.S.C. 2803 and 39 U.S.C. 2804 (filed as the Comprehensive Statement by the Postal Service) in its Annual Compliance Determination. However, as it did last year, the Commission intends to issue a separate notice soliciting comments on the comprehensive statement and provide its related analysis in a separate report from the ACD. --------------------------------------------------------------------------- Scope of filing. The material appended to the narrative consists of: (1) Domestic product costing material filed on an annual basis summarized in the Cost and Revenue Analysis (CRA); (2) comparable international costing material summarized in the International Cost and Revenue Analysis (ICRA); (3) worksharing-related cost studies; and (4) billing determinant information for both domestic and international mail. FY 2015 ACR at 2. Inclusion of these four data sets is consistent with the Postal Service's past ACR practices. As with past ACRs, the Postal Service has split certain materials into public and non-public versions. Id. at 2-3. ``Roadmap'' document. A roadmap to the FY 2015 ACR can be found in Library Reference USPS-FY15-9. This document provides brief descriptions of the materials submitted, as well as the flow of inputs and outputs among them; a discussion of differences in methodology relative to Commission methodologies in last year's ACD; and a list of special studies and a discussion of obsolescence, as required by Commission rule 3050.12. Id. at 3. Methodology. The Postal Service states that it has adhered to the methodologies historically used by the Commission subject to changes identified and discussed in Library Reference USPS-FY15-9 and in prefaces accompanying the appended folders. Id. at 4. Changes in analytical principles proposed by the Postal Service for use in the FY 2015 ACR are identified and summarized in a table. Id. at 4-6. Market dominant product-by-product costs, revenues, and volumes. Comprehensive cost, revenue, and volume data for all market dominant products of general applicability are shown directly in the FY 2015 CRA or ICRA. Id. at 7. The FY 2015 ACR includes a discussion by class of each market dominant product, including costs, revenues, and volumes, workshare discounts and passthroughs responsive to 39 U.S.C. 3652(b), and FY 2015 incentive programs. Id. at 7-55.\3\ --------------------------------------------------------------------------- \3\ The Postal Service states that it ``would be inefficient and unduly disruptive . . . to immediately adjust prices to correct passthroughs that exceed 100 percent.'' Id. It further states its intent to address such passthroughs in its next general price adjustment. Id. --------------------------------------------------------------------------- In response to the Commission's FY 2010 ACD directives, the Postal Service states that it is providing information regarding: (a) All operational changes designed to reduce flats costs and the estimated financial effects of such changes, id. at 18-28; (b) all costing methodology improvements made in FY 2014 and the estimated financial effects of such changes, id. at 28-31; and (c) a statement summarizing the historical and current year subsidy of the flats product, id. In addition, in response to Order No. 1427,\4\ the Postal Service states that in the next general market-dominant price change, it plans to increase the price of Standard Mail Flats by at least CPI times 1.05. FY 2015 ACR at 30. Also, in response to the FY 2014 ACD, the Postal Service states that it provides an analysis of progress being made in the improvement of Periodicals cost coverage. Id. at 44-46. --------------------------------------------------------------------------- \4\ Docket No. ACR2010-R, Order on Remand, August 9, 2012 (Order No. 1427). --------------------------------------------------------------------------- Market dominant negotiated service agreements. The FY 2015 ACR presents information on market dominant negotiated service agreements (NSAs). Id. at 53-55. Service performance. The Postal Service notes that the Commission issued rules on periodic reporting of service performance measurement and customer satisfaction in FY 2010. Responsive information appears in Library Reference USPS-FY15-29. Id. at 56-57. Customer satisfaction. The FY 2015 ACR discusses the Postal Service's approach for measuring customer experience and satisfaction; describes the methodology; presents a table with survey results; compares the results from FY 2014 to FY 2015; and provides information regarding customer access to postal services. Id. at 56-60. The Postal Service also states that it responds to the Commission's directive in the July 7, 2015, ``Analysis of the Postal Service's FY 2014 Program Performance Report and FY 2015 Performance Plan'' that the Postal Service provide comparable results for each performance indicator over Fiscal Years 2012, 2013, 2014, and 2015, by using the same measurement methodology or by explaining how the results under different methodologies can be compared. Id. at 60-62. Competitive products. The FY 2015 ACR provides costs, revenues, and volumes for competitive products of general applicability in the FY 2015 CRA or ICRA. For competitive products not of general applicability, data is provided in non-public Library References USPS- FY15-NP2 and USPS-FY15-NP27. Id. at 63. The FY 2015 ACR also addresses the competitive product pricing standards of 39 U.S.C. 3633. Id. at 63- 69. Market tests; nonpostal services. The Postal Service discusses the three competitive market tests conducted during FY 2015, and nonpostal services. Id. at 70. III. Procedural Steps Statutory requirements. Section 3653 of title 39 requires the Commission to provide interested persons with an opportunity to comment on the ACR and to appoint an officer of the Commission (Public Representative) to represent the interests of the general public. The Commission hereby solicits public comment on the Postal Service's FY 2015 ACR and on whether any rates or fees in effect during FY 2015 (for products individually or collectively) were not in compliance with applicable provisions of chapter 36 of title 39 (or regulations promulgated thereunder). Commenters addressing market dominant products are referred in particular to the applicable requirements (39 U.S.C. 3622(d) and (e) and 3626); objectives (39 U.S.C. 3622(b)); and factors (39 U.S.C. 3622(c)). Commenters addressing competitive products are referred to 39 U.S.C. 3633. The Commission also invites public comment on the cost coverage matters the Postal Service addresses in its filing; service performance results; levels of customer satisfaction achieved; and such other matters that may be relevant to the Commission's review. Access to filing. The Commission has posted the publicly available portions of the FY 2015 ACR on its Web site at http://www.prc.gov. Comment deadlines. Comments by interested persons are due on or before February 2, 2016. Reply comments are due on or before February 12, 2016. The Commission, upon completion of its review of the FY 2015 ACR, public comments, and other data and information submitted in this proceeding, will issue its ACD. Public Representative. James Waclawski is designated to serve as the Public Representative to represent the interests of the general public in this proceeding. Neither the Public Representative nor any additional persons assigned to assist him shall participate in or advise as to any Commission decision in this proceeding other than in their designated capacity. IV. Ordering Paragraphs It is ordered: 1. The Commission establishes Docket No. ACR2015 to consider matters raised by the United States Postal Service's FY 2015 Annual Compliance Report. 2. Pursuant to 39 U.S.C. 505, the Commission appoints James Waclawski [[Page 525]] as an officer of the Commission (Public Representative) in this proceeding to represent the interests of the general public. 3. Comments on the United States Postal Service's FY 2015 Annual Compliance Report to the Commission are due on or before February 2, 2016. 4. Reply comments are due on or before February 12, 2016. 5. The Secretary shall arrange for publication of this order in the Federal Register. By the Commission. Stacy L. Ruble, Secretary. [FR Doc. 2015-33192 Filed 1-5-16; 8:45 am] BILLING CODE 7710-FW-P
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Schedules issued by the National NW., Washington, DC 20005, and SUPPLEMENTARY INFORMATION:
Archives and Records Administration provide the following information:
a. Full name. Table of Contents
(NARA) or a PBGC records disposition
schedule approved by NARA. b. Any available information I. Introduction
Records existing on paper are regarding the type of record involved. II. Overview of the Postal Service’s FY 2015
destroyed beyond recognition. Records c. A statement specifying the changes ACR
to be made in the records and the III. Procedural Steps
existing on computer storage media are IV. Ordering Paragraphs
destroyed according to the applicable justification therefor.
PBGC media sanitization practice. d. The address to which the response
should be sent. I. Introduction
SYSTEM MANAGER(S) AND ADDRESS: e. You must sign your request. On December 29, 2015, the United
Director, Benefits Administration and Attorneys or other persons acting on States Postal Service (Postal Service)
Payments Department, PBGC, 1200 K behalf of an individual must provide filed with the Commission, pursuant to
Street NW., Washington, DC 20005. written authorization from that 39 U.S.C. 3652, its Annual Compliance
individual for the representative to act Report (ACR) for fiscal year (FY) 2015.1
NOTIFICATION PROCEDURE: on their behalf. Section 3652 requires submission of
Individuals wishing to learn whether data and information on the costs,
RECORD SOURCE CATEGORIES:
this system of records contains revenues, rates, and quality of service
information about them should submit a PBGC–6; the SSA; the IRS; labor associated with postal products within
written request to the Disclosure Officer, organization officials; firms or agencies 90 days of the closing of each fiscal
PBGC, 1200 K Street NW., Washington, providing locator services; USPS year. In conformance with other
DC 20005, and provide the following licensees; field benefit administrator statutory provisions and Commission
information: offices; and any other individual that rules, the ACR includes the Postal
a. Full name. provides PBGC with information Service’s FY 2015 Comprehensive
b. Any available information regarding a missing participant, Statement, its FY 2015 annual report to
regarding the type of record involved. beneficiary, or alternate payee. the Secretary of the Treasury on the
c. The address to which the record EXEMPTIONS CLAIMED FOR THE SYSTEM: Competitive Products Fund, and certain
information should be sent. None. related Competitive Products Fund
d. You must sign your request. material. See respectively, 39 U.S.C.
[FR Doc. 2015–33294 Filed 1–5–16; 8:45 am]
Attorneys or other persons acting on 3652(g), 39 U.S.C. 2011(i), and 39 CFR
BILLING CODE 7709–02–P
behalf of an individual must provide 3060.20–23. In line with past practice,
written authorization from that some of the material in the FY 2015
individual for the representative to act ACR appears in non-public annexes.
on their behalf. POSTAL REGULATORY COMMISSION The filing begins a review process that
Individuals requesting access must [Docket Nos. ACR2015; Order No. 2968] results in an Annual Compliance
also comply with PBGC’s Privacy Act Determination (ACD) issued by the
regulations regarding verification of FY 2015 Annual Compliance Report Commission to determine whether
identity and access to records (29 CFR Postal Service products offered during
AGENCY: Postal Regulatory Commission. FY 2015 were in compliance with
4902.3). ACTION: Notice. applicable title 39 requirements.
RECORD ACCESS PROCEDURE:
SUMMARY: The Postal Service has filed II. Overview of the Postal Service’s FY
Individuals wishing to request access an Annual Compliance Report on the 2015 ACR
to their records should submit a written costs, revenues, rates, and quality of
request to the Disclosure Officer, PBGC, Contents of the filing. The Postal
service associated with its products in Service’s FY 2015 ACR consists of a 73-
1200 K Street NW., Washington, DC fiscal year 2015. Within 90 days, the
20005, and provide the following page narrative; extensive additional
Commission must evaluate that material appended as separate folders
information: information and issue its determination
a. Full name. and identified in Attachment One; and
as to whether rates were in compliance an application for non-public treatment
b. Any available information with title 39, chapter 36, and whether
regarding the type of record involved. of certain materials, along with
service standards in effect were met. To supporting rationale, filed as
c. The address to which the record assist in this, the Commission seeks Attachment Two. The filing also
information should be sent. public comments on the Postal Service’s includes the Comprehensive
d. You must sign your request. Annual Compliance Report. Statement,2 Report to the Secretary of
Attorneys or other persons acting on DATES: Comments are due: February 2, the Treasury, and information on the
behalf of an individual must provide 2016. Reply Comments are due: Competitive Products Fund filed in
written authorization from that February 12, 2016. response to Commission rules. This
individual for the representative to act
ADDRESSES: Submit comments
on their behalf.
electronically via the Commission’s 1 United States Postal Service FY 2015 Annual
Individuals requesting access must Compliance Report, December 29, 2015 (FY 2015
Filing Online system at http://
also comply with PBGC’s Privacy Act ACR). Public portions of the Postal Service’s filing
www.prc.gov. Those who cannot submit are available on the Commission’s Web site at
regulations regarding verification of
comments electronically should contact http://www.prc.gov.
mstockstill on DSK4VPTVN1PROD with NOTICES
identity and access to records (29 CFR
the person identified in the FOR FURTHER 2 In years prior to 2013, the Commission reviewed
4902.3). the Postal Service’s reports prepared pursuant to 39
INFORMATION CONTACT section by
U.S.C. 2803 and 39 U.S.C. 2804 (filed as the
CONTESTING RECORD PROCEDURE: telephone for advice on filing Comprehensive Statement by the Postal Service) in
Individuals wishing to request an alternatives. its Annual Compliance Determination. However, as
it did last year, the Commission intends to issue a
amendment to their records should FOR FURTHER INFORMATION CONTACT:
separate notice soliciting comments on the
submit a written request to the David A. Trissell, General Counsel, at comprehensive statement and provide its related
Disclosure Officer, PBGC, 1200 K Street 202–789–6820. analysis in a separate report from the ACD.
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![Federal Register / Vol. 81, No. 3 / Wednesday, January 6, 2016 / Notices 525
as an officer of the Commission (Public organizational level, and to define the affected OTC derivatives dealers is
Representative) in this proceeding to permitted scope of the dealer’s activities estimated to be $717,122.6
represent the interests of the general and level of risk. The Rule also requires The records required to be made by
public. that management of an OTC derivatives OTC derivatives dealers pursuant to the
3. Comments on the United States dealer or an ANC firm must periodically Rule and the results of the periodic
Postal Service’s FY 2015 Annual review, in accordance with written
reviews conducted under paragraph (d)
Compliance Report to the Commission procedures, the firm’s business
of Rule 15c3–4 must be preserved under
are due on or before February 2, 2016. activities for consistency with its risk
4. Reply comments are due on or management guidelines. Rule 17a–4 of the Exchange Act (17 CFR
before February 12, 2016. 240.17a–4) for a period of not less than
The staff estimates that the average
5. The Secretary shall arrange for three years, the first two years in an
amount of time a new OTC derivatives
publication of this order in the Federal easily accessible place. The Commission
dealer will spend establishing and
Register. documenting its risk management will not generally publish or make
control system is 2,000 hours and that, available to any person notice or reports
By the Commission.
on average, a registered OTC derivatives received pursuant to the Rule. The
Stacy L. Ruble,
dealer will spend approximately 200 statutory basis for the Commission’s
Secretary. refusal to disclose such information to
hours each year to maintain (e.g.,
[FR Doc. 2015–33192 Filed 1–5–16; 8:45 am] the public is the exemption contained in
reviewing and updating) its risk
BILLING CODE 7710–FW–P section (b)(4) of the Freedom of
management control system.1 Currently,
four firms are registered with the Information Act (5 U.S.C. 552), which
Commission as OTC derivatives dealers. essentially provides that the
SECURITIES AND EXCHANGE The staff estimates that approximately requirement of public dissemination
COMMISSION two additional entities may become does not apply to commercial or
[SEC File No. 270–441, OMB Control No. registered as OTC derivatives dealers financial information which is
3235–0497] within the next three years. Thus, the privileged or confidential.
estimated annualized burden would be An agency may not conduct or
Submission for OMB Review; 800 hours for the four OTC derivatives
Comment Request sponsor, and a person is not required to
dealers currently registered with the respond to, a collection of information
Commission to maintain their risk
Upon Written Request, Copies Available under the PRA unless it displays a
management control systems,2 1,334
From: Securities and Exchange currently valid OMB control number.
Commission, Office of FOIA Services, hours for the two new OTC derivatives
dealers to establish and document their The public may view background
100 F Street NE., Washington, DC documentation for this information
risk management control systems,3 and
20549–2736.
400 hours for the two new OTC collection at the following Web site:
Extension: derivatives dealers to maintain their risk www.reginfo.gov. Comments should be
Rule 15c3–4. management control systems.4 directed to: (i) Desk Officer for the
Notice is hereby given that pursuant Accordingly, the staff estimates the total Securities and Exchange Commission,
to the Paperwork Reduction Act of 1995 annualized burden associated with Rule Office of Information and Regulatory
(44 U.S.C. 3501 et seq.) (‘‘PRA’’), the 15c3–4 for the six OTC derivatives Affairs, Office of Management and
Securities and Exchange Commission dealers will be approximately 2,534 Budget, Room 10102, New Executive
(‘‘Commission’’) has submitted to the hours annually. Office Building, Washington, DC 20503,
Office of Management and Budget The staff believes that the internal or by sending an email to: (i)
(‘‘OMB’’) a request for approval of cost of complying with Rule 15c3–4 will Shagufta_Ahmed@omb.eop.gov; and (ii)
extension of the previously approved be approximately $283 per hour.5 This Pamela Dyson, Director/Chief
collection of information provided for in per hour cost is based upon an annual Information Officer, Securities and
Rule 15c3–4 (17 CFR 240.15c3–4) (the average hourly salary for a compliance Exchange Commission, c/o Remi Pavlik-
‘‘Rule’’) under the Securities Exchange manager who would be responsible for Simon, 100 F Street NE., Washington,
Act of 1934 (15 U.S.C. 78a et seq.). ensuring compliance with the DC 20549, or by sending an email to:
Rule 15c3–4 requires certain broker- requirements of Rule 15c3–4. PRA_Mailbox@SEC.gov. Comments
dealers that are registered with the Accordingly, the total annualized must be submitted to OMB within 30
Commission as OTC derivatives dealers, internal cost of compliance for all
or who compute their net capital days of this notice.
charges under Appendix E to Rule 1 This notice does not cover the hour burden Dated: December 30, 2015.
15c3–1 (17 CFR 240.15c3–1) (‘‘ANC associated with ANC firms, because the hour Jill M. Peterson,
firms’’), to establish, document, and burden for ANC firms is included in the Paperwork
Reduction Act collection for Rule 15c3–1, which Assistant Secretary.
maintain a system of internal risk requires ANC firms to comply with specific [FR Doc. 2015–33214 Filed 1–5–16; 8:45 am]
management controls. The Rule sets provisions of Rule 15c3–4 in Appendix E to Rule
BILLING CODE 8011–01–P
forth the basic elements for an OTC 15c3–1. See 17 CFR 240.15c3–1(a)(7)(iii), 17 CFR
derivatives dealer or an ANC firm to 240.15c3–1e(a)(1)(ii), and 17 CFR 240.15c3–
1e(a)(1)(viii)(C).
consider and include when establishing, 2 (200 hours × 4 firms) = 800.
mstockstill on DSK4VPTVN1PROD with NOTICES
documenting, and reviewing its internal 3 ((2,000 hours/3 years) × 2 firms) = 1,334.
risk management control system, which 4 (200 hours × 2 firms) = 400.
are designed to, among other things, 5 The $283 per hour salary figure for a compliance
ensure the integrity of an OTC manager is from SIFMA’s Management &
derivatives dealer’s or an ANC firm’s Professional Earnings in the Securities Industry
2013, modified by Commission staff to account for
risk measurement, monitoring, and an 1800-hour work-year and multiplied by 5.35 to
management process, to clarify account for bonuses, firm size, employee benefits
accountability at the appropriate and overhead. 6 2,534 hours × $283 per hour = $717,122.
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Document Created: 2016-01-06 04:01:52
Document Modified: 2016-01-06 04:01:52
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Notice. | |
| Dates | Comments are due: February 2, 2016. Reply Comments are due: February 12, 2016. | |
| Contact | David A. Trissell, General Counsel, at 202-789-6820. | |
| FR Citation | 81 FR 523 |
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