WASHINGTON — Postage rates will probably rise in 1988--a year earlier than anticipated--because of increases in postal employee retirement costs, according to Deputy Postmaster General Michael S. Coughlin.
A new retirement system ordered by Congress could cost the Postal Service $2 billion in additional spending over the next two years, Coughlin said in a speech Wednesday to New York-based mailing companies.
"This new requirement will force the Postal Service to . . . propose an increase in postal rates to go into effect in 1988, a year earlier than we had planned," Coughlin said.
While he did not detail the amount of the increase in his prepared speech, the New York Times reported today that Coughlin estimated the hike at between 1 cent and 4 cents on first-class letters. The current first-class rate is 22 cents.