Postmaster Organization Consolidation United Postmasters and Managers of America (UPMA)

Postmaster Positions  1901 = 77,000  1950 = 41,000  1975 = 30,000  1990 = 27,000  1995 = 26,000  2000 = 26,100  2005 = 25,300  2011 = 17,900  2015 = 15,200 Over 10’000 jobs eliminated in the last 10 years

Current Membership Classifications NAPUS 1) Active: PM, Acting PM, OIC & PMR 2) Postmaster Retired 3) Associate: Active Member Honorably Separated, transferred, surviving spouse League 1) Active: “Person in Charge of a Post Office” 2) Associate: Retired, OIC, Former Postmaster, EAS or Former EAS 3) League Benefit Member

UPMA Membership Classification 1) Active: Postmaster, Postmaster Relief, Manager, Supervisor or any other EAS employee employed by the Postal Service. 2) Postmaster Retired 3) Associate

Current Dues Structure NAPUS .5 of 1% of EAS Schedule  52% to National and 48% to the State Chapter  Retiree Dues: 24% to the State Chapter, 23% to the Gazette, 20% to the National Retirees and 33% to the National Office League .475 of 1% of EAS Schedule  60% to National and 40% to the State Chapter  Retiree Dues: 13% off the top to the National Retirees then the remainder is split 31% to the State Chapter and 69% to the National Office  Assessment for Legal Counsel, etc. ($5.50 Monthly)

UPMA Dues Structure .5 of 1% of the midpoint of the EAS salary schedule  Retirees, PMR’s and Retired EAS: $60 annually (increase tied to COLA)  Active: 52% to National and 48% to Chapters  Retirees: 50% to National, 25% to National Postmasters Retired and 25% to the Chapters  Note: In this structure, more money will go to the Postmasters Retired and to the Chapters. Associate member dues will be part of the Postmasters Retired.

League Retirees and Associate  Retirees: 2847  Dues: $60/annually  Total= $170,  Dual Members:  23%= $131,  Associate: 1601  Dues:$60/annually  Total= $96,  Dual Members:  5%= $91,  10%= $86,  15%= $81,651.00

League Retiree and Associate Combined  Combined dues with % of associate dual members at 5, 10 and 15%; knowing the fact that 23% (+ or – 1%) of the Retirees from The League of Postmasters are dual members.  100%=$266,880, Natl. =$133,440 PM Ret.=$66,720 Chap.=$66,720  5%= $222,788 Natl. =$111,394 PM Ret.=$55,967 Chap.=$55,967  10%= $217,984 Natl.=$108,992 PM Ret=$54,496 Chap.=$54,496  15%= $213,181 Natl.=$106,591 PM Ret=$53,295 Chap.=$53,295

CURRENT MEMBERSHIP DUES INCOME Level 18-PCES Postmasters  Current NAPUS Membership : 7851  Current NAPUS Contribution: 100% is $2,659, (dual members are not a factor because all members will be calculated in the UPMA total) Current League Membership: 3762 Potential Increase in revenue:  39% Dual Membership (+/- 1%) The additional 61% represents $771, in increased revenue for UPMA This does not include Retirees and Assoc.

Total UPMA Dues using March 2015 membership numbers  Total income 100% coming from both organizations: $4,486,  With 39% active and 23% retired dual members coming from the League : $3,993, These numbers include all active, Retired and associate members from both organizations.

Financial Assets and Outstanding Obligations  League:  Cash on hand: ~$500,000  Value of Condo: ~$700,000  Value of League office: 0 (rented)  Obligation: Pension- ~$500,000  NAPUS  Cash On Hand:~$2,250,000  Value of Residence: ~$800,000  Value of the NAPUS Office: ~$800,000  Obligation: None

UPMA National Board  President  Executive Vice President (see National VP below)  Secretary/Treasurer (No Salary)  Twelve National Vice Presidents (one to be elected Executive VP)  National Retiree President  Note: Immediate Past President (1 year only) and Parliamentarian shall be non-voting members

UPMA National Board Transition Notes NAPUS  Co-President (2 years – Tony Leonardi)  Co-Sec/Treas (1Year – D. Heins)  6 National Vice Presidents, 3 from the East Area and 3 from the West Area  No Executive Vice President during the Co-Presidency  Co-Retiree President (1 year) League  Co-President (2 years – G. Sean Acord)  Co-Sec/Treas (1Year – TBD)  6 National Vice Presidents, 3 from the East Area and 3 from the West Area  No Executive Vice President during the Co-Presidency  Co-Retiree President (1 year)

Division of UPMA Area’s West  AK, AR, AZ, CA, CO, HI/PI, IA, ID, IL, KS, LA, MN, MO, MT, ND, NE, NM, NV, OK, OR, SD, TX, UT, WA, WI, WY East  AL, CT, DE, FL, GA, IN, KY, MA, MD/DC, ME, MI, MS, NC, NH, NJ, NY, OH, PA, PR/VI, RI, SC, TN, VA, VT, WV

Postal Area Coordinators  8 Postal Area Coordinators will provide a channel of communication between the Organization and the U.S. Postal Service to protect the interest and welfare of Postmasters and other members.  These Coordinators will serve 3 year terms (no term limits) with the elections being held at the National Convention. Only active EAS members in that Area are eligible to vote.  During the transition, NAPUS will select 4 Coordinators and the League will select 4 to serve until October 31, Elections for all Area’s will be held during the 2017 National Convention.

Transition Notes:  National Presidential election will occur in 2018  National Secretary/Treasurer election will occur in 2017  National Retiree President election will occur in 2017  National Vice Presidential elections will occur in 2016 with both NAPUS and the League electing 6 each. The 2 candidates from each side receiving the most votes will serve a 3 year term. The next 2 receiving the most votes from each side will serve a 2 year term. The next 2 receiving the most votes from each side will serve a 1 year term.

Transition Notes Continued:  In 2017 and beyond, no newly elected National VP shall come from a chapter that is currently represented on the Board in the same position.  Elected National Board members will take office November 1 st of each year.  Executive VP position to begin in This position will be elected following the National Convention by a vote of the current Board and the newly elected Board members. This will be a yearly election.  Immediate Past President position to begin following the 2021 election.

Transition Notes Continued:  During the transitional period (2016 – 2018), roll call votes cast by each Chapter at the National Convention will be based on the vote percentage cast at the Chapter convention.  Adverse Action Member Representatives will assume their duties on November 1 st, Prior to this date, the NAPUS President and the League President will each select 6 Representatives to cover the 12 positions.

Transition Notes Continued:  Upon the approval of the consolidation by both organizations, it is understood that all current members will become members of UPMA.  No amendments or changes to the Articles or the Bylaws will be allowed until after November 1 st, 2018.

Chapter Boards - Transition o Beginning November 1 st, 2016, the temporary structure of Co- Presidents, Co-Secretary/Treasurers and Co-Retiree Presidents will take effect. Prior to November 1 st, 2016, the League and NAPUS will caucus separately to elect two (2) Vice Presidents each to serve on the new Chapter Board. o At the 2017 Chapter convention an entire Chapter Board will be elected. o A Chapter Bylaws template has been created to assist each Chapter with establishing their new Bylaws.

Notable Notes:  Postmasters Retired, Retired EAS and PMR’s may hold a Chapter office (minus President and Executive VP) provided no active EAS member seeks the position.  Postmasters Retired and Retired EAS may vote at the National level on dues, membership, and time and place of future National Conventions.  PMR’s are part of the “Active” classification and therefore may vote on all Chapter matters but may only seek office as described above. PMR’s are considered part of the 1 to 10 ratio when determining delegate votes per Chapter.

Benefits of Consolidation Savings  Office Space  Office Equipment  Office Utilities  Legal Fees  Legislative Fees  Presidential Expenses

Benefits of Consolidation Cont. Savings  Publication Expenses  Office Personnel  Website Fees  Secretary/Treasurer Expenses  Insurance Expenses, etc.  Note: The last 2 slides account for approx. $800,000 savings

Benefits of Consolidation Cont. Savings  After 2018, the Organization will only need to provide one location for presidential housing.  The additional dues revenue is estimated conservatively at $800,000 per year starting November of 2016.

New (UPMA) Organizational Requirements 1 of 4  Organizational  Name  Articles of Incorporation  By-Laws  Registered Agent for Incorporation  Tax ID and Tax-exempt status filing  Membership system  Address, location  Business insurance  Equipment leases, current and new or replacement  Current assets/liabilities  Phone systems, lines, and numbers

New (UPMA) Organizational Requirements 1 of 3 2 of 4  Organizational (cont.)  Website domain  Website development  Website and DNS hosting  ISP  County business license, taxes  Network servers, IT support, etc  Logo and banner used for printed materials, brochures, letterhead, envelopes, etc.  State branch tax id and exempt status  Accounting software  Staff  Positions

New (UPMA) Staff/PAC Requirements 3 of 4  Staff (cont.)  Personnel Manual  Health Insurance  L/S disability, life and dismemberment insurance  Workers Comp Insurance  Federal and State payroll tax accounts, unemployment insurance  Payroll service  401K Plan-new and status of existing  PAC  Status of existing PAC’s and funds  New PAC Name, Tax number, creation

 PAC (cont.)  FEC filings  US House and Senate filings  Payroll deduction bank account  Legislative consultant  Banking:  Operating accounts and PAC accounts  State dues rebate transfer process and state branch accounts  Audit:  Auditors/Firm  Tax Filings  Financial Statements  Publications:  Name  Editor  Printer/Mailer  USPS CAPS account Other issues as necessary… New (UPMA) Banking/Audit/Publication Requirements 4 0f 4