Postal Service Changes Relocation Rules

The top finance officer of the Postal Service retired Friday after a report sharply criticized his receipt of nearly $250,000 in relocation expenses paid to him and another official.

Postmaster General William J. Henderson announced the retirement of M. Richard Porras, the Postal Service’s chief financial officer, so the agency can move onward “without any unnecessary distractions.”

Henderson also said there would be no exceptions to relocation policy when the move does not involve a change in work location.

A report from the post office’s inspector general criticized payment of $248,000 in moving expenses for Porras and controller John H. Ward, both of whom moved fewer than 50 miles and continued working in the same offices.

The payments exceeded those offered by private industry, were not approved by the postal board of governors and “could be perceived as a way to circumvent the statutory limits on compensation,” Robert L. Emmons, acting inspector general for performance, concluded.

Counting relocation benefits as income would have boosted the pay of both men to about $250,000, well over the cap of $151,800 in effect at the time.

Rep. John M. McHugh (R-N.Y.), who heads the House Government Reform postal subcommittee, said the report alarmed him. “At a time when the Postal Service is requesting a series of rate increases, this sort of mismanagement may undermine the postal customer’s confidence in the agency’s ability to operate efficiently,” McHugh said.

He said he has mixed emotions on Porras’ departure after 37 years of service. “I think it’s very unfortunate that an individual of his experience had to get caught up in this situation and feels it’s necessary to leave the service. His background and expertise was a definite asset that will be missed,” McHugh said in a telephone interview.

The report recommended that written justification be required for future exemptions to the moving rule and that all exemptions and other incentive plans for officers be sent to the governors for approval.

Postal spokeswoman Judy de Torok said there are “no grounds to ask for the money back. It was reviewed by counsel, and it was within management’s prerogative to extend the benefit.”

A rule requiring reimbursement only of moves of at least 50 miles and relocation to a new office sometimes is set aside if it is thought to be in the best interest of the Postal Service. That decision normally is made by the chief financial officer.

In this case, since Porras was seeking an exemption, the request went to Henderson, who approved both payments: $142,311 for Porras, $105,817 for Ward, who succeeded Porras as controller.

The report said Porras moved about 15 miles, but his new residence was just 2 1/2 miles closer to his Washington office than the old home.

According to the report, Ward moved almost 22 1/2 miles from a home that was 26 miles from work to one just six miles away.