Postal Service Protection Act of 2011

Postal Service Protection Act of 2011 - Sets forth rules for the recalculation of annuities for employees of the U.S. Postal Service (USPS) and for the redetermination of surplus or supplemental liabilities under the Civil Service Retirement System (CSRS). Prescribes the "average pay" to be used in calculating annuities and surplus amounts.

Authorizes the transfer of surplus postal retirement contributions in FY2010 to the Postal Service Retiree Health Benefits Fund, the Postal Service Fund, and the Employees' Compensation Fund under the Federal Employees' Compensation Act (FECA) and to USPS for payment of its debt obligations.

Eliminates the requirement for pre-funding of the Postal Service Retiree Health Benefits Fund.

Sets forth criteria for the closing or consolidation of postal facilities.

Allows USPS to provide any nonpostal service or product in a manner consistent with the public interest.

Provides for the mailing of wine and beer sent by a licensed winery or brewery in accordance with the laws of the state, territory, or district where the addressee or agent takes delivery.

Establishes in USPS the position of the Chief Innovation Officer who shall have proven expertise and success in the postal and shipping industry and in innovation, marketing, technology, and management. Establishes a Postal Innovation Advisory Commission. Requires the Postmaster General to report to Congress on a comprehensive strategy for maximizing USPS revenue through innovative postal and nonpostal products and services.

Prohibits USPS from reducing the frequency of mail delivery to fewer than six days each week or from increasing the expected delivery time for market-dominant products.