Skip to comments.Postal Service, ‘Hanging by a Thread,’ Suspends Retirement Contributions
Posted on 06/22/2011 12:07:13 PM PDT by Justaham
The financially troubled Postal Service is suspending its employer contribution to the Federal Employee Retirement System.
The agency said Wednesday it is acting to conserve cash as it continues to lose money. It was $8 billion in the red last year because of the combined effects of the recession and the switch of much mail business to the Internet. It faces the possibility of running short of money by the end of this fiscal year in September.
"This move underscores the need for Congress to make bold, quick and substantive reforms to the Postal Service. The USPS is hanging by a thread, along with 8 million private sector jobs that depend on the mail," said Art Sackler, coordinator for the Coalition for a 21st Century Postal Service, a group representing the private sector mailing industry.
The post office said it has informed the Office of Personnel Management that the $115 million FERS payment made every two weeks will be suspended effective Friday. The action is expected to free about $800 million in the current fiscal year. The post office's FERS account currently has a surplus of $6.9 billion, the agency said.
(Excerpt) Read more at cnsnews.com ...
And...so...it begins....wait until state employees in the various BROKE states start doing this....
Cut Saturday delivery, and management.
The USPS has like 10 paper pushers for every counter clerk, mail sorter and mail deliverer. Start by laying them off.
when do the riots start?
just setting the stage for another bailout
“Postal Service, Hanging by a Thread, Suspends Retirement Contributions”
Cut ‘em loose...
How will the residents of the 9th Ward in Nawlins get their welfare checks if the USPS goes toes up?
They should transfer employees over to the money-printing business - 2 birds, one stone.
Delivery cost can be cut in half. Half the people get their mail on Mon., Wed., Fri.; the other half get it Tues., Thurs., Sat. Only one delivery person required where it takes two now. Considering what I get by smail mail, a day delay would not make any difference to me. Oh, and I agree with you on cutting management.
I LIKE IT!
We really only should have 3 day delivery service anyway.
Yes, USPS Management has a union too
I received 5 pieces of mail yesterday. (1) an add for internet service, (2) an add from Kohl’s dept store, (3) an ad from a sewing machine store, (4) an ad for the former resident’s daughter for high school graduate employment opportunities, (5) an ad for a ‘Self’ magazine subscription. All went immediately in the trash.
Also add to that the post offices. I have 5 post offices all within about 10 miles of my home. Each one with a post master anda assistant post master and clerks. Talk about duplication of services. I wonder how common this is across the country? With the advent of purchasing shipping labels and stamps on line and getting home pickups for packages there is very little need to go to a post office these days. Another option is to open concessions such as United Parcel Stores.
Would all of you like your employers to stop their contractual obligation and to stop paying into your retirement fund? It’s happened to me and I don’t appreciate it. I’m sure none of the highly paid executives are going without their “perks”; they just want to use the employees as an excuse and stepping stone.
Yes, the paperless statements have made a huge impact on the income of the USPS.
The beginning of the long overdue dismantling of the American Socialist State?
Fire at will.
You obviously do not create anything, nor do you receive any payments via the postal service. For those of us who depend on the Po for our business, that is a horrible idea.
Also add to that the post offices. I have 5 post offices all within about 10 miles of my home. I wonder how common this is across the country. With the advent of purchasing shipping labels on line and getting home pickups for packages there is very little need to go to a post office. I buy stamps on-line and one book usually lasts me a year or more. Another option is to open concessions such as United Parcel Stores.
Put ‘em to work making buggywhips.
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