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.
I will pass that along to my mom who survives on a postal pension. A pension she paid in to. And since she was not eligible for social security, what do think she should do? Can she come live with you?
Is that too obvious? Hell, cut delivery to Monday, Wednesday and Friday ans save some serious cash.
I got two checks and responses to job estimates. I got a couple of bills too. Tell the IRS you’ve gone paperless. They like that.
no...but keep trying...
You can look up Postal personnel complement on their Annual Report ~ tells you how many employees by craft or management/administration level.
most of the crap they stuff in yer mailbox is unwanted anyway; yet you cannot refuse the occupant/resident bs w/o refusing all including first class...another catch-22/gotcha...and now they want another handout!!!!
Mail is privatized in Germany and last I read they were doing OK.
Free EBT Debit Cards be de trick.
Thank you for your kind thoughts.
The service I provide and how I receive payment is way beyond the antique system that is the PO.
We all know that answer - they'll get the money direct from the source - you and I.
At the risk of sounding harsh, why should your mother be shielded from the issues that the private sector deals with everyday?
Oh dear, oh dear, what would I ever do without the endless stream of supermarket circulars, catalogues, and other useless crap that fills my mailbox every day?
“I will pass that along to my mom who survives on a postal pension. A pension she paid in to. And since she was not eligible for social security, what do think she should do? Can she come live with you?”
Many Fed/State retirees will be in this position in the future as the shock of “Unfunded Obligations” in unrealistic budgets begin to hit. I draw a Military Retirement now, I expect that sometime in the future it will also be under attack. As a result, I have taken the required precautions if that happends, so should your mother. No she can’t come to live with me, that’s why she gave birth to you. She cared for you when you couldn’t, now it’s your turn when the tables turn.
Welcome to Obama’s America...such as it will be.
Good idea, but the USPS, in it’s infinite wisdom, just signed a no-layoff labor contract.
The world survived before the USPS and will after it.
“just setting the stage for another bailout”
Oh, it’s even better than that!
The federal retirement funds are the funds Geithner has been using to stay under the debt ceiling.
Either the postal unions have gotten word those funds are not being returned(!) or-most likely- it’s part of a new effort to force the Reps to raise the debt limit.
Government workers at all levels are just now starting to feel the pain everybody else has been dealing with the last couple years, and whining about it like spoiled children who expect an increase in their allowance when Dad's out of work isn't getting them much traction.
“The pact extends the no-layoff provision and provides a 3.5 percent raise for ... An expensive but inflexible labor force is a significant drag on USPS, ...
No, progressives cannot ‘fix’ the USPS.
My mother is a retired teacher. And claims to be conservative. When the election for Gov. came around, she asked who I was voting for. I told her whoever wins the Republican primary.
She says you can't do that! The republicans are going to do away with my retirement!
Well, of course they weren't. But that's what the AEA basically told the teachers.
My point being. I think your mom's going to be OK. But the taxpayers are getting tired of subsidizing the Post Office and their workers. In the true private sector cuts like this happen all the time. We just don't have unions screaming about it.
Cut Saturday delivery? And not get my advertising fliers? The horror!
Watch the union pitch a fit. Maybe they’ll go on strike. I hope they do then my mailbox won’t get filled up with crap.
Seriously, the union would rather shut the whole thing down than lose one penny.
Cannot get rid of it. It’s in the constitution. We should change it and cut out the waste, but you won’t yet rid of it.
You are mistaken about striking. Postal unions do not go out on strike. You are thinking about the Teamsters at UPS. Next time UPS goes out on strike like they did in the late 1990s, people will be glad that the USPS is there.
Write “Return to Sender” on the crap and put it in the mail box. It gives the mailman something to do on his way back to the post office.
Yes, employer stopped making contributions to the retirement plan. Employer also reduced staff and froze pay for over 3 years, made sure we knew that cutting hours and/or pay were being considered for those who were kept on the payroll. Employer passed along cost increases in health insurance plan. This is very common experience for those working in the private sector over the past 4-5 years.
The folks you see in the Post Office are the “affirmative action people” who could not make a “buggy whip” or anything else.
Gov-mint jobs are filled with these entitlement folks. Go anywhere the Gov-mint is in charge and look around!
Maybe a better idea would be to eliminate residential delivery entirely, and replace it with free post office boxes either in existing post offices or at concentrated off-site locations where people can pick up their own mail.
They should cut back to deliveries every other day and charge more for the junk mail they love to deliver.
Sad. For over 200 years, the US postal service was the greatest bargain around. As a child, I could keep up a great correspondence with distant cousins for 3 cents a letter.
All good things must come to an end, I suppose.