Postal Service, ‘Hanging by a Thread,’ Suspends Retirement Contributions

Associated Press ^ | 6-22-11 | RANDOLPH E. SCHMID

[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.

[Vermont Lt]

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?

[Ouderkirk]

Cut Saturday delivery

Is that too obvious? Hell, cut delivery to Monday, Wednesday and Friday ans save some serious cash.

[Vermont Lt]

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.

[gunnyg]

no...but keep trying...

[muawiyah]

Hmm, worked there a very long time. I sure don't recall that.

You can look up Postal personnel complement on their Annual Report ~ tells you how many employees by craft or management/administration level.

[gunnyg]

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!!!!
bs...

[Drill Thrawl]

It's happened to me twice. Both companies are now gone so whatever they cut is irrelevant. I now work for a company that does not directly contribute to a pension or 401k.

Mail is privatized in Germany and last I read they were doing OK.

[screaminsunshine]

Free EBT Debit Cards be de trick.

[super7man]

You obviously do not create anything, nor do you receive any payments via the postal service.

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.

[roadcat]

How will the residents of the 9th Ward in Nawlins get their welfare checks if the USPS goes toes up?

We all know that answer - they'll get the money direct from the source - you and I.

[Drill Thrawl]

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?

At the risk of sounding harsh, why should your mother be shielded from the issues that the private sector deals with everyday?

[Jack Hammer]

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?

[GT Vander]

“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.

[NY.SS-Bar9]

Good idea, but the USPS, in it’s infinite wisdom, just signed a no-layoff labor contract.

[WOBBLY BOB]

When it finally goes bankrupt (if not bailed out), something from the private sector will replace it.(if allowed to)

The world survived before the USPS and will after it.

[crosshairs]

Postmaster General: "Oh, my goodness. What have they done to you here?"
Kramer: "Huh? Who are you?"
Postmaster General: "Well, you can just call me Henry."
Kramer: "Henry Atkins? The postmaster general?"
Postmaster General: "Last time I checked."
Kramer: "Henry... can I get out of here now?"
Postmaster General: "Oh, oh. Sit a bit. Sit a bit. I mean, after all, I drove all the way up here from D.C. just to talk to you."
Kramer: "Oh?"
Postmaster General: "I even had to cancel a round of golf with the secretary of state. Do you like golf, Mr. Kramer?"
Kramer: "Yeah."
Postmaster General: "Kramer, I've been, uh, reading some of your material here. I gotta be honest with you: you make a pretty strong case. I mean, just imagine. An army of men in wool pants running through the neighborhood handing out pottery catalogs, door to door."
Kramer: "Yeah! Ha ha."
Postmaster General: "Well, it's my job. And I'm pretty damn serious about it. In addition to being a postmaster, I'm a general. And we both know, it's the job of a general to, by God, get things done. So maybe you can understand why I get a little irritated when someone calls me away from my golf."
Kramer: "I'm very, very sorry."
Postmaster General: "Sure, you're sorry. I think we got a stack of mail out at the desk that belongs to you. Now, you want that mail, don't you Mr. Kramer?"
Kramer: "Sure do!"
Postmaster General, receiving a salute from Kramer: "Now, that's better."
Kramer, seeing Newman walk into the office with a bucket on his head, escorted by a security man: "Geez. Newman?"
Newman, whimpering: "Tell the world my story."

[mrsmith]

“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.

[Kenton]

I'm not going to make any snarky comments about anybody losing their retirement. Unfortunately, things are tough all over, and in a way, it's nothing more than achieving "parity" with the majority of taxpayers, people who work in the private sector.

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.

[WOBBLY BOB]

“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, ...

http://www.theatlantic.com/politics/archive/2011/06/can-progressives-fix-the-us-postal-service/239669/

No, progressives cannot ‘fix’ the USPS.

[saleman]

I must have missed something. Where did it say they were going to cut your mom's pension?

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.