Skip to comments.USPS running out of cash; may default on pensions
Posted on 09/05/2011 9:37:00 AM PDT by mdittmar
The postal service says it's running out of cash and may not be able to make a $5.5 billion pension payment this month.
In fact, the postmaster general says things are so tight, the postal service may have to shut down this winter unless congress takes emergency action to stabilize its finances.
(Excerpt) Read more at abclocal.go.com ...
They just need more money! /sarc
Their solution-GIVE US MONEY OR WE’LL SHUT DOWN.
God forbid they actually try to figure out how to do their work more efficiently.
I for one would be perfectly happy to get mail delivered 3x per week.
LOL. More like too important to Congress to fail.
Another mess which will fall on Obama’s plate.
Obama will blame it on the failures of Bush to deal with this problem.
I will never understand why it has been okay, for almost three years now, for Obama to say he inherited problems, yadda, yadda, yadda, and the liberals and MSM lap it all up.
Every president in history has inherited problems from the previous administration, and/or, had to deal with onoing problems which festered and were not dealt with. You might think that true leadership would be to come up with your plans to solve these problems, rather than complain about them.
And that’s especially true when you consider the grueling process involved in running for president in the first place. Obama wanted that job badly, and things fell into place for him in the primaries, and the general election. Being president is an honor, a priviledge, and a ton of hard work. But if you are a real leader, you will not sit around and complain, you will come up with plans to deal with the issues of the day.
I’m sure Obama will say that we have to have a solvent postal service, blame Bush for not solving this problem, then call for a tax increase to pay for it all.
Well it is going to be up to our Next president NOT to pardon Zippy,He badly needs jailed!
At this point, I don’t care. I will make do without the post office for the chance to see a Gov’t organization actually suffer the consequences it has brought on itself.
The beginning of “the spiral?”
Shouldn’t the pension fund have been in safe keeping somewhere?
There are scores of thousands of uneducated boobs pulling in 6 figure jobs.
The average Federal salary (FBI agents, Dept of Defense employees, etc) is $63,000 a year - and many of these employees have masters degrees and specialized training.
The postal union has got away with murder in recent years. Their pensions are lavish. Our military heroes are not paid that generously in retirement!
Something has to give.
BS!!! Show the source of this misinformation.
Unions of the AFL-CIO
American Postal Workers Union (APWU),National Association of Letter Carriers (NALC)
Link please! Ii is hard to beleive average post office worker is getting paid $86,000. May be the managerial staff.
Prior to the changes the Postmaster General, a cabinet level position, was the dispenser of all political patronage jobs for the administration.
They want their OWN money BACK! Is it that hard to comprehend?
Like Social Security?
Their pensions are OVER FUNDED. USPS is forced to pay more than it needs to cover their pensions. can you name any other company with that mandate? Didn’t think so!
Figures, that is something else that needs to go!
What are their pensions? Can you tell me? Or are you just guessing?
The facts don’t lie! Do your own research.
Well here is yoiur first problem...they shouldn’t have pensions. They should have switched from defined benefit to defined contribution like most everyone else a long time ago.
And they should lay off a lot of people like everyone else has to do. Delivering the mail ain’t rocket science.
It’s a headfake, otherwise known as a steaming pile. USPS has to prefund it’s pensions and health care out to 75 years in the future, otherwise it would be showing a $2billion profit. Can’t make a profit, so the money must be shoved into a hole somewhere. USPS will NOT shut down this winter, bank on it.
That is a brilliant response!! Tell me what large companies don’t have a pension plan? And, the USPS has a defined contribution plan. It’s called Thrift Savings Plan. A 401K type program. Once again, someone too lazy to do some research.
Good point! And the hole it is being pushed in to is probably being used to fund other government programs.....like SS, etc.
Are you a carrier? Or are you a rocket scientist? Anyone with less than 6 years employment can be laid off from the USPS. Unless of course you are management. NEVER a shortage of managers!
You seem upset?
Although I am for serious reform of the USPS, I believe that you are correct about the overfunding of the pensions. The Postmaster General has indicated that that is one thing he wants Congress to address. That said, the money that should come back to the USPS won’t fix their deficits for very long. Just using the money up is just like what the States did with their cut of the stimulus. Now its gone and the States are left with the deferred problem of what to cut now. The fact of the matter is that thanks to other modes of communication, the USPS is going to be forced to undergo a substantial downsizing. But what we will likely see is the Congress trying to please their rural constituents and thus ignore the overall realities of the situation to curry favor and buy votes. It’s like Harry Reid’s little goodies for air service to Ely, NV. The planes go empty and each passenger costs the taxpayer something like $5,000. Stuff like that is going away and it can be handled effectively or by default, your choice.
Thank you for this post. Lots of information distributed all over boiled down into one post. WAY too much knee-jerking on FreeRepublic when it comes to the Post Office.
Do providing facts make me seem “upset”, so be it.
The great majority of large companies do not have a pension plan. That’s just ignorance on your part.
First Presentdent to preside over the U.S. Postal Service going T's-up.
When I was hired as a Mailman in 1966 I was hired by a Postmaster who was appointed by whichever political party was in at that time. After the strike in the early 70’s and the switch from the United States Post Office to The United States Postal Service all promotions were “in house”. That was the beginning of the end. Most everyone wanted to be a Postmaster or at least a supervisor. Guys were ratting on each other and/or stabbing each other in the back to get promoted—and it worked. Problem was—the most capable were not the ones promoted. Still that way.
In 1984 all government and Postal employees were put into Social Security. Prior to that they were in the Federal Civil Service Retirement System. Like me, they never paid a dime into Social Security. The new hires (post 1/1/84) were put into the Federal employees Retirement System. They are GIVEN 1% of their pay in a 401k type account plus they have the opportunity for matching funds. Plus Social Security. This can mount up but the “average” Mail Carrier/Clerk will never have an 80,000 dollar + pension.
After 33 plus years actual service plus 2 years military service time, plus nine months of accumulated sick leave I have a pension of almost 2,000 dollars a month. NO Social Security.
My opinion—Eliminate Saturday delivery, Close tons of small Post Offices where the one or two people who work there make more in a year than they take in in a year, eliminate tons of jobs that have NOTHING to do with delivering the mail.
I don’t make jokes. I just watch the government and report the facts.
I agree with you. The majority of carriers have no problem with a 5 day delivery week for example. That would solve a lot of the overtime and under staffing right there. That is an area I differ with the unions on, as do most of the rank and file. The Unions are afraid of losing members because a five day week means less employees. The rank and file know it is needed because of the points you make. The rural areas and smaller offices are going to have to change. And when you try to close a small post office in a small town..you get a firestorm. Many people on here may not like the USPS, but go to a small community and tell them you are closing their PO. Look out!
I am seeing figures of $83,500 and better @20 years as salary,Not bad for a Semi Skilled Job with bennies would be $112,000. the pension is easy to figure from that.
Really, please provide a link.
There may be a very few Letter Carriers or Clerks who are making colse to the $80,000.00 a year referenced to earlier in this thread but that would require a TON of overtime. High basic pay right now is about 54,000 a year. And—they pay a good amount of their health benefit plan. We always did. My Mailmans’ contribution to his family plan is $147.00 per pay period—every two weeks.
Why was the USPS forced to pre-fund their plans? It makes me think someone was looking forward enough to see insolvency becoming a major problem, probably as it was know that paper mail was going to decline drastically and no-layoff clauses were in effect in contracts.
link? That is certainly NOT for rank and file workers. They are paid hourly, not salary. Top pay for a carrier is 56k. Other crafts are less or similar. Again, please detail exact pension and benefits figures. Surely you can find it.
You know what your talking about.
Ask you local Congresscritter. And then ask them why Congress does not prefund...or any other company.
Exactly....$300/month Blue Cross for a family plan. No vision coverage/basic dental. Not exactly the “free” health care we supposedly get.
570,000 employees and they don’t know how to balance their budget.
The problem with the USPS pension "fund" is that the Congress has done with it what they did with Sociel Security - they spent it and put IOUs in the box. While Republicans spend such too - it wasn't Bush that did it even if it happened on his watch - if he had a full control of the huse and Senate, you might blame him, but the USPS, like all government/union run entities has been terribly inefficient and has priced itself out of business - like Socialism, Unions tend to do more harm than good these days by sucking the lifeblood out of what they infest.
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