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Postal Service Faces $100B in Debts and Unfunded Benefits
Cybercast News Service ^ | March 14, 2014 - 4:23 PM | Michael W. Chapman

Posted on 03/14/2014 7:29:09 PM PDT by Olog-hai

The U.S. Postal Service (USPS) currently owes $99.8 billion in benefit payments to its current and retired workers but does not have the money, and if Congress does not act to fix the problem, the Postal Service may have to “implement contingency plans to ensure that mail delivery continues,” according to a new report by the Government Accountability Office (GAO).

“At the end of fiscal year 2013,” said the GAO, “USPS had about $100 billion in unfunded liabilities: $85 billion in unfunded liabilities for benefits, including retiree-health, pension, and workers’ compensation liabilities, and $15 billion in outstanding debt to the U.S. Treasury—the statutory limit.”

“USPS continues to be in a serious financial crisis, with insufficient revenue to cover its expenses and financial obligations, a continuing decline in profitable First-Class Mail volume, increasing unfunded benefit liabilities, and borrowing limitations due to having reached its $15 billion statutory debt [borrowing] limit,” said Frank Todisco, a GAO chief actuary, in prepared testimony before the House Subcommittee on Federal Workforce, U.S. Postal Service and the Census on Mar. 13. …

(Excerpt) Read more at cnsnews.com ...


TOPICS: Government; News/Current Events; US: District of Columbia
KEYWORDS: billiondollardebt; publicsectorunions; unfundedbenefits; usps

1 posted on 03/14/2014 7:29:09 PM PDT by Olog-hai
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To: Olog-hai

but we’re reminded they are not government. until they want to be government, then they are government.


2 posted on 03/14/2014 7:31:38 PM PDT by Secret Agent Man (Gone Galt; Not averse to Going Bronson.)
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To: Olog-hai

USPS is always broke - and continually raising the cost of first class delivery never seems to fix the problem.


3 posted on 03/14/2014 7:32:53 PM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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To: Olog-hai

Break them up and sell off the assets. Every year we hear the same thing from these guys.


4 posted on 03/14/2014 7:33:08 PM PDT by dinodino
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To: Secret Agent Man

They have a legal monopoly on first class mail and they still can’t turn a profit.


5 posted on 03/14/2014 7:34:28 PM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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To: dinodino

I agree


6 posted on 03/14/2014 7:35:02 PM PDT by GeronL (Vote for Conservatives not for Republicans!)
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To: dinodino

Have they tried doubling the junk mail postage?


7 posted on 03/14/2014 7:35:43 PM PDT by GeronL (Vote for Conservatives not for Republicans!)
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To: Olog-hai

Golly, I wonder where they will find the money they need???


8 posted on 03/14/2014 7:37:11 PM PDT by ClearCase_guy
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To: Olog-hai

No government or agency should be allowed to have unfunded pensions. They should all be forced to switch to funded 401k plans like most corporations have.

It’s just too easy to write your self a check for the future that a government can’t cash, and that is far out of line with what private jobs are paying.


9 posted on 03/14/2014 7:37:29 PM PDT by DannyTN
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To: GeronL

USPS does partner with UPS on some package deliveries. They take over for DHL in certain areas of the country.


10 posted on 03/14/2014 7:37:51 PM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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To: goldstategop

Time to shut down all U.S. Post Offices. Privatize the routes..rural routes get service 2X a week.


11 posted on 03/14/2014 7:39:59 PM PDT by rovenstinez
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To: Olog-hai

Profit = Income - Expenses. A simple audit should identify the problem.


12 posted on 03/14/2014 7:40:55 PM PDT by VRWC For Truth (Roberts has perverted the Constitution)
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To: Olog-hai

Future headline:
ACA Faces $100B in Debts and Unfunded Benefits


13 posted on 03/14/2014 7:41:43 PM PDT by 12th_Monkey (One man one vote is a big fail, when the "one" man is an idiot.)
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To: Olog-hai
The post office isn't about delivering mail, it's about being able to send government correspondences to each and every citizen.
14 posted on 03/14/2014 7:42:31 PM PDT by RC one (Militarized law enforcement is just a nice way of saying martial law enforcement.)
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To: Olog-hai

YeahBut keep that 4th class junkmail YOU subsidize for the directmail industry clogging up your mailbox.


15 posted on 03/14/2014 7:42:36 PM PDT by CharlesOConnell (CharlesOConnell)
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To: Olog-hai

Can’t they just pay for this with some of Obama’s “stash”?


16 posted on 03/14/2014 7:43:51 PM PDT by The Duke ("Forgiveness is between them and God, it's my job to arrange the meeting.")
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To: Olog-hai

let them go into bankruptcy and reorganize without the union. It can be done.


17 posted on 03/14/2014 7:50:26 PM PDT by elpadre (AfganistaMr Obama said the goal was to "disrupt, dismantle and defeat al-hereQaeda" and its allies.)
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To: Olog-hai

Any time the USPS tries to make a rational business decision to make ends meet, Congress says “NO!”. They are basically damned if they do and damned if they don’t.

They wanted to cut off Saturday delivery to help stop some losses, but Congress calls the shots.


18 posted on 03/14/2014 7:50:31 PM PDT by C210N (When people fear government there is tyranny; when government fears people there is liberty)
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To: 12th_Monkey

No wonder the federal government claws back part of my payment. But they were kind enough to reduce the amount they wanted back.


19 posted on 03/14/2014 7:51:52 PM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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To: Olog-hai

and yet we seem to have a trillion sitting around to pay for affordable health care?


20 posted on 03/14/2014 7:56:03 PM PDT by Cruz_West_Paul2016
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To: Secret Agent Man

This starting to sound like a protection racket, if you give us the money we won`t shut off your service.


21 posted on 03/14/2014 7:56:10 PM PDT by ully2
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To: goldstategop

and a good amount of their long haul loads - airplane - are delivered by fedex and ups.


22 posted on 03/14/2014 7:56:16 PM PDT by Secret Agent Man (Gone Galt; Not averse to Going Bronson.)
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To: C210N

USPS is not strictly a for profit business. Congress still controls its purse strings.


23 posted on 03/14/2014 7:57:23 PM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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To: goldstategop

UPS said our package would arrive on Wednesday but it was handed off to the USPS and will probably arrive tomorrow instead. Such awesome service, NOT!


24 posted on 03/14/2014 8:03:04 PM PDT by GeronL (Vote for Conservatives not for Republicans!)
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To: Olog-hai

The government acts as if unfunded benefits are somehow sacred.

Cut the benefits and then they won’t be unfunded.


25 posted on 03/14/2014 8:03:15 PM PDT by Uncle Chip
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To: goldstategop

Agreed. Congress operates in the red, and forces the USPS to do likewise.


26 posted on 03/14/2014 8:04:11 PM PDT by C210N (When people fear government there is tyranny; when government fears people there is liberty)
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To: Olog-hai
Postal Service Faces $100B in Debts and Unfunded Benefits

Stimulating enough for me.

Tell them to look to their union fat-cat bosses for a bailout this time.

27 posted on 03/14/2014 8:08:44 PM PDT by OrioleFan (Republicans believe every day is July 4th, Democrats believe every day is April 15th.)
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To: rovenstinez
I'd say they should go thru with their idea to cut Saturday mail....and hopefully cut thousands and thousands of jobs while they're at it....

of course, they could just end the pension system immediately and it would solve all of their problems....

but its a govt entitiy....wouldn't want their sweet little workers to acutally live like the rest of us....

28 posted on 03/14/2014 8:09:02 PM PDT by cherry
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To: Olog-hai

I guess it’s time for Obama to use his pen and phone again...


29 posted on 03/14/2014 8:10:59 PM PDT by OrioleFan (Republicans believe every day is July 4th, Democrats believe every day is April 15th.)
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To: DannyTN
No government or agency should be allowed to have unfunded pensions. They should all be forced to switch to funded 401k plans like most corporations have.

Then I suppose you do not know that the U.S. Government ceased its defined benefits retirements decades ago. They now offer a 401K type of plan (throwing in some matching sums of money, limited, though, as I understand it). The employees fund their retirements with that, personal savings, and Social Security.

30 posted on 03/14/2014 8:15:22 PM PDT by OldPossum ("It's" is the contraction of "it" and "is"; think about ITS implications.)
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To: Olog-hai
I would be very happy if they just delivered 1 or 2 days a week
31 posted on 03/14/2014 8:15:52 PM PDT by Irish Eyes
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To: Olog-hai

Post Office Problem: People use the internet because the cost of postage is too high.

Post Office solution: Raise the cost of postage to make up their deficit.

Yeah, that’ll work. That solution had to be devised by some Democrat genius.


32 posted on 03/14/2014 8:16:35 PM PDT by Rembrandt (Part of the 51% who pay Federal taxes)
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To: Olog-hai

Fund it with cuts in federal funding to local governments.


33 posted on 03/14/2014 8:25:56 PM PDT by familyop (We Baby Boomers are croaking in an avalanche of corruption smelled around the planet.)
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To: The Duke

What’s the big deal? 85 billion is only 1 month of the Feds funny money stimulus. Just shovel 1 months worth to the Post office instead of the banks. Problem solved....


34 posted on 03/14/2014 8:30:51 PM PDT by Kozak ("It may be dangerous to be America's enemy, but to be America's friend is fatal" Henry Kissinger)
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To: Olog-hai; Revolting cat!

That’s okay. They can’t be hurting for money. They just sponsored a free concert stage at SXSW in Austin.


35 posted on 03/14/2014 9:14:27 PM PDT by a fool in paradise (The Texas judge's decision was to pave the way for same sex divorce for two Massachusetts women.)
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To: goldstategop

Post office in action...

Sent my kid there new glasses, package went to Austin, then to New York and back to a location in Texas for delivery. Took over a week.
Efficiency is job one!


36 posted on 03/14/2014 9:35:08 PM PDT by 12th_Monkey (One man one vote is a big fail, when the "one" man is an idiot.)
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To: OldPossum

Didn’t know that. So Congress no longer gets a defined pension?

Certainly doesn’t seem to have been copied at a lot of municpalities, and probably some states, and apparently the post office.


37 posted on 03/14/2014 11:19:05 PM PDT by DannyTN
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To: elpadre
let them go into bankruptcy and reorganize without the union. It can be done.

UPS makes a profit with private sector Teamster labor.

I work there and we bust ass every minute. Management there will make sure you are working in your area full bore or will send you to an area where the labor is needed.No standing around doing nothing allowed.

USPS is a different culture than UPS.

Private sector VS. public sector.

38 posted on 03/14/2014 11:24:52 PM PDT by dancusa (Molon Labe)
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To: Olog-hai

Liberal solution: Just raise he cost of a stamp to $500 and they’ll pay the debt off in no time.


39 posted on 03/15/2014 2:39:06 AM PDT by Right Wing Assault
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To: DannyTN

I didn’t say anything about Congress. I said that the ordinary Federal employee (except those who were “grandfathered in” but I would suppose that they are very few in number—or non-existent by now—nowadays) does not get a defined benefit pension and hasn’t for some three decades. The average Freeper has not picked up on that fact.

The Congress critters take care of themselves. Always have, always will.

And yes, municipalities and states, from what I read, still have them, especially for unionized employees. There’s the fiscal problem, right there.


40 posted on 03/15/2014 5:00:22 AM PDT by OldPossum ("It's" is the contraction of "it" and "is"; think about ITS implications.)
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To: GeronL

Already have: http://blogs.ajc.com/business-beat/2012/09/22/ready-for-more-junk-mail-postal-service-hopes-so/?cxntfid=blogs_business_beat


41 posted on 03/15/2014 5:06:34 AM PDT by maddog55 (I'd be Pro-Choice if we could abort liberals.)
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To: Olog-hai

Long ago, in a different life, I carried the mail and worked through the transition from being employed by the United States Post Office Department to being employed by the Postal Service.

The one good thing about the POD was that, at least, it was a constitutional function of USG, provided for by one of the 18 enumerated powers.


42 posted on 03/15/2014 5:09:59 AM PDT by Jim Noble (When strong, avoid them. Attack their weaknesses. Emerge to their surprise.)
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To: Olog-hai

I believe they are deliberately slowing service too. I recently sent a letter to a guy 15 miles away from me. It took 14 days. Wow, a mile a day. It was time sensitive too.


43 posted on 03/15/2014 6:12:11 AM PDT by cyclotic (Hey BSA-I'm gone. Walk Worthy-traillifeusa.com)
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