Skip to comments.Postal Service Faces $100B in Debts and Unfunded Benefits
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. Treasurythe 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 ...
but we’re reminded they are not government. until they want to be government, then they are government.
USPS is always broke - and continually raising the cost of first class delivery never seems to fix the problem.
Break them up and sell off the assets. Every year we hear the same thing from these guys.
They have a legal monopoly on first class mail and they still can’t turn a profit.
Have they tried doubling the junk mail postage?
Golly, I wonder where they will find the money they need???
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.
USPS does partner with UPS on some package deliveries. They take over for DHL in certain areas of the country.
Time to shut down all U.S. Post Offices. Privatize the routes..rural routes get service 2X a week.
Profit = Income - Expenses. A simple audit should identify the problem.
ACA Faces $100B in Debts and Unfunded Benefits
YeahBut keep that 4th class junkmail YOU subsidize for the directmail industry clogging up your mailbox.
Can’t they just pay for this with some of Obama’s “stash”?
let them go into bankruptcy and reorganize without the union. It can be done.
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.
No wonder the federal government claws back part of my payment. But they were kind enough to reduce the amount they wanted back.
and yet we seem to have a trillion sitting around to pay for affordable health care?
This starting to sound like a protection racket, if you give us the money we won`t shut off your service.
and a good amount of their long haul loads - airplane - are delivered by fedex and ups.
USPS is not strictly a for profit business. Congress still controls its purse strings.
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!
The government acts as if unfunded benefits are somehow sacred.
Cut the benefits and then they won’t be unfunded.
Agreed. Congress operates in the red, and forces the USPS to do likewise.
Stimulating enough for me.
Tell them to look to their union fat-cat bosses for a bailout this time.
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....
I guess it’s time for Obama to use his pen and phone again...
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.
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.
Fund it with cuts in federal funding to local governments.
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....
That’s okay. They can’t be hurting for money. They just sponsored a free concert stage at SXSW in Austin.
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!
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.
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.
Liberal solution: Just raise he cost of a stamp to $500 and they’ll pay the debt off in no time.
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.
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.
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.