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It's not just operational inefficiencies that are slowly strangling the USPS. There are also factors like Congress' bizarre mandate that the USPS fully prefund

It's not just operational inefficiencies that are slowly strangling the USPS. There are also factors like Congress' bizarre mandate that the USPS fully prefund their retirement and health benefits programs[1], which is something not required of any other federal entity nor something done by private enterprises. That's a huge portion of the USPS's revenue stream poorly tied up. [1] http://www.washingtonpost.com/wp-dyn/content/article/2010/06/24/AR2010062405902.html http://www.washingtonpost.com/wp-dyn/content/article/2010/06...

grandalf 16y ago
Why is that bizarre? It sounds like a very practical way to avoid the sorts of issues that have befallen so many other pension plans. It most certainly should be done by public and private orgs, since we can't trust the mechanisms intended to free the cash b/c they are corrupt (this is one reason GM was bailed out... it looks better than everyone realizing the PBGC was bankrupted by one firm's demise).
- commandar 16y ago
  >The American Postal Workers' Union says this is a "phony crisis" caused by the Postal Accountability and Enhancement Act, which requires the Postal Service to pre-fund retiree health care costs. >No other government agency - or private business - bears this kind of burden. >As a result of the pre-funding mandate the USPS begins every fiscal year more than $5 billion in debt. In fact, the act requires the USPS to pre-fund 75 years' worth of retiree health care costs in just 10 years. >If the pre-funding requirement weren't in place the Postal Service would actually have a $3.7 billion surplus - over $1 billion each year for the past three fiscal years - despite declining mail volume due to increased use of electronic mail and an economy in crisis. http://www.peoplesworld.org/deficit-hawks-take-aim-at-postal-service/ http://www.peoplesworld.org/deficit-hawks-take-aim-at-postal... Emphasis mine. It's just a generally insane burden that's not getting enough attention.
  - grandalf 16y ago
    The act also removed $27B of pension obligations from the postal service's books, and used this and other benefits to smooth the transition away from a "pay-go" pension program. Pay as you go retirement programs are fraudulent because if the firm fails the retirees get nothing. I don't have a problem with the postal service being in debt or unprofitable, I just don't think the service is needed, and it's troubling to me that there are laws preventing other firms from offering letter delivery services that compete with the USPS.

grandalf 16y ago

Why is that bizarre? It sounds like a very practical way to avoid the sorts of issues that have befallen so many other pension plans. It most certainly should be done by public and private orgs, since we can't trust the mechanisms intended to free the cash b/c they are corrupt (this is one reason GM was bailed out... it looks better than everyone realizing the PBGC was bankrupted by one firm's demise).

commandar 16y ago
>The American Postal Workers' Union says this is a "phony crisis" caused by the Postal Accountability and Enhancement Act, which requires the Postal Service to pre-fund retiree health care costs. >No other government agency - or private business - bears this kind of burden. >As a result of the pre-funding mandate the USPS begins every fiscal year more than $5 billion in debt. In fact, the act requires the USPS to pre-fund 75 years' worth of retiree health care costs in just 10 years. >If the pre-funding requirement weren't in place the Postal Service would actually have a $3.7 billion surplus - over $1 billion each year for the past three fiscal years - despite declining mail volume due to increased use of electronic mail and an economy in crisis. http://www.peoplesworld.org/deficit-hawks-take-aim-at-postal-service/ http://www.peoplesworld.org/deficit-hawks-take-aim-at-postal... Emphasis mine. It's just a generally insane burden that's not getting enough attention.
- grandalf 16y ago
  The act also removed $27B of pension obligations from the postal service's books, and used this and other benefits to smooth the transition away from a "pay-go" pension program. Pay as you go retirement programs are fraudulent because if the firm fails the retirees get nothing. I don't have a problem with the postal service being in debt or unprofitable, I just don't think the service is needed, and it's troubling to me that there are laws preventing other firms from offering letter delivery services that compete with the USPS.