3 ms·
This. The fundamentals of the USPS are fine, they're only struggling artificially due to being placed in an impossible situation by Congress[1]. The short of it
by cosmie 7y ago
This. The fundamentals of the USPS are fine, they're only struggling artificially due to being placed in an impossible situation by Congress[1]. The short of it:
1. Congress required the USPS to fully pre-fund their retirement benefits (pension and healthcare obligations). A requirement Congres has neither placed on the public sector nor any other organization under Congressional control.
2. USPS pricing is controlled by Congress. Congress has refused to increase postage prices to allow for funding the above mandate.
3. USPS can't reconcile the two above line items, and continually defaults on a large chunk of their pension obligations each year.
4. #3 becomes periodic media and political fodder to push an agenda at privatizing the USPS (or filler for a slow news day).
[1] https://ips-dc.org/how-congress-manufactured-a-postal-crisis-and-how-to-fix-it/ https://ips-dc.org/how-congress-manufactured-a-postal-crisis...
- wahern 7y agoPrivate companies are required to fully fund pension plans under Federal law. What's specific to the USPS is the requirement to fully fund health care benefits and, more importantly, a restriction preventing the USPS from lowering health benefits for existing retirees.[1] Unlike pensions, health care benefits are normally not considered vested benefits and so when faced with the USPS' dilemma any other organization, public or private, would simply lower health benefits. The USPS is being screwed, but it's more complicated than the memes thrown around in public discourse. Your link doesn't give enough context necessary to debunk many of those memes and to resolve the confusion. [1] Also the Treasury bond thing, but that's not nearly as much an existential burden as health benefits.