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My understanding is, unlike any other government agency or business, the USPS is required by law to fully fund 50 years of pensions. If that requirement were r

My understanding is, unlike any other government agency or business, the USPS is required by law to fully fund 50 years of pensions. If that requirement were removed, it would be fine.

0xy 6y ago
I totally agree with you, but why is it a problem right now? Parcel volumes are at dizzying heights.
- SteveJS 6y ago
  According to the article revenue from advertising (junk mail) is down 40% while local businesses are mostly closed.
  - Exmoor 6y ago
    This is an anecdote not data, but I've heard several USPS delivery folks mention that a lot of long-tenured drivers decided to take vacation and sick time when the lockdown started ramping up. This has caused other drivers to pick up the slack so there may be a lot of overtime getting paid out.
  - 0xy 6y ago
    This doesn't wash. If advertising is down 40% and parcel services are up 150%, that's a substantial revenue increase overall. https://about.usps.com/who-we-are/financials/annual-reports/fy2018.pdf https://about.usps.com/who-we-are/financials/annual-reports/... I can't get the numbers to add up here. Even with letters down, advertising down then their revenue should either be flat or have a slight increase based on my guesstimate for their increase in parcel business.
diebeforei485 6y ago
Businesses are required to fund their pension obligations. In any case USPS hasn't actually fully funded their pensions since the recession.
- jdxcode 6y ago
  They’re required to PRE-fund the pensions which private businesses are not required to do
  - diebeforei485 6y ago
    Of course private businesses are required to pre-fund their pensions (with some exceptions like religious organizations). It's a requirement under the Employee Retirement Income Security Act of 1974. Lots more info here: https://www.forbes.com/sites/ebauer/2020/04/14/post-office-pensions--some-key-myths-and-facts/amp/ https://www.forbes.com/sites/ebauer/2020/04/14/post-office-p...

My understanding is, unlike any other government agency or business, the USPS is required by law to fully fund 50 years of pensions. If that requirement were removed, it would be fine.

0xy 6y ago

I totally agree with you, but why is it a problem right now? Parcel volumes are at dizzying heights.

SteveJS 6y ago
According to the article revenue from advertising (junk mail) is down 40% while local businesses are mostly closed.
- Exmoor 6y ago
  This is an anecdote not data, but I've heard several USPS delivery folks mention that a lot of long-tenured drivers decided to take vacation and sick time when the lockdown started ramping up. This has caused other drivers to pick up the slack so there may be a lot of overtime getting paid out.
- 0xy 6y ago
  This doesn't wash. If advertising is down 40% and parcel services are up 150%, that's a substantial revenue increase overall. https://about.usps.com/who-we-are/financials/annual-reports/fy2018.pdf https://about.usps.com/who-we-are/financials/annual-reports/... I can't get the numbers to add up here. Even with letters down, advertising down then their revenue should either be flat or have a slight increase based on my guesstimate for their increase in parcel business.

diebeforei485 6y ago

Businesses are required to fund their pension obligations. In any case USPS hasn't actually fully funded their pensions since the recession.

jdxcode 6y ago
They’re required to PRE-fund the pensions which private businesses are not required to do
- diebeforei485 6y ago
  Of course private businesses are required to pre-fund their pensions (with some exceptions like religious organizations). It's a requirement under the Employee Retirement Income Security Act of 1974. Lots more info here: https://www.forbes.com/sites/ebauer/2020/04/14/post-office-pensions--some-key-myths-and-facts/amp/ https://www.forbes.com/sites/ebauer/2020/04/14/post-office-p...