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The main problem the USPS has right now is that Congress a few years back mandated that they put aside money for pensions of USPS employees who haven't even bee
by jonhendry 15y ago
The main problem the USPS has right now is that Congress a few years back mandated that they put aside money for pensions of USPS employees who haven't even been born yet, let alone hired. FedEx and UPS don't have that requirement.
- randomdata 15y agoIt makes you wonder who dreams up this stuff. The purpose of a pension is to defer a percentage of payroll payments until later, to keep operating capital higher during critical business periods. If you just have the money sitting in the bank doing nothing, you can just pay the employees up front and don't need to worry about having pension plan at all.
- streptomycin 15y agoThat's not really the main problem. Their projected deficit for this year ($14.1 billion) far exceeds this excess pension payment ($5.5 billion). http://www.theatlantic.com/business/archive/2011/12/who-killed-the-postal-service/249508/ http://www.theatlantic.com/business/archive/2011/12/who-kill...