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Prefunding pensions out of operating revenues is onerous relative to similar federal agencies, but is it really bonkers? The main problem with pensions is that
by maxerickson 2y ago
Prefunding pensions out of operating revenues is onerous relative to similar federal agencies, but is it really bonkers?
The main problem with pensions is that they often get funded with promises instead of dollars. Then whoever made the promise walks away and leaves the problem for others to fix.
- rswail 2y agoYes, because this is a Federal government organization, so it is backed by the Federal government/US Treasury. So "pre-funding" pensions is nonsense because the pensions will be paid out of a) the USPS current revenues, or b) US Treasury. Just like Social Security, which effectively "invests" in US Treasuries and redeems those bonds as required to pay current recipients.