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If you have to get congressional approval anyway, why not attempt to fix the underlying problem by not requiring all employee pensions to be funded up front? I
by BudVVeezer 14y ago
If you have to get congressional approval anyway, why not attempt to fix the underlying problem by not requiring all employee pensions to be funded up front? IIRC, that's the crux of their financial woes because it ties up billions in a move that no other industry is required to make.
- glesica 14y agoIt seems that certain factions within Congress are actively trying to kill the USPS, hence the pension requirement. Eliminating Saturday delivery reduces the services that USPS offers, so perhaps it has a better chance of passing...
- freehunter 14y agoI'm getting that feeling too. From not letting them cut Saturday delivery to needing to pay $5.5b upfront every year, someone in Congress wants the USPS to fail, and they're willing to play the long game (USPS has been struggling for a while). The question is who, why, and what is supposed to replace them? Is UPS or FedEx going to start delivering my mail? Again, Congress won't let them. The nation would shut down without the USPS.
- newbie12 14y agoThe USPS is a zombie. It going to collapse in 10-15 years and stick taxpayers with $40 billion in unfunded retirement health benefits, among other costs. Congress is trying to get ahead of the problem with the pre-funding requirement.
- freehunter 14y agoTrying to get ahead of that problem by causing it to happen sooner? The USPS is taking out loans to "pay" this requirement. They're not allowed to go out of business. They're not allowed to cut costs. They're not allowed to receive federal money. They're forced further into debt every year. The USPS is the whipping boy of Congress. If Congress really wanted the USPS to be around long term, they would actually help them rather than making them pay this retirement fund with loans.
- glesica 14y agoSo sticking the taxpayers with a huge load of debt they incurred to fund the pensions is better? Also, I see no evidence that USPS will ever cease to exist. Perhaps shrink in size and scope, but not cease to exist. At some point people need physical things to be moved from point A to point B, and USPS is one organization that does just that. Calling it a zombie without explaining yourself is just ignorant.
- newbie12 14y agoIt is retiree health care that has to be pre-funded, through 2016. The USPS was operating that benefit program as pay-as-you-go, which was creating a huge unfunded liability for taxpayers. http://www.cnbc.com/id/45018432/The_Truth_About_The_Post_Office039s_Financial_Mess http://www.cnbc.com/id/45018432/The_Truth_About_The_Post_Off...
- jellicle 14y agoNo. The USPS has to prefund the next 75 years' worth of estimated healthcare expenses. If they estimate that someone will need healthcare in the year 2088, they have to put money aside for it today. That bullshit requirement which no other company or institution in the world labors under is creating an artificial cashflow crisis at the USPS.
- jcampbell1 14y agoAll companies have to fund pensions up front. Retiree healthcare doesn't have to be funded up front, but very few companies provide this benefit. It is rare that someone can retire at 50, and have their healthcare paid for by their employer for the rest of their lives (minus Medicare payments). This exceptional benefit should be pre-funded.
- kaonashi 14y agoBecause then they wouldn't have an excuse to cut the post office. Never underestimate the sheer cynicism of politicians.