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"as you earn it" is the key phrase here, the post office has to fund pension plans before you are even hired, it's a future pool of staggering size. Pensions a
by ck2 13y ago
"as you earn it" is the key phrase here, the post office has to fund pension plans before you are even hired, it's a future pool of staggering size.
Pensions at the post office are probably the most secure retirement fund in the US right now, well other than what congress awards itself.
- yummyfajitas 13y agoNo, they are not required to prefund before current workers are hired. The pension costs of future workers are simply required to be included in future projections of USPS costs. It used to be that the USPS could go to congress and say "we want to do X over the next 10 years, it will cost $Y". The $Y value was allowed to exclude the cost of retirement benefits for workers hired during those 10 years. Now it must be included. This is simply good accounting practice.
- lotsofpulp 13y agoYou are incorrect. Please read the text of the law, especially section 8909a here: https://www.govtrack.us/congress/bills/109/hr6407/text https://www.govtrack.us/congress/bills/109/hr6407/text The government is requiring USPS to set aside money for benefits which it has already promised, which is a no-brainer. Did you know that health benefits for employees in the private sector are not promised, and they have been yanked away?