Congressional Mandates and the Great Recession Have Caused the Postal Service’s Recent Financial Challenges
for first-class mail. In order to survive the Postal Service will
need to transform its business model to succeed in the 21st century.
But use of the Internet is not the principal cause of the Postal Service’s
losses of nearly $12 billion over the last three years. Those
loses are due to the Great Recession, which is temporary, and to a requirement
mandated by Congress that the Postal Service aggressively
pre-fund its future retiree health benefits. No other government
agency or company has such a requirement.
reforms are needed to give the Postal Service breathing room to devise
a more successful long-term business plan.
the recent financial challenges.
year to pre-fund retiree health benefits.
plummeting more than 9% from the year before during the worst
recession in 80 years.
budget. Yet these benefits will be spent out over 75 years. No business
could survive long with such a burden even in good times.
and companies are not required to pre-fund retiree health benefits.
is just 28%.
of errors in the way the Office of Personnel Management (OPM) calculates
the Postal Service’s obligations.
Benefits Fund. This would allow the Postal Service to fully pre-fund
retiree health benefits as mandated by Congress.
fund to another.
the rest of the government’s plans are funded at 41.5% and the
average funding level at large companies is about 80%.
Please write your Representative to Congress and demand a Fair and Accurate Accounting of the Postal Service's Health and Pension Funds.