The US Postal Service will default on a $5.5 billion prepaid retiree health benefit payment today, and this will surely lead to calls for privatization or mass jobs cuts. But the default concerns the unusual way in which the USPS, unlike virtually any other company in the world, pre-pays its health benefits many years out. Rep. Elijah Cummings explains:Can you imagine how loudly these guys would scream if Congress required private businesses to prefund their health benefits in such a way? Or if they refused to let a private business increase what it charges customers (like first class stamp prices) or close stores with low customer traffic (like the rural post offices the Postal Service proposed closing)? I know that Socialist would be thrown around. I can't believe these guys get to create crises to "solve" by privatizing services. Does anybody think that FedEx or UPS will subsidize service to rural areas like the Postal Service has throughout history? I'm pretty sure they won't. Try getting something from BFE clear across the country for less than 50 cents if the post office goes away.
In fact there are $11 billion in overpayments into that retirement fund. This is a ridiculous mandate on the USPS, which looks designed to send the postal service into default. This won’t immediately end mail service or anything, but it compounds the other challenges that the USPS faces from technological innovation. However, just ending this silly system of pre-funding would stave off the reckoning for many years.To pay for other parts of the (2006 Postal Accountability and Enhancement Act) and still make sure it remained revenue-neutral, Congress required the Postal Service to begin prefunding nearly 100 percent of its future retiree health care costs over a 10-year period.
While this may have made budgetary sense at the time, Congress did not anticipate the 2008 economic crisis and its exacerbating effects on the Postal Service’s finances, which were already struggling with declining mail volume as Internet use increased [...]
Though the Postal Service now has more than $45 billion in prepaid retiree health benefits funding, the law requires an additional $5.6 billion payment by Sept. 30, 2012.
Friday, August 3, 2012
The Real Story At The Postal Service
Yes, mail traffic is declining rapidly, but many of the cash flow issues are brought to us by mendacious Congressmen:
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50 cents? How about for free. Ever heard of email? The post office and all of its tentacle satellite offices once served an enormous purpose. Times have changed though.
ReplyDeleteIt is truly fascinating how socialists like yourself think you are so entitled. Whether it’s the post office or healthcare or housing or retirement or what food we can eat. More power to you and your beliefs but I honestly don't get it. I've always wondered if its upbringing or environment or a major event in ones life. It doesn't seem normal for human to want to be coddled and controlled by some big government entity. I understand it coming from someone in a big city where services and control are so prevalent. Countryside Ohio seems to be an odd place for someone who sounds like Hugo Chavez to be hiding out though. You sir are a curiosity.
I guess I enjoy my freedoms. Freedom to win big, freedom to lose big. I may never be wealthy or a “1 percenter” but I hate to think I would ever live in a country where I wouldn’t have that chance. In fact, I would rather be poor forever and have the freedoms I cherish than have someone like yourself in charge trying to control every aspect of my life. Again, best of luck to you and your socialism. It will be interesting to see what the future will hold for the approach. I guess we turn into Europe?
You sir, are also a curiosity. I'm not sure where you come up with your ideas for what you think is published here. I don't think that pointing out that rural Republican Congressmen are horrific hypocrites makes one into Hugo Chavez. I don't really care how much it costs to send things in the mail because I'm pretty well off, and I'm not too concerned about whatever ridiculous privatization schemes those assholes come up with because I can count on rural Republicans who are coddled by big government to squeal like stuck pigs if they actually try to cut federal subsidization of rural life. Most rural people are too busy and too numerically challenged to realize that taxes on the wealthy inordinately weigh on people in cities, while government programs inordinately benefit rural folks. They hate people who get more than they pay for, but they don't realize they are hating themselves. I would love to think you could actually read a post and understand what is being said, but that is probably too much to ask for from somebody who believes what Fox News is peddling. As for winning big or losing big, if you aren't already wealthy, prepare to lose big. Especially if you are successful in electing Republicans.
ReplyDeleteThank you for your support of the USPS as a widow of a USPS /USMC I greatly appreciate the support ( and mil of a farmer) here are some links for details: free google book to read : The Post Office, its past record, it's present condition and it's potential relation to the new world era, Daniel Calhoun Roper, Chairperson of the United States Tarrif Commision, 1913-1917, in 1970 of course was the great postal strike in which most workers at that time either were working 3 jobs or on welfare while working for the USPO, the strike too place to improve pay and working conditions long ignored by congess as in 1913, ( 1935 labor unions were allowd in which minimum wage, hours, benifts, and social security and retirment , fair labor standards act, child labor laws and family leave acts were formed of benifit to all american ciitzens) collective bargaining was set in place for the mangment of the postal service and few people know that the US labor department is in charge of the USPS for mangment. In 2000, 2001, with a background of taking cuts in pay , health benifts and retirement benifits worth 200 billion in cuts, postal employees were made to pay in an extra 15 percent to their retirment systems under the 1997 budget reconciliation act by congress, this was thanked by the president and congress for their sacrifice so an extra tax increase for postal workers while the rest of american was getting tax cuts, this was no additional retirmeent benifit but for budget reasons only. In 2002, the increase was removed from the Presidents budget . ( by the way the USPS was made off budget by law in 1989 by congress) for the resulting factors suggested link to read a 21 page report on the following sites: www.postalmag.com/joygoldberguspsstress.pdf or AWPU 3800 first area tricounty local, PA Library, stress in the workplace articals , ( dr stephen muscarro beyound going postal) ' How the ongoing violation of the guiding principles of the usps are creating a toxic work enviorment" 2008. ( can also go to usps abuse of postal workers, reocities.com/povny) then process forward to www.bilburrasjounral.org- misc, ( have to google search to find will not load automatically) go to elevator page, on misc, and scroll read ' phoney excuses for diverting usps revenues ' and 'myths versus facts' , by former awpu bill burrras, 2010. search forward again in google to " ALEC/Koch cabal the Privitization of the USPS for Ups and FedEx' , bob sloan, vltp( net) april 2012, will connect the dots on coporatlization of the USPS and ties to koch brothers, who have funded the attack on the USPS for over ten years in 1990, then go to Examiner.com, Tim MC Cown artical, june 10, 2012, 'Behind all the schemes and lies of the privitization of the USPS." also scribd( net) The Battle for Democracy and the USPS, then www.savethepostoffcie.com, also can go to " Post office In Crisis, tbhe real story- Michigan Postal Workers, www.mpwu.com/pocrisis.pdf
ReplyDeleteunderstaffing continues in every post office today due to the paea, whearas in 2006 when the paea was enacted the post service had made a huge profit, that was legislated away in the manafactured criss, pmg potter recieved 72 thousand more a year ss did 12 other top executives, called pay per performance, he topped salary was 800,000 plus benifits, he retired in the year my postal letter carrier spouse would of in 2010 with 5.5 million dollars anually, while postal craft letter carriers and clerks are short staffed due to the paea, for overpayment in to retirement systems, my own spouse worked a year short staffed in his own office and got orders in may 06, he was dead by may 07. Many have commited sucide due to this action as well have had their paychecks stolen or time clock rings changed due to the greed at the top, my own spouse work was 22 hours a day legally at the time of his orders, this is a push to change back the country by corporations so labor laws cesase to exist, there are no labor laws protecing adults in the country from overwork, only union law, that help aand side but the push is to destroy those as well. It interesting that they have paid in and earned the money for retirment but it is termed entitlement for some reason this makes others feel better for denying human rights in a so called civilized society. I do not get the retirement my spouse earned, as a usmc /usps, he was not retired when he died, and about 5 labor laws were broken to push his stress to the max so he could have a heart attack and die.Next time letters come may I suggest the gentlement who commented think of the blood sweet and tears that are paid with that cost of the letter universally in freedom in the USPS and USA.
ReplyDeleteby the way I was a republican for over 30 year until the death of my postal letter spouse due to the destructive acts by that party to the USPS.
ReplyDeletesorry daniel calhoun roper statement did not go completly though he was also first assistant post master general in 1913 and is an excellent resourse for education on the value of the post office. something that has been forgotten by congress in its attack on the workers and the usps for america.
ReplyDeleteI fogot one link to csrs as proof of overpayment that is denied by the republicans, it is called ' postal comments to the federal trade commission, august 6, 2007. Along with federal buget treatment of the usps, oig report, 2009. bob sloan artical happened after the death of 3 letter carriers in nalc 11 in one week and also a robbery of a letter carrier on his block, he had been working on the alec /koch connection when he published online in april of this year, there was also a death in july in birmingham alabama as well as the recent death by heat stoke of a 27 year letter carrier , he left a widow , 4 adult children and 4 grandchldren , that wont get his retirement either since he was not reitred as well when he died.
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