Harry Dresden
Adamantium Member
it would benefit all 3.....right now all 3 have working agreements between them and when i was still there at least it was working really well...That no fault of the USPS.
The Truth About The Post Office s Financial Mess#.
The financial woes of the U.S. Postal System have become a point of contention on Capitol Hill. The Postal Service is supposed to make a $5.5 billion payment to its retiree health care fund by November 18th... but doesn't have the money.
US Postal Service workers have a retiree health care benefit in addition to their pension. Before Congress passed the Postal Accountability and Enhancement Act of 2006, the USPS operated under a pay-as-you-go model for retiree health care funding. The new law requires the Postal Service to pre-fund its benefit obligations.
"The idea is that enough money is saved over the course of a career that the benefit is fully paid for by the time the worker retires.
Thanks to these prefunding payments, the Postal Service has greatly reduced its unfunded obligations for retiree health benefits. At the end of fiscal year 2010, these obligations were under $49 billion – a substantial sum, but much more manageable. If the Postal Service continues making its prefunding payments, its unfunded obligations for retiree health benefits will be around $33 billion by the end of the decade. And the postal service will be on course to pay these benefits over time," a Congressional insider explained.
But this pre-funding has become a lightning rod of controversy.
Members of the postal workers union say the pre-funding requirement has created a fiscal mess. Some people have even claimed that law has the effect of requiring the postal service to fund retirement obligations for people who are not yet employed by the USPS--potential future employees.
No one ever intended the law to work that way. And, in fact, it doesn't. Although accounting rules require the postal service to calculate future liabilities, including those for projected future employees, the law only requires pre-funding of obligations to actual current and past employees.
In light of all the controversy, House Oversight Committee Chairman Darrell Issa (R-CA) sent off a series of questions on the pre-funding controversy to the Congressional Research Service to get to the bottom of the question: is pre-funding the reason for the USPS fiscal woes?
C-Suite Insider has exclusively obtained the CRS Memorandum on Postal Service Retiree Health Issue to Chairman Issa as well as an email explaining in further detail their findings. Below is a verbatim email correspondence between the CRS and Chairman Issa's office on the prefunding of 75 years of retiree health care benefits in just 10 years.
"The confusion over 75 years may be due to an "accounting" and not an "actuarial or funding" issue. They only have to fund the future liability of their current or former workforce. This would include some actuarial estimate about the mortality rates of their current workers (I.e. how long they live). So a 25 year old worker would have an average life expectancy (from birth) of 78.7 years. Thus, they would have to project future retiree health benefits for this individual up to about 54 years in the future.
But for accounting purposes they must estimate the future liability over a 75 year period (according to OPM financial accounting guidelines). In this case, they would make some assumptions about new entrants into the workforce and addresses your second question.
Theoretically, these new entrants could include someone who is not born yet. While they have to account for these future liabilities on their financial statements they do not have to fund them if they are not related to their current or former workforce."
Based on the findings of this memorandum, I asked Chairman Issa what his message is to the US Postal Service Unions who say Congress is to be blamed for this crisis.
Chairman Issa: Union leaders must understand that there is no easy fix to a crisis created by declining mail revenues. The often non-existent accounting issues unions want to talk about don’t address fundamental changes to delivery created by the growth of the Internet. Union leaders need to work with, not against, Congress on postal reform, because the alternative is a possible shut-down of the Postal Service next summer
And the usual suspects are involved.
So the fix is to give the USPS an unlimited budget? Then lets do away with stamps and make it all free.
FREEEEEEEEEEEEEEEEEEEEEE FREEEEEEEEEEEEEEEEEEEE. Everything FREEEEEEEEEEEEEEEEEEEE
How about letting them operate like a private business?
fine with me. let them compete with fedex and UPS on a level playing field. Great. lets do it.