Author Topic: Postal Service Faces $100B in Debts and Unfunded Benefits  (Read 242 times)

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Offline happyg

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Postal Service Faces $100B in Debts and Unfunded Benefits
« on: March 15, 2014, 10:40:24 AM »
By Michael W. Chapman

The U.S. Postal Service (USPS) currently owes $99.8 billion in benefit payments to its current and retired workers but does not have the money, and if Congress does not act to fix the problem, the Postal Service may have to “implement contingency plans to ensure that mail delivery continues,” according to a new report by the Government Accountability Office (GAO).

“At the end of fiscal year 2013,” said the GAO, “USPS had about $100 billion in unfunded liabilities: $85 billion in unfunded liabilities for benefits, including retiree-health, pension, and workers’ compensation liabilities, and $15 billion in outstanding debt to the U.S. Treasury—the statutory limit.”

“USPS continues to be in a serious financial crisis, with insufficient revenue to cover its expenses and financial obligations, a continuing decline in profitable First-Class Mail volume, increasing unfunded benefit liabilities, and borrowing limitations due to having reached its $15 billion statutory debt [borrowing] limit,” said Frank Todisco, a GAO chief actuary, in prepared testimony before the House Subcommittee on Federal Workforce, U.S. Postal Service and the Census on Mar. 13.   (See USPS Action Needed.pdf)

“Attention to USPS’s unfunded benefit liabilities is important, as they represent scheduled future benefit payments to current and retired employees for which USPS has not set aside sufficient money to pay,” said Todisco.

Those “unfunded benefit liabilities” refer to money owed for postal workers’ pensions, retirees’ health care and workers’ compensation. It also includes some outstanding debt.

According to the GAO report, the USPS at the end of 2013 had about $100 billion ($99.8 billion) in unfunded liabilities. These scheduled payments to current and retired workers included the following:

More of the article at link:  http://www.cnsnews.com/news/article/michael-w-chapman/postal-service-faces-100b-debts-and-unfunded-benefits#sthash.mOv14s3y.dpuf

Offline Oceander

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Re: Postal Service Faces $100B in Debts and Unfunded Benefits
« Reply #1 on: March 15, 2014, 10:42:19 AM »
Maybe it's time to put the USPS into bankruptcy?  Or we could sell it off to the unions?

Offline Howie66

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Re: Postal Service Faces $100B in Debts and Unfunded Benefits
« Reply #2 on: March 15, 2014, 10:48:00 AM »
Maybe it's time to put the USPS into bankruptcy?  Or we could sell it off to the unions?

The Unions already own the USPS and this is why they are bleeding dollars.

The Unions need to be dissolved, especially in the Public Sector.
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Offline Oceander

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Re: Postal Service Faces $100B in Debts and Unfunded Benefits
« Reply #3 on: March 15, 2014, 10:53:12 AM »
The Unions already own the USPS and this is why they are bleeding dollars.

The Unions need to be dissolved, especially in the Public Sector.

The unions don't own it, they just get to suckle off it.  I mean sell them the stock outright and make it wholly private.

Unions should just be converted into partnerships or corporations and treated the same way as are temporary staffing companies and other businesses that provide employees for hire.


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