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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…there are also $11 billion in overpayments into their retirement fund & they have to pay healthcare for employees that havent been hired yet…if congress mandated that for corporations, they’d all be bankrupt: Pension Plans Increasingly Underfunded at Largest Companies…AFTER years of poor investment returns, the [...] Postal Service Set to Default on Billions in Health Payments “The Postal Service, faced with continuing financial losses because of a drop in mail volume, expects to default for the first time on its annual payment for future retiree health benefits. Rep. Dennis Kucinich (D-Ohio) on Monday helped kick off a hunger strike of postal workers protesting what they say is an effort to privatize and dismantle the cash-strapped United States Postal Service. The strike — which includes 10 postal workers, union activists and supporters, but not Kucinich himself — is the latest in a long saga of efforts to reform the postal service as it faces a dim financial future. While lawmakers generally agree that postal reform is [...] The 2006 lame-duck Congress passed a mandate requiring the Postal Service to prefund 75 years’ worth of future retiree health benefits within 10 years. No other entity — public or private — has ever been subject to such a draconian requirement. Congress created the problem, and Congress needs to fix it
PAEA law passed in 2006 requires prepayment to fund for health Recent San Jose actuarial reports show $3.5 billion of city debt for underfunded pension and retiree health benefits — a shortfall that works out to about $11,000 for every household in the city. Yet, as Mayor Chuck Reed proposes substantive pension reform, workers and a local television reporter are hyperventilating about irrelevant numbers that distract from the ballooning problem. If not for major layoffs and salary cuts last year, the shortfall would [...] WASHINGTON (AP) — The U.S. Postal Service is reporting quarterly losses of $3.3 billion, hurt by declining mail volume and mounting costs for future retiree health benefits. From October through December of 2011, losses were $3 billion more than during the same period in 2010 – even though the final quarter is typically the strongest, due to increased holiday shipping. The mail agency says that at the rate it’s going, it will [...] The entire postal service across US face immediate default at the end of December 2011, if a bailout of $5.5 billion isn’t provided, loss for 2011 expected at $14.1 billion: The US Postal Service is shutting more than half its mail-processing centres in a $3bn (£1.9bn) cost-cutting drive expected to shed 28,000 jobs. Vice-President David Williams told a news conference that the closures were designed to stave off bankruptcy next year. Out [...] WASHINGTON (AP) — The U.S. Postal Service said Tuesday it has lost $5.1 billion in the past year, pushing it closer to imminent default on a multibillion-dollar payment and to future bankruptcy as the weak economy and increased Internet use drive down mail volume. The financial losses for the year ended Sept. 30 came despite deep cuts of more than 130,000 jobs in recent years and the closing of some smaller [...] The U.S. Postal Service will begin to default on its financial obligations just over four months from now unless Congress takes action to relieve it of its obligation to pre-fund retiree health care accounts, its leader told lawmakers Tuesday. USPS expects to post a net loss of $8.3 billion for this fiscal year, nearly as much as it lost last year. And with its $15 billion debt [...] The Postal Service will begin to default on its financial obligations just over four months from now unless Congress takes action to relieve it of its obligation to pre-fund retiree health care accounts, its leader told lawmakers Tuesday. USPS expects to post a net loss of $8.3 billion for this fiscal year, nearly as much as it lost last year. And with its $15 billion debt limit [...] NEW YORK (CNNMoney) — The U.S. Postal Service continues to hemorrhage money, with a loss of $2.2 billion in the most recent quarter. The national mail service said Tuesday that it expects to have a cash shortfall and reach its statutory borrowing limit by the time its fiscal year ends in September. That means the agency could be forced to default on some of its payments [...] |
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