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15 Nov 2011 19:54

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U.S.: USPS expected to default on payment, could be broke by next year

  • $5.1 billion lost in fiscal 2011 by the US Postal Service source
  • » They could be broke by September 2012: On top of that, they expect to default on a key health care pension plan payment (which forces them to pre-pay for workers’ future health benefits decades in advance) — of $5.5 billion.
Posted by Ernie Smith • 0 Comments • Permalink

07 Oct 2011 13:46

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Politics: Why the U.S. Postal Service’s massive deficit is really sort of an illusion

  • illusion The U.S. postal service has had to pre-pay large amounts of their health care costs for a number of years — roughly $5.5 billion this year, which they nearly defaulted on and only survived thanks to U.S. government help.
  • reality In reality, they’re pre-paying health benefits over the next 75 years — a point which likely includes many employees yet to be hired or born — as a way to make the federal deficit look a little less depressing. Wait a second … source
Posted by Ernie Smith • 0 Comments • Permalink

05 Sep 2011 10:45

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U.S.: U.S. Postal Service looking more and more screwed by the day

  • bad The U.S. Postal Service could possibly miss a $5.5 billion payment set aside for retirees to help pay for future health care. It’s due Sept. 30.
  • worse That’s just the tip of the iceberg; they’re having long-term funding issues due to union contracts, restrictive laws, and the rise of e-mail.
  • worser The result is that, without Congress’ help, the Postal Service could run out of money by early next year — which could hurt the economy. source
Posted by Ernie Smith • 0 Comments • Permalink

12 Aug 2011 11:38

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U.S.: U.S. Postal Service: Desperate times call for desperate measures

  • $20
    billion     the amount of money the struggling U.S. Postal Service has lost in the past four years — including $8.5 billion last year alone
  • 120,000 workers number of employees the struggling postal service has proposed cutting to stave off their financial issues; did your e-mails do them in? source
  • » No more federal health care? If you’ve been following the U.S. Postal Service’s financial situation closely, you might know that part of the reason they’ve been struggling involves high pre-paid health care costs, an issue that cropped up due to a federal law forcing them to set aside a large amount of money for health care. This means that they can’t use any of the money to, you know, do anything else. Now the USPS says they’d be better off getting off the federal plan and doing private health care and pensions instead. They say it’s cheaper. Was that whole thing a ploy to get them further off the federal dime? They’re independent, you know.
Posted by Ernie Smith • 0 Comments • Permalink
 
 
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