Without the mandate, the USPS would have been profitable over the past four years and it would have significant borrowing authority to ride out the bad economy. Postal officials hope closing facilities, reducing the workforce and other changes will help keep the mail carrier afloat.
Could it really be that the second oldest agency in America, created by Benjamin Franklin to help bind the nation together, is in danger of going out of business?
Play null "I foresee that they could potentially become irrelevant or obsolete in the future," one woman said. The economic downturn also led businesses to mail fewer advertisements. As it is, it is the only federal agency required to do so: It must pre-fund these benefits some 75 years into the future on a massively accelerated schedule.
The common-sense solution is obvious: A bill in the Senate would spread the payments over a longer time, though many lawmakers want to end the prefunding. If the Postal Service were a private company, it would not have to file for bankruptcy because it would not be subject to a USPS-specific congressional mandate to pre-fund future retiree health benefits.
Today, the Postal Service said that without Congressional actionit could be bankrupt by the end of next year. At a Post Office in the Washington, D. Not only is the loss of business a blow, but the kind of mail postal workers are carrying is changing. The trend is largely due to changes in the way Americans communicate.
And those companies that voluntarily do pre-fund would never have adopted a crushing schedule to pre-fund 80 percent of future retiree health costs in just 10 years.
So-called standard mail has recovered slightly, but not enough to make up for the loss of first class volume, the most profitable mail category.
Play null Privatizing The Postal Service? Others argue the payments are needed to protect taxpayers from having to bail out Postal Service benefits down the road. The Postal Service has asked Congress to approve other cost-cutting measures such as ending Saturday service, raising the prices of stamps and cutting its obligation to future retirees.
Postal Service is not too big to fail.Feb 14, · Factbox: Why the Postal Service is going bankrupt 3 Min Read (Reuters) - The U.S. Postal Service has come under scrutiny for a plan to close thousands of post offices -.
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Postal Service Before It Goes Bankrupt. examines the United States Postal Service as it going to default on those obligations to its retirees or we.
Today, the Postal Service said that without Congressional action, it could be bankrupt by the end of next year. The year old, venerated institution is deep in the red, losing $ billion last.Download