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US Postal Service Loses $1.9 Billion; Needs $10 Billion Bailout Or Pensions Get It

Tyler Durden's picture




 

Revenues are up modestly for the US Postal Service as First-class Mail volumes continue to tumble "extremely" but package volumes are rising; however, USPS records a $1.9 billion loss in the last quarter, despite efforts to streamline efficiency and cut costs. The rise in package volumes appears related to a "Sunday delivery" deal with Amazon.com who "found a great fit with USPS' capability and desire." However, USPS says it needs $10 billion for deferred investments (i.e. Capex) and warns if it does not get its bailout:

  • *USPS SEES UNABLE TO MAKE $5.7B RETIREE PAYMENT W/OUT REFORM

Given USPS says no new employees have been hired and flexible scheduling used for Sunday delivery, we wondered who exactly is benefiting from the taxpayer funded desperation of the USPS to do anything for even loss-making revenues?

 

USPS is set to deliver Amazon packages on a Sunday...

Starting this week, the postal service will bring Amazon packages on Sundays to shoppers' doors in the Los Angeles and New York metropolitan areas at no extra charge. Next year, it plans to roll out year-round Sunday delivery to Dallas, New Orleans, Phoenix and other cities.

 

...

 

To pull off Sunday delivery for Amazon, the postal service plans to use its flexible scheduling of employees, Brennan said. It doesn't plan to add employees, she said.

 

But the postal service partnership is the first time Clark knows of that "Amazon or really anybody else has done broad-scale Sunday delivery."

 

"It's going to be hard for others to replicate," he said.

 

Clark said the postal service "just happened to be a great fit" where "capability and desire matched."

It's going to be hard to compete because Amazon is "using" a taxpayer-subsidized and desperate for any revenue business is put up against private companies like UPS or FedEx...

Especially when the results are so bad...

 

  • *USPS RECORDS SECOND QUARTER LOSS OF $1.9 BILLION
  • *USPS: APPROXIMATELY $64B IN LIABILITIES EXCEED ASSETS BY $42B
  • *USPS HAS NEED FOR OVER $10B FOR DEFERRED INVESTMENTS
  • *USPS SEES UNABLE TO MAKE $5.7B RETIREE PAYMENT W/OUT REFORM

"The Postal Service is working diligently to improve its finances by streamlining our network to improve efficiency, reduce operating costs and increase revenue, which was up $379 million over the same period last year — the third straight quarter of revenue increase," said Postmaster General and Chief Executive Officer Patrick Donahoe.

"Despite aggressive cost-cutting actions, however, we will still incur annual inflationary cost increases of approximately $1.2 billion each year, and First-Class Mail volume continues to decline," added Donahoe.

...

"We haven't been making the retiree health benefit prefunding payments because we can't," added Corbett. "If legislation reduced the required retiree health benefit prefunding payment, it doesn't provide us with any more cash to pay down our debt or put much needed capital into our business. Only comprehensive postal legislation that includes a smarter delivery schedule, greater control over our personnel and benefit costs, and more flexibility in pricing and products will provide the necessary cash flows."

In other words - if we don't get our bailout - the pensions get it (but in the meantime, Amazon can abuse us for the cheapest taxpayer-subsidized delivery in the 'not free' market).

 

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Fri, 05/09/2014 - 10:51 | 4743311 Kaiser Sousa
Kaiser Sousa's picture

i knew i should have Fed EX'ed that last Silver order.

Fri, 05/09/2014 - 10:54 | 4743332 nope-1004
nope-1004's picture

Postal today has morphed into the flyer delivery service of the 70's.  It delivers junk mail today and that's it.  PC banking and email has killed this dinosaur.  Time to put it into extinction.

 

Fri, 05/09/2014 - 10:54 | 4743337 lordylord
lordylord's picture

But they have money to buy hollow points?

Fri, 05/09/2014 - 10:59 | 4743357 SafelyGraze
SafelyGraze's picture

the pensions might all be gone, but at least they paid for the cars, houses, vacations, wars, medical care, and pills that maw-maw and paw-paw enjoyed so much in the 60s and 70s and 80s

 

Fri, 05/09/2014 - 11:01 | 4743369 pods
pods's picture

Well they certainly aren't spending money on putting a muffler on the mail truck in my 'hood.

pods

Fri, 05/09/2014 - 11:09 | 4743391 Gaius Frakkin' ...
Gaius Frakkin' Baltar's picture

If the USPS would audit package weights coming from China and stop the mail fraud, it may find an extra billion every quarter. But alas... that's not part of the agenda.

Fri, 05/09/2014 - 11:21 | 4743452 Headbanger
Headbanger's picture

But the Russian Post seems to be getting along just fine!

http://www.russianpost.ru/RP/INDEX/RU/Home

Maybe we could out source our mail to them soon.

Gee, I wonder if they order hollow points or save lots of money using up 7.62x25 and 7.62x39 millsurplus ??

Fri, 05/09/2014 - 11:34 | 4743529 StacksOnStacks
StacksOnStacks's picture

USPS sucks! I've had mail in-city take 3 weeks! I had certified mail sent to me and it finally arrived after 5 weeks!!! Fucking amazing! Shut this fucker down!!!

Fri, 05/09/2014 - 11:46 | 4743587 ParkAveFlasher
ParkAveFlasher's picture

Does this mean my Forever Stamps investment gambit may not pan out?

Fri, 05/09/2014 - 12:17 | 4743689 Handful of Dust
Handful of Dust's picture

However........................at least they are working for their dough. So yes, they want a Bailout so give them a Bailout.

I ax you, How much has Greenspan, Shalome and Yeller handed to Wall Street and corrupt politicans?

 

[However, I will agree with anyone who says a lazy or incompetent employee should be able to be fired. Too bad that seems to only apply to the private sector.]

Fri, 05/09/2014 - 12:34 | 4743752 Save_America1st
Save_America1st's picture

I've asked my local postal carrier spy several times to stop stuffing my mailbox with junk mail and they refuse ever fucking time. 

So one day she asked me why I never pick up my mail because my box is always so full (it was my monthly visit to the junk mail box and she was there stuffing all the others with garbage).  She asked me if I traveled a lot.  As if that's any of her fucking business, right???? 

So I told her it's because I rarely get any regular mail anymore and that all there every is is junk mail.  This was as I was emptying the box and throwing it all straight into the large garbage that can we have next to the mailboxes.

She actually got offended and indignant with me and tried to correct me that it wasn't called "junk" mail.  She said if I didn't start to pick up my mail more regularly that they would....get this....it's funny....she said they would "stop delivering my mail to me."!!!  LOL

I laughed at her and said, "That's exactly what I've been asking you to do for years and you refuse to NOT deliver all this garbage to me!"  "But if I stop picking it up then you're going to threaten to "punish" me by not delivering this garbage to me????"

I laughed more and said have a nice day...she wasn't very amused at all and so I'm sure I've been marked down for FEMA Camp relocation due to this interaction with a government slug.

Only government fuck-tard assholes think this way...I fucking tell you.  All they're there to do is scam off the tax payers and most likely spy on what we recieve or order while lazily delivering garbage that 99% of the people don't want. 

Fri, 05/09/2014 - 14:44 | 4744334 Cathartes Aura
Cathartes Aura's picture

a war-vet junk-mail-delivery-worker has this comment for ya,

Cutting off junk mail would only serve to increase unemployment in our country. If bound printed matter could have a Made in the USA designation I would assume (I have to guess) over 90% of the junk you recieve in the mail could be considered made in the USA and likely made in the community in which you live.

Nobody is going to agure that they like junk mail, and by the way I dont like to deliver it anymore than you like to receive it. Sure doing away with it would make alot of people happy no more junk mail ya. But on the other hand, no more Americans jobs creating, designing, printing, delivering or recycling those items nobody really wants.

How hard is it to deal with anyway, you check your mailbox, sort though the things you want, throw what you really dont want into a recycle bin. It take me around 10 seconds of my day or less to accomplish something that keeps so many Americans employeed. Isnt keeping Americans employeed something that we should all be concered about, or should we just stop supporting the jobs we have here now, and hope that some other manufacturer brings jobs back home. Or are we as Americans becoming so selfish and lazy that we just dont want to be bothered even if it means putting other Americans out of work.

It is our Postal Service, I think its about time we support jobs in our country instead of letting every single job we still have here slowly slip away just so we wont have to spend a few seconds of a day recycling mail we didnt really want.

 

can't win fer losing, eh.

Fri, 05/09/2014 - 18:58 | 4745072 Save_America1st
Save_America1st's picture

an outdated, archaic mail service that only exists to deploy tons of worthless paper trash is not a valid argument in keeping anybody employed.  I'd like to be paid triple what I make now but it's not going to happen by arguing "becuz obama" or any other lame excuse.  I have to be worth justifying tripling my salary.  At least I can admit that I'm not worth that much more money. 

A postal service that does nothing but cost the tax payers countless hundreds of billions of dollars while constantly forcing people to pay more and more for a now almost completely obsolete service is nothing more than the definition of a crony, fascist system. A company in bed with the government to act as a monopoly over the people.

We can email rather than use "snail" mail.  We can scan documents without even needing a phone line to send them via fax machine.  Are we supposed to continue paying for out-dated analog copper phone lines and modems just to keep faxing paperwork so that the telecom companies can keep making money off us for that out-dated service?

Anything that needs to officially be sent regular mail these days can easily be trimmed back to 1 day a week...okay, maybe 2 days tops.  Lets say on Mondays and Fridays or something like that...but nobody, not even you and your excuses, can justify the postal service going on like it does now.

By your logic the postal service is basically a "broken window theory" scam operation.  Some guy owns a window repair service so he goes out at night and smashes everyones windows in order to produce business for himself.  No harm, right?  Nobody gets hurt, right?  Only broken windows and that keeps the window repair business in business. LOL

The government does not exist to provide useless employment for people who live off tax payers and who will VOTE for those in government who will give them BIG FAT UNSUSTAINABLE PENSIONS and an easy job screwing around all day cramming garbage into little boxes. 

You have to remember that the job I'm supposed to feel guilty for trying to eliminate, by way of your reasoning, does not produce anything.  Yet it takes 10's of billions of dollars out of the tax payers pockets each year.  That's detrimental to the economy.  Those taxes and the many others we have to pay to this criminal mafia actually serve to eliminate other jobs that would actually be productive in America.

So don't give any of us on here any crap about providing jobs for anybody via our taxes as if we owe it to anybody.  Nobody, especially the government owes anybody else a job.  I don't see that written anywhere in the Constitution or the Bill of Rights.

We earn a living and what is involuntarily STOLEN from our paychecks is REDISTRIBUTED to others who aren't producing in order to buy their votes and domesticate them under the umbrella of this sick and twisted government.

You call that winning?  I call that losing.

The obvious sinking state of our economy and our country are proof enough of what happens when we let shit like this go on unchecked.

Sat, 05/10/2014 - 11:42 | 4746074 Stuck on Zero
Stuck on Zero's picture

Please don't tell me that the postal retirement system is invested in government T-notes. 

 

Fri, 05/09/2014 - 11:00 | 4743361 Divided States ...
Divided States of America's picture

Thats why Amazon need drones to do the work in the future...

Fri, 05/09/2014 - 12:35 | 4743764 Save_America1st
Save_America1st's picture

need drones to shoot the tires out of the mail trucks! lol

Fri, 05/09/2014 - 11:02 | 4743374 NoDebt
NoDebt's picture

US Postal Service- by any other name, still a government "works program".  And, shockingly, in financial trouble with their over-promised pension obligations.  Nobody could have seen this coming.

Fri, 05/09/2014 - 11:27 | 4743487 toady
toady's picture

My uncle is retiring after 40 years at the post office. I don't have the heart to tell him he won't get that pension after a few years. The post office pension fund is one of the more solvent ones though... They're obligated to fully fund by law. Paid in 5B+ quarterly for a while now. The vampire squid is going to FEAST when they get their tenticles on that one! 

Fri, 05/09/2014 - 11:55 | 4743630 dontgoforit
dontgoforit's picture

I find it hard to see a way that most pension funds won't wind up insolvent.

Fri, 05/09/2014 - 12:01 | 4743645 thedrickster
thedrickster's picture

Faster breeding imports improving the demographic picture and paying into the system, culture/social dislocation/nation-state be damned.

The European bandaid being applied to Amerika.

Fri, 05/09/2014 - 12:03 | 4743628 thedrickster
thedrickster's picture

Right, so just stop the cherade of a going concern and treat it like any other stimulus/transfer payment.

Jobs for the otherwise unemployable, not 100% of course but to a large degree. Put it under a cabinet department and let it contribute to the problem. This faux private enteprise thing is insane, only benefitting the USPS personnel who don't have to at least operate with even the very mediocre oversight of other "essential services".

Another thing, in principal, no government employee should be permitted to collectively bargain at any level. Collective bargaining is a zero sum game where the objective is to extract the maximum amount of resources from the tax payers who don't in actuality have a seat at the negotiating table. Politicans and their fucked up time preference/incentives DO NOT represent taxpayers in these negotiations, see Chicago/IL for empirical evidence to this effect.

Fri, 05/09/2014 - 14:40 | 4744321 Cathartes Aura
Cathartes Aura's picture
The Postal Service employs more Veterans than any other civilian employer

By using the 10 points in Veterans Preference when I was hired 6 years ago, the Post Master that hired me was FORCED to hire me. Based off of the hiring rules for career positions, 10 point vet pref eligibles must be hired first before anyone else, unless there very is a good reason not too.

 

Also in my office, we have a Vietnam vet, 2 Desert Storm vets, and at least 1 vet that served in Afganistan, that I know of. Im sure there are more but I dont make it a point to ask where someone may have served in such difficult times.

A well run and managed Postal Service could be profitable, and could provide alot of jobs for Veterans, if the board of directers (congress) would just get out of the way.

 

above quoted from commentary thread. . .

 

because. yeah.  .gov benefits come is soo many categories.

Fri, 05/09/2014 - 12:40 | 4743785 Lord Koos
Lord Koos's picture

The pension committments were forced upon the USPS by a conservative congress.  No other agency or private company is forced to hold pension funds in this way.  It is merely a scheme to break, and then privatize, the post office. From the comments, apparently most of you dumb-asses have swallowed the propaganda hook, line and sinker.  A country without a functioning public postal service is a joke.

I have run a small side business in mail-order products since the 1980s and I have had very few problems with the postal service in that entire time, I can count them on one hand.  However I have had some real nightmares with FEDEX and especially UPS.  And USPS will actually pay insurance for lost or damaged goods, unlike the private carriers whose policies are to stonewall all claims.

Remove the pension provision from the USPS and it will return to being a profitable organization. 

Fri, 05/09/2014 - 13:01 | 4743881 thedrickster
thedrickster's picture

"Remove the pension provision from the USPS and it will return to being a profitable organization. "

No, it won't. Nor need it be.

Fri, 05/09/2014 - 14:12 | 4744201 scraping_by
scraping_by's picture

The accurate word is 'surplus' not profit. But management is the current state religion, and we must use its theology.

Fri, 05/09/2014 - 14:25 | 4744253 mumcard
mumcard's picture

Sounds like a gov parasite (postal employee) squealing to me.

Fri, 05/09/2014 - 13:03 | 4743888 marathonman
marathonman's picture

I believe this requirement to pre-fund those pensions ( to workers retiring in 2075 if I recall correctly ) was jammed through in a last kick in the groin to Americans by the Pelosi-led Democrats of 2010.  US Postal is still buckling under the Congressionally required load.  Deep down I still can't understand why Democrats continue to get elected.  Deep down I also know that people are really stupid.

Fri, 05/09/2014 - 11:28 | 4743463 Smegley Wanxalot
Smegley Wanxalot's picture

That's part of the pension plan restructuring. Instead of giving a watch at retirement, the USPS will riddle the retirees with bullets, and thus save the retirement funds for more important things, like paying off bankers, or being extorted by union leaders.

Fri, 05/09/2014 - 10:58 | 4743350 lordylord
lordylord's picture

"Time to put it into extinction."

You mean let a failing business fail?  That's just not American. 

But in all seriousness, I say raise the price of stamps to the point that the USPS is not operating in the red.  Then let's see how many people would actually send any mail with these fools. The tax-payer needs to stop subsidizing all this BULLSHIT.

Fri, 05/09/2014 - 11:14 | 4743426 nope-1004
nope-1004's picture

I think we're at that point already, which is why the losses keep mounting.  People aren't using the service as price of stamps keep increasing at an alarming rate.

 

Fri, 05/09/2014 - 12:44 | 4743810 ajax
ajax's picture

"I think we're at that point already, which is why the losses keep mounting.  People aren't using the service as price of stamps keep increasing at an alarming rate."

Oh come on you have got to be joking: USPS is quite probably the LEAST expensive postal service on earth. Compare USPS prices with Canada, Germany, Switzerland. Here in Suisse a first class postage stamp costs about $1.10 and that's LOCAL not Int'l. Sending a packet from Suisse to USA costs DOUBLE what Americans pay to send the same packet to Suisse.

Have a look at these prices for Domestic postage:

http://www.swisspost.ch/post-startseite/post-privatkunden/post-versenden...

 

Fri, 05/09/2014 - 13:35 | 4744049 lordylord
lordylord's picture

The US tax-payer subsidizes the cost of the stamp.  Get a clue loser.

Fri, 05/09/2014 - 14:08 | 4744187 scraping_by
scraping_by's picture

How? It's been noted elsewhere that, absent the pension drain, the USPS would have a surplus of $1B over the last four years.

If you want subsidies, look at the transportation costs of UPS and FedEX. Semis don't pay the cost of the wear of the highways, and Memphis International is a government entity with less private support than it needs for maintenance. Not to mention the costs of air traffic control and traffic enforcement.

Fri, 05/09/2014 - 14:17 | 4744220 lordylord
lordylord's picture

So the USPS  hasn't recieve loans from the US taxpayer?

All subsidies are bad.  Period.  No need to argue over facts, friend.

Fri, 05/09/2014 - 12:19 | 4743709 Handful of Dust
Handful of Dust's picture

Itz unpossible for house prices to drop, stocks to fall or a busines to fail in The New Merika.

Unpossible!

Fri, 05/09/2014 - 19:49 | 4745180 Peanut Butter E...
Peanut Butter Engineer's picture

Just a year ago my family use to pay all of our bills by mail, which translates to monthly average of $5 to $10 for stamps alone but we converted 50% of snail mail payment to electronic payment with our bank's billpay program and this is all due to recent increase in the stamp cost. Any further increase in stamps cost will means no more snail mail for us.

Fri, 05/09/2014 - 11:03 | 4743378 Kaiser Sousa
Kaiser Sousa's picture

"Time to put it into extinction."

that aint gonna happen to the whole system drowns in its own vonit of debt...

the politicians count on these sheep for their salaries and position from which the go on to become millionaires....this country is so fucked.

Fri, 05/09/2014 - 11:07 | 4743393 Hippocratic Oaf
Hippocratic Oaf's picture

Yep, wanna see a riot; put down this animal and it'll make 'occupy' look like a church service.

I mail nothing but xmas cards and trust me.....I can give that up easily.

Fri, 05/09/2014 - 11:57 | 4743638 dontgoforit
dontgoforit's picture

Unfortunately, if they put it down, the USPS workers would go postal.

Fri, 05/09/2014 - 14:47 | 4744341 Cathartes Aura
Cathartes Aura's picture

and given a quarter of those USPS workers are ex-military, we sure don't want to see that, eh.

Fri, 05/09/2014 - 11:17 | 4743441 sm0k4
sm0k4's picture

I was thinking of this same thing the other day when my mailbox was full of junk. 5 pieces of mail, 2 were advertising, 3 were from credit cards or banks looking for customers (2 of those 3 weren't even for me or anyone in my family). I get junk mail for the old owners of the house multiple times a week. 

Want to increase revenue USPS? Start by charging extra for any mail that deals with solicitation. Then we will see the junk mail decline heavily when it actually costs something for these banks to mail out millions of pieces of junk mail, half of which aren't even for the person at the residence it is sent to. 

Fri, 05/09/2014 - 11:58 | 4743642 dontgoforit
dontgoforit's picture

If everyone would just mail back the empty envelopes it would cover the costs for the USPS. 

Fri, 05/09/2014 - 10:55 | 4743343 max2205
max2205's picture

Embarrassing. ...why even tells us the bad news we already new....

Wonder what Congress critter will do the right thing and shut down this joke

 

USPS = BarryCare....gonna be the same way

Fri, 05/09/2014 - 11:01 | 4743364 lordylord
lordylord's picture

Obummercare:  Run with the efficiency of the DMV, the cost-effectiveness of the USPS, and the heart of the IRS.  Can't lose!  Government is great!  I love government!  Let's have the government run more things!!!!

Fri, 05/09/2014 - 11:10 | 4743406 onewayticket2
onewayticket2's picture

in chicago the letters arent even geting delivered....it's worse than just the bailout...the basic service isnt being provided.

 

http://chicago.cbslocal.com/2014/05/07/2-investigators-complaints-growin...

 

Fri, 05/09/2014 - 11:53 | 4743622 mrdenis
mrdenis's picture

Great idea ,everybody must buy XXXXX ammount of stamps a year or the IRS will apply a "penality tax "....

Fri, 05/09/2014 - 11:59 | 4743647 dontgoforit
dontgoforit's picture

Mail insurance?  Perhaps Mail-o-care.

Fri, 05/09/2014 - 11:19 | 4743455 drendebe10
drendebe10's picture

Skrew their fat azz pensions. Give the lazy bums 401Ks like all the US citizen tax paying serfs and peasants get.

Fri, 05/09/2014 - 13:39 | 4744074 The Longest Call
The Longest Call's picture

Pension reform is a coming....

Better get that cheddar out while you can.  Take the hit, or do this:  

http://perpetualassets.wordpress.com/2014/03/27/a-bird-in-the-hand-is-wo...

Fri, 05/09/2014 - 10:51 | 4743312 intric8
intric8's picture

Sell obozo's new helicopter to fund this, stat!

Fri, 05/09/2014 - 10:51 | 4743318 SHEEPFUKKER
SHEEPFUKKER's picture

Dear USPS, your bailout check is in the mail. You didn't get it? Too bad so sad.

Fri, 05/09/2014 - 11:53 | 4743619 valley chick
valley chick's picture

As I have said in the past on various postal articles, that if it hadn't been in the past where the govt raided the FERS accounts, I may have still been asleep.  As they say the first ones out make out the best! I can at least sleep at night. :-) 

Fri, 05/09/2014 - 10:52 | 4743321 fonzannoon
fonzannoon's picture

Wtf is the problem here? Just raise everybody's property taxes .05% and they are all set.

Oh....wait...

Fri, 05/09/2014 - 10:52 | 4743324 The Merovingian
The Merovingian's picture

The check's in the mail ...

Fri, 05/09/2014 - 10:52 | 4743325 JailBank
JailBank's picture

I can't wait to see what is going to happen with all of these pension funds over the next 5 years.

Fri, 05/09/2014 - 10:57 | 4743351 max2205
max2205's picture

News flash.....if they didn go bust from the last 5 years, they will never go bust

Fri, 05/09/2014 - 12:48 | 4743821 centerline
centerline's picture

Not sustainable.  Therefore won't be sustained.  What will happen is that everything will be held together with duct tape and glue right up until the end... when the real tipping point is reached.  Then "wham" - game over.  Probably in some fashion that screws everybody.

Fri, 05/09/2014 - 11:32 | 4743509 toady
toady's picture

The vampire squid will FEAST!

Fri, 05/09/2014 - 10:53 | 4743334 Carpenter1
Carpenter1's picture

Just another massive dirt pile being swept under the rug. What would these fool politicians do without their printing press to cover stuff like this? 

Keep stacking, gold will defeat this kleptocracy like it has every one before it.

Fri, 05/09/2014 - 10:55 | 4743338 The Axe
The Axe's picture

The post office has to full fund the pension fund...that is a big task ..that many of companies both government and private are not required to do...the post office has many restrictions agianst its success by Congrees 

Fri, 05/09/2014 - 13:58 | 4744135 sessinpo
sessinpo's picture

The Axe           The post office has to full fund the pension fund...that is a big task ..that many of companies both government and private are not required to do...the post office has many restrictions agianst its success by Congrees

---

Um, I am trying to figure out your thinking.

Regardless if the USPS has to full fund the pension, if it can't then there is a fundamental problem. And if the private sector is able to delay its funding to delay the same result, then it is the same fundamental flaw.

The problem is not that the USPS has to full fund its pension. That requirement only speeds up the final result. It doesn't CAUSE it.

The flaw in pensions is simply that they are guarantees (promises) that can't be met. Do I need to remind you of the two largest such guarantees that can't be met? They are called Social Security and Medicare. Social programs, including pensions are pyramid schems which are fundamentally flawed and are designed to fail of its own weight.

Fri, 05/09/2014 - 10:55 | 4743342 PontifexMaximus
PontifexMaximus's picture

only 10 bill., they couldn't care less, Janet will come up for it.

Fri, 05/09/2014 - 10:56 | 4743344 goatmug
goatmug's picture

How about we kill the fooking pensions and make gov't work on par with everyone else.

Fri, 05/09/2014 - 10:56 | 4743346 Dr. Engali
Dr. Engali's picture

Sooooo... they need seven days worth of printing. Get to work Mr. Yellen.

Fri, 05/09/2014 - 11:20 | 4743456 BurningFuld
BurningFuld's picture

Whoa...back up there Dr.  If they give 5 Billion printed dollars to save the USPS pensions that money would end up going directly to the serfs pension payouts.  You must know by now any money going to the serf population directly is strictly forbidden.

Fri, 05/09/2014 - 10:58 | 4743353 NoTTD
NoTTD's picture

Easily explained:  the USPS has a "no cut" union contract.   It cannot fire any employee due to reduction in services.  Even if they closed the service entirely and cancelled all mail delivery - the contract would still require it to provide full pay and benefits to all employees, including opension and medical.   Of course, that would impact forward hiring - only.

 

This is what we get when the government "negotiates" with unions.  Both sides of the table have an interest in spending as much as possible and no motivation to save.  Why?  Because they have an endless supply of funds:  

 

Yours.

Fri, 05/09/2014 - 11:03 | 4743375 Bernanke'sDaddy
Fri, 05/09/2014 - 12:26 | 4743728 NoTTD
NoTTD's picture

FireDogLake?  Really?

Fri, 05/09/2014 - 12:42 | 4743796 Lord Koos
Lord Koos's picture

Nice rebuttal... you prefer the lies at FOX?

Fri, 05/09/2014 - 11:00 | 4743363 Bernanke'sDaddy
Bernanke'sDaddy's picture

The USPS actually provides decent service. The problem is, the Republicunts forced them to fund pensions 75 YEARS INTO THE FUTURE. It was done in 2006 under the Postal Accountability and Enhancement Act. This is what's bankrupting them.

 

Not to worry though. In order to raise the necessary Bernanke Bux, they're being forced to sell PRIME downtown real estate. Buildings that are owned FREE AND CLEAR by you and me.

 

Well, guess who gets the no-bid contract to sell them? That's right, non other than CBRE, whose board includes the husband of that Democunt, NSA shill Feinstein. http://www.washingtonpost.com/politics/inspector-general-criticizes-usps...

Fri, 05/09/2014 - 12:47 | 4743813 Save_America1st
Save_America1st's picture

let's all get past this Right/Left, Repugnant/Demoncrat B.S. already.  They're all part of the same mafia.  2 heads of the same monster.  And they use the American public like a ping pong ball back and forth to fuck with the sheeptard's withered and addled brain matter.

It's THE GOVERNMENT'S fault for everything...both theoretical so-called "sides".  They're the evil fucking enemies within responsible for everything that is wrong.

It's a big WWF match and we're supposed to be the 'tards in the stands who are supposed to think the battle going on in the ring is actually real and that Hulk hates Macho Man, yadda, yadda, yadda.  

And when after the theatrics are all overwith for the night and the crowd has got their glut of bad acting and fake punches, both teams go back behind the curtain and party together talking about what losers the crowd/American public sheeple are for believing all that bullshit.

Then they get back to work planning out the next WWF-style Political-Mania 44 for the sheeple in the next town, only on...PAY-PER-VIEW!!!  And we do pay whether we know it or like it or not. 

Fri, 05/09/2014 - 14:51 | 4744351 Cathartes Aura
Cathartes Aura's picture

wait.

"Hulk hates MachoMan" ??

 

say it ain't so bros!  log-in to Fight Club and settle your differences!

Fri, 05/09/2014 - 12:59 | 4743869 Totentänzerlied
Totentänzerlied's picture

"forced them to fund pensions 75 YEARS INTO THE FUTURE"

All pension funds should be fully funded for about 30 years. You'll see why when they blow up and the pensioners get pennies on the dollar, not long now.

As for the USPS: you can't polish a turd.

Fri, 05/09/2014 - 11:01 | 4743366 the not so migh...
the not so mighty maximiza's picture

the constitution requires this organization, bailout time and arrest the poeple responsable for robbing it. 

Fri, 05/09/2014 - 11:04 | 4743383 pragmatic hobo
pragmatic hobo's picture

the costs are due mostly to their unsystainable pension and benefit costs ... they should move to 401k like the rest of the usa with 40% matching and move workers to obamacare.

Fri, 05/09/2014 - 11:31 | 4743499 Cthonic
Cthonic's picture

All I know is that I am a captive client of their bulk rate / 'every day direct mail®' masters.  Nothing like missing first class pieces delivered in between the pages of loose leaf unsolicited mailers and deluge of bulk rate.  Who ever wanted to work gratis in a recycling facility, and USPS forces one to do that every business day.

Fri, 05/09/2014 - 12:10 | 4743683 DukkButt
DukkButt's picture

They did move to a 401k. That old civil service, 75% retirement pay after 30 years is long gone. There are a few old timers that will still get it but anyone coming in since about 1980 is on the new system.

Now after 30 years it's 30% of high 3 year average (something around $1400/month) plus whatever you have in your 401k, plus social security.

Not exactly the "gold plated" retirement everyone seems to think is out there.

Fri, 05/09/2014 - 11:03 | 4743377 NotAMathWhiz
NotAMathWhiz's picture

Time to privatize this behemouth.  Start here, then head off to the K12 school system...

Fri, 05/09/2014 - 11:08 | 4743396 babylon15
babylon15's picture

Why do you think this is a solution?  The prison system is privatized and it's a disaster.  It is 10x more wasteful than the postal system.

Fri, 05/09/2014 - 11:40 | 4743553 The Most Intere...
The Most Interesting Frog in the World's picture

The prison system is privatized?  More correctly, the prison system is just another basterdized crony government program.  It's 10 times more wasteful because the government is still involved.  I agree, privatize the schools and completely rid the country of unionized scum school teachers.

Fri, 05/09/2014 - 12:43 | 4743804 Lord Koos
Lord Koos's picture

Yeah, those fucking public school teachers are ruining this fine country.

 

/sarc

Fri, 05/09/2014 - 13:02 | 4743887 Totentänzerlied
Totentänzerlied's picture

Riiiight. I can see it now, "the teachers were just following orders, honest!"

US educational performance is a very bad joke, but clearly the people responsible ... aren't responsible!

/no sarc

Fri, 05/09/2014 - 13:25 | 4744004 The Most Intere...
The Most Interesting Frog in the World's picture

If they are lucky, private school teachers retire at 65 and live off social security and have no money in the bank.  Unionized public school teachers retire early as millionaires.  And, no, I don't give a fuck if they have to kick in money for school supplies.

 

/no sarc

Fri, 05/09/2014 - 11:34 | 4743523 Cthonic
Cthonic's picture

They need to return to their roots.  First class post.

Fri, 05/09/2014 - 11:05 | 4743386 Yancey Ward
Yancey Ward's picture

However, in good news for USPS, lunch break, the two coffee breaks, and the five bathroom breaks have all been expanded by one hour each.

Fri, 05/09/2014 - 11:10 | 4743409 yogibear
yogibear's picture

Future voters for Hillary and the Novermber elections.

Fri, 05/09/2014 - 13:50 | 4744112 scraping_by
scraping_by's picture

It's a delusion that a race to the bottom is somehow a scientific reality, or a religious virtue. It's a policy of the wealthy to increase their wealth.

It's class warfare. And if you're not a billionaire (and people that rich don't do their own posting) you're working for billionaires. And if it's for free, that's offensive. Spreading their anti-government propaganda is work, and it should be paid work. Dignity of labor. And it's embarrassing to see people get cheated.

Fri, 05/09/2014 - 11:05 | 4743388 Momauguin Joe
Momauguin Joe's picture

$10 Billion. That's all? Drop in the bucket, considered the insolvent banking system has been funneled $85 Billion each month for the past how many years now?

Print it and and be done with it.

Fri, 05/09/2014 - 11:07 | 4743392 Dr. Engali
Dr. Engali's picture

People still send mail?

Fri, 05/09/2014 - 11:08 | 4743395 buzzsaw99
buzzsaw99's picture

dumb cunts shoulda bought moar facebook

Fri, 05/09/2014 - 11:09 | 4743405 yogibear
yogibear's picture

Sure they'll be back over and over again to sugar daddy Obama. The politicians didn't want to  cut of Saturdays or weekday.

The US government only wants more spending and expansion, not cutbacks.

The USPS has become an Obama voter and welfare platform.

Fri, 05/09/2014 - 13:44 | 4744090 scraping_by
scraping_by's picture

Yes, a living wage galls a lot of people. Envy rots the bones.

Fri, 05/09/2014 - 14:06 | 4744173 The Most Intere...
The Most Interesting Frog in the World's picture

You have to be the biggest dumbfuck on ZH.

A "living wage" rotted Detroit and the entire mid-west.  

Fri, 05/09/2014 - 14:26 | 4744256 scraping_by
scraping_by's picture

Strange, I thought that was management busy with office politics and letting revenue production slide. Not to mention foreign governments subsidizing their domestic manufactures specifically to export to the US, with a healthy bribe culture so our government would disappear the tariff protections. But maybe that was just for show while the evil plotters of the working class were busy with their conspiracy against guns and the flag.

Fri, 05/09/2014 - 14:56 | 4744373 Cathartes Aura
Cathartes Aura's picture

so if you're saying,

The USPS has become an Obama voter and welfare platform.

you reckon the minimum 25% USVETs employed by USPS are voting for their Commander in Chief and moar welfare?

hmm.

Fri, 05/09/2014 - 11:10 | 4743407 Colonel Klink
Colonel Klink's picture

Let their pension fail, they'll be more effective than guillotines on the political class.  They got "postal'd"!

Fri, 05/09/2014 - 11:11 | 4743414 papa song
papa song's picture

Former USPS employees will make fine addition to Papa Song's current employee base/protein source.  May we offer you delicious mystery McRice Bowl now with extra retiree include no extra charge?

Fri, 05/09/2014 - 11:14 | 4743429 roadhazard
roadhazard's picture

The Postal Service unlike any other entity has to fund it's pensions 75 years in advance. So how does, "the pensions get it."

Fri, 05/09/2014 - 11:14 | 4743430 ChargingHandle
ChargingHandle's picture

Fast forward 2 years and replace USPS with Obamacare and the story will be the same. 

Fri, 05/09/2014 - 11:18 | 4743446 THE DOCTOR
THE DOCTOR's picture

And they steal you packages with declared value...

Fri, 05/09/2014 - 11:19 | 4743451 VWAndy
VWAndy's picture

They can make it up on valum.

Fri, 05/09/2014 - 11:20 | 4743458 Bemused Observer
Bemused Observer's picture

Ok, get rid of the prefunding requirement and see if that helps.

No, of course not, because that requirement is doing EXACTLY what it was intended to do.

Fri, 05/09/2014 - 13:43 | 4744079 scraping_by
scraping_by's picture

These days, a large portion of government is composed of anti-government terrorists. The old style looters made it inefficient, but the terrorists really want to make it impossible.

This is not random stupidity, it's focused stupidity. If you want, skip down to " "What Can Be Done About the Public?"

http://reclaimdemocracy.org/powell_memo_lewis/

Fri, 05/09/2014 - 11:24 | 4743476 Itchy and Scratchy
Itchy and Scratchy's picture

Cheques in the mail!

Fri, 05/09/2014 - 11:25 | 4743479 Leraconteur
Leraconteur's picture

How long has the USPS been a jobs program for certain protected classes of people?

When an email arrives in milliseconds but it takes them 2 weeks to send a piece of paper to Europe, their business model won't last long.

Contract this out to some greedy corporations. Divide the USA up into mail zones, stipulate that they must deliver to all addresses within their territory, and put these losers at USPS back on welfare. The only mail is all direct ads, and that's where the USPS makes money. Your grandmother sending your birthday card loses big.

 

Fri, 05/09/2014 - 11:28 | 4743491 Atomizer
Atomizer's picture

There is something on the wing of this USPS flight to insanity.

http://moonbattery.com/michelle-obama-animated.gif

Fri, 05/09/2014 - 11:29 | 4743495 SheepDog-One
SheepDog-One's picture

Still bailing out these USPS bozos? Squeezing every last drop out of the wrung-out US taxpayer.

Fri, 05/09/2014 - 11:30 | 4743500 Critical Path
Critical Path's picture

The only "value" the USPS provides me with is the 10lbs of junk mail and sale ads I can expect on a weekly basis.  Typically in the past I end up placing multiple calls (which lead to no where I might add) chasing down packages I've purchased online from various vendors because these jokers can't even get the delivery right. 

Fri, 05/09/2014 - 20:01 | 4745204 Peanut Butter E...
Peanut Butter Engineer's picture

Don't stop the junk mails, my pets bedding depends on those deliveries. Those junk mail provide a very good source for my pets bedding, Shred, them then use them as a bedding for my ducks.

Fri, 05/09/2014 - 11:30 | 4743501 Sticky Wicket
Sticky Wicket's picture

The USPS could probably cut costs by not allowing the NSA to digitally store and read everything.

Fri, 05/09/2014 - 11:33 | 4743520 The Most Intere...
The Most Interesting Frog in the World's picture

Has anyone been to a US Post Office recently?  The only thing that comes close to this total and complete cluster fuck is an IRS office.  Subsidizing amazon now, huh?  Wal Mart is getting theirs I guess, so it's only fair!  Time to overthrow the Communists!!!

Fri, 05/09/2014 - 11:45 | 4743579 unplugged
unplugged's picture

and the DMV

Fri, 05/09/2014 - 11:59 | 4743643 Atomizer
Atomizer's picture

Those poor union organizations have more debt obligations than revenue inflows to support the Despotism society. Shocked, I tells ya.

Fri, 05/09/2014 - 11:34 | 4743528 venturen
venturen's picture

just print another trillion or 10 hyper inflation dollars....and problem gone

Fri, 05/09/2014 - 11:44 | 4743574 unplugged
unplugged's picture

right-o !

just give everybody $100,000,000 per year and all problems are solved

almost all debts can be repaid

and businesses will be stimulated

GDP will soar

how can this be a loser ?

Fri, 05/09/2014 - 11:34 | 4743532 F.A. Hayek
F.A. Hayek's picture

"Despite aggressive cost-cutting actions, however, we will still incur annual inflationary cost increases of approximately $1.2 billion each year, and First-Class Mail volume continues to decline," added Donahoe.

In my little town in backwater USA, the post office needed a new roof a couple of years ago. Regular shingles evidently weren't good enough, so we decided to go with the more expensive architectural shingles. Whenever I go in there, I can count on at least a 5 minute wait for a simple transaction, even if there is only a person or two ahead of me, and the same goes when I go into a major city post office with 5 clerks working the desk. I would love to go in as an efficiency expert and ax the dead weight.

 

Fri, 05/09/2014 - 11:38 | 4743546 dudebum
dudebum's picture

When are people going to get it that the USPS was gut shot by congress in 2006?

http://www.pbs.org/wnet/need-to-know/five-things/the-u-s-postal-service/...

 

Operationally speaking, the USPS nets profits every year. The financial problem it faces now comes from a 2006 Congressional mandate that requires the agency to “pre-pay” into a fund that covers health care costs for future retired employees. Under the mandate, the USPS is required to make an annual $5.5 billion payment over ten years, through 2016. These “prepayments” are largely responsible for the USPS’s financial losses over the past four years and the threat of shutdown that looms ahead – take the retirement fund out of the equation, and the postal service would have actually netted $1 billion in profits over this period.

Fri, 05/09/2014 - 11:45 | 4743582 The Most Intere...
The Most Interesting Frog in the World's picture

Every government agency should be required to do this. Otherwise, the "pension plan" is nothing more than a ponzi scheme.

Fri, 05/09/2014 - 11:41 | 4743559 unplugged
unplugged's picture

$10 billion - that's all they need?  Chump change - give it to them!  That's less that 1 week of QE. 

Fri, 05/09/2014 - 13:33 | 4744038 scraping_by
scraping_by's picture

Or about a week and a half of the war in Afghanistan. Not to mention patrolling the ME so our pet Islamic fundamentalists stay in power...

Fri, 05/09/2014 - 11:41 | 4743562 Atomizer
Atomizer's picture

If it hadn’t been for all the MLM letter scams, advertisement mailbox congestion, and banking refinancing flyers. This business model would of ended a decade ago.

 

Take note to new online NSA fluffers who think the online business model is here to stay. Have a look at your predecessors. You too will end up in the spam trash bin as well.

Fri, 05/09/2014 - 13:31 | 4744029 scraping_by
scraping_by's picture

Er, business interests were one of the original reason for the postal service. "To facilitate commerce..."

And, true, online business is just traditional mail order with a new, government-created, mode of communication. If Netflix has its way, it will go away when the Net is transformed into cable TV. Coporate resource capture, don't you know.

Fri, 05/09/2014 - 14:20 | 4744236 Atomizer
Atomizer's picture

Just like the no commercial cable company bait & switch follies.. Netflix will need to monetize there debt. Here is an example.

Ordering Pizza in the Future

Fri, 05/09/2014 - 11:45 | 4743575 22winmag
22winmag's picture

Just bring it out to the backyard, shoot it, and put it out of it's misery.

Fri, 05/09/2014 - 11:54 | 4743623 The Most Intere...
The Most Interesting Frog in the World's picture

To all of the USPS sympathizers and bleeding hearts that are crying about having to pre-fund a retirment and health care plan:

FACT:  The USPS employees are already paid AT LEAST double in wages what they would be getting paid in the private sector.  The retirement plan (pension and benefits) quadruples the pay package they would receive in a non-government capacity.

So, fuck you!  Why should the private sector fund these people, or any other government employee for that matter???

Fri, 05/09/2014 - 12:44 | 4743808 DukkButt
DukkButt's picture

For some reason, I was under the impression that ZH readers were better informed than average. Apparenly, that isn't the case.

The prefunding requirement was for retiree health care benefits only. Congress required the Post Office to prefund the next 75 YEARS of retiree health care costs. Nobody else, public or private, does that.

The Postal Service has been self supporting, as in NO tax dollars used to run it for decades, now. All expenses are paid out of revenue generated by the products and services they sell. That includes the pay of retirees.

As a matter of fact, a recent audit determined that the Post Office has over paid into the Federal Employees Retirement System. Depending on which actuarial assumptions that are used, it amounts to as much as 20-50 billion dollars. Of course, Congress isn't going to return a dime of that.

BTW, that 75% of pay after 30 years Civil Service retirement is long gone. Now it's 30% at 30 years plus a 401k. Not exactly living high on the hog.

The only way the private sector "funds these people" is by purchasing their goods and services. If you don't think you get value for your money, DON'T SPEND YOUR MONEY THERE! Problem solved.

 

Fri, 05/09/2014 - 12:49 | 4743823 Lord Koos
Lord Koos's picture

Exactly.  Stop bitching and send your letters FEDEX for $12 a pop.

And if people think mail is obsolete, recall that it takes a federal warrant to open a US postal letter.

Email, not so much...

Fri, 05/09/2014 - 14:13 | 4744207 roadhazard
roadhazard's picture

Yes, it's about privacy.

Fri, 05/09/2014 - 12:57 | 4743856 centerline
centerline's picture

Ummm, just in case you did not notice, the USPS is "losing" money.  So, when a "bailout" is instituted, who pays for that?

Hmmmm.  We seem to have a problem there.

Fri, 05/09/2014 - 13:07 | 4743916 The Most Intere...
The Most Interesting Frog in the World's picture

Is DukkButt Dumbass in Ukranian?  IDK...

You forgot about the 1% automatic and up to 4% match on TSP contributions they get as part of the FERS system.  According to many experts, FERS is actually more generous, not less generous than CSRS.  That is living high on the hog compared to what these people would get in the private sector.  If you dispute that, you are probably even dumber than you look, if that is possible.

Upon bailout, I will have no choice but spend my money on this pile of shit dinasour institution you communists love so much!

Fri, 05/09/2014 - 13:25 | 4744007 scraping_by
scraping_by's picture

It's nice to know 40 years of anti-government propaganda haven't been wasted.

Forcing all wage earners into the race to the bottom might satisfy some people's envy needs, but it wouldn't do well for the wider economy. And there's no accounting reason for it: as other posters have noted, the USPS is self-sustaining except for Congressional sabotage.

I'm old. I remember when this sort of snarling was confined to bachelors in small town shacks showing off their ninth-grade educations. But, the power of PR can make strange things happen.

Fri, 05/09/2014 - 13:33 | 4744036 The Most Intere...
The Most Interesting Frog in the World's picture

If I want the opinion of a POS Communist, I'll ask.

Fri, 05/09/2014 - 14:17 | 4744224 scraping_by
scraping_by's picture

Please tell me you're being paid for this. If you're spreading winger snarls for free, you're giving money to billionaires.

Fri, 05/09/2014 - 12:01 | 4743655 Seasmoke
Seasmoke's picture

Pay as you go, is hard. ....imagine that. Wish the NJ mafia had to do the same. But maybe total pension ponzi collapse would be better to watch. 

Fri, 05/09/2014 - 12:11 | 4743675 all-priced-in
all-priced-in's picture

Post Master General just sent an e-mail to all postal employees - 

 

 

Dear postal employees,

Our first class mail revenue keeps dropping - and even though we have tried very hard to figure out why - we just can't determine the root cause.

Please e-mail your congressman and ask for their support of our $10 billion bailout.

Sincerely,

PMG 

Fri, 05/09/2014 - 12:19 | 4743712 Spungo
Spungo's picture

Why didn't they invest the pension in MyRA? Those things never go down.

Fri, 05/09/2014 - 12:35 | 4743761 thamnosma
thamnosma's picture

I've sent and received many many packages via USPS over the years and lost packages are an extreme rarity.  It doesn't even enter my mind that an item won't show up.   Registered shipments of tin coins have never been late or misplaced.  As far as damage is concerned, there was a time UPS and Fed Ex were "golden" compared to USPS, not so much anymore.  I've had smashed electronics from UPS and FedEx as much as USPS over the last few years.

However, there can be no doubt that first class mail, the primary income source of USPS, has all but disappeared.  The model is unsustainable.   The pension requirements should be reformed (what's up with funding forward for 75 years or whatever it is -- what agency or company could handle that?) and the pensions reduced.  Instead, the PO is hiring carriers and postmasters in a new class of non-full time/non-union people at $15 per hour.  Imagine the quality of personel you get at that rate with zero incentives for moving up the chain.  They aren't permitted to move up the chain.  Incompetance reigns.

I don't wish to be left completely to FX and UPS.  The cost of sending small packages would soar. 

Solutions?  The Canadians are proposing to eliminate residential mail delivery to be replaced by many small community PO's in which everyone has a box -- you pick up your mail.   This eliminates the army of daily carriers, vehicles, gas, etc.  I already live in a community without residential delivery and the PO is sort of a meeting place.   Plus, nothing gets stolen which would be a benefit in many higher crime neighborhoods.   First class mail, which still fills some needs for all of us, can continue to function.

Of course, the unions are opposed to this plan in Canada and, I imagine, the public will do its usual whining.  I just don't see how this service can continue without a radical shake-up.  

 

Fri, 05/09/2014 - 12:40 | 4743784 thamnosma
thamnosma's picture

I also wish to add that more and more shippers of small packages are using a UPS-USPS system where UPS transports the packages to local hubs and are then turned over to local post offices for final delivery.   Vitacost.com is one company that does this almost exclusively.  There must be something beneficial in that partnership.  Amazon is also doing this more and more.

Fri, 05/09/2014 - 13:17 | 4743968 scraping_by
scraping_by's picture

Becuase UPS is saving capital expense by piggybacking on USPS. At this point, could they stay is business without that government subsidy? Maybe, maybe not...

Fri, 05/09/2014 - 12:49 | 4743824 Duude
Duude's picture

What's at issue here are the USPS legacy expenses. The USPS has had a 100+ year monopoly on 1st class mail. Because of that, they've been reckless in their generosity to employees. Now, they want the taxpayer to pay for that too. What the USPS wants to do is to be able to draw down from their fully funded pension.  The problem with that is they're hoping to borrow from that pension plan till they have to one day seek a bail out from the Pension Guaranty system which is already looking for taxpayer bailout.  I'm glad there are congressmen blocking the USPS from taking this action. I'd rather they cut service and raise prices if needed. Of course, they don't want to raise prices too much or they risk an even greater drop in revenue to the Internet making employee layoffs the only solution left. 

Fri, 05/09/2014 - 14:44 | 4744330 scraping_by
scraping_by's picture

The point of divide and conquer is that both sides lose. The winners in the race to the bottom aren't in the race. Every time the postal workers are the scapegoats for anti-government terrorists, it's the wider economy that loses.

 

Fri, 05/09/2014 - 12:57 | 4743831 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

As bad USPS is you can blame CONgress for this one.

This is a pretty good article addressing the issue

http://www.savethepostoffice.com/how-postal-service-began-prefunding-ret...

...

By 2006, it was time for another round of postal reform, but the pension issues continued to cloud the debate.  The Postal Accountability and Enhancement Act (PAEA), sponsored by Davis in the House, and by Collins and Carper in the Senate, did a number of things.  It changed the rate system, turned the Postal Rate Commission into the Postal Regulatory Commission, and gave the Commission more power.  It also addressed the retirement funds in several ways.

First, the PAEA relieved the Postal Service of responsibility for covering the costs of military experience.  It transferred responsibility for costs related to CSRS military ?service credit from the Postal Service back to the Treasury, both retroactively and prospectively; this included all CSRS military service costs for postal employees since the inception of the Postal Service in 1971.  That obligation for the $27 billion in military credits was thus returned to the Treasury, once and for all. 

Second, the PAEA established the Postal Service Retirement Health Benefit Fund.  The Postal Service thus shifted from a “pay as you go” model and began prefunding the health benefits of current and future postal retirees.

(specifically prefund a 75 year liability over 10 years, no other government agency is required to do this)

The RHBF was initially funded with $17 billion from the CSRS surplus associated with the shift in military pension obligations, plus the $3 billion that had been put in escrow from the suspension of the annual CSRS payment.  The fund was thus quick started with $20 billion diverted from the CSRS.

Third, the PAEA required the Postal Service to make annual payments — ranging from $5.4 billion to $5.8 billion per year — into the RHBF over a ten-year period, from fiscal years 2007 through 2016, and to pay off the rest of its liability (as determined by the OPM in 2017) in the years 2017 to 2056. 

 

Frontloading the payments

As the new GAO report states, “the payments required by PAEA were significantly ‘frontloaded,’ with the fixed payment amounts in the first 10 years exceeding what actuarially determined amounts would have been using a 50-year amortization schedule.” 

The GAO report does not fully explain why that happened, though.  The payments could have been amortized over a much longer period, like forty or fifty years, which would have led to significantly smaller annual payments.  In fact, in 2005, when the OPM’s Dan Blair recommended creating a retiree health care fund, he suggested setting up a forty-year payment schedule.

...

Frontiloading is usually code for slush fund... and it's gone most likely replaced with paper I.O.U.s aka some sort of special bonds like what they do with Social Security (I'll gladly pay you next Tuesday with interest for a hamburger today) hence the reason the USPS won't get a refund arguing they should get a refund for overpayment into the system now to offset the current operating losses which aren't operation losses when you take out the prefunding of healthcare benefits.

The USPS wouldn't be insolvent if it wasn't for this government mandated prefunding aka slush fund.

With that said that doesn't mean the USPS runs smoothly or efficiently just that the reason for it being insolvent is a politically created mess not a operational mess.

Fri, 05/09/2014 - 13:10 | 4743936 Duude
Duude's picture

Key words-----ACTUARIAL PRESENT VALUE

"In this subsection, the term ‘Postal surplus or supplemental liability’ means the estimated difference, as determined by the Office, between—the actuarial present value of all future benefits payable from the Fund under this subchapter to current or former employees of the United States Postal Service and attributable to civilian employment with the United States Postal Service;

and

‘‘(B) the sum of—

‘‘(i) the actuarial present value of deductions to be withheld from the future basic pay of employees of the United States Postal Service currently subject to this subchapter under section 8334;

‘‘(ii) that portion of the Fund balance, as of the date the Postal surplus or supplemental liability is determined, attributable to payments to the Fund by the United States Postal Service and its employees, minus benefit payments attributable to civilian employment with the United States Postal Service, plus the earnings on such amounts while in the Fund; and

‘‘(iii) any other appropriate amount, as determined by the Office in accordance with generally accepted actuarial practices and principles."

Fri, 05/09/2014 - 13:01 | 4743884 Falconsixone
Falconsixone's picture

Now they can all go postal.

It'll sure be nice when only the convicted criminals have to work ay gov. jobs. If they do a good job shuffling papers maybe they get an early > out. As for the ones in now that think they're going toget a pension...........that's to bad, get a job slacker.

Fri, 05/09/2014 - 13:58 | 4744137 all-priced-in
all-priced-in's picture

Not so fast - all post office buildings now have a sign on the door that says "NO GUNS allowed"  - so there would be no way for anyone to go on a shooting spree.

/s/

Fri, 05/09/2014 - 13:06 | 4743913 koaj
koaj's picture

I get my mail once a week..maybe. its 95% crap

Also, I own an internet business and two months ago the USPS raised their rates on 3 ounce packages by 14 cents per package. 14 cents * 5000 items a week * 52 weeks = a big fucking number

FU USPS...we switched to UPS mail innovations...saving a dime per now.

Spooner retired this dinosaur in the 1840s but Congress declared it a monopoly. Too bad...

Fri, 05/09/2014 - 13:57 | 4744132 indmotor
indmotor's picture

as a family member of a usps worker bee I know some things. they get 28.00 an hour for 8 and +50% for over 8hrs daily. get V time or double time for sunday so $56.00 an hour for sunday work. get 100% match on thrift saving plan (401K) up to 5% annually. get 5 weeks paid vacation and 102 hours sick leave a year plus all fed. holidays off. Full retirement after 30 years with a suppliment till 62 if needed. Can draw on 401K as long as retire min. age 55 yo. The rest of You citisens have to wait till 59 1/2.. Paychek is unlimited, over time is abundant because the blacks are all on disability. You can pretty much write your own pay check and most carriers make on excess of 90K per year plus medical and benifits, retirement, etc. ALL the supervisors are Black and EXTREMELY HOSTILE and Racist!! It is without a douubt the most racial (black hating whites) enviroment You could ever be around. UNBELIEVABLY HOSTILE TOWARDS WHITES!! The blacks are made Boss because they are alway's dis abled and just sit around with their bad back. Screw You if this upsets anyone. This is what is Really going on in Goverment and You need to hear the truth. All this for a job that requires 3 days training.

Fri, 05/09/2014 - 14:20 | 4744237 F.A. Hayek
F.A. Hayek's picture

Great gig, if you can get it!

Sat, 05/10/2014 - 02:04 | 4745694 strayaway
strayaway's picture

I worked as a rural carrier for 30 years. I had a number of years of Social Security built up prior to postal employment but Clinton/Gingrich 'recalculated' Social Security benefits for anyone earning a postal pension. Recalculation means they took all my Social Security benefits so I get zero Social Security. My Pension amounts to about $2,000/month after contributions to health care. The Bush administration raided money postal employees had been forced to set aside for pensions claiming we had put too much money in. The CBO then said that so much had been taken out by Bush that pension funds were no longer viable. Congress did not restore the money. The Postal Service was forced to increase postage to make up part of what Bush stole thus angering customers. The Postal Service is now expected to contribute 75 years of pension costs over 10 years. How many private businesses would be up to that challenge? Why? Because the money goes into the government's general budget so there is more to spend.

The letter above is partially nonsense. When my route was evaluated at more than 40 hours, part of the route was removed to avoid overtime. The Postal Service, in my experience, hated paying overtime. Maybe big city post offices are different. i don't know. The matching 401k plan mentioned above is for newer employees who recieve no pensions although they do pay into Social Security. i didn't work with blacks so I don't know if there is any truth to those charges or if indmotor has racist proclivites. It's my understanding that UPS employees are Teamsters who receive both Social Security and pensions for comparison. If the Postal System is successfully destroyed by corporatist politicians, i wonder what USP will charge to deliver letters.

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