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Are Postal Workers About To Go Postal On Imminent USPS Benefits Default?
So far the beyond insolvent US Postal Service has been able to avoid outright bankruptcy simply because no major cash outflows were required by the organization. That is about to change in just under two weeks when the USPS is due to make a $5.5 billion payment for retirement accounts. The problem: the USPS does not have the money and needs a bailout. The bigger problem: the USPS needs Congressional action to authorize this latest and so far greatest USPS bailout, however with Congressional recess imminent this won't happen. So are several hundred thousand postal workers about to go postal once they realize that (earmuffs time for all those who love chanting ideological slogans, but have yet to graduate to the abacus) math matters, and every "welfare-funding" entity in the US is ten times broke over? And maybe most importantly: just how will the postal labor union vote in the upcoming election if indeed they suddenly are denied what they had been lied to for years is rightfully theirs?
While lawmakers continue to fight over how to fix the ailing U.S. Postal Service, the agency's money problems are only growing worse.
The Postal Service repeated on Wednesday that without congressional action, it will default—a first in its long history, a spokesman said—on a legally required annual $5.5 billion payment, due Aug. 1, into a health-benefits fund for future retirees. Action in Congress isn't likely, as the House prepares to leave for its August recess.
The agency said a default on the payment, for 2011, wouldn't directly affect service or its ability to pay employees and suppliers. But "these ongoing liquidity issues unnecessarily undermine confidence in the viability of the Postal Service among our customers," said spokesman David Partenheimer.
The agency says it will default on its 2012 retiree health payment as well—also roughly $5.5 billion, due Sept. 30—if there is no legislative action by then.
We have covered the extensive woes of the USPS before, but here they are again in summary:
Most everyone agrees the Postal Service needs an overhaul. It had a loss of $3.2 billion in the second quarter of this fiscal year; it is to report third-quarter results on Aug. 9. The agency blames factors including declining mail volumes and the unusual 2006 mandate by Congress that it annually set aside billions for future retirees. But while the Senate has passed legislation to overhaul the agency, the House says it doesn't expect to take up its own proposal until after August.
The two sides remain far apart. Senators voted in April, on a bipartisan basis, for legislation that largely shores up the agency's finances by returning an estimated $10.9 billion overpayment made into the federal employee pension system. The legislation limits the agency's ability to close postal branches and stop Saturday delivery.
Republican House leaders support legislation they say would require the agency to operate more like a business, in part by setting up a panel to reduce the network of post offices. Some rural-district House members, from both parties, have been worried about closures in their areas.
And here is where we should pay attention, because if the muppets are unable to come to terms over a modest payment which would ensure a key union vote swing in either direction, what does that leave for the fiscal cliff at the end of the year, which as everyone knows by now, is economic armageddon for the country unless at least partially resolved?
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I'm going to go out on a limb here and predict that taxpayers will be covering the gap.
There will be political melodrama and procedural conventions may or may not be adhered to but I think we all know how this problem will be "resolved".
You ain't seen nuttin' yet. Just wait until all those defined benefit "corporate" pensions already paying out monthly checks start to come up short because of "shortfalls".
Trial baloon has been launched on that one. The sad thing is when they shift their pension liabilities to our beloved insurance companies for annuities, they won't even be covered by the PBGC. PPA, PRA, they're screeeeewed if they don't book asap.
If the post office shuts down for any period of time, then short the hell out of Amazon. Most of the small retailers count on the lower priority mail costs vs the insanely expensive UPS and Fed ex rates. No one will be able to make any money on the internet........
Indeed.
While I am as libertarian and pro-free-market as anyone, I can tell you that my own small business would do virtually NO shipping whatsover if it were not for the USPS flat-rate boxes, which I use exclusively. Obviously, those have subsidized shipping rates, but I have NEVER understood the ludicrously high rates of FedEx and (the execrably unreliable) UPS, both of whom I constantly wonder how they stay in business in the first place.
Yes. Most of the teacher retirement funds are in the same shape.
Why the fuss - this is easy, they will either be given the $5.5 or they will through accounting realize that they don't need to submit that money, or Congress will wiave the demand - eitherway this will be a non-story in three weeks and the can will go down the road --- one must come to terms that in today's "free market"
*All bank, Union and government losses will be socialized
*All fraud committed that doesn't directly effect the pockets of the banksters (bernie Madoff's mistake) will not be prosecuted because the fraud is being committed on behalf of the Government
* Congress really has no power - they are akin to Casear's Senate of the people....
* The rule of law doesn't exist as we know it.
* The can will be kicked down the road .....and that road is very very long
* When the road ends, the banksters and politicians will be there waiting for you with a "fix" - and most likely their fix will result in even worse conditions and less freedom (Cashless money, lifestyle audits, electronic purchsing transactions (you didn't earn that!)......captial controls, TSA agents everywhere..
* that the 1%'s are actually people that want freedom, risk - reward, justice and a free market that hangs fradualent bankers --- the 99% ers' are those that want no risk, craddle to grave protection ...which is why the world is headed there and why it will end badly as it always does..
then as you read these headlines and say finally! we are going to see some action - remember these laws - then you won't get your hopes up
My postman told me I could not stop the junk mail - what a waste of time, money nad natural resources.
USPS makes big coin on that. Its one of there last sources of revenue.
No, it's subsidized. There was a big effort to stop it, I think in the 80s, but the corporate lobbyists blocked it. Snailspam in your box on your buck.
remove ur name from the direct marketing association. maybe he didn't know, or would like to keep a job.
"U.S. public pensions are $4.6 trillion short of the amount of assets needed to cover projected liabilities, an advocacy group said. That’s more than twice what Moody’s Investors Service estimated this month."
http://www.bloomberg.com/news/2012-07-18/u-s-public-pension-shortfall-4-...
$5.5 Billion is a drop in the old bucket.
"$5.5 Billion is a drop in the old bucket."
It is enough to fund Congress for 12 hours.
Since nobody snail mails anymore perhaps the government could shift the letter carriers to the departments that now read and monitor our electronic mail. That would keep them plenty busy. They could charge us 44 cents for each email they intercept and then send us a bill with a smiley face on it that said they successfully delivered our email after it was thoughly snooped. That would be enough to fund their health care plan.
"....nobody snail mails any more..." It's odd how those who don't use the mails can't conceive of anyone else having a need for it. My business is 100% dependent upon the USPS for delivery of merchandise and this has been the case since the late 1980s. No other service is affordable. I have very little trouble with my mailings/deliveries. It's working like clockwork. Sure, they lose stuff, they break stuff, they have the usual snafus that any business has, but they have always made it as right as they can. The rates are low even to foreign countries, and all the postal folks I see every day are pretty much just like regular people. Just my view from the cheap seats.
OK folks, I like bashing things as well as anyone. But in the case, the union is correct (gasp.) The Congress is forcing the USPS to pre-fund pensions and health care for employees who are not even hired yet. If they funded their pensions and healthcare at the rate of every other government agency or private business they would be running a profit.
I hate unions. I worked at the PO when I was in college, and my Dad worked there for years. So, because my mom is living off the pension, I have a dog in this fight.
This is not about inefficency or hating your mailman or hating junk mail. This is about folks making a profit out of killing the post office--because everyone thinks paying for stamps is outrageous. Yeah, you can send a priorty mail package across the country in two days for $6, or you can spend $15 to send it with Fed ex.
Be careful what you wish for....You are going to get it.
Is there anything Congress hasn't fucked up in the last, oh, 20 years?
Their own pension and healthcare plans? Which proves they're not incompetent, just downright treasonous!!
Yes. Their pay, benefits, profits from insider trading & cushy lobbying job once they leave.
Double
If I have to buy stuff from America paying UPS and FEDEX shipping rates I'm not buying anything from there anymore.
Long live Europe, China and Australia.
This is much the same arguments that was going on when the Military was required to close bases to cut costs. Did they actually ever close any? I don't recall any being closed. Same with post offices in local communities. When the hard choices have to be made, its always kicked down the road. Whats wrong with cutting Saturday deliveries? If you want something delivered special on Saturday, there could still be special delivery at extra cost.
How much of their own wages do employees contribute to their pensions and healthcare? I have a cousin my age who's been retired almost 10 years. Thirty and out for postal employees. He gets a full pension plus healthcare. The post office is no different then Greece. Its time to raise the retirement age for Postal workers to 62 for partial pension and 65 for full pension. Afterall thats what the private sector has with social security. Sure both are going broke but at least in the pvt sector we still contribute to its funding. Too bad the pricks in Washington forgot the lockbox and spent it all on all their pork programs.
about $2500/yr for health insurance that doesnt cover dental or eyeglasses.
The minimum contribution to a retirement fund you will never get is about $1500/yr.
Retirement is already at 62/65.
Plus Postal Employees hired after 1976 are FERS, not Civil Service. Which means they get the pleasure of dumping about $3000/yr into the black hole of SS.
That retirement program that you refer to was changed.... in 1985/7.
Current employees pay into retirement, SSI, and a 403b (that the government uses, controls how you can use it, has a very low interest rate paid on savings).
You must have 30yrs and meet minimum age requirements, or take a lesser retirement via reduced payment due to age under 62 years of age/under 30 years.
All pay for health. Good rates due to size of contract to insurance providers.
How apropos.....My brother passed away yesterday. Retired from the Army as a Captian in the Calvary... think Captian Kurtz, who was a pussy comparatively. He was also a retired postal worker. One thing he loved to do was speak truth to stupid. You people are stupid....
Your money, their harvest.....
https://www.youtube.com/watch?v=lygbTKzu47Y&feature=related
Another cruel body-blow to the housing market.
The USPS is still in operation?
Yeah-
They delivered 162 billion pieces of mail from 200,000 delivery vehicles last year. Did you not see any of them?
I opened this article to see more of the girl, and all I got was doom and gloom.
U ever notice how 'efficient' the gubmint becomes when it comes to bringing the hammer down? Why is that?
All those new bullets the TSA got...yada, yada.....hey! wake up! If the gov. bought some new fangled bullet, you can be sure most were slid out the back door before the fork lift had a chance to cool down.
NEVER--------EVER underestimate the fraud, bungling and MISHANDLING of a government agency. How many times have you read where the DEA raided the wrong house (the very 1st of which [reported] was right down the street (they hit a new apt. complex and 'read' the units ABCD from left to right when in fact it was vice versa.)
These clowns couldn't find their ass with both hands. These guys are clueless and the slightest prompt (they went THATAWAY---->) has them running down the road. HA!
i think its time we call in the great problem solver KEVIN COSTNER
we all know he solved the BP Gulf leak problem ,as he received such great knowledge of water while filming Waterworld.......i enjoyed The Postman even more and would think he must have figured out a solution for the USPS on the set of that great movie
just wait until Social Security stops mailing the monthly checks (they are making everyone direct deposit).......oh boy thats going to hurt the bottom line !
In 5 minutes bids will be made by private carriers to do deliver SS checks.
With gubermint help, less we forget, ty masta' Obama.
Gents and Ladies,
While i agree the post office has serious problems, here is some facts and observations.
My GF works for them a rural carrier, IE piece worker. The post office has 7 SEVEN different unions, the city guys are the ones that are paid by the hour so no incentive to cut hours.
The rural ones are paid by the route so they work to get it done. My GF has two bosses that tell them to not talk, while they are at their CAGE, NO leader ship at all , they demand them to get the mail out faster but now cuz of the cuts they have moved people and the rural guys are getting screwd cuz its taking more time to get the mail to them
, I keep telling her that she is a piece worker and what the hell do they care but it’s so crazy there.
The post office has crazy rules about getting priority boxes out etc.
Example: she had to deliver a priority box that was marked deliver by 3 PM on a Saturday, she took the package at 2:05 pm , there was a big write up because she did not deliver it by noon when she did not receive it till 12:45 to begin with. Then she had a big “POSTAL” investigation and had to listen to her boss for a half hour blather on , remember she is a piece worker so she does not get paid to stand around. Its INSANE.
Its a total mess one thing I do know is my GF works hard truly, its hard on the hands, the weather conditions suck, and the system is set up to drive workers insane.
Till I started dating her I really hated the post office, I get nothing good sense I lost my construction company two years ago comes, except shit from the court, IRS, State and a angry ex wife.
The being said I can say this women works hard, it’s a shame the post office is so jacked, and there are some D bags gamming the system there is no doubt.
It’s a sad , sad mini-snap shot of inefficient government. I just keeping asking when is the system going to reset. Cuz the world makes no sense and home building aint coming back any time soon.
That’s my rant
Stay strong brother-
I don't think housing will ever be the same, but I know some regions are still building. You may have to move or retool into something else.
Just CTRL+P and blow up the goddamned economy already. I've got SHTF preps collecting dust that I need to justify to my wife.
everyone (except the elite) will need to give their "benefits" and retirement to the elite. gosh! that USPS chick is really hot.
While we're at it, Congress should have to pay the USPS for all the campaign crap it sends out. This would remove an unfair advantage that imcumbents have over challengers.
You're telling me that campaign to mail invoices and cards and shit didnt work??
There are senior members of my family that get outrageous postal retirement benefits. They spend their days running from doctor to doctor on their Federal Blue Cross insurance. Afterall, they are "entitled" .... until it all blows up!
I actually have a couple of postal workers in my neighborhood that compare favorably with the picture accompanying this post.
USPS is the cheapest way to send anything. They are prevented by law from advertising this fact.
Am I the only one(9/11) that sees 99% of Americans(9/11) are currently under siege(9/11) in some fashion from our(9/11) own government(9/11) and financial sector(9/11)?
think people(9/11)...
USPS was doing just fine until a certain cohort who is determined to see anything and everything government-related fail forced them to overfund the pension fund. New hire? Welp, better immediately stash away all the pension they will draw! This is honestly just retarded as the interest from that doesn't outpace inflation and it's literally just burning money. Prior to this, doing it the way that USPS had always done, there was zero problem at all, none. USPS was profitable and the GOP hated it.
So, now of course it's overfunded, but getting that money back? Well, that takes congress and is called a "bailout", even though it's their own damn money in the first place. Anyone who can't see the obvious agenda going on here is just blind.
I don't know much about the USPS. I do get my mail from a PO Box. I never have had mail lost unless you count all the accounts recievable billing I do for my business that never seems to get delivered according to the people billed.
But isn't written in the Constitution that the Fedeeral government will be responsible for a national mail delivery system? If so, doesn't that include paying for it?
Privatised or not.. if the Constituion says the US Government will provide for mail service, the buck stops at Congress.
Bail'em out, $5 billion is chump change nowadays. Seriously, what's $5 Billion in a sea of trillionssssssssssss...
Let it fail! Just like the inflated salaries/retirements the other Snivel Servants get, the US should let them fail. Let the bastards flip hamburgers! It'll all come out in the wash when the Fed's finally default on the debt and start over.
This idiotic article completely misses the mark on the point that I think it may be trying to make. In any event, there is not a single USPS Active or Retired employee that will be the least bit affested by the looming default of these 2 payments totaling $11 Billion.
That money is for the health benefits of FUTURE retirees. All of the funding for current retirees has been in place for decades. You would have known this little tidbit of information about this being for FUTURE obligations if you would have only taken 15 seconds to actually read the portion of the WSJ article that you posted as part of your rant.
Who the hell hires these writers anyway? Is fact checking a lost art these days or, does it just not matter if the story is factual jsut so that it "stirs the pot" of the rabble?