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Postal Service Faces $100B in Debts and Unfunded Benefits
Cybercast News Service ^ | March 14, 2014 - 4:23 PM | Michael W. Chapman

Posted on 03/14/2014 7:29:09 PM PDT by Olog-hai

The U.S. Postal Service (USPS) currently owes $99.8 billion in benefit payments to its current and retired workers but does not have the money, and if Congress does not act to fix the problem, the Postal Service may have to “implement contingency plans to ensure that mail delivery continues,” according to a new report by the Government Accountability Office (GAO).

“At the end of fiscal year 2013,” said the GAO, “USPS had about $100 billion in unfunded liabilities: $85 billion in unfunded liabilities for benefits, including retiree-health, pension, and workers’ compensation liabilities, and $15 billion in outstanding debt to the U.S. Treasury—the statutory limit.”

“USPS continues to be in a serious financial crisis, with insufficient revenue to cover its expenses and financial obligations, a continuing decline in profitable First-Class Mail volume, increasing unfunded benefit liabilities, and borrowing limitations due to having reached its $15 billion statutory debt [borrowing] limit,” said Frank Todisco, a GAO chief actuary, in prepared testimony before the House Subcommittee on Federal Workforce, U.S. Postal Service and the Census on Mar. 13. …

(Excerpt) Read more at cnsnews.com ...


TOPICS: Government; News/Current Events; US: District of Columbia
KEYWORDS: billiondollardebt; publicsectorunions; unfundedbenefits; usps
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1 posted on 03/14/2014 7:29:09 PM PDT by Olog-hai
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To: Olog-hai

but we’re reminded they are not government. until they want to be government, then they are government.


2 posted on 03/14/2014 7:31:38 PM PDT by Secret Agent Man (Gone Galt; Not averse to Going Bronson.)
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To: Olog-hai

USPS is always broke - and continually raising the cost of first class delivery never seems to fix the problem.


3 posted on 03/14/2014 7:32:53 PM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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To: Olog-hai

Break them up and sell off the assets. Every year we hear the same thing from these guys.


4 posted on 03/14/2014 7:33:08 PM PDT by dinodino
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To: Secret Agent Man

They have a legal monopoly on first class mail and they still can’t turn a profit.


5 posted on 03/14/2014 7:34:28 PM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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To: dinodino

I agree


6 posted on 03/14/2014 7:35:02 PM PDT by GeronL (Vote for Conservatives not for Republicans!)
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To: dinodino

Have they tried doubling the junk mail postage?


7 posted on 03/14/2014 7:35:43 PM PDT by GeronL (Vote for Conservatives not for Republicans!)
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To: Olog-hai

Golly, I wonder where they will find the money they need???


8 posted on 03/14/2014 7:37:11 PM PDT by ClearCase_guy
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To: Olog-hai

No government or agency should be allowed to have unfunded pensions. They should all be forced to switch to funded 401k plans like most corporations have.

It’s just too easy to write your self a check for the future that a government can’t cash, and that is far out of line with what private jobs are paying.


9 posted on 03/14/2014 7:37:29 PM PDT by DannyTN
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To: GeronL

USPS does partner with UPS on some package deliveries. They take over for DHL in certain areas of the country.


10 posted on 03/14/2014 7:37:51 PM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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To: goldstategop

Time to shut down all U.S. Post Offices. Privatize the routes..rural routes get service 2X a week.


11 posted on 03/14/2014 7:39:59 PM PDT by rovenstinez
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To: Olog-hai

Profit = Income - Expenses. A simple audit should identify the problem.


12 posted on 03/14/2014 7:40:55 PM PDT by VRWC For Truth (Roberts has perverted the Constitution)
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To: Olog-hai

Future headline:
ACA Faces $100B in Debts and Unfunded Benefits


13 posted on 03/14/2014 7:41:43 PM PDT by 12th_Monkey (One man one vote is a big fail, when the "one" man is an idiot.)
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To: Olog-hai
The post office isn't about delivering mail, it's about being able to send government correspondences to each and every citizen.
14 posted on 03/14/2014 7:42:31 PM PDT by RC one (Militarized law enforcement is just a nice way of saying martial law enforcement.)
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To: Olog-hai

YeahBut keep that 4th class junkmail YOU subsidize for the directmail industry clogging up your mailbox.


15 posted on 03/14/2014 7:42:36 PM PDT by CharlesOConnell (CharlesOConnell)
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To: Olog-hai

Can’t they just pay for this with some of Obama’s “stash”?


16 posted on 03/14/2014 7:43:51 PM PDT by The Duke ("Forgiveness is between them and God, it's my job to arrange the meeting.")
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To: Olog-hai

let them go into bankruptcy and reorganize without the union. It can be done.


17 posted on 03/14/2014 7:50:26 PM PDT by elpadre (AfganistaMr Obama said the goal was to "disrupt, dismantle and defeat al-hereQaeda" and its allies.)
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To: Olog-hai

Any time the USPS tries to make a rational business decision to make ends meet, Congress says “NO!”. They are basically damned if they do and damned if they don’t.

They wanted to cut off Saturday delivery to help stop some losses, but Congress calls the shots.


18 posted on 03/14/2014 7:50:31 PM PDT by C210N (When people fear government there is tyranny; when government fears people there is liberty)
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To: 12th_Monkey

No wonder the federal government claws back part of my payment. But they were kind enough to reduce the amount they wanted back.


19 posted on 03/14/2014 7:51:52 PM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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To: Olog-hai

and yet we seem to have a trillion sitting around to pay for affordable health care?


20 posted on 03/14/2014 7:56:03 PM PDT by Cruz_West_Paul2016
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