USPS warns of default on retiree benefits - Not the Post Office!! - GoFuckYourself.com

Redrob · 05-18-2011, 07:47 PM

By Jared Serbu
Reporter
Federal News Radio

The U.S. Postal Service will begin to default on its financial obligations just over four months from now unless Congress takes action to relieve it of its obligation to pre-fund retiree health care accounts, its leader told lawmakers Tuesday.

USPS expects to post a net loss of $8.3 billion for this fiscal year, nearly as much as it lost last year. And with its $15 billion debt limit due to be reached this year, more borrowing is not an option, Postmaster General Pat Donahoe said in testimony before a subcommittee of the Senate Homeland Security and Government Affairs committee.

"Despite our aggressive cost cutting and revenue generating efforts, we are in serious financial predicaments today," he said. "As things stand, we do not have the cash to make the $5.5 billion prepayment for future retiree health benefits due on September 30. And we may be forced to default on other payments. This could extend to operational expenses."

USPS contends the prepayment for future retirees is a financial obligation that none of its competitors, nor any government agency, has to live with. The requirement came along with a 2006 postal reform bill that was passed when mail volume was at its peak.

Link to Article

No Fear, Just Knowledge!

Fletch XXX · 05-18-2011, 07:51 PM

privatize the postal service and take the power back!

http://money.cnn.com/2009/08/03/news...atize.fortune/

theyve been going under forever.

L-Pink · 05-18-2011, 08:00 PM

And don't deliver the damn mail every day. How ridiculous. Two or three times a week is all anyone needs.

Fletch XXX · 05-18-2011, 08:04 PM

Quote:

Originally Posted by L-Pink

And don't deliver the damn mail every day. How ridiculous. Two or three times a week is all anyone needs.

Quote:

""In some small offices, we're looking at consolidation because what we're finding is that many of these offices don't even have an hour's worth of work in a day," "

their answer:

Quote:

His legislation also would let USPS ship alcoholic beverages for the first time.

"We think it's an excellent idea," Donahoe said."What the Postal Service brings is convenience in that whole industry. We've seen other posts?Australia Post for an example has done that?and that's one of their biggest growth products."

He said carriers would not deliver alcohol directly to a home, but would require an adult to pick the package up at a post office.

double

marlboroack · 05-18-2011, 08:05 PM

"Despite our aggressive cost cutting and revenue generating efforts"

marlboroack · 05-18-2011, 08:09 PM

Barefootsies · 05-18-2011, 08:23 PM

Quote:

Originally Posted by marlboroack

"Despite our aggressive cost cutting and revenue generating efforts"

I get a good laugh off that one myself. Especially each time I see a USPS commercial or their advertisement, or sponsorship of some cycling team or whatever.

marlboroack · 05-18-2011, 08:27 PM

Quote:

Originally Posted by Barefootsies

I get a good laugh off that one myself. Especially each time I see a USPS commercial or their advertisement, or sponsorship of some cycling team or whatever.

I get a good laugh looking at my Soviet Russia upload

onwebcam · 05-18-2011, 08:34 PM

In other related news

Treasury to tap pensions to help fund government
http://www.washingtonpost.com/busine...y.html?hpid=z1

It's all a scare tactic to get people to accept raising the debt ceiling.

End the Fed.

GatorB · 05-18-2011, 10:06 PM

Quote:

Originally Posted by Fletch XXX

privatize the postal service and take the power back!

http://money.cnn.com/2009/08/03/news...atize.fortune/

theyve been going under forever.

You do realize the USPS takes in ZERO tax payer $$$$. Yeah go ahead let a coporation take it over. Then people will be bitching about paying $1.50 to mail a letter.

GatorB · 05-18-2011, 10:08 PM

Quote:

Originally Posted by L-Pink

And don't deliver the damn mail every day. How ridiculous. Two or three times a week is all anyone needs.

Actually the USPS has proposed to eliminate saturday mail and close down smaller but expensive to operate Post Offices and everyone throws a hissy fit. You can't have it both ways.

TisMe · 05-18-2011, 10:32 PM

Many large government and private pension plans invested heavily in mortgage based securities that have since failed.

I predict that this is the first of many such announcements to come.

05-18-2011, 07:47 PM	#1
Redrob Confirmed User Industry Role: Join Date: Oct 2004 Location: In a refrigerator box by the tracks. Posts: 4,790	USPS warns of default on retiree benefits - Not the Post Office!! By Jared Serbu Reporter Federal News Radio The U.S. Postal Service will begin to default on its financial obligations just over four months from now unless Congress takes action to relieve it of its obligation to pre-fund retiree health care accounts, its leader told lawmakers Tuesday. USPS expects to post a net loss of $8.3 billion for this fiscal year, nearly as much as it lost last year. And with its $15 billion debt limit due to be reached this year, more borrowing is not an option, Postmaster General Pat Donahoe said in testimony before a subcommittee of the Senate Homeland Security and Government Affairs committee. "Despite our aggressive cost cutting and revenue generating efforts, we are in serious financial predicaments today," he said. "As things stand, we do not have the cash to make the $5.5 billion prepayment for future retiree health benefits due on September 30. And we may be forced to default on other payments. This could extend to operational expenses." USPS contends the prepayment for future retirees is a financial obligation that none of its competitors, nor any government agency, has to live with. The requirement came along with a 2006 postal reform bill that was passed when mail volume was at its peak. Link to Article No Fear, Just Knowledge!

05-18-2011, 07:51 PM	#2
Fletch XXX GFY HALL OF FAME DAMMIT!!! Join Date: Jan 2002 Location: that 504 Posts: 60,840	privatize the postal service and take the power back! http://money.cnn.com/2009/08/03/news...atize.fortune/ theyve been going under forever. __________________ Want an Android App for your tube, membership, or free site? Need banners or promo material? Hit us up (ICQ Fletch: 148841377) or email me fletchxxx at gmail.com - recent work - About me

05-18-2011, 08:34 PM	#9
onwebcam Fake Nick 1.0 Industry Role: Join Date: Oct 2005 Location: Rent free, your head Posts: 27,652	In other related news Treasury to tap pensions to help fund government http://www.washingtonpost.com/busine...y.html?hpid=z1 It's all a scare tactic to get people to accept raising the debt ceiling. End the Fed. __________________ PLEASE WAIT WHILE BIDEN ADMIN UNINSTALLS ITSELF..... ██████████████████▒ 99.5% complete.

05-18-2011, 08:00 PM	#3
L-Pink working on my tan Industry Role: Join Date: Mar 2005 Location: Florida/Kentucky Posts: 39,152	And don't deliver the damn mail every day. How ridiculous. Two or three times a week is all anyone needs.

05-18-2011, 08:05 PM	#5
marlboroack So Fucking Banned Industry Role: Join Date: Jul 2010 Location: ☣ Posts: 9,327	"Despite our aggressive cost cutting and revenue generating efforts"

05-18-2011, 08:09 PM	#6
marlboroack So Fucking Banned Industry Role: Join Date: Jul 2010 Location: ☣ Posts: 9,327

05-18-2011, 10:32 PM	#12
TisMe Confirmed User Join Date: Aug 2008 Posts: 1,719	Many large government and private pension plans invested heavily in mortgage based securities that have since failed. I predict that this is the first of many such announcements to come.