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Postal service prepares for second default in two months

Postal service prepares for second default in two months

By Amanda Palleschi, Government Executive
Updated: September 26, 2012 | 6:37 p.m.
September 26, 2012 | 6:36 p.m.

The U.S. Postal Service will default this week on a $5.6 billion congressionally mandated obligation to pre-fund retiree health benefits, marking the second time in two months the cash-strapped agency has done this.

The Postal Service last month failed to pay $5.5 billion for its fiscal 2011 prepayment obligation, which originally was due in September 2011 but was deferred by Congress until Aug. 1. That was the first time it ever defaulted on a payment to the Treasury Department. The $5.6 billion due this week, on Sept. 30, represents this fiscal year’s obligation.

Before this year, Congress helped USPS defer pre-funding payments required by a 2006 congressional mandate. Postal reform has challenged this Congress. Lawmakers warn that when they revisit the issue after the November election they likely won’t reach agreement on as major an overhaul as some deem necessary. USPS lost $5.2 billion in the third quarter of fiscal 2012, $2.1 billion more than during the same time period in 2011.

Read more: http://nationaljournal.com/congress-legacy/postal-service-pr...




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wolfe's picture

It's a dinosaur and should have died a long time ago.

90% of everything we do occurs electronically and the remaining 10% is FedEx/UPS/DHL, etc.

What do we need the postal service for other than to collect junk mail.

Obama wants to green up the government. The first thing they can do (other than stop killing people overseas) is to let USPS die. No more trees killed for 20 cents off at the grocery store. No more wasted gas. And no more spending money on useless employees doing a job that my email server does for free.

The Philosophy Of Liberty -
http://www.thephilosophyofliberty.com/

Could it be that Congress

Could it be that Congress mandates that USPS pre-funds their pensions in order so that USPS pension money will be available for Treasury to use in the event of some new crisis or even in order to delay having to vote on the next debt ceiling increase?

In 2011 the debt ceiling deadline kept being delayed, partly because the Treasury was able to use government pension money to keep things going until the vote.

...

If it wasnt for the mandate

If it wasnt for the mandate on the pensions, they would be operating fine.

To climb the mountain, you must believe you can.

NO WAY OUT OF THE MESS ~ BAILOUT TIME?

Postal Service abandons plans to close thousands of post offices

Posted at 01:00 PM ET, 05/09/2012
By Lisa Rein

The U.S. Postal Service said Wednesday it is abandoning plans to close thousands of post offices and instead will drastically reduce hours at most of its rural outposts, a change that will affect about a third of the country’s retail mail network.

Excerpt: The latest cost-cutting strategy does not come close to filling the Postal Service’s multi-billion dollar shortfall. Financial results for the first quarter of 2012 are due Thursday, and the financial hemorrhaging is expected to continue.

COMPLETE ARTICLE: http://www.washingtonpost.com/blogs/federal-eye/post/postal-...

RELATED:

The Truth About The Post Office's Financial Mess

Published: Monday, 24 Oct 2011

ARTICLE: http://www.cnbc.com/id/45018432/The_Truth_About_The_Post_Off...

Jordan Maxwell says that the United States Postal Service is owned by an Englishman is this true? http://wiki.answers.com/Q/Jordan_Maxwell_says_that_the_Unite...

http://wiki.answers.com/Q/Jordan_Maxwell_says_that_the_Unite...

The Modern Postal Service: Agency or Business?

Until adoption of the Postal Reorganization Act of 1970, the U.S. Postal Service functioned as a regular, tax-supported, agency of the federal government.

According to the laws under which it now operates, the U.S. Postal Service is a semi-independent federal agency, mandated to be revenue-neutral. That is, it is supposed to break even, not make a profit.

CONTINUES: http://wiki.answers.com/Q/Does_the_US_government_own_the_pos...

Notice how when they have to fully fund pension they cannot

However: "The agency’s inability to make its payments will not affect mail delivery or employee pay, said USPS spokesman David Partenheimer."

I'll gladly pay you Tuesday for a hamburger today.

While I like to hear Bernie

While I like to hear Bernie Sanders white knight about government waste, his ultimate goal of socialism is untouchable. Especially about saving the post office. If there is no use for it, let it die. I'm sure he is the first to complain about corporate protectionism. Want to create jobs? Abolish the USPS and see how fast people develop their own mail systems like Lysander Spooner.

Southern Agrarian

Except there IS a use for it

There always was. The only reason it's failing financially is due to the expectations placed on it: that it should survive as a private business while being micromanaged by congress. The USPS is 15 billion in the hole. Do you know how much congress has forced it to sit on for future worker retirement accounts? 13 billion. Don't believe everything you read. The USPS itself is doing fine, it's just being set up to fail.

Post Service

They obviously need a bigger budget, deficits and debts don't matter. We have to be forward looking. Give them all a raise.

Party on dudes lol

donvino