Downings landing sold!

songkrai · 11-16-2012, 08:13 AM

"In 2006, Congress passed the Postal Accountability and Enhancement Act. This law requires the Postal Service to do something that no other business or government agency has to do--pre-fund its FUTURE retiree health care benefits. This is a 75 year liability that has to be paid in 10 years. The Postal Service makes a payment of approximately $5.5 billion on September 30 at the end of every fiscal year to meet this obligation. The Post Office has been paying these benefits the past four years into a trust fund for employees who have not even been born yet. This is the burden that is creating the “financial crisis” for the Post Office. The recession that has gripped America the past few years has undoubtedly affected the Postal Service, but even in the worst economic
times since the great depression, the USPS has had a net profit of $611 million dollars. Unfortunately, the red ink associated with the post office is the mandated pre-funding since 2006."

"This onerous payment is barely being reported in the media. Another fact not being widely circulated is that independent agencies and the government itself have concluded that the USPS has overpaid into its two retirement systems. The Post Office has excessively funded the Civil Service Retirement System by at least $50 billion dollars, and the Federal Employees Retirement System around $7 billion dollars."

LINK

11-16-2012, 08:13 AM	#9
songkrai Senior Member Join Date: Dec 2009 Posts: 733 Thanks: 35 Thanked 147 Times in 99 Posts	"In 2006, Congress passed the Postal Accountability and Enhancement Act. This law requires the Postal Service to do something that no other business or government agency has to do--pre-fund its FUTURE retiree health care benefits. This is a 75 year liability that has to be paid in 10 years. The Postal Service makes a payment of approximately $5.5 billion on September 30 at the end of every fiscal year to meet this obligation. The Post Office has been paying these benefits the past four years into a trust fund for employees who have not even been born yet. This is the burden that is creating the “financial crisis” for the Post Office. The recession that has gripped America the past few years has undoubtedly affected the Postal Service, but even in the worst economic times since the great depression, the USPS has had a net profit of $611 million dollars. Unfortunately, the red ink associated with the post office is the mandated pre-funding since 2006." "This onerous payment is barely being reported in the media. Another fact not being widely circulated is that independent agencies and the government itself have concluded that the USPS has overpaid into its two retirement systems. The Post Office has excessively funded the Civil Service Retirement System by at least $50 billion dollars, and the Federal Employees Retirement System around $7 billion dollars." LINK