When you hear how dramatically bad the Postal Service is doing financially, many think it’s another reason why government can’t do anything right. They would be wrong.
The bizarre requirement to fund its health benefits fund 75 years in advance…that’s right 75 years ahead of schedule, is the real reason.
CNN: The U.S. Postal Service does not have the money to meet an obligation to a retiree health care trust fund coming due at the end of the month, but if there's a default, officials promise no interruption in the mail, the payroll, or payments to suppliers … spokeswoman Yvonne Yoerger … "We are required to make this $5.5 billion dollar payment into the future retiree health benefits fund … the fact is, no other government agency, and few corporations in the private sector are required to fund retiree health benefits 75 years out." One answer is to adjust those mandated payments.
She acknowledged the basis for the advance payments were mandated in 2006 because lawmakers wanted assurances the Postal Service could cover benefits for its future pensioners.
But 75 years funding in advance? Who the hell thought that was a good idea…Democrats?
Tuesday, congressional lawmakers will address the matter in a hearing on postal operations.This great ad tells the whole story in 30 seconds:
She said "We want to have the pre-funding mandate eliminated, and have the money already paid into it used for those purposes" of covering health care benefits for future retirees. She said, "We've overpaid into our retirement funds, and we'd like some of those overpayments refunded and used for future funding."
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