In 2006, Congress passed a law requiring the Postal Service to pre-fund retiree health benefits for 75 years in a 10-year period, which means around $5.5 billion per year. No other federal agency, and not even Congress, pre-funds retiree health benefits. There is approximately $45 billion in this account as of today. Eighty-four percent of their losses in the past five years have been because of this erroneous law, and Congress needs to stop this outrageous practice and allow the Postal Service to pay as they go like everyone else. This is the elephant in the room in regards to their financial trouble. Also, both of their retirement accounts have surpluses. The FERS account has around $11 billion and the CSRS has between $50 billion and $75 billion in surplus. Quite simply, the Postal Service is the richest broke company in the world. Congress caused this problem and Congress can fix this problem.
The solution to their problems are simple: Transfer the CSRS surplus to the pre-funding account, and there would be no need to prefund because that account would have between $95 billion and $120 billion, which would fund their retiree health benefits for a very, very long time. (FOREVER) Next, give them back the $11 billion FERS surplus and allow the postal service to offer retirement incentives to decrease their number of employees on the payroll. Also, we need to update our laws to be able to do things like ship beer and wine through the mail in order to grow our business. This is a very short summary, but quite simply they need to decrease their expenses and grow their revenue. But, first Congress needs to put Postal Service money (not a dime of taxpayer money) where it belongs before they dismantle our Postal Service by ending Saturday delivery, closing post offices and processing plants and slowing down the mail by changing service standards.
Ronnie Roush, letter carrier