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Post Office 100 Billion in debt
Posted on 3/17/14 at 8:42 am
Posted on 3/17/14 at 8:42 am
Post Office 100 billion in debt
Another fine example of government ineptness.
quote:
“At the end of fiscal year 2013,” said the GAO, “USPS had about $100 billion in unfunded liabilities: $85 billion in unfunded liabilities for benefits, including retiree-health, pension, and workers’ compensation liabilities, and $15 billion in outstanding debt to the U.S. Treasury—the statutory limit.”
Another fine example of government ineptness.
8
Posted on 3/17/14 at 8:44 am to Revelator
I can at least understand owing the $15 billion to the US Treasury for an operating loan or whatever the post office needed money for, but
is ridiculous. Why would they be hiring people they can't afford?
quote:
$85 billion in unfunded liabilities for benefits, including retiree-health, pension, and workers’ compensation liabilities
is ridiculous. Why would they be hiring people they can't afford?
This post was edited on 3/17/14 at 8:45 am
Posted on 3/17/14 at 8:46 am to Revelator
quote:Someone will be along shortly to say that is just an accounting number and does not accurately represent the financial stability of the post office.
$85 billion in unfunded liabilities for benefits, including retiree-health, pension, and workers’ compensation liabilitie
:NB4UPSCANTDELIVERALETTERFOR$.52:
Posted on 3/17/14 at 8:47 am to imjustafatkid
quote:
is ridiculous. Why would they be hiring people they can't afford?
Most if not all of these lavish gov. retirements aren't sustainable.
Posted on 3/17/14 at 8:51 am to Revelator
I can't have pity for this when I just ordered something that was shipped out of Alabama to be delivered in Shreveport. According to my tracking info, this package went through the sort facility in Shreveport then made its way to Gilmer Texas and back to Shreveport on time. Most would think who cares it made it on time, a tax payer like myself though thinks about the money wasted.
Posted on 3/17/14 at 8:58 am to imjustafatkid
quote:
Why would they be hiring people they can't afford?
its not that they are hiring people they cannot afford - its that they promised these people too much in retirement and they have no chance, at all, of ever being able to.
its the exact same problem that is plaguing every other union employer.
Posted on 3/17/14 at 8:58 am to Revelator
They are going to struggle to fund those pension obligations. This is a common problem with local and state governments as well.
The city of Memphis may actually be switching to a defined contribution retirement plan for their employees. If a government entity that irresponsible can justify some level of fiscal sanity, surely other government organizations can as well.
The city of Memphis may actually be switching to a defined contribution retirement plan for their employees. If a government entity that irresponsible can justify some level of fiscal sanity, surely other government organizations can as well.
This post was edited on 3/17/14 at 9:00 am
Posted on 3/17/14 at 8:59 am to jcole4lsu
quote:
its the exact same problem that is plaguing every other union employer.
B-I-N-G-O
Posted on 3/17/14 at 9:05 am to Revelator
We know that they will never change the retirement age to 55, they will never close any post office, no matter how small, and they will never reduce staff and go to every other day delivery.
They also are allowed to compete with private package delivery services -- and with the competitive advantage of being able to do so at a loss.
The price of a stamp needs to be adjusted upward to cover this deficit. This would push almost everyone to go to online transactions and then the cost would be covered by junk mail. This would end junk mail.
Odumbo doesn't have the balls to address this problem. He doesn't care about debt.
They also are allowed to compete with private package delivery services -- and with the competitive advantage of being able to do so at a loss.
The price of a stamp needs to be adjusted upward to cover this deficit. This would push almost everyone to go to online transactions and then the cost would be covered by junk mail. This would end junk mail.
Odumbo doesn't have the balls to address this problem. He doesn't care about debt.
Posted on 3/17/14 at 9:06 am to jcole4lsu
quote:
its the exact same problem that is plaguing every other union employer.
I like to see the people who calculate these retirement figures and how they come up with the actual dollars that are to be paid in the future and where the money is supposed to come from? Are all gov. retirement programs basically Ponzie schemes?
This post was edited on 3/17/14 at 9:09 am
Posted on 3/17/14 at 9:12 am to jcole4lsu
quote:
same problem that is plaguing every other union employer.
If you're referring to public unions, then yes.
Posted on 3/17/14 at 9:31 am to Revelator
Think about retirement plans from the perspective of a private employer for just a second. Payments to retirement plans reduce profits. If you don't have profits you can't afford contributions to retirement plans. Those are simple concepts to understand.
Now let's apply them to the USPS. The USPS has never had profits to contribute to retirement obligations. It does not project to have profits in the future that it can contribute to retirement obligations. The logical conclusion is the USPS cannot survive without a fundamental change to its business model and/or its retirement plans. The people running the USPS know this, but they do not have the power to institute any changes that might solve the problem. Who do you think denies them the power to address these problems?
Now let's apply them to the USPS. The USPS has never had profits to contribute to retirement obligations. It does not project to have profits in the future that it can contribute to retirement obligations. The logical conclusion is the USPS cannot survive without a fundamental change to its business model and/or its retirement plans. The people running the USPS know this, but they do not have the power to institute any changes that might solve the problem. Who do you think denies them the power to address these problems?
Posted on 3/17/14 at 9:41 am to dante
quote:
Someone will be along shortly to say that is just an accounting number and does not accurately represent the financial stability of the post office.
Well - to a certain degree it is. In fact, this is an issue because of changes to the accounting/funding rules for this particularly agency. If the entire federal government were assessed this way (including the military), from a debt/income standpoing, USPS would probably look a lot better.
quote:
NB4UPSCANTDELIVERALETTERFOR$.52:
Having said that - USPS is completely obsolete - first class mail that individuals wanted/desired - i.e. personal letters - has been completely supplanted and replaced by, in turn, email/smartphones/social media. While I occasionally get a parcel from USPS - and use their priority mail to send things - the main thing I get from them is unwanted junk mail.
On the other hand, there is little question that the major private parcel services (UPS, Fedex), with some competition from smaller guys could easily handle all of USPS's parcels.
People who rely on mail for receiving/paying bills by mail, and I'm sure it is still a sizeable group, would be the main people hurt by the elimination of the USPS. On the other hand, if the feds would agree with helping out on the pension side, USPS could probably survive as a fully privatized entity. The unions wouldn't like it, though.
Posted on 3/17/14 at 9:43 am to Revelator
why would they keep it open?
oh yeah, they need people to send them money
oh yeah, they need people to send them money
Posted on 3/17/14 at 9:45 am to Revelator
quote:
Post Office 100 Billion in debt
Because of the tax cuts for the rich, right?
Posted on 3/17/14 at 9:45 am to Ace Midnight
quote:As a small business owner, I still receive invoice checks via the mail, but I would have no problem with doing away with Saturday and Wednesday delivery.
People who rely on mail for receiving/paying bills by mail
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