PMG TELLS SENATE COMMITTEE USPS NEEDS URGENT LEGISLATIVE ACTION TO AVOID DEFAULT

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PMG TELLS SENATE COMMITTEE USPS NEEDS URGENT LEGISLATIVE ACTION TO AVOID DEFAULT

PMG Pat Donahoe yesterday told a Senate committee that without enactment of legislation by the end of this month, USPS can’t make a congressionally mandated $5.5 billion payment to pre-fund retiree health benefits and will be in default.

“The Postal Service is in a crisis today because it operates within a restrictive business model and has limited flexibility to respond to a changing marketplace,” Donahoe told the U.S Senate Committee on Homeland Security and Governmental Affairs.

“We need the ability to operate more as a business does,” said Donahoe. “In order to return to sound financial footing to meet America’s evolving mailing and shipping needs for generations to come.”

Donahoe said the Postal Service needs the enactment of comprehensive, long-term legislation to provide needed flexibility.

He called on Congress to pass a bill that would:

  • Amend the law requiring the Postal Service to make $5.5 billion annual payments to prefund retirement health benefits.
  • Return $6.9 billion in Federal Employees Retirement System overpayments.
  • Give USPS the authority to determine delivery frequency.
  • Allow the Postal Service to restructure its healthcare system, making it independent of federal programs.
  • Grant the Postal Service authority to provide a defined contribution retirement plan for new hires.
  • Streamline the process for product development and pricing.

Click here to read the PMG’s written testimony.

2 Responses to "PMG TELLS SENATE COMMITTEE USPS NEEDS URGENT LEGISLATIVE ACTION TO AVOID DEFAULT"

  1. Donahoe is closing the Sioux City Iowa processing plant on Sept. 30th. Because he cannot excess anyone further than 50 miles, there are now apoximately 70 clerks who will ge getting paid for no work. This is the intelligence of the type of management that has driven the Postal Service into the ground. Any other CEO would be fired for an error of this level. The money should be coming out of his paycheck. Stop blaming the Postal Workers who do their jobs everyday, and take a good hard look at the grave mishandling of upper management.

  2. R U kidding. Management does nothing. Cant make a decision without Micro Management. Stares at a Computer all day and Postmasters walk around to justify their presence. Management should earn there keep. Hell my office can run on employees alone. How much would that save.

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