Since 1971, the U.S. Postal Service (USPS) has been a self-supporting wholly governmental entity that was designed to cover its operating expenses with revenues generated through the sales of postage and related products. However, the sharp decline in first class mail since 2006 and the loss of the associated revenues coupled with high operating expenses has left the USPS in a difficult financial position. In the first three quarters of this year, the USPS has run a deficit of $5.7 billion and is not expected to be able to make the mandatory $5.5 billion Retiree Health Benefits Fund payment by November 18, 2011. With declining revenues and increased expenses, it is imperative that Congress take action to address and reform the structural issues threatening to bankrupt this important agency.
At this point in the 112th Congress, a variety of Committee hearings, have resulted in a number of bills designed to address the financial problems facing the USPS. Representative Darrell Issa, Chairman of the Oversight and Government Reform Committee, which is charged with oversight of the USPS, introduced H.R. 2309, Postal Reform Act of 2011, on June 23, 2011. The bill would create the Postal Service Financial Responsibility and Management Assistance Authority, which would have a broad mandate to restructure the Postal Service and reduce costs in order to bring the institution back to fiscal solvency when the Postal Service goes into default to the Federal government. The Authority will be disbanded once the United States Postal Service (USPS) meets several benchmarks that ensure financial health.
The Postal Reform Act of 2011 also empanels a separate body, the Commission on Postal Reorganization (CPR), to review postal infrastructure and recommend closures and consolidations to Congress that will ultimately save the Postal at least $2 billion a year. If Congress does not reject the CPR’s recommendations, they become law. The legislation will also remove several legal hurdles that the USPS currently faces when it comes to reducing costs, including allowing financially unsustainable retail postal facilities to be closed.
H.R. 1351, the United States Postal Service Pension Obligation Recalculation and Restoration Act of 2011, was introduced by Representative Stephen Lynch on April 4, 2011. This bill would amend the method of calculating the amount of any Postal surplus or supplemental liability under the Civil Service Retirement System. Many supporters of this bill argue that the USPS has overpaid into the Civil Service Retirement Fund; however, this claim is based on a hypothetical formula for determining the share of retiree benefits that was never actually agreed to. The USPS claims that, if this formula had been used instead of the current formula which they agreed to in 1974, the US Treasury would owe $50-75 billion to the USPS due to overpayments made toward retiree benefits. Since this formula was never agreed to and the USPS has operated under a different formula since 1974, there was no overpayment made by the USPS.
The USPS is a proud institution that provides vital services and employs thousands of hard-working Americans. Any efforts to reform the USPS must ensure solvency for the agency and the benefits of its retirees, and must modernize its structure in order to adapt to 21st century communications practices.
USPS is silent, is this because Guffey will not talk or did they make a deal?, why would APWU broadcast how great this convention is when craft are being excessd, and into other crafts,hear this Guffey, destroying peoples hopes is one thing, but destroying or causing havoc in their lives is inexcusable, especially when it was in your grasp to do something, Burrus a liar, doubt that, especially if you knew both of these people over the years, Liz Powell, would think she had more common sense to tell Guffey like it is, to the rest of the executive board and the NBA’s, you will never get my vote, nor my trust,in fact, you may never get my dues again, and the USPS will get less work from many of us, shoo the customer away! What happened to downsizing and incentives?
As usual, more factless responses from brain dead union worshippers. Get educated and learn, then post something intelligent!
Leo, did you say “..let big oil keep..”. You didn’t did you. You socialist idiots are a riot, or a wanna be riot. You would take the oil/gas money and put in mail vehicles only, right? Cause you’re such a nice guy. Young people know the old systems – which aren’t that old considering they were invented in the 1920s – need reformed. Did you ever notice the government is not Letting You Keep your money?
This is the same letter that both parties are putting out, not just Ryan. Stop blaming the Republicans for all the mess that is going on with the USPS. It is both sides of the aisle and our lack of leadership in the from both parties to step up and do what is right. BTW I am a 17 yr employee with 6 yrs of military service before that. I am a memeber of the APWU and do stand up and voice my opinion about what we need to do.
ooops 47 cents
This is the same Paul Ryan that did not know the price of a first class stamp saying it was 74 cents during the senate hearing.
His argument over pensions is so disengenous it is rediculous, the postal services pensions are better funded than 95 % of private or public companies…
For him to talk about this when the military DOD and all other government departmesnt are not even funded 20% is scary. They have TRILLIONS in pension shortfalls, for him to talk about the post office in this manner MEANS there is another agenda at work here
Remember the postal service is in the CONSTITUTION as a SERVICE, we have a banking issue in this country where the poor citizen does not have access to banking service, restablish the Postal Banking system, of course this will never happen with the banks hands in his pockets
Ryan’s a right wing neocon. Don’t be fooled!!!!! He would privatize the P.O. in a heart beat,destroy ssi and medicare, cut taxes for the wealthiest – when in fact they should be paying for these 7 trillion dollar wars, let big oil keep their 20 billion doller subsidies,pull funding for allternative energies, and stick it to the middle class + elderly+college students +environmental regulation. Leo