10/2/2017 Similar to prior years since 2012, USPS did not make mandated end-of-year payments to prefund retiree health benefits. In addition, USPS did not make payments on liabilities to the Federal Employees’ Retirement System and the Civil Service Retirement System.
The Postal Service will continue to deliver the mail and will pay employees and suppliers, but said that it could not make scheduled payments of $6.9 billion to the U.S. Treasury on Sept. 30 to prefund health and pension benefits for retirees while ensuring its ability to continue achieving its primary mission.
The Postal Service did not make mandated end-of-year payments to prefund retiree health benefits, but will continue to provide benefits to employees and suppliers.
The Postal Service’s inability to make these payments does not affect the receipt of these benefits. Retirees and employees will continue to receive their health benefits. In addition, retirees will continue to receive their pension benefits, and employees will continue to accrue those benefits.
The Postal Service said, “We continue to seek comprehensive, fundamental legislative and regulatory reform, while also continuing to aggressively manage our business, in order to ensure that all of our legal obligations are met in a financially sustainable manner.”
USPS said the deferred payments are “being addressed at the highest level of the organization” so that employees can focus on day-to-day operations and “ensuring we provide the best possible service to our business and residential customers.”
source: USPS News Link
ha….”primary mission” is to juice the phony numbers for PFP bonus scam money! the Postal OIG is in on it too!
lol….where is that WTODD poster who always cries about prefunding…..Postal Circus has not paid since 2009 and has lost over $120 Billion since 2009…….how this place stays in business losing 700 million a month is the worlds greatest mystery? what is the monthly payroll numbers for 110,000 Postal Circus Mismanagers?
Glad I’m outta that dump
This year prefunding was recalculated and the balance due was amortized over a 40 year period. The amount due this year is $955 million. This includes money for all missed payments for previous years. This is affordable and should be paid.
Postal management is playing a “game of chicken” with Congress, continuing to cry “poor us, we can’t afford to operate unless we have legislative reform.” This in nonsense and the reform postal management wants is hurtful to employees and retirees and does not provide any real long term economic benefit to the USPS. Most of the savings in the current proposed legislative reform is from a rate increase ($8 billion over 10 years). This same increase should come from the Postal Regulatory Commission (PRC). The PRC is currently reviewing USPS rates and rate setting methods. The PRC rate change recommendation and rate setting methodology recommendation is due this year and should include enough money for the USPS to pay all their obligations.
No more bullshit “Year End Recognition” and “Take your Postal Girlfriend to an Off-site” meetings until the damn pension and health premium bills are paid.