Is benefits law dragging down the Postal Service?

[Omaha Steve]

http://news.blogs.cnn.com/2011/08/18/is-benefits-law-dragging-down-the-postal-service/



August 18th, 2011
11:18 PM ET

The U.S. Postal Service is in a precarious financial situation, telling Congress it faces the "equivalent of Chapter 11 bankruptcy." Losing billions of dollars a year, it is considering whether to close more than 3,600 post offices and lay off tens of thousands of workers.

The service faces many problems, including a drop in mail volume in recent years. But the service, which employs nearly 572,000 people, says some of its difficulties are inflicted by the federal government – through a law governing how the agency funds workers' retirement health benefits.

In 2006, Congress passed a law requiring the Postal Service to wholly pre-fund its retirement health package – that is, cover the health care costs of future retirees, in advance, at 100%. The Postal Service, which is a corporation owned but not funded by the federal government, is the only government-related agency required to prefund retirees' health benefits.

"No one prefunds at more than 30%," said Anthony Vegliante, the service's executive vice president.

FULL story at link.

[abelenkpe]

1. Seems that way to me

Of course the internet doesn't help.

[Zoeisright]

2. Of course. Repukes knew exactly what they were doing when they

passed that fucking stupid law in 2006. Face it - repukes hate ANYTHING that doesn't make THEM or their cronies rich.

[EC]

3. Not sure if I am remembering this right

but I'm sure I read somewhere that 100% funding means 75 years for each employee, including ones that have quit. How many people are going to live 75 additional years after retiring?

[Viva_Daddy]

4. Yes. Imaging having to prefund the retirement of people you...

haven't even hired yet. This was and is a deliberate move by Republicans to destroy the oldest and one of the most popular Government programs of all.