This week Nader wrote a letter to Senator Joseph Lieberman,
Chairman of the Senate’s Homeland Security and Governmental Affairs Committee, and Congressman Darrell Issa, Chairman of the Oversight and Government Reform Committee. The letter explains how the “crisis” we’re hearing so much about has been totally manufactured and could be easily corrected by Congressional action. Readers of “Save the Post Office” are familiar with the story, but Nader’s letter does a very good job going over the numbers and explaining the details about how postal workers have overpaid billions of dollars into pension plans and their retiree health care plan.
Nader explains how the Postal Service has overpaid into the Civil Service Retirement System (CSRS) by as much as $75 billion, as well as overpaying into the Federal Employees Retirement System (FERS) by about $6.8 billion (as of FY 2009). Combined, these overpayments amount to about $82 billion. If a significant portion of these overpayments were returned to the Postal Service, the crisis would vanish in a flash.
In addition, the 2006 Postal Accountability and Enhancement Act (PAEA) is causing most of the current “crisis” by requiring employees to pay over $5 billion each year into a fund that will pay for future health benefits of retirees of the next 75 years. “This is something that no other government or private corporation is required to do and is an incredibly unreasonable burden,” writes Nader.
If the Postal Service had not been required to prepay over $20 billion for health care benefits of future retirees during 2007 to 2010, the Postal Service would actually be in the black by $1.5 billion as of June 2011. Even with the $10 billion deficit being projected for FY 2011, the USPS would be in the black by $2.5 billion by the end of the fiscal year.
http://www.savethepostoffice.com/preserving-peoples-post-office-nader-writes-congress