Does The U.S. Treasury Owe $75 Billlion to the Postal Service?

Posted on by postal

The Institute for Research on the Economics Of Taxation (IRET.org) prepared the following paper on the issue of overcharging USPS $75 Billion in Pension costs.

The Postal Service Office of Inspector General (OIG) released a study in January 2010 claiming the Postal Service is entitled to $75 billion from the U.S. Treasury. The Postal OIG alleges that the U.S. Office of Personnel Management (OPM), acting as the federal government’s agent, has overcharged the Postal Service $75 billion in pension costs since the 1970s. With postal pensions already well funded, the Postal OIG proposes using most of the money to support an entirely different fringe benefit: underfunded postal retiree health care. The proposed transfer would increase the burden on the U.S. Treasury and taxpayers.

At issue is how the Postal Service and U.S. Treasury should have divided the Civil Service Retirement System (CSRS) pension costs of early postal employees who had worked before July 1971 at the old Post Office Department. The Postal OIG claims its approach is required by fairness and the law.

This paper reviews the history of the allocation question, including relevant legislation, and presents the conflicting positions.The paper then examines the subjective concept of fairness and finds strengths and weaknesses on both sides.

Does The U.S. treasury Owe $75 Billion To USPS

6 thoughts on “Does The U.S. Treasury Owe $75 Billlion to the Postal Service?”

  2. I am curious as to why the U.S.P.S. constantly argues this moot point. In the February 28th issue of POSTAL REPORTER NEWS BLOG the O.I.G.of the O.M.B. said that there had not been an overpayment in the amount the U.S.P.S. asserts and that had there been a refund of that amount it would have made no difference to the U.S.P.S.’s long term viability! Mr.Gene Del Polito who recently spoke at the N.A.P.U.S. meeting accurately stated that the service would never see that money returned to it’s coffers. At a time when clear heads should prevail the last thing that the service needs to do is perpetrate the “myth of the victim” and blame it’s shortfalls on somebody else’s actions.

  3. It just went into the general fund. Of course it’s gone. Probably ended up on one of those pallets of cash we sent to Iraq.

  4. SEEMS TO ME THERE IS A SCREWW JOB SOMEWHERE.IF I WERE A BETTING PERSON I’D HAVE TO BET THAT THE 75 BILLION HAS BEEN DIVIED UP SPENT AND GONE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!NOW LETS CREATE A SCENARIO FOR THE COVER UP! LIKE PAUL HARVEY SAYS: NOW U KNOW THE REST OF THE STORY!

  6. another right wing group going after middle class… they have been wrong more then they have been right

    The IRET has received over $2.8 million dollars from right-wing and oil-industry backed foundations, including the Scaife Foundation, the Carthage Foundation and the Charles G. Koch Foundation. I belive nothing they say like in 2003 they were strong on deficets don’t matter

Comments are closed.