WASHINGTON, Feb. 6 – At a time when the U.S. Postal Service is considering deep cuts in services and jobs, an internal watchdog today told Sen. Bernie Sanders (I-Vt.) that a big funding cushion already has been built into the mail service’s retirement and health benefit funds.
Billions of dollars owed to the funds have been cited by Postal Service managers as a main reason that it must cut 220,000 jobs and close 3,700 post offices and 252 mail processing plants – half of all the current sorting centers.
In a letter to Sanders, however, Postal Service Inspector General David C. Williams said the programs are flush with funds. He said the Postal Service has “significantly exceeded” the amount that the federal government and the nation’s most profitable corporations have socked away for pension and retiree health care. “Using ratepayer funds, it has built a war chest of over $326 billion to address its future liabilities,” Williams told Sanders.
Sens. Patrick Leahy (D-Vt.) and Mary Landrieu joined Sanders a Capitol Hill press conference.
Armed with the new information from the inspector general, Sanders said the Postal Service should be released from what he called an “onerous and unprecedented burden” of being forced to put $5.5 billion every year into their future retiree health benefits fund. Sanders said, even if there are no further contributions from the post office, and if the fund simply collects 3.5 to 4 percent interest every year, that account will be fully funded in 21 years. Sanders also said the Postal Service should be allowed to recover more than $13 billion in overpayments it has made to a federal retirement systems.
Even with those changes, Sanders said the Postal Service needs reforms to make it competitive in the e-mail era.
“Let’s be clear: these short-term accounting efforts will not solve the long-term financial problems facing the U.S. Postal Service. In order to do that, the Postal Service needs to adopt an entirely new business model which makes it much more entrepreneurial, pro-business, and pro-consumer compared to where it is today,” Sanders said.
He wants a blue ribbon commission to give the Postal Service ideas about how it can substantially increase revenue by offering far more services than today.
To read a copy of the inspector general’s letter to Sanders, click here.
I think the Postal Service would be well served to listen to all strategies including early outs to save the service and put it on secure financial footing for years to come. First class mail has eroded to over a 50% reduction via electronic submission and fuel charges have increased inordinately along with paying overtime , etc; etc; the list goes on and on. Increasing parcel buisness is the right move and the Postal Service has been active in this area creating new products for customers to use when mailing. Given the ability to compete in a free market without government restraints would allow more gains in this area. Some of these proposed closings could be looked at as a possible parcel center for drop off and pickup locations forseeing volume increases in this area. Delivering other things besides mail is an option to raise revenue. Continue to go green with a goal of making the entire fleet of vehicles electric. Shutting off lights in offices and stations that close for the night. This seems slight but consider how many there actually are across the country this could be a huge savings. Consolidating the increasing problem of lost equipment which is basically not returned. They could alo create more business by structuring a new delivery – pickup for items that exceed parcel post dimensions. It is a new day in how the Postal Service will continue to compete.
APWU Members Urged to Take Action As Senate Reviews Postal Reform
Senate prepares to vote on the 21st Century Postal Service Act, and APWU President Cliff Guffey is urging union members to contact their senators and let them know: Senate bill 1789 is only acceptable in its current form.
As lawmakers review the bill, Guffey is asking union members to let their senators know that S. 1789 must be passed. “ It is crucial that we get our point across,” he said.
“The bill would force the Postal Service to keep open hundreds of mail processing centers, and thousands of post offices,” Guffey said. “By giving more substantial financial relief, the bill would strengthen the Postal Service, save jobs,” he added.
Call Your Senators:
202-224-3121
(Capitol Switchboard)
[Click here for direct #s]
Tell them you Support
S. 1789 as it is currently written
S-1789 will;
Set strict service standards.
Allow the USPS to recover over-payments the Postal Service made to its retiree pension funds.
Allow the USPS to offer Early Retirement Incentives.
Adequately address the requirement that forces the USPS to pre-fund future retiree health benefits.
Prevent the closing of small post offices.
Protects 6 day delivery.
Yea, Have another NAPS meeting at the most expensive steak house you can find. Then you can all sit around and spend NAPS dues on dinner and drinks. Its not just the APWU and NALC.
Burney Sanders is dirty commie marksist!
APWU and NALC members have done a great job of getting the word out to legislators about our concerns: Keep up the good work support S-1789”
— Cliff Guffey, APWU President, Fredric Rolando NALC President
“APWU members have done a great job of getting the word out to legislators about our concerns: Keep up the good work support S-1789”
— Cliff Guffey, President
APWU
Call Your Senators:
202-224-3121
(Capitol Switchboard)
[Click here for direct #s]
Tell them you Support
S. 1789 as it is currently written
GOOGLE……….U.S. SENATE………Choose your “SENATOR HOME” State. Look for the area in which to write and send your comment.
I wrote ” I work for the U.S.P.S. and I do not oppose S1789 in it’s current form”. This bill offers three types of incentives not to be combined.
1. 50,000 cash.
2. 5 years added on to your FERS retirement
3. 5 year added on to your CSRS retirement.
* NOTE: Remember you can only choose one of the three.
APWU has been having intense secret meetings to find a way to put a stop to USPS’ early out contemplations.It’s obvious that the APWU doesn’t want its older senior lemmings to leave cause junior employees are not exactly breaking down doors to join the APWU. A certain regional coordinator was heard to say that if another early out takes place together with the loss of jobs that is taking place at a dizzying rate…that this will spell the death knell of the APWU.
So, save yourselves some money right now by filling out that PS Form 1188 and pocket that dues money along with the impending dues assessment that’s coming round the bend! The party’s over, my friend !
Oh……go ahead and call me a scab ! Is that the best you got? By the way…where’s the hospitality room this year at the convention? Party harty garth!
Is anybody listen. The Postal Service is well funded in the retire program. More than any other agency , private or public! Why should congress let the Postal Service close? Thank God for Sen. Bernie Sanders and others who are trying daily to keep the mail service to the public and working americans on their jobs. Donahoe, why can’t you work to get this money back and do everything you can do to keep the Postal Service solvent and people on their jobs. Looking to congress, what will you’ll do with this information?
NALC and APWU- your dues, that is why we hate all Postal
bills that offer Early Retirements, we need your dues.
What is this?, The Postal Unions telling Congress not to help the US Post Office,
it is the Unions dictating to Congress, yet Congress listens not to those they serve.
The Bill S- 1789 in the United States Senate, was to help to salvage what is left of the US Post Office, and offer Early Retirements to workers, so as to avoid a Reduction in Force and layoffs, the NALC, APWU, and the Mail handlers Unions have basically doomed any legislation to keep the Post Office solvent, the bottom line is Union dues for the Bigwigs in these Unions.
The Craft Workers, not management ,should be offered the Early Retirements.
APWU & NALC
Call Your Senators:
202-224-3121
(Capitol Switchboard)
[Click here for direct #s]
Tell them you Support
S. 1789 as it is currently written
S-1853 does not offer Voluntary Early Retirements, no mention of Incentives
The Money will go to the USPS Management, tell Senators you will Support bills with the
Early Retirement options and incentives, the NALC and APWU do not speak for us any more.
Cut what is there and paste this or something else to your Senators.
GOOGLE……….U.S. SENATE………Choose your “SENATOR HOME” State. Look for the area in which to write and send your comment.
I wrote ” I work for the U.S.P.S. and I do not oppose S1789 in it’s current form”. This bill offers three types of incentives not to be combined.
1. 25,000 cash.
2. 2 years added on to your FERS retirement
3. 1 year added on to your CSRS retirement.
* NOTE: Remember you can only choose one of the three.