Another Bailout Coming?

[Pell Mell]

The USPS employees look to be in good shape. I suppose Mosty has a good answer as to why this outfit should stay in business.

http://money.msn.com/top-stocks/post.aspx?post=ba61c52f-6deb-4ca6-998d-79419469a983&GT1=33002

[FantasticDan]

http://www.paceadvantage.com/forum/showthread.php?t=83205

[mostpost]

http://www.paceadvantage.com/forum/showthread.php?t=83205
Thanks for posting that link, but a more concise answer can be found here.
From the "hot button" thread:

Originally Posted by newtothegame
lol...hey mosty...ive been reading a little. guess what I found? You're right....NO TAX PAYER dollars. But, a MOUNTAIN of UNSECURED debt. Guess what they are looking at to solve the problem?
Well obviously cutbacks in post master etc etc...but also something called the PSRHBF...(maybe you could enlighten us on that).....,(I think it has something to do with your pension).
From the post offices own quarterly stement,

"The legal and/or regulatory consequences to the post office if the PSRHBF or the workers compensation obligations cannot be fully funded are unknown"..

Now there is ALOT in that statement...(including the above sentence).....
Gee, hope they can fund that PSRHBF......
They have already reduced one of the past payments to the above PSRHBF by 4 BILLION.....hmmm
and you said I was jealous of your pension....NOT QUITE!
Mostpost reply begins here

PSRHBF equals Postal Service Retiree Health Benefits Fund.

From what is written above you would get the impression that the PSRHBF is severely underfunded. You would think that if USPS stopped contributing to the fund, retiree health benefits would cease. Completely not true. PSRHBF is vastly overfunded, but the Postal Accountability and Enhancement Act of 2006 requires the USPS to make annual payments to the fund regardless of whether those payments are needed. At present the PSRHBF is overfunded to the tune of $20.9B. USPS has also overfunded its retirement obligations and is required by the same law to continue doing so.
Quote:
A number of audits that have indicated that the Postal Service has made $50 billion to $75 billion in overpayments to the Civil Service Retirement System, and $6.9 billion in overpayments to the Federal Employees Retirement System


In other words, there is over $100B sitting in various pension funds which will not be used for years and decades to come. Releasing a portion of that will solve the USPS financial situation and will not endanger the pensions or health benfits of retirees. Just so you know, I still pay a monthly premium on my Postal Service health insurance.

There is currently a bill in congress to address this situation.
Link to the info above:
http://federaldaily.com/articles/20...erpayments.aspx

ETA: the bill is S1010 sponsored by Sen Tom Carper (D) of Delaware, but as yet it has not returned from the printer so I can't say what is in it exactly.
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That is one part-a large part-of why the USPS is having financial difficulties.
There is another factor-discounts. The United States Postal Service, in its infinite wisdom decided to give discounts to mailers for performing work that would otherwise be done by postal employees. In other words the mailer would presort the mail according to zip code, carrier route and even walk sequence. (The mail would come to the local office in the order that the carrier walks his route.)

A good idea except that the discounts given are a lot greater than the money saved by USPS in not having to do the work.