OIG Says USPS Could Recover $142.4 Billion
Burrus Update
In a summary of four reports on postal finances, the USPS Office of the Inspector General (OIG) announced a stunning conclusion:
The Postal Service could recover $142.4 billion to:
- Meet its financial obligations;
- Extinguish its debt;
- Have significant levels of cash for operations;
- Optimize its infrastructure at a more reasonable pace, and
- Minimize the impact on current employees –
If recommendations of the OIG are enacted.
In the summary issued on Sept. 30 [PDF], the OIG concluded that the USPS is entitled to refunds for past overpayments, as well as relief from future liabilities in the astounding amount of $142.4 billion.
- Included in the total are:
- Recovery of $75 billion for overfunding the Civil Service Retirement System (CSRS);
- Recovery of $5.5 billion for overfunding of the Federal Employees Retirement System (FERS);
- A recommendation that the USPS pre-funding levels for pensions be reduced from 100 percent to 80 percent, and that healthcare pre-funding levels be reduced to 30 percent. These are “benchmark standards,” the OIG says, and if the reductions were made, of the Postal Service would save $45.9 billion for pension payments and $9.2 billion for retiree healthcare payments;
- A recommendation to reduce the projected healthcare inflation rate set by the Office of Personnel Management (OPM) from 7 percent to the industry standard of 5 percent. This would result in savings of $6.8 billion.
The OIG has reported that these charges have been improperly imposed on the Postal Service. Two well-known auditing firms, the Hay Group and the Segal Company, independently concluded that the Postal Service has overfunded the CSRS pension fund in the amount of $75 billion and $50-$55 billion, respectively.
The report by the Office of Inspector General concludes that the serious financial condition of the Postal Service has been caused by the erroneous interpretation of funding requirements that were imposed on the Postal Service during the period of a severe recession and conversion to electronic communications.
Despite these burdens placed on the USPS over the past four years, in accordance with the Postal Accountability and Enhancement Act (PAEA), the agency has paid more than $20.8 to pre-fund future retiree healthcare liabilities.
A Colossal Sham
The media dutifully repeats the claim that the Postal Service is teetering on the edge of bankruptcy, but neglects to point out that these questionable obligations have nothing to do with USPS “operating expenses,” which include employee wages and benefits. The liabilities are a colossal sham, seized upon by postal management and by anti-worker congressmen who wish to erode the gains made by postal employees over 40 years of collective bargaining.
In fact, the USPS should be cited as “Business of the Year.” The Postal Service has survived the worst recession in 70 years, along with societal shifts in communication, and congressionally-imposed funding mandates that are not applied to any other commercial or governmental entity in the country. The USPS has endured, while providing the best mail service in the world at the lowest cost.
The Inspector General reports that despite all these obstacles, if accounting rules were applied uniformly, USPS deficits would disappear and the Postal Service would experience unprecedented surpluses.
Unfortunately, the Office of Personnel Management (OPM) has ruled that resolution of these issues will require legislative action by Congress.
The Lynch Bill (H.R. 5746), which would alter the methodology for computing USPS pension costs, is a step in the right direction.
William Burrus
President
They don’t call it “going postal” for nothing ! It has become part of the English language, . . .and some people NEED to be ‘posted out”.
I can only speak for the incompetent Preuss Postal Station in Los Angeles, 90035
MIS-handled by a LAZY, indifferent, union protected Donald Richardson, manager . . . .and his foil, Valerie Moody . . . . who has more excuses than Carter has liver pills . . . . .to cover Richardson’s butt, no doubt.
The problem is a CONSTANT change over of illiterate, low I Q, carriers, some barely speaking proper English. . . . . .resulting in either non-delivery on time, OR MIS-DELIVERY of mail on an ongoing basis. I mean hundreds of pieces of mail misdellivered, or lost mail per year. . . . . .and Richardson makes NO attempt to correct the situation. He makes sniveling excuses of every nature, EXCEPT the proper delivery of the US MAIL. Jack Potter did nothing about it and neither did Patricia Valdez, secretary to James Smith, POSTMASTER in Los Angeles.
Like I said, It’s Pruess station I am complaining about . . .for over TEN years now . . .because they won’t give us a permanent mail carrier in 90035. Every time we get a “good” carrier . . . .they transfer him/her out to another area. . . .and bring in another illiterate to replace the last one. . . . .even one short female carrier ran screaming into the street because a dog barked at her from behind a fence . . . . . another carrier was going around randomly spraying dogs just for the “fun of it” . . . . .I called Animal Control. They got him. He was also under the control of Donald Richardson from Pruess.
I have letters of admittance from the LA Post office.
I grew up on the East coast with ONE carrier, who grew up with the families in the neighborhood. We KNEW our carrier, and he knew us ! NOT 3-5 different carriers per year in 90035.
My credit was ruined for awhile because of not receiving my card statements,
getting other people’s SSI, SSA,, checks, Medical statements, Health related, and other important mail. This could constitute “Elder Abuse”, Non-performance of duty, etc.
DON’T believe it when they say the Post Office cannot be SUED !
IN AMERICA . . . .ANYONE, AND ANYTHING CAN BE SUED ! If it is too difficult to sue a ” corporation ” You and ALWAYS SUE THE INDIVIDUAL . . .BY NAME ! BELIEVE IT !
BOTTOM LINE : DELIVER MY “G*D D*M” MAIL THAT I AM PAYING YOU
TO DO. DO YOUR JOB ! instead of always looking for a raise in postage rates and salaries !!!!
” FOR DELIVERY YOU CAN RELY ON, USE THE U.S. POSTAL SERVICE ”
What a JOKE ! Just another LAZY, AMERICAN LIE !
They don’t call it “going postal” for nothing ! It has become part of the English language, . . .and some people NEED to be ‘posted out”.
I can only speak for the incompetent Preuss Postal Station in Los Angeles, 90035
MIS-handled by a LAZY, indifferent, union protected Donald Richardson, manager . . . .and his foil, Valerie Moody . . . . who has more excuses than Carter has liver pills . . . . .to cover Richardson’s butt, no doubt.
The problem is a CONSTANT change over of illiterate, low I Q, carriers, some barely speaking proper English. . . . . .resulting in either non-delivery on time, OR MIS-DELIVERY of mail on an ongoing basis. I mean hundreds of pieces of mail misdellivered, or lost mail per year. . . . . .and Richardson makes NO attempt to correct the situation. He makes sniveling excuses of every nature, EXCEPT the proper delivery of the US MAIL. Jack Potter did nothing about it and neither did Patricia Valdez, secretary to James Smith, POSTMASTER in Los Angeles.
Like I said, It’s Pruess station I am complaining about . . .for over TEN years now . . .because they won’t give us a permanent mail carrier in 90035. Every time we get a “good” carrier . . . .they transfer him/her out to another area. . . .and bring in another illiterate to replace the last one. . . . .even one short female carrier ran screaming into the street because a dog barked at her from behind a fence . . . . . another carrier was going around randomly spraying dogs just for the “fun of it” . . . . .I called Animal Control. They got him. He was also under the control of Donald Richardson from Pruess.
I have letters of admittance from the LA Post office.
I grew up on the East coast with ONE carrier, who grew up with the families in the neighborhood. We KNEW
My credit has ruined for awhile because of not receiving my card statements,
getting other people’s SSI, SSA,, checks, Medical statements, Health related, and other important mail. This could constitute “Elder Abuse”, Non-performance of duty, etc.
DON’T believe it when they say the Post Office cannot be SUED !
IN AMERICA . . . .ANYONE, AND ANYTHING CAN BE SUED ! If it is too difficult to sue a ” corporation ” You and ALWAYS SUE THE INDIVIDUAL . . .BY NAME ! BELIEVE IT !
BOTTOM LINE : DELIVER MY “G*D D*M” MAIL THAT I AM PAYING YOU
TO DO. DO YOUR JOB ! instead of always looking for a raise in postage rates and salaries !!!!
” FOR DELIVERY YOU CAN RELY ON, USE THE U.S. POSTAL SERVICE ”
What a JOKE ! Just another LAZY, AMERICAN LIE !
“FREEDOM OF SPEACH” Is the USPS so above the law, that our unions(all of them craft) that we pay dues to can’t do anything about it except complain? why is it that all of the unions don’t stand together and let the public and congress know what kind of crap is really going on at the USPS? How they are so top heavy and wasting $$ on all of the layers of TOP MANAGEMENT, who NEVER touch the mail, and how PMG Potter is privatizing the USPS from the inside out and lying about the numbers, and screwing the regular craft employees wanting to blame the budget on labor, when it’s really Him & HEADQUARTERS, and remind them how, He (Potter) is CUTTING SERVICE.. DESTROYING the USPS, and WE WANT A NEW POSTMASTER GENERAL NOW!
“FREEDOM OF SPEACH” Is the USPS so above the law, that our unions(all of them craft) that we pay dues to can’t do anything about it except complain? why is it that all of the unions stand together and let the public and congress know what kind of crap is really going on at the USPS? How they are so top heavy and wasting $$ on all of the layers of TOP MANAGEMENT, who NEVER touch the mail, and how PMG Potter is privatizing the USPS from the inside out and lying about the numbers, and screwing the regular craft employees wanting to blame the budget on labor, when it’s really Him & HEADQUARTERS, and remind them how, He (Potter) is CUTTING SERVICE.. DESTROYING the USPS, and WE WANT A NEW POSTMASTER GENERAL NOW!
why isn’t the public informed?