3 Senators Want Blue Ribbon Commission To Help USPS Increase Revenue

February 6, 2012 by
Filed under: Congress, usps 

February 6, 2012

A Rationale for Postal Cuts in Doubt

At a time when the U.S. Postal Service is considering deep cuts in services and jobs, an internal watchdog told Sen. Bernie Sanders on Monday 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 (D-La.) 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. 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 said. He 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.

Comments

9 Comments on 3 Senators Want Blue Ribbon Commission To Help USPS Increase Revenue

  1. ZACK on Tue, 7th Feb 2012 12:57 am
  2. Ain’t no “Blue-Ribbon Commission” gonna do any good if the PMG has his own agenda to run it into the ground. Either the PMG is a complete moron, or his intent is to destroy the USPS. Either way, it should be perfectly clear that the PMG is not the right man for the job! Rather than compete for the Parcel business that is out, or sink waiting for first-class mail volumes to rebound. Cutting your own throught to save money – does nothing in the way of generating money.

  3. headhuntergoombas on Tue, 7th Feb 2012 5:07 am
  4. “APWU & 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,     President

    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.

  5. headhuntergoombas on Tue, 7th Feb 2012 6:03 am
  6. APWU Members Urged to Take Action As Senate Reviews Postal Reform

    Postal reform is a hot topic in Congress as the 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, and drive customers our way,” 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.

  7. Ben on Tue, 7th Feb 2012 8:29 am
  8. Eliminate Sat. street delivery which is a wasted expense per fuel cost and carrier workhours. Cost factor for delivering advertising junk mail and non time sensitive is negative. Business plan should be moldeled per Fed X and UPS as they must get a positive return on investments for shareholde. The American mailing public are shareholders of the USPS and expect it to breakeven at least. Services should not exceed demand creating a negative revenue return. USPS must realigin management from headquarters to eliminating no longer needed level 11( PM) offices surrounded by 5 larger offices. Must wake up to reality as times have changed creating a different demand from communicating via a wriien message requiring a postage stamp with a delivery time of 1-3 days. The day of the APPs has created many forms of instant messaging which will increase with time. USPS must adjust to meet market demand; parcels and expedited delivery.

  9. bobby parnell on Tue, 7th Feb 2012 12:23 pm
  10. plain and simple take over fed-x and ups business

  11. disturbed carrier on Tue, 7th Feb 2012 12:48 pm
  12. 3 Senators needed to speak up on the “ARTIFICIAL CRISIS”?….Hell anybody working at the USPS knows what really is going on…..To expect paying 5.7 BILLION a year for 10 years…It doesn’t take a Einstein to know that this 2006 MANDATE would Cripple ANY business, yo name it…UPS or FED EX would be gone in 3 or 4 years..NO DOUBT ABOUT IT…..WALMART- FORD – CATERPILLAR – DOW CORNING you name it…NOBODY can pay off such a heavy burden without failing….This is a SCAM a enormous proportions…DAMN the CONGRESS…they’re nothing but a bunch of clueless ASSHOLES!!

  13. #@@%&&^$###!!!!! the Tea Party!! on Tue, 7th Feb 2012 6:23 pm
  14. My name says it all.

  15. enufisenuf on Wed, 8th Feb 2012 3:25 pm
  16. plain and simple take over fed-x and ups business? Maybe you haven’t seen the FedEx & UPS trucks at the USPS back docks lately. USPS has no idea how to compete with the big boys. Its more like UPS & FedEx will take over USPS’ bidness. USPS has been in bed with them for the longest. Ya think those FedEx boxes on USPS property is there for looks? They do USPS’ processing and USPS does their delivery. Win-Win I believe its called! Meanwhile…APWU files grievances and carriers pee in your back yard and throw your packages over fences. You see…the fragile stamps were done away with long time ago!

    Don’t forget to get your liquor requests in to that hospitality room at the national convention before time runs out!

  17. plain and simple on Fri, 10th Feb 2012 1:13 pm
  18. Disgruntled enufisenuf