The Postal Service ended its third fiscal quarter (April 1 – June 30) with a net loss of $5.2 billion, compared to a net loss of $3.1 billion for the same period last year.
Contributing significantly to the loss was $3.1 billion of expenses for the legislatively mandated prefunding of retiree health care plan. Despite positive news such as the 9 percent increase in revenue from shipping services and package delivery, losses are expected to continue until legislative changes are made in line with the Postal Service Business Plan to return to financial stability.
These changes include:
- Refund of $11 billion of pension plan overfunding.
- Transition to five-day delivery.
- Elimination of prefunding retiree benefits and the introduction of a postal health insurance program independent of federal programs.
“Moving forward with our business plan will make the Postal Service financially self-sustaining, provide a platform for future growth and preserve our mission to provide secure, reliable and affordable universal delivery services for generations to come,” said PMG Pat Donahoe.