Postal Service to Cut Saturday Mail Delivery to Trim Budget Shortfall

About this Deal

Saturday mail cutback would begin in August.
What's the matter?

Comments (3)

Feb 06, 2013
I've noticed about 4 posts about this.. Just a heads up.. There are a lot of dups. I guess we have to go through and find them:/
Feb 06, 2013
"They should really start sooner" and this is a quote from my postal carrier. lol :--)
Feb 06, 2013
Yup...they shot themselves in the foot in 2006 -
"...The agency's biggest problem -- and the majority of the red ink in 2012 -- was not due to reduced mail flow but rather to mounting mandatory costs for future retiree health benefits, which made up $11.1 billion of the losses. Without that and other related labor expenses, the mail agency sustained an operating loss of $2.4 billion, lower than the previous year.

The health payments are a requirement imposed by Congress in 2006 that the post office set aside $55 billion in an account to cover future medical costs for retirees. The idea was to put $5.5 billion a year into the account for 10 years. That's $5.5 billion the post office doesn't have.

No other government agency is required to make such a payment for future medical benefits...."

Related Deals