[crdoconnor]

Those two things kind of are related.

The prefunding requirement was added to give the impression of financial problems so as to manufacture consent for privatization among the public.

A quick look around this thread demonstrates that it's mostly been a successful ploy ("Privatization isn't looking too bad.").

I've no doubt that any privatization that does occur will dump these existing pension liabilities on the federal government, raise prices and strip employee benefits to the bone while jacking up executive compensation.

Textbook private equity stuff.

Whomever buys the USPS will get a cheap monopoly which they can milk indefinitely. This will be declared a success for the free market or something.