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I don't really understand the pension funding issue -- I assume it was that the pensions were previously underfunded, and this was to correct it. The issue is that even the GAO thinks there are "pyramid" issues -- the USPS revenue is going to be in a long-term decline, and peak-retirees will hit in a period where the revenue is lower than today. So, pre-funding makes a lot of sense. Similarly, SS (and I think medicare?) were supposed to be pre-funded during high tax years of the baby boomers. There's technically a surplus, but it's invested in US treasury debt, essentially an accounting trick. (although I don't know what an SS surplus would otherwise be invested in -- you don't really want the government investing in private securities, either). Parcel drop-off could be automated, extended hours, partnerships with businesses, etc., although I think most parcels originate from businesses now. Maybe a good compromise would be fewer post offices, open later, and less delivery, but with mail available for pickup at the post office up to the day before delivery. This would be capital expensive vs. operating expense intensive, which should be good for the USPS (they can borrow at cheap rates, and the government could fund some of this). |
The reality is that most of the losses since 2006 were directly due to the overfunding requirement (they had to prepay 75 years of projected liabilities in 10 years time -- a requirement that no other agency has). They are also prohibited from cutting back service because they need congressional approval to do so (and a bunch of rural congresspeople are pushing back against it), so the USPS is in a real bind where they are being essentially forced to make changes but don't have the authority to do so.