Tuesday, October 12, 2010
Sunday, October 10, 2010
The Government Reform Committee passed legislation designed to to credit the postal service between 50 billion and 75 billion pension assets that had been unfairly allocated by the office of Personnel Management.The Hr bill was introduced on July 15th. The Hr bill is meat to help the Postal Service recoup the tens of billions of dollars in surplus funds it has accumulated in the Civil service Retirement System since 1971, the year the tax payer supported Post Office Department was reorganized into a self sufficient government agency.
The OPM has been unfairly taking away these funds and charging CSRS benefits paid for pre- 1971 service to the postal service instead of the U.S Treasury. Exactly how much the OPM has overcharged the USPS is still unclear, Inspector generals says in January that it was 75 billion, however in June the Regulator Commissioner said it was between 50 & 55 billion dollars. To recover tens of billions at a time, that the Service is losing billions, that would be a major win for all regular craft and employer alike.
Right now the reform act requires the USPS to pre-fund it's retiree health benefit account at about $5.5 billion a year through 2016. The economic crash must have still been off everyone's radar screen when the highly compressed pre-funding schedule was formulated. No other government agency or private company is required to do this, and if the USPS hadn't been required to make such gigantic pre-funding payments, it would have been profitable in three of the past four years despite the worst recession in memory...