Republicans Plan to Eliminate the US Postal Service

Republicans are on a mission to destroy the postal service. They have passed laws which force the US Postal System to fund retirement of their worker for the next 75 years in 10 years.

Therefore Post Office losses are due to Republicans.  Here’s the facts…

Congressional Role

Of related significance is the Postal Accountability and Enhancement Act of 2006 (PAEA), which obligates the USPS to fund the present value of future health care benefit payments to retirees within a ten-year time span – a requirement to which no other government organization is subject. Thus, in addition to the weak economy and the diversion of mail to electronic means, the mandates of PAEA have had a considerable impact on Postal Service finances. In 2012, the USPS had its third straight year of losses from operations, which amounted to $4.8 billion. Congress also has the ability to affect the USPS budget by changing rates for postage.

Retirement funding

The Office of Personnel Management (OPM) is the main bureaucratic organization responsible for the human resources aspect of many federal agencies and their employees. The PAEA created the Postal Service Retiree Health Benefit Fund (PSRHB) after Congress removed the Postal Service contribution to the Civil Service Retirement System (CSRS). Most other employees that contribute to the CSRS have 7% deducted from their wages.

The PAEA enabled the prefunding of health insurance for employees by stipulating that the USPS was not to have a surplus and end the use of its savings to eliminate postal debt, which it had been instructed to do in the Postal Civil Service Retirement System Funding Reform Act of 2003. The weekly payment of $115 million was ceased on June 24, 2011, due to the USPS’s debt of $8 billion and a retirement benefits surplus of $6.9 billion.

The next prefund payment scheduled to be made was 5.6 billion due by September 30, 2012; however, the S. 1789 21st Century Postal Service Act of 2011 would end the payments altogether, while making cuts across the board like reducing USPS delivery days from six to five.

postal-union

Congratulations to the American Postal Workers Union on their important victory against privatization. We must oppose the Koch brothers/Republican agenda which is about privatizing every aspect of American life whether it is the U.S. Postal Service, Social Security, Medicare, Medicaid or public education. We must stand together for workers’ rights and strong public services which protect the needs of ordinary Americans.

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