Postail Service Set to Default on Pension Payment for 1st Time, Congress Could Easily Fix Problem

[xchrom]

http://www.nationofchange.org/postal-service-set-default-pension-payment-first-time-congress-could-easily-fix-problem-1342712047


In 2006, the Republican-led Congress passed an unnecessary law requiring the United States Postal Service to prefund its pension benefits for 75 years through a $5.5 billion annual payment. The Postal Accountability and Enhancement Act of 2006 (PAEA) is theonly one of its kind for a government agency. On August 1st of this year, the Post Office will likely default for the first time in its history on its 2011 pension payment. If Congress does not act, it will also default on its 2012 payment due September 30th.

The requirement has drastically harmed the functions of the agency, which is used by almost every American. In July, USPS began closing offices around the country to meet the annual payment. By the time current downsizing plans are completed in 2014, Americans will see 229 processing plants closed and 28,000 jobs lost. In June, ten USPS employees launched a multi-day hunger strike to protest the cuts.

Without the pension payment, USPS would have a $1.5 billion surplus instead of a $20 billion shortfall. “[T]hese ongoing liquidity issues unnecessarily undermine confidence in the viability of the Postal Service among our customers,” said USPS spokesman David Partenheimer.

Postal Service cuts also threaten to increase economic inequality. A Reuters analysis released in February found that America’s poorest communities “stand to suffer most if the struggling agency moves ahead with plans to shutter thousands of post offices.”

[GreenPartyVoter]

1. Repubs want to privatize EVERYTHING.