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Wednesday, September 21, 2011

Postal Service: Death By Bathtub Drowning

President Obama announced in his deficit reduction proposal Monday that he supports allowing the US Postal Service (USPS) to stop delivering mail on Saturdays, among other revenue-generating proposals, such as allowing post offices to sell items other than stamps.

Strangely, while the president did make reference to refunding the $6.9 billion the Postal Service made to the Federal Employees Retirement System (FERS), he failed to address the $50 billion to 75 billion in overpayments to the Civil Service Retirement System (CSRS).

Audits performed by the Postal Service's Office of Inspector General and the autonomous Postal Regulatory Commission both confirmed that the Postal Service has been bleeding money by overpaying into worker pension funds, placing the figure at between $50 billion and $75 billion.

It seems odd that the president would recognize the one area of hemorrhaging (FERS) without mentioning this second, far greater source of revenue loss, especially considering the White House's own proposals stand to save the USPS "only" $20 billion over the next few years.

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