Economics Postal Service posts record $16 billion loss for 2012

carlos3652 · 11-15-2012, 12:32 PM

Postal Service posts record $16 billion loss for 2012
By Aaron Smith @CNNMoney November 15, 2012: 12:41 PM ET

NEW YORK (CNNMoney) -- The U.S. Postal Service announced a record loss of $15.9 billion for the fiscal year 2012, which it blamed primarily on a mandate to set aside billions of dollars for a retirement heath fund.
The Postal Service said that its loss includes $11.1 billion in payments it owes to "prefund" its retiree health benefits. Postal officials have complained for years about these prepayments, which are required by Congress, arguing that its Federal Employees Retirement System is overfunded by $11 billion dollars as of October. They also point out that other federal agencies don't have similar mandates for prefunding.

The Postal Service defaulted on two prefunding payments during its 2012 fiscal year, which ended on Sept. 30.
Its total losses of $15.9 billion are more than triple the $5.1 billion in losses it posted in the prior year, the Postal Service said.

The Postal Service has been struggling with declines in mail revenue, which is a casualty of a sluggish economy as well as email.
The agency has made various efforts to reduce costs. It plans to cut 150,000 workers through 2015, reduce existing staffers' work hours and hike the price on first-class stamps.

Officials have threatened to scale back service to five days, shuttering their low-volume, low-revenue, Saturday service. But the notion of five-day service is intensely unpopular in Congress and unlikely to prevail.
Related: 6 ways to help your post office

Unlike other federal agencies, the Postal Service does not receive taxpayer support, though it has borrowed money from the U.S. Treasury.
Like its business rivals FedEx (FDX, Fortune 500) and United Parcel Service (UPS, Fortune 500), the Postal Service is an independent enterprise.

jiveturkey · 11-15-2012, 12:46 PM

I don't understand why Congress is against the 5 day service option???

alpha_omega · 11-15-2012, 12:47 PM

Quote:

Officials have threatened to scale back service to five days, shuttering their low-volume, low-revenue, Saturday service. But the notion of five-day service is intensely unpopular in Congress and unlikely to prevail.

Then congress is stupid...this would be the quickest way to save some $$$. Oh, and also get rid of some of the dead weight employees you have.

vailpass · 11-15-2012, 12:54 PM

1. If govt. wants the Post Office to operate in the black they need to privatize the operations portion of the P.O.

2. If the govt. is not concerned with the PO operating in the black they, and we, need to view the PO as an expense and not get up in arms when the bill comes due.

3. If the govt. wants neither of the above they need to shut the PO down or sell it off and let the free market meet the unsatisfied demand.

Amnorix · 11-15-2012, 01:32 PM

Post Office needs massive revamping. Germany, I believe, adopted a great system where many post offices are run through convenience stores and the like. The entire antiquated structure needs to be completely changed.

Dumbass politicians protecting broken systems for too long. Very annoying.

Graystoke · 11-15-2012, 01:33 PM

The Post Office is one top heavy institution. Way management heavy. There is a 1 to 7 Ratio.
For every person that delivers your mail, or packs your mail, or touches your mail -- for every 7 of them -- there’s one of them that is just a supervisor. That’s a ratio that’s so unacceptable in the private sector."

Dave · 11-15-2012, 01:36 PM

Government ****s up everything it touches.

HonestChieffan · 11-15-2012, 01:47 PM

Every potoffice in every little town has a postmaster making the bucks, some lucky building owner has a fat lease agreement and no one has the balls to close these tiny postoffices. Lots of money made off the .gov

**J Diddy** · 11-15-2012, 07:24 PM

Quote:

Originally Posted by vailpass

1. If govt. wants the Post Office to operate in the black they need to privatize the operations portion of the P.O.

2. If the govt. is not concerned with the PO operating in the black they, and we, need to view the PO as an expense and not get up in arms when the bill comes due.

3. If the govt. wants neither of the above they need to shut the PO down or sell it off and let the free market meet the unsatisfied demand.

well put

**mlyonsd** · 11-15-2012, 07:26 PM

The PO is just an example of technology passing us by.

Mi_chief_fan · 11-15-2012, 07:29 PM

"Prefunding"retirement benefits is a huge part of the problem, but that seems to be overlooked by lawmakers. Not sure why. Are any other companies forced by law to pre-fund retirement accounts?

Comrade Crapski · 11-16-2012, 12:12 AM

Peanuts.

whoman69 · 11-16-2012, 02:55 PM

Republicans are trying to privatize it so they are sending tons of red ink their way to pave the way.

Dayze · 11-16-2012, 02:58 PM

they'll make up for it by implementing an E tax / E stamp on emails.

joking of course....but I wouldn't surprise me at all.

Mi_chief_fan · 11-16-2012, 03:24 PM

Quote:

Originally Posted by whoman69

Republicans are trying to privatize it so they are sending tons of red ink their way to pave the way.

Basically. I'm sure UPS has some well-paid lobbyists to keep it that way.

11-15-2012, 12:32 PM
carlos3652 El Diablo Join Date: Dec 2004 Casino cash: $23268	Postal Service posts record $16 billion loss for 2012 Postal Service posts record $16 billion loss for 2012 By Aaron Smith @CNNMoney November 15, 2012: 12:41 PM ET NEW YORK (CNNMoney) -- The U.S. Postal Service announced a record loss of $15.9 billion for the fiscal year 2012, which it blamed primarily on a mandate to set aside billions of dollars for a retirement heath fund. The Postal Service said that its loss includes $11.1 billion in payments it owes to "prefund" its retiree health benefits. Postal officials have complained for years about these prepayments, which are required by Congress, arguing that its Federal Employees Retirement System is overfunded by $11 billion dollars as of October. They also point out that other federal agencies don't have similar mandates for prefunding. The Postal Service defaulted on two prefunding payments during its 2012 fiscal year, which ended on Sept. 30. Its total losses of $15.9 billion are more than triple the $5.1 billion in losses it posted in the prior year, the Postal Service said. The Postal Service has been struggling with declines in mail revenue, which is a casualty of a sluggish economy as well as email. The agency has made various efforts to reduce costs. It plans to cut 150,000 workers through 2015, reduce existing staffers' work hours and hike the price on first-class stamps. Officials have threatened to scale back service to five days, shuttering their low-volume, low-revenue, Saturday service. But the notion of five-day service is intensely unpopular in Congress and unlikely to prevail. Related: 6 ways to help your post office Unlike other federal agencies, the Postal Service does not receive taxpayer support, though it has borrowed money from the U.S. Treasury. Like its business rivals FedEx (FDX, Fortune 500) and United Parcel Service (UPS, Fortune 500), the Postal Service is an independent enterprise.
Posts: 4,153

11-15-2012, 12:46 PM	#2
jiveturkey Captain Kick Ass Join Date: Sep 2001 Location: Kansas Casino cash: $52399	I don't understand why Congress is against the 5 day service option???
Posts: 4,902

11-15-2012, 12:54 PM	#4
vailpass Yah Mules! Join Date: Sep 2001 Casino cash: $196915	1. If govt. wants the Post Office to operate in the black they need to privatize the operations portion of the P.O. 2. If the govt. is not concerned with the PO operating in the black they, and we, need to view the PO as an expense and not get up in arms when the bill comes due. 3. If the govt. wants neither of the above they need to shut the PO down or sell it off and let the free market meet the unsatisfied demand. __________________ It don't matter what line we hand you When we come a crawlin' in. We ain't wrong, we ain't sorry, An' it's probably gonna happen again. T. Byrd
Posts: 30,903

11-15-2012, 01:32 PM	#5
Amnorix In BB I trust Join Date: May 2003 Location: Boston, Mass. Casino cash: $196137	Post Office needs massive revamping. Germany, I believe, adopted a great system where many post offices are run through convenience stores and the like. The entire antiquated structure needs to be completely changed. Dumbass politicians protecting broken systems for too long. Very annoying. __________________ "I love signature blocks on the Internet. I get to put whatever the hell I want in quotes, pick a pretend author, and bang, it's like he really said it." George Washington
Posts: 31,112

11-15-2012, 01:33 PM	#6
Graystoke Veteran Join Date: Sep 2005 Location: Driftless Region Casino cash: $959662	The Post Office is one top heavy institution. Way management heavy. There is a 1 to 7 Ratio. For every person that delivers your mail, or packs your mail, or touches your mail -- for every 7 of them -- there’s one of them that is just a supervisor. That’s a ratio that’s so unacceptable in the private sector." __________________
Posts: 1,172

11-15-2012, 01:36 PM	#7
Dave New Hope Join Date: Aug 2000 Location: Florida Casino cash: $171787	Government ****s up everything it touches.
Posts: 45,383

11-15-2012, 01:47 PM	#8
HonestChieffan Hoffa called me an SOB Join Date: Jan 2006 Location: In the Country in MO Casino cash: $1220564	Every potoffice in every little town has a postmaster making the bucks, some lucky building owner has a fat lease agreement and no one has the balls to close these tiny postoffices. Lots of money made off the .gov __________________ "The best time to sell peanuts is when the circus is in town."
Posts: 21,913

11-15-2012, 07:26 PM	#10
mlyonsd Supporter Join Date: Aug 2000 Location: Spink, SD Casino cash: $29069	The PO is just an example of technology passing us by.
Posts: 22,251

11-15-2012, 07:29 PM	#11
Mi_chief_fan Old Skool Pimpin' Join Date: Aug 2000 Location: Spartan country Casino cash: $23815	"Prefunding"retirement benefits is a huge part of the problem, but that seems to be overlooked by lawmakers. Not sure why. Are any other companies forced by law to pre-fund retirement accounts? __________________ "I saw Jackass 3-D this weekend. It wasn't nearly as good as the book." -Conan O'Brien on Twitter
Posts: 2,770

11-16-2012, 12:12 AM	#12
Comrade Crapski Veteran Join Date: Mar 2012 Casino cash: $19957	Peanuts. __________________ I'm feeling good from my head to my shoes! Know where I'm going and I know what to do! Doo doo doo doo doo! I got a new attitude! http://www.youtube.com/watch?v=QWfZ5SZZ4xE
Posts: 2,746

11-16-2012, 02:58 PM	#14
Dayze Poop Join Date: Nov 2003 Location: Overland Park Casino cash: $1178585	they'll make up for it by implementing an E tax / E stamp on emails. joking of course....but I wouldn't surprise me at all. __________________ Life is 99% inspiration, 1% Perspiration, and 1% Attention to Detial.
Posts: 15,577

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