Post office nears historic default on $5B payment

[Nova78]

Post office nears historic default on $5B payment | US National Headlines | Comcast

The U.S. Postal Service is bracing for a first-ever default on billions in payments due to the Treasury, adding to widening uncertainty about the mail agency's solvency as first-class letters plummet and Congress deadlocks on ways to stem the red ink.

With cash running perilously low, two legally required payments for future postal retirees' health benefits — $5.5 billion due Wednesday, and another $5.6 billion due in September — will be left unpaid, the mail agency said Monday. Postal officials said they also are studying whether they may need to delay other obligations. In the coming months, a $1.5 billion payment is due to the Labor Department for workers compensation, which for now it expects to make, as well as millions in interest payments to the Treasury.



I am sure SuperObama will come to the rescue and shit some money out of thin air...

 

[waltky]

Sounds like postage stamps gettin' ready to go up again...

U.S. Postal Service nears historic default on $5B payment
7/30/12 : WASHINGTON — The U.S. Postal Service is bracing for a first-ever default on billions in payments due to the Treasury, adding to widening uncertainty about the mail agency's solvency as first-class letters plummet and Congress deadlocks on ways to stem the red ink.

With cash running perilously low, two legally required payments for future postal retirees' health benefits — $5.5 billion due Wednesday, and another $5.6 billion due in September — will be left unpaid, the mail agency said Monday. Postal officials said they also are studying whether they may need to delay other obligations. In the coming months, a $1.5 billion payment is due to the Labor Department for workers compensation, which for now it expects to make, as well as millions in interest payments to the Treasury.

The defaults won't stir any kind of catastrophe in day-to-day mail service. Post offices will stay open, mail trucks will run, employees will get paid, current retirees will get health benefits. But a growing chorus of analysts labor unions and business customers are troubled by continuing losses that point to deeper, longer-term financial damage, as the mail agency finds it increasingly preoccupied with staving off immediate bankruptcy while Congress delays on a postal overhaul bill.

Postmaster General Patrick Donahoe has described a "crisis of confidence" amid the mounting red ink that could lead even once-loyal customers to abandon use of the mail. "I think for my generation it was a great asset — if you had a letter or package and you needed it to get up to the North Pole, you knew it would be delivered," said Jim Husa, 87, of Lawrence, Mich., after stopping to mail letters recently at his local post office. Noting the mail agency's financial woes, he added: "Times have changed, and we old-timers know that. FedEx and UPS and the Internet seem to be making the Postal Service obsolete."

Banks are promoting electronic payments, citing in part the growing uncertainty of postal mail. The federal government will stop mailing paper checks starting next year for millions of people who receive Social Security and other benefits, paying via direct deposit or debit cards instead. First-class mail volume, which has fallen 25 percent since 2006, is projected to drop another 30 percent by 2016.

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[Politico]

They near a default every year. It's called budget time.

 

[RoadVirus]

The Postal Service needs to be completely gutted from the inside out and rebuilt from scratch.

But as long as we have Dumbos in charge of the Senate and the White House, that'll never happen because it'll effect their precious union supporters.

 

[Mr. H.]

Some blame has to lie with Congress and it's 16% approval rating.

The Postal Service is seeking new leeway from Congress to eliminate Saturday mail delivery and reduce health and other labor costs. The Senate last month passed a bill that would give the agency an $11 billion cash infusion while delaying a move to five-day delivery for two years; the House remains stalled over a separate bill allowing for aggressive cuts.

Postal Service reports heavy loss, blames Congress for failing to adopt reforms : Memphis Commercial Appeal

 

[Moonglow]

Some blame has to lie with Congress and it's 16% approval rating.

The Postal Service is seeking new leeway from Congress to eliminate Saturday mail delivery and reduce health and other labor costs. The Senate last month passed a bill that would give the agency an $11 billion cash infusion while delaying a move to five-day delivery for two years; the House remains stalled over a separate bill allowing for aggressive cuts.

Postal Service reports heavy loss, blames Congress for failing to adopt reforms : Memphis Commercial Appeal

Always with the death riders and amendments.

 

[Ariux]

Considering that Saturday deliveries have't been cut out years ago, the Post Office isn't trying very hard to cut costs. Also, cut salaries. They could easily keep the Post Office fully staffed with people willing to work for half as much as workers are paid now.

 

[Mr. H.]

Tell that to the APWU.

 

[HenryBHough]

We're talking about a regime that would think people might stock up on stamps when the USPS has a going out of business sale. But they may be right; every liberal out there can spend at least 90-cents in a single day. Especially on welfare check day.

 

[EdwardBaiamonte]

Considering that Saturday deliveries have't been cut out years ago, the Post Office isn't trying very hard to cut costs. Also, cut salaries. They could easily keep the Post Office fully staffed with people willing to work for half as much as workers are paid now.

without capitalist competition you don't even know what it means to cut costs or make your product better. Before the iron curtain fell Hungarian cars were made with dipsticks to check gas (not oil) levels.

 

[coleenbeauty]

Considering that Saturday deliveries have't been cut out years ago, the Post Office isn't trying very hard to cut costs. Also, cut salaries. They could easily keep the Post Office fully staffed with people willing to work for half as much as workers are paid now.

According to NBC News, savings from some of these measures aren’t likely to kick in until 2014. However, some bills are currently pending before Congress to authorize further cuts and render some financial assistance in the form of loans, but according to ABC, lawmakers are disagreeing on party lines on how best to keep the postal service afloat. Default on Postal Service fund payment expected

 

[rightwinger]

The Postal Service needs to be completely gutted from the inside out and rebuilt from scratch.

But as long as we have Dumbos in charge of the Senate and the White House, that'll never happen because it'll effect their precious union supporters.

Need To stop delivery in rural areas

Red States won't allow it

 

[waltky]

Post office been vedy vedy good to me...

Despite $15.9 billion loss, U.S. Postal Service execs see boost in pay
Thursday, November 15, 2012 - Despite nearly $16 billion in annual losses announced by the U.S. Postal Service on Thursday, all but one of the top five executives for the nation's mail service had an overall compensation increase this year, records show.

Unlike past years, when the Postal Service’s politically appointed, bipartisan board of governors awarded executives lucrative deferred compensation deals and incentive bonuses, this year’s compensation increases came mostly in the form of pension plan earnings. Postmaster General Patrick Donahoe, for instance, earned a base salary of $276,840, but even without a bonus or incentive payout, his overall compensation came to $512,093, compared with $384,229 in 2011, according to regulatory filings.

Fueling the rise was the fact that his retirement account grew by $186,536. A 37-year employee of the Postal Service, Mr. Donahoe was paid $4.76 per hour during his first job as a postal clerk. Meanwhile, two other executives — Ellis Burgoyne, chief information officer, and Mary Anne Gibbons, general counsel — also received hefty increases in their retirement plans. In fact, Mr. Burgoyne’s retirement plan grew by more than $270,000, bringing his total compensation to $510,505, slightly less than Mr. Donahoe‘s.

Compensation for Joseph Corbett, the Postal Service’s chief financial officer, rose from $310,483 in 2011 to $315,841 last year, though he earned more than $330,000 in 2010. In addition, the Postal Service’s chief human resources officer, Anthony J. Vegilante, received $60,000 in retention bonuses for fiscal 2011 and 2012 on top of his $240,000 annual salary, filings show. Nonetheless, Mr. Vegilante’s overall compensation for 2012 dipped to $363,002, compared with $364,667 the previous year.

A sixth postal executive, acting Chief Financial Officer and Executive Vice President Stephen Masse, was not subject to compensation reporting requirements until this year, and he earned $222,919 overall. Dave Partenheimer, a Postal Service spokesman, said the organization has more than a half-million workers and operates more than 32,000 locations. He said postal executive compensation lags compared with private-sector corporations. “As we continue to adjust to a changing business environment, it’s important that we recruit and retain the forward-thinking leadership we need to continue to remain viable,” he said. “Compensation is important to that equation.”

Read more: Despite $15.9 billion loss, U.S. Postal Service execs see boost in pay - Washington Times Despite $15.9 billion loss, U.S. Postal Service execs see boost in pay - Washington Times

 

[Rshermr]

In late 2006, with repubs still in charge of the house, a new bill was passed. It created the problem the PO has today.
"In 2006, Congress passed the Postal Accountability and Enhancement Act. This law requires the Postal Service to do something that no other business or government agency has to do–pre-fund its FUTURE retiree health care benefits. This is a 75 year liability that has to be paid in 10 years. The Postal Service makes a payment of approximately $5.5 billion on September 30 at the end of every fiscal year to meet this obligation. The Post Office has been paying these benefits the past four years into a trust fund for employees who have not even been born yet. "
What's the Real Story Behind the Postal Crisis? | MyFDL
Without that required payment, the PO has been profitable in recent years. But in addition, the PO does not have the flexiblility to add services that their competitors, UPS and FedEx have. So they can not ramp up revenues without a bill out of congress.
So, the poison pill that was republican legislation in 2006 is making it hard for the PO to make it. And repub legislation to keep the pre-funding in place has made things really hard. This issue has flown below the radar, until recently. Now we will see if it gets any attention, since repubs are feeling less frisky. Polls are showing that the public is not at all interested in seeing the PO go away, or reduce it's service. Still the least expensive way to ship in many cases, and almost the only viable way in many rural locations.

 

[RoadVirus]

Post office been vedy vedy good to me...

Despite $15.9 billion loss, U.S. Postal Service execs see boost in pay
Thursday, November 15, 2012 - Despite nearly $16 billion in annual losses announced by the U.S. Postal Service on Thursday, all but one of the top five executives for the nation's mail service had an overall compensation increase this year, records show.

Unlike past years, when the Postal Service’s politically appointed, bipartisan board of governors awarded executives lucrative deferred compensation deals and incentive bonuses, this year’s compensation increases came mostly in the form of pension plan earnings. Postmaster General Patrick Donahoe, for instance, earned a base salary of $276,840, but even without a bonus or incentive payout, his overall compensation came to $512,093, compared with $384,229 in 2011, according to regulatory filings.

Fueling the rise was the fact that his retirement account grew by $186,536. A 37-year employee of the Postal Service, Mr. Donahoe was paid $4.76 per hour during his first job as a postal clerk. Meanwhile, two other executives — Ellis Burgoyne, chief information officer, and Mary Anne Gibbons, general counsel — also received hefty increases in their retirement plans. In fact, Mr. Burgoyne’s retirement plan grew by more than $270,000, bringing his total compensation to $510,505, slightly less than Mr. Donahoe‘s.

Compensation for Joseph Corbett, the Postal Service’s chief financial officer, rose from $310,483 in 2011 to $315,841 last year, though he earned more than $330,000 in 2010. In addition, the Postal Service’s chief human resources officer, Anthony J. Vegilante, received $60,000 in retention bonuses for fiscal 2011 and 2012 on top of his $240,000 annual salary, filings show. Nonetheless, Mr. Vegilante’s overall compensation for 2012 dipped to $363,002, compared with $364,667 the previous year.

A sixth postal executive, acting Chief Financial Officer and Executive Vice President Stephen Masse, was not subject to compensation reporting requirements until this year, and he earned $222,919 overall. Dave Partenheimer, a Postal Service spokesman, said the organization has more than a half-million workers and operates more than 32,000 locations. He said postal executive compensation lags compared with private-sector corporations. “As we continue to adjust to a changing business environment, it’s important that we recruit and retain the forward-thinking leadership we need to continue to remain viable,” he said. “Compensation is important to that equation.”

Read more: Despite $15.9 billion loss, U.S. Postal Service execs see boost in pay - Washington Times Despite $15.9 billion loss, U.S. Postal Service execs see boost in pay - Washington Times

I'd slash their pay to $100K a year, and that's being generous.

 

[df_tweets]

I have heard so many versions on why the USPS is suffering that I do not know what to believe anymore...

 

[Rshermr]

Post office been vedy vedy good to me...

Despite $15.9 billion loss, U.S. Postal Service execs see boost in pay
Thursday, November 15, 2012 - Despite nearly $16 billion in annual losses announced by the U.S. Postal Service on Thursday, all but one of the top five executives for the nation's mail service had an overall compensation increase this year, records show.

Unlike past years, when the Postal Service’s politically appointed, bipartisan board of governors awarded executives lucrative deferred compensation deals and incentive bonuses, this year’s compensation increases came mostly in the form of pension plan earnings. Postmaster General Patrick Donahoe, for instance, earned a base salary of $276,840, but even without a bonus or incentive payout, his overall compensation came to $512,093, compared with $384,229 in 2011, according to regulatory filings.

Fueling the rise was the fact that his retirement account grew by $186,536. A 37-year employee of the Postal Service, Mr. Donahoe was paid $4.76 per hour during his first job as a postal clerk. Meanwhile, two other executives — Ellis Burgoyne, chief information officer, and Mary Anne Gibbons, general counsel — also received hefty increases in their retirement plans. In fact, Mr. Burgoyne’s retirement plan grew by more than $270,000, bringing his total compensation to $510,505, slightly less than Mr. Donahoe‘s.

Compensation for Joseph Corbett, the Postal Service’s chief financial officer, rose from $310,483 in 2011 to $315,841 last year, though he earned more than $330,000 in 2010. In addition, the Postal Service’s chief human resources officer, Anthony J. Vegilante, received $60,000 in retention bonuses for fiscal 2011 and 2012 on top of his $240,000 annual salary, filings show. Nonetheless, Mr. Vegilante’s overall compensation for 2012 dipped to $363,002, compared with $364,667 the previous year.

A sixth postal executive, acting Chief Financial Officer and Executive Vice President Stephen Masse, was not subject to compensation reporting requirements until this year, and he earned $222,919 overall. Dave Partenheimer, a Postal Service spokesman, said the organization has more than a half-million workers and operates more than 32,000 locations. He said postal executive compensation lags compared with private-sector corporations. “As we continue to adjust to a changing business environment, it’s important that we recruit and retain the forward-thinking leadership we need to continue to remain viable,” he said. “Compensation is important to that equation.”

Read more: Despite $15.9 billion loss, U.S. Postal Service execs see boost in pay - Washington Times Despite $15.9 billion loss, U.S. Postal Service execs see boost in pay - Washington Times

I'd slash their pay to $100K a year, and that's being generous.

Great source. The Washington times. Try to find a impartial source. Then you could get folks to believe the article.

 

[Rshermr]

Post office been vedy vedy good to me...

Despite $15.9 billion loss, U.S. Postal Service execs see boost in pay
Thursday, November 15, 2012 - Despite nearly $16 billion in annual losses announced by the U.S. Postal Service on Thursday, all but one of the top five executives for the nation's mail service had an overall compensation increase this year, records show.

I'd slash their pay to $100K a year, and that's being generous.

Great source. The Washington times. Try to find a impartial source. Then you could get folks to believe the article.

Yeah. This post office ceo is really eating high off the hog. Damned gov salaries. He should make only what is paid in the private economy by like companies. Like FedEx or UPS.
So, if you believe that, we are going to have to increase the earnings of the CEO of the post office by 2500 percent. Cause, you see, the ceo of FedEx makes $13.7M last year.
FedEx CEO gets pay package worth $13.7 million

Their CFO had earnings of about $6.4M. Their CIO had earnings of about $5.75M. And the beat goes on, through at least 20 Management titles with earnings of over a mil and a half.
So, what you really have is a bargain at the pay levels these guys get paid, for their responsibilities. But small minds always wonder why they earn over 50 Thousand bucks.