The republican Congress forced the USPS to, over 10 years, fully fund its retirement program for the next 75 years. That's not "spend 75 years putting money in the bank," it's "have 75 years' worth of money in the bank within 10 years."
It's drained the USPS' operating funds to the point where it can barely function. The good news is that the timeframe will be up in a few more years and the USPS will be able to go back to normal.
Why did Congress do this? To force privatization of mail delivery. Somebody stood to make a shitload of cash from that.
Simple. Because Postal workers get to retire at a relatively young age. My friend's uncle retired at 55 with a full pension. He also "banked" three years of unused sick time and almost a year's worth of vacation time. Which he elected to take in regular installments rather than a lump sum.....BTW, he started with the PO when he was 20...
That pension, and hundreds of thousands of retired PO workers MUST be paid...so the Congress had to make sure the pensioners were taken care of. And of course with people living much longer, even more funding would be required to keep the pensions checks flowing.
IMO the USPS SHOULD be privatized.
Heck the USPS has lost half of its business to private enterprise as well as the internet.
Did you know that the Postmaster General wanted Congress to tax the internet because people were no longer writing letters and using the PO? Would you be surprised that there is an obscure law that requires us to use the Postal Service for certain kinds of packages. Mainly one ounce envelopes?
The USPS even got the phone carriers in on it. The long distance wireline carriers wanted to be able to charge every internet connection a long distance charge saying that the internet users were using the "common carrier" network.
They wanted to tax email.
The USPS is in the condition it is in not because of pensions or anything like that. The USPS is mismanaged and is inefficient.
The workers are over paid for the level of skill required to become a postal worker.