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DeFazio-Authored Bill to Help US Postal Service Maintain Sustainability Passes House....
The following is older news, but of particular concern at this point.
Feb 5, 2020 Press Release
Today the House of Representatives passed decisively bipartisan legislation authored by Rep. Peter DeFazio that would provide the United States Postal Service (USPS) with much-needed financial relief by ending the agency’s burdensome prefunding mandate on future retiree health benefits. The legislation passed by a vote of 309 to 106, with 87 Republicans voting in favor of the bill.
“Americans and businesses around the country depend on a reliable Postal Service. This is especially true for rural areas and seniors in my district, who count on six-day service and door-to-door service for their mail and prescription medications,” said Rep. Peter DeFazio (OR-04). “The unreasonable pre-funding mandate has threatened the survival of the USPS and placed its vital services for the millions who rely on it at risk. The pre-funding mandate policy is based on the absurd notion of paying for the retirement funds of people who do not yet, and may not ever, work for the Postal Service. My bill will finally repeal this ludicrous policy, provide the USPS with critical financial relief and is the first step towards much-needed comprehensive reform.”
In 2006, Congress passed a law to require the USPS to prefund 75 years worth of retiree health benefits in the span of ten years—a cost of approximately $110 billion. Although the money is intended to be set aside for future Post Office retirees, the funds are instead being diverted to help pay down the national debt.
No other private enterprise or federal agency is required to prefund retiree health benefits on a comparable timetable. The mandate is responsible for all of USPS’s financial losses since 2013.
Today the House of Representatives passed decisively bipartisan legislation authored by Rep. Peter DeFazio that would provide the United States Postal Service (USPS) with much-needed financial relief by ending the agency’s burdensome prefunding mandate on future retiree health benefits. The legislation passed by a vote of 309 to 106, with 87 Republicans voting in favor of the bill.
“Americans and businesses around the country depend on a reliable Postal Service. This is especially true for rural areas and seniors in my district, who count on six-day service and door-to-door service for their mail and prescription medications,” said Rep. Peter DeFazio (OR-04). “The unreasonable pre-funding mandate has threatened the survival of the USPS and placed its vital services for the millions who rely on it at risk. The pre-funding mandate policy is based on the absurd notion of paying for the retirement funds of people who do not yet, and may not ever, work for the Postal Service. My bill will finally repeal this ludicrous policy, provide the USPS with critical financial relief and is the first step towards much-needed comprehensive reform.”
In 2006, Congress passed a law to require the USPS to prefund 75 years worth of retiree health benefits in the span of ten years—a cost of approximately $110 billion. Although the money is intended to be set aside for future Post Office retirees, the funds are instead being diverted to help pay down the national debt.
No other private enterprise or federal agency is required to prefund retiree health benefits on a comparable timetable. The mandate is responsible for all of USPS’s financial losses since 2013.
https://defazio.house.gov/media-center/press-releases/defazio-authored-bill-to-help-us-postal-service-maintain-sustainability
One small note: The National Association of Letter Carriers, (NALC), of which I am a retired member, estimates that 95% of losses are directly attributable to the 2006 PAEA
The PAEA is the Postal Accountability and Enhancement Act, which was passed in a lame duck session of Congress. This Act was never intended to enhance the mission of the USPS. It was intended to weaken and destroy the USPS so that the far right could privatize the functions of the USPS.
In addition, in 2005 the USPS was exploring converting their mainly gas powered fleet of vehicles to alternative and electric vehicles. Many of us here remember that both Bush and Cheney have extensive interests in the oil industry.
Finally, destroying the USPS would also eliminate approximately 700,000 union jobs, another goal of the far right.
I hope this provides some background, and perspective.
29 replies
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Practically everybody depends on the USPS. What do Republicans think? That Democrats want USPS to continue to exist just so that they can cheat at elections now (don't answer. Rhetorical)? What do they think is going to replace USPS for everybody? How are people going to get their mail if USPS goes belly up?
this as part of my much needed research for that project. Need to get the word out.
Proud of Rep. DeFazio for his work on this. We must save the USPS.
Let's hope it gets to the Senate.
