Is benefits law dragging down the Postal Service?

http://news.blogs.cnn.com/2011/08/18/is-benefits-law-dragging-down-the-postal-service/



August 18th, 2011
11:18 PM ET

The U.S. Postal Service is in a precarious financial situation, telling Congress it faces the "equivalent of Chapter 11 bankruptcy." Losing billions of dollars a year, it is considering whether to close more than 3,600 post offices and lay off tens of thousands of workers.

The service faces many problems, including a drop in mail volume in recent years. But the service, which employs nearly 572,000 people, says some of its difficulties are inflicted by the federal government – through a law governing how the agency funds workers' retirement health benefits.

In 2006, Congress passed a law requiring the Postal Service to wholly pre-fund its retirement health package – that is, cover the health care costs of future retirees, in advance, at 100%. The Postal Service, which is a corporation owned but not funded by the federal government, is the only government-related agency required to prefund retirees' health benefits.

"No one prefunds at more than 30%," said Anthony Vegliante, the service's executive vice president.

FULL story at link.

Of course the internet doesn't help.

passed that fucking stupid law in 2006. Face it - repukes hate ANYTHING that doesn't make THEM or their cronies rich.

but I'm sure I read somewhere that 100% funding means 75 years for each employee, including ones that have quit. How many people are going to live 75 additional years after retiring?

haven't even hired yet. This was and is a deliberate move by Republicans to destroy the oldest and one of the most popular Government programs of all.