This week Postmaster General Patrick R. Donahoe told a Senate committee that without enactment of legislation by the end of this month, USPS can’t make a congressionally mandated $5.5 billion payment to pre-fund retiree health benefits and will be in default.“The Postal Service is in a crisis today because it operates within a restrictive business model and has limited flexibility to respond to a changing marketplace,” Donahoe told the U.S Senate Committee on Homeland Security and Governmental Affairs.
“We need the ability to operate more as a business does,” said Donahoe. “In order to return to sound financial footing to meet America’s evolving mailing and shipping needs for generations to come.”
Donahoe said the Postal Service needs the enactment of comprehensive, long-term legislation to provide needed flexibility. He called on Congress to pass a bill that would amend the law requiring the Postal Service to make $5.5 billion annual payments to prefund retirement health benefits, return $6.9 billion in Federal Employees Retirement System (FERS) overpayments, overpayments, give USPS the authority to determine delivery frequency, allow the Postal Service to restructure its healthcare system, making it independent of federal programs, grant the Postal Service authority to provide a defined contribution retirement plan for new hires, and streamline the process for product development and pricing.
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