Mandated health care payments make up 80% of red ink since 2007
The United States Postal Service has seen better days, but good times could be here again.
In 2006, Congress mandated the USPS to pre-fund their retiree health care program for the next 75 years, and to do it within 10 years. This wasn't a recommendation, this is the law.
Since 2006, the postal service has made annual payments into their health care fund totalling $20 billion. That $20 billion represents 80% of the red ink on their balance sheet.
Kathy Baldwin with the National Association of Letter Carriers says if the postal service did not have the mandate they would have turned a profit four out of the last five years. Baldwin says Congress needs to take action to address the problem and allow the postal service to be profitable.
The pre-funded health care mandate is unique to the United States Postal Service. No other public or private firm shares such a mandate by Congress.
