Around here, we generally try to keep things on the light side. But yesterday, Postmaster General Jack Potter testified before a Senate subcommittee on the financial health of the Postal Service. Read it here. Watch it here.
He presented options for working our way through the current economic downturn. His biggest priority was to call for relief from the prepayment of retiree health benefits. The 2006 Postal Law makes us prepay future retiree health care costs. We are the only government agency that is required to fully fund all projected retiree health care costs.
A modified schedule of payments would allow the Postal Service to focus on current financial needs during this crisis. This change would neither increase the health benefit premiums paid by current or future Postal Service retirees, nor would it affect their benefits. And neither proposal would involve tax subsidies.
As an alternative, the PMG offered a 5 Day Delivery plan that could save roughly the same amount of money. It would be a temporary solution only during periods of low mail volume, possibly once or twice a month.
So, good readers of Your Postal Blog, what do you think of what he said?
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