PMG Reiterates Pleas for Healthcare Relief, Delivery Cut

Postmaster General Wednesday repeated his request to Congress for relief from its more-than $5.8 billion annual healthcare payment obligations and for a change in the law that would allow it to cut mail delivery days, if necessary—all in efforts to save money.

In January, Potter made essentially the same request before the Senate Subcommittee on Federal Financial Management Federal Services and International Security (Direct Newsline, Jan. 28).

As part of the Postal Accountability and Enhancement Act of 2006, the USPS became obliged to pre-pay nearly $5.8 billion per year to pre-pay healthcare costs for retired postal employees.

“We need your help because our actions by themselves will be insufficient to offset a declining financial situation,” Potter told the House Subcommittee on Federal Workforce, Postal Service and District of Columbia. “Mail volume is running 12% below 2008 levels. The gap between revenue and costs has become a chasm, widening each day.”

He noted that even if the USPS was able to cut its projected $5.9 billion, the postal service would still lose $6 billion in 2010 and mail volume would continue to drop.

“By taking the right actions now we can make it possible for the Postal Service to effectively manage through today’s dire economic environment and emerge on a firm financial footing,” the PMG said.