Post Office pension funding is the right thing to do.

Steve Lamansky’s letter to the Register on 1/11/2014 regarding the U.S. Postal Services’ required pension payments perpetuates a mis-characterization of what the Post Office is required to do.  The Post Office is not being required to “…pre-fund 80 years’ worth of retirement benefits at 100 percent over a 10-year period…”  They are being required to fund the pension promises that they already owe to their current employees and current retirees.  In the past, they made the promises to employees about future retirement benefits, but did not fund any of it.  If the Post Office goes broke, I’m just guessing that taxpayers will be on the hook for $40+ billion unfunded balance.   What they are being required to do is catch up on the funding of promises for past and current services so that their pension fund is actuarially sound.

Link to Register article:  http://www.desmoinesregister.com/article/20140111/OPINION04/301110036/Letter-editor-Big-postal-problem-created-by-Congress

 

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