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

 

Good idea from Canada.

The Canadian Postal Service announced that it will cease home delivery over the next five years.  This would be a good idea for the U.S. Postal Service.  It would not be an undue hardship if we all had to walk or drive a few blocks to a community group of mail boxes. In rural areas, maybe we would have to travel a few miles.  If we want to continue to protect the U.S. Postal Service’s monopoly on first class mail, and if we want to continue with daily mail service, then we should allow the Post Office to stop home delivery.