Since 2013, the prefunding mandate is responsible for most of the Postal Service’s net losses, and it has defaulted on its prefunding payments since 2012. No other federal agency or private sector business prefunds its retirement benefits. The uncertainty inherent in satisfying the PAEA prefunding mandate is creating real instability in the Postal Service’s operations.
That’s the one.
Incidentally, for over a decade, the United States Postal Service has been plagued with the onerous burden of prefunding its retiree health care benefits as mandated by the Postal Accountability and Enhancement Act (PAEA) of 2006. The mandate requires the Postal Service to prefund its retiree health care benefits 75 years in advance, paying for retirement health care for individuals who haven’t been born yet, let alone enter the workforce.
Since 2013, the prefunding mandate is responsible for most of the Postal Service’s net losses, and it has defaulted on its prefunding payments since 2012. No other federal agency or private sector business prefunds its retirement benefits. The uncertainty inherent in satisfying the PAEA prefunding mandate is creating real instability in the Postal Service’s operations.
Organizations get the unions they build through greed and error.
If they have to pre-build their retirement programme, you know some suit tried to raid it.