Postal Service Disputes “Principals of Fairness”

Yesterday, the Government Accountability Office released a report concerning the grim financial future of the Postal Service. It may not come as a shock, but GAO refutes the USPS claim of paying billions of dollars in surplus to the federal government pension fund and the USPS plan to attain fiscal solvency as a whole.

USPS estimates their pension over-payment is in the ballpark of $50-$85 billion. Even if USPS had paid a surplus to the federal government and the full $85 billion was reimbursed, it would only briefly loosen their liquidity constraints. USPS annual losses would dissolve the funds shortly. USPS the past two years lost $8.5 and $10 billion.