Ross: USPS didn’t overpay anyone

In response to a comment posted on his Facebook page, Congressman Dennis Ross says that the US Postal Service hasn’t overpaid any obligations. Ross says the prefunding requirement is appropriate because, well, because Congress said it was appropriate:

The USPS did not "overpay" any bill. It was required to prefund retirement. I will grant that prefunding is rare, but not unheard of. Nor should it be out of the ordinary. Prefunding protects future retirees and is more cost effective in the long run. But in the end, USPS retirement and health benefits have the guarantee of the taxpayer. To NOT prefund is to toss that risk more to the taxpayer. But all the prefunding argument is meaningless if the USPS continues to operate at labor costs of 80% of revenues. 1st class mail is going, going, and will be gone in the future. Either USPS changes its business model (and yes, reduces staffing), or the taxpayers will demand it be privatized or sold. That is reality.

Of course, as several commenters have pointed out, the prefunding requirement is a big chunk of that 80% in labor costs. Last fiscal year, the USPS had $67 billion in revenue- the mandated $5.5 billion future retiree prefunding requirement amounts to 8% of revenue. Conservatives like Ross love to lecture the USPS on how it should be run “like a business”, but I doubt that they can find an example of a successful private business that sets aside 8% of current revenue to overfund future hypothetical retiree health benefits. Congress has, in effect, increased the postal service’s labor costs by ten percent, and now demands that postal workers make up for it in reduced pay and benefits.

The other obvious problem with Ross’s comment is his position that the prefunding is appropriate simply because that’s what the law says. Strangely enough, he doesn’t seem to feel that way about other laws, like the ones that created Medicare and Health Care reform. Why is it OK to repeal Medicare, but PAEA is considered sacred?

via US Representative Dennis Ross.

  • Jack Rabbet

    I can explain it to you, but I can’t understand it for you.

  • Mr Bleep

    If this is so appropriate Mr Ross then why not required each and every business in America to do the same?????

  • Tony

    Hey Ross you need to grab your ears and pull your head out of your ass.

  • xcarrier

    Anyone who re-elects this moron deserves to lose their job.

  • jean

    It is entirely appropriate that 80% of USPS operating expenses goes to pay labor costs. USPS is a Service, mandated to provide universal service to every address in America. It was never intended to operate at a profit, only to break even. I believe Mr Ross cannot admit to an overpayment, because the money is not sitting in an account waiting to be needed by retirees ~ it’s being used to make up for shortfalls in other areas of our government. It is gone, gone, gone……

  • rick

    your head must be so swollen it got stuck up your ass

  • Give me break

    Gee, I guess the OIG report and the OPM report that shows that USPS over paid must be imaginary….

    What color is the sky in Ross’s world?

  • Gregg

    I do agree with one thing that this guy said.The USPS must reduce it’s staff.Sorry to attack management again,but we have way to many leaders and and not enough workers.Especially on the carrier side.Hey,put these people in management back on the streets,delivering the mail like many of em used to do.Of course they will make less money,and will actually have to do real work.At least they will have a job!!But as luck would have it,my union:the APWU recently ratifed our contract.So it looks like clerks will also be pulling double duty.Closing offices and consolidating is only a short term solution.PMG Donahoe is really just looking to save a buck where he can.No matter how it affects the USPS customer.Sure,you save 1.7 million by moving this operation 40 miles.But your transportation costs increase by 800,000.And people are getting their mail a day or even two later.Minimal savings,less reliable service.Question from one of our customers.”Why does it take my medicine 4 days to arrive instead of 2″??Answer”Sorry,the USPS really cares,but right now we are trying to save money any way we can,so get used to it.It’s not only the workers at the USPS who are going to suffer,it’s all of our customers as well.Oh,by the way;Dennis Ross is a friggin MORON!!

  • trout

    really then why did he erase the comments on his page? he is so full of crap ….. he claims to have knowledge of the USPS based on the solitatry fact that he has “had dozens and dozens” of meetings with postal leadership…I guess that makes him almost an expert…he keeps blaming federal workers for poor performance while forgetting he is on of those poor performing federal workers himself…..I hope all the postal workers who voted for him are proud of themselves

  • Postal Expert

    Isn’t it wonderful that Ross got elected to the House? We sure need the expertise of this know-nothing rookie congressman!!

  • McTell

    Congressman Ross you are quite Contrary.

  • Brett

    One of only a few things I can say about Ross is “Stupid is as stupid does”. Ross has no idea what he is saying. Last thing is I feel real bad for the State this joker was elected from.

  • JY

    That is rich! When did this “newbie” become an expert all of a sudden? What a maroon!

  • bubba

    ross your an idiot how much money are taxpayers paying you to be an idiot????????

  • JoJo

    Where are all the reasonable centrist? I went from Left Wing nuts to Right wing Nuts and there is no one in the middle to bring them back to reality….

  • Richard Cranium

    As the old saying goes,”Not all idiots are Republican. But all Republicans are idiots!”

  • wilie

    Mr Ross you are an idiot

  • Broke thanks to morons

    If the postal service is so broke, why does the post master general get $800,000 bonuses. The carriers are doing twice the amount of work with less pay. Morale is down and service isn’t as good as it used to be. Some carriers can’t even get there routes done in time and have to take a leave of absence so that the postal service doesn’t have to pay overtime, yet every time the carriers get cut the bonuses start flying amongst the chiefs. Nix the chiefs and hire more indians. Oh yeah, and quit trying to starve our families. Mr Ross get bent.

  • HMMMmmm…

    Reality+++++
    Lets see, taxpayers pay how much to the postal service employees…..answer, NOTHING! The post office is a self funded entity. Mr. Ross, I dare to say that you as a dully elected offical do receive taxpayer dollars for your salary. Hence forth since I am a taxpayer and by rights your boss to a degree, I would like to see you read the constitution and don’t omit the part about there being a postal service. The Postal Service is a non-profit as already stated and there for not a goverment slush fund. The TSP is not a goverment slush fund and I would REALLY LIKE YOU TO KEEP YOUR HANDS OUT OF MY RETIREMENT FUND! I placed that money there!