Federal Government Loots USPS; Nobody Seems to Notice

From the American Postal Workers Union:

When Treasury Secretary Jacob Lew told Congress last week of plans to take money from two federal employee retirement funds to avoid defaulting on the national debt, there was hardly a peep. No outrage. No dismay. Not even a question.

APWU President Cliff Guffey wants to know why not.

Guffey is ticked off because the federal government is taking a chunk of money that properly belongs to the Postal Service – while the USPS teeters on the edge of bankruptcy.

“Postal customers and employees have overpaid $3 billion into the Federal Employees Retirement System, but Congress has refused to return the surplus – even while the USPS is forced to shutter thousands of post offices, close hundreds of mail sorting facilities, lower service standards, and delay mail delivery,” he said.

“The government is helping itself to money that was paid by postal customers and employees, not taxpayers,” Guffey pointed out.

“The federal government won’t let the Postal Service touch that money, but they’re taking it themselves,” the union president said. “How brazen can they be?”

“The government has borrowed before from federal employee pension accounts and repaid the money,” Guffey noted. “We fully expect it to be repaid this time as well. But that’s not the point.”

In addition to the federal pension funds, the Treasury is tapping the controversial Postal Service Retiree Health Benefits Fund. “The one that’s bankrupting the USPS,” Guffey said.

“The fund has more than $46 billion in it that the government won’t let the Postal Service use, even though the agency is on the verge of a financial collapse,” he said, “but they’re helping themselves to it.”

Congress created the fund in 2006 when it passed the PAEA, which forces the Postal Service to pre-fund a 75-year liability in a 10-year period. The payments, which are approximately $5 billion annually, account for approximately 70 percent of the Postal Service’s current net deficit for the period from 2007 to 2012.

“Congress insists the USPS must pre-fund. They say the money must be there, but they don’t object when the government grabs it,” Guffey said.

  • WmNoelle Patton

    This is the whole reason they are making the postal service pay into this completely unnecessary fund; so they can rip it off.

  • Rock

    What we need is a version of AARP for the postal service or something, maybe we can get the NRA on board.

    • HRAY

      Join NARFE the National Active and Retired Federal Employees Association. They are fighting for all Postal Employees and Postal Retirees. NARFE needs you and you need NARFE. Only $45 to join for a year.

    • El Mas Chingon

      Even better, get involved in your Union’s political activities. Contribute to their PAC, walk precincts, make phone calls, write letters to your Senator and Congressperson.

  • Sue

    The cash cow is alive…….it’s name is and always has been USPS!

  • Kozman

    They’ve been doing it to social security for years. Perhaps it’s time to take it out of the congressional retirement and medical insurance fund……

  • Geo

    Who has the final say?

  • Charity White

    Who do we contact to make our opinion and outrage known?

  • Chuck W Jewett

    Those that are wanting to take the money out of the Postal Pensions should be arrested and tried for Treason! They have no right to that money!!! It doesn’t belong to the Government!!!

    • Big cods

      Same with our social security!

  • baruchzed

    This is the work of republicans. They should be voted out in all possible instances.

    • AZRanger

      You are a special kind of stupid, aren’t you baruchzed??? The demo-Commies have been in charge of the Senate for a long time, up to the last election cycle, and continuing forward if you count the RINOs who always vote with the Commies!
      Frankly all of this started with the Democrats and their Commie buddies!

      • Big cods

        You are even dumber. It was the Republikkkon lame duck Congress that passed this law you ignorant mouth breathing knuckle dragging Teabagger.

      • http://www.lonewolfwoman.com wolfendenpackleader

        you are ignorant aren’t you. G.W. Bush and his congress critters were all to happy to come up with his mess and signed it into law in 2006. democrats had nothing to do with this purely GOP debacle. it was Bush’s plan to privatize the USPS after having them pay 75 years into the future employee retirement in a 10 year time span. anyone with an ounce of brain matter knows it is another republiCON job and that that money would never be there in the future as not only has the GOP taken and spent that money, they want the USPS destroyed so they cannot try and retrieve missing monies and if it is privatized, these politicians will get a kick back from whoever takes over 75% of the mail delivers, as it was noted that UPS and FedEx DO NOT want the job and in fact, they both use the USPS to deliver smaller packaged for them all the time, and any new mail carrier will not be delivering to at least 25% of the current routes now in rural areas, so those people will have to arrange a postal rental box and drive to and pick up their own mail, and privatized companies raise their rates an average of 15% every year, provide poorer services at a higher cost and when there is a problem, are less accountable to their customers.