USPS posts $12 million operating profit for second quarter

From the US Postal Service:

  • Operating revenue impacted by the expiration of the exigent surcharge
  • Net loss of $562 million
  • Urgent need to advance postal reform legislation

WASHINGTON — Although the U.S. Postal Service posted modest controllable income for the second quarter of fiscal year 2017 (January 1, 2017 – March 31, 2017) of $12 million, it fell well short of the $576 million that it had for the same quarter last year. This reduction was driven by the April 2016 expiration of the exigent surcharge, which would have generated approximately $500 million in additional revenue during the quarter had it remained in place, and to a lesser extent, a $69 million increase in controllable operating expenses. Continue reading

OIG: Update for Measuring Pension and Retiree Health Benefits Liabilities

Background

The U.S. Postal Service provides pension and health insurance benefits to its retirees. Postal Service employees participate in the Civil Service Retirement System (CSRS) or Federal Employees Retirement System (FERS) pension programs. The Office of Personnel Management (OPM) administers these programs, including projecting future CSRS and FERS assets and liabilities for the federal government and Postal Service. Continue reading

Vehicle upgrades a crucial investment, USPS CFO says

LLV fleetReplacing the Postal Service’s delivery fleet is necessary to the organization’s future, Chief Financial Officer Joe Corbett told a congressional panel May 21.

New vehicles will ensure USPS is able to fulfill its obligation to provide prompt, reliable and efficient services for the nation, he said.

“In order to effectively meet the needs of our customers and employees, the Postal Service must invest in and maintain its existing infrastructure, and our delivery fleet is a critical component,” Corbett said.

The CFO testified before the House Government Operations Subcommittee, which oversees postal matters.

USPS wants to secure new right-hand drive vehicles to “accommodate a diverse mail mix, enhance safety, improve service, reduce emissions and produce savings,” he said.

The current fleet has about 210,000 vehicles. These include Long Life Vehicles (LLVs), which had a “planned useful life” of approximately 24 years when USPS acquired them.

The operational efficiency, safety and technology are very outdated, Corbett said.

“Our current delivery vehicles are rapidly nearing the end of their useful life and it is now time to move into the future with a new generation of vehicles that will better serve customers, employees and the American public,” Corbett said.

The CFO’s testimony will be posted to the Newsroom site.

Source: USPS News Link Story – Moving into the future

OIG Report Paints Bright Future for Postal Banking

From the American Postal Workers Union:
Clipboard0105/21/2015 – A report by the USPS Office of Inspector General (OIG) released May 21 outlines the next steps for implementing postal banking, in which post offices would offer basic financial services – providing affordable banking transactions to every zip code in the US, while strengthening the Postal Service.

The May 21 report titled, “The Road Ahead for Postal Financial Services,” states that expanding and enhancing existing financial services such as money orders, international money transfers, check cashing and bill payments could be accomplished without an act of Congress.

According to the OIG’s “conservative estimate,” this expansion could bring the Postal Service $1.1 billion in annual revenue within five years while serving  68 million Americans who either who don’t have bank accounts or who “rely on expensive services like payday lending and check cashing.” Some refer to these predatory businesses as “alternative financial services;” APWU President Mark Dimondstein calls them “legal loan sharks.”

While highlighting the impact postal banking would have on the financial health of the Postal Service, the OIG also recommends that the USPS focus on the affordability of the services it could provide.

Among the expanded offerings, post offices “could provide ATMs where recipients of government benefits could withdraw funds without paying a fee,” the report says.

Dimondstein praised the idea.  “It’s a no-brainer,” he said. “The Inspector General’s report confirms that the Postal Service can act now to provide consumers with affordable financial services while strengthening our trusted national treasure, the public Postal Service.

“We look forward to the day when people can get their checks cashed by their trusted neighborhood window clerk,” he said.

The APWU is a member of the Campaign for Postal Banking, a coalition of consumer, worker, financial reform, economic justice, community, civic, and faith-based groups that is organizing support for the concept. For more information, visit www.CampaignForPostalBanking.org.

Source: OIG Report Paints Bright Future for Postal Banking | APWU