Frank Wilson is correct in that the U.S. Postal Service is nearing $15 billion in borrowing ("A man who put his stamp on postal bargains," May 9). However, the Postal Service has no unfunded pension obligation; in fact, the Postal Service has $38 million in its future retirees' health fund.
Wilson tries to suggest that private mail companies are the future. But in his article he points out that Lysander Spooner, who in the 1840s started his own private company, delivered mail only in certain areas. There was no universal service.Whom do you want delivering your mail: the most trusted organization of the government, or a private company based on profit, not service? It will deliver to Wall Street, and forget about Main Street.
USPS employees know of the economic problems . But we think we should expand on a network that touches every American, instead of having a doomsday outlook.
I wrote to Mr. Smith to point out that what my article said about the unfunded pension obligation was taken from the GAO report that I referenced. He then sent me his entire letter and I asked him if I could post it here, because I think people should read his full response. He gave me permission, and here it is:
In response to Frank Wilson's fine column about Lysander Spooner(Aman who put his stamp on postal
bargains)Mr Wilson is correct in that the postal service is nearing the 15 billion in borrowing . However the postal service has no unfunded pension obligation, in fact the postal service has 38 million in future retirees health fund.
Under the 2006 postal reform the USPS has to pre fund future retirees health benefits 5.6 billion annually. Last year a last minute bill (HR 22) reduced the payment by 4 billion, this annual payment requires prefunding 80 %
of a 75 year liabiliity in 10 years. No other organization or company has this obligation. Also postal servive pay 7% annually for future health care most companies pay 5%.
Due to unfair calculations of CSRS postal payment to Treasury Department dating back to July 1, 1971(postal
reorganizationact). A OIG report has stated the USPS overpaid the CSRS account by 75 billion.
A fix of either one of these issues and the postal service would be in the black. Mr Wilson quotes Mr. Spooner
that no man shall be taxed to carry civilization to him.
The postal service is off budget and all liabilities are paid by postage.
Mr Wilson seems to make a point that private mail companies are the future. But in the article he makes a reference that would be the reason this is not a good idea. Mr Spooner started his private company only delivery
in certain areas (no universal service).
Who do you want delivering your mail ?
Your USPS letter carrier the most trusted organization of the government or a private company who will work on profit not service, deliver Wall Street and forget about Main Street.
USPS employees know of the economic problems. But we think we should expand on a network that touches every American, instead of looking at a doomsday outlook, already the 238 billion 10 year short fall outlook has been flawed.