This data is from GAO's 2017 High Risk Report. This report is refreshed at regular intervals, toward the beginning of each new Congress, and as required.The U.S. Postal Service (USPS) faces a genuine monetary circumstance that is putting its main goal of giving brief, dependable, and proficient all inclusive mail administrations at risk.1 It announced a net loss of $5.6 billion in financial year 2016—its tenth continuous year of net misfortunes. Also, it keeps on confronting unfunded liabilities that have developed from 99 percent of USPS incomes in monetary year 2007 to 169 percent of incomes in financial year 2016. These unfunded liabilities—totaling about $121 billion toward the finish of monetary year 2016—comprise for the most part of retiree wellbeing and annuity advantage commitments for which USPS has not put aside adequate assets to cover. For instance, since September 2010, USPS has not made nearly $34 billion in required prefunding retiree wellbeing installments, which has prompted an unfunded obligation of about $52 billion.2 USPS's capacity to make installments to cover its unfunded liabilities is tested because of (1) proceeded expected decreases in mail volumes; (2) developing costs; (3) termination of a transitory rate surcharge3 (which created $4.6 billion in extra income from its January 2014 commencement to its April 2016 stopping); and (4) no arranged new significant cost-funds activities. Therefore, it isn't likely that USPS will have the capacity to make the majority of its required wellbeing and annuity installments in monetary year 2017.4
USPS's powerlessness to make these installments may at last place citizens and the human services and annuity advantages of USPS workers, retirees, and their recipients in danger. Financed benefits ensure the future practicality of USPS by not saddling it with bills after workers have resigned. USPS retirees partake in a similar wellbeing and annuity advantage programs as other government retirees. Accordingly, if USPS at last does not enough store these advantages and if Congress needs these advantages to be kept up at current levels, financing from the U.S. Treasury and thus the citizen would be expected to proceed with the advantage at similar levels. Then again, unfunded advantages could weight USPS to diminish advantages or pay for postal laborers. In July 2009, we added USPS's money related condition to the rundown of high-hazard territories requiring consideration by Congress and the official branch to accomplish expansive based rebuilding.
[1] 39 U.S.C. § 101(a).
[2] Pub. L. 109-435, § 803, 120 Stat. 3198 (Dec. 20, 2006), systematized at 5 U.S.C. § 8909a. The Postal Enhancement and Accountability Act of 2006 expected USPS to start prefunding medical advantages for its current and future postal retirees, with foreordained yearly installments of $5.4 billion to $5.8 billion for monetary years 2007 through 2016, trailed by actuarially decided installments starting in 2017 and consistently from that point to address any unfunded liabilities. For more detail, see GAO-13-112.
[3] In December 2013, the Postal Regulatory Commission (PRC) affirmed USPS's ask for a "urgent additional charge" which enabled USPS to raise postal rates for most mail over the statutory cost top that is for the most part restricted to the rate of expansion, with the exception of under uncommon or outstanding conditions that require a bigger rate increment. In July 2015, PRC decided that USPS could proceed with the extra charge until the point that it gathers $4.6 billion in incremental income, which speaks to USPS's inexact misfortune because of the decrease in mail experienced amid the Great Recession.
[4] notwithstanding making required installments for its retiree medical advantages, in monetary year 2017, USPS will be required to make installments to back its postal annuity benefits, particularly to address the unfunded liabilities under the Civil Service Retirement System, and to address any unfunded liabilities and ordinary expenses of Federal Employees Retirement System benefits for current representatives.
This data is from GAO's 2017 High Risk Report. This report is refreshed at regular intervals, toward the beginning of each new Congress, and as required.
USPS's powerlessness to make these installments may at last place citizens and the human services and annuity advantages of USPS workers, retirees, and their recipients in danger. Financed benefits ensure the future practicality of USPS by not saddling it with bills after workers have resigned. USPS retirees partake in a similar wellbeing and annuity advantage programs as other government retirees. Accordingly, if USPS at last does not enough store these advantages and if Congress needs these advantages to be kept up at current levels, financing from the U.S. Treasury and thus the citizen would be expected to proceed with the advantage at similar levels. Then again, unfunded advantages could weight USPS to diminish advantages or pay for postal laborers. In July 2009, we added USPS's money related condition to the rundown of high-hazard territories requiring consideration by Congress and the official branch to accomplish expansive based rebuilding.
[1] 39 U.S.C. § 101(a).
[2] Pub. L. 109-435, § 803, 120 Stat. 3198 (Dec. 20, 2006), systematized at 5 U.S.C. § 8909a. The Postal Enhancement and Accountability Act of 2006 expected USPS to start prefunding medical advantages for its current and future postal retirees, with foreordained yearly installments of $5.4 billion to $5.8 billion for monetary years 2007 through 2016, trailed by actuarially decided installments starting in 2017 and consistently from that point to address any unfunded liabilities. For more detail, see GAO-13-112.
[3] In December 2013, the Postal Regulatory Commission (PRC) affirmed USPS's ask for a "urgent additional charge" which enabled USPS to raise postal rates for most mail over the statutory cost top that is for the most part restricted to the rate of expansion, with the exception of under uncommon or outstanding conditions that require a bigger rate increment. In July 2015, PRC decided that USPS could proceed with the extra charge until the point that it gathers $4.6 billion in incremental income, which speaks to USPS's inexact misfortune because of the decrease in mail experienced amid the Great Recession.
[4] notwithstanding making required installments for its retiree medical advantages, in monetary year 2017, USPS will be required to make installments to back its postal annuity benefits, particularly to address the unfunded liabilities under the Civil Service Retirement System, and to address any unfunded liabilities and ordinary expenses of Federal Employees Retirement System benefits for current representatives.
This data is from GAO's 2017 High Risk Report. This report is refreshed at regular intervals, toward the beginning of each new Congress, and as required.
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