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Diane Publishing Books
U.S. Postal Service: Status, Financial Outlook, and Alternative Approaches to Fund Retiree Health Benefits
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Frank Todisco (au); Lorelei St. James (au)
The 2006 Postal Accountability and Enhancement Act (PAEA) required the U.S. Postal Service (USPS) to prefund its future retiree health benefits as part of comprehensive postal reform by establishing the Postal Service Retiree Health Benefits Fund (PSRHBF) along with an initial target period to fund the unfunded liability in 50 years. This requirement included annual payments to this fund from 2007 to 2016 of between $5.4 billion to $5.8 billion. USPS, its employee groups, and others have argued that this prefunding requirement is a major source of USPSäó»s financial woes äóî reported by USPS as contributing $32 billion toward its $41 billion of net losses over the past 6 years. USPS defaulted on the last 2 years of PSRHBF payments totaling $11.1 billion. This report addresses the (1) status and financial outlook of the PSRHBF; (2) impact on future annual USPS payments and unfunded liabilities of alternative approaches; and (3) key considerations for policymakers. Tables and figures. This is a print on demand report.
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