A Postal Primer: the Basics and Pivotal Issues Affecting the Future of the United States Postal Service
A Postal Primer: The Basics and Pivotal Issues Affecting the Future of the United States Postal Service April 16, 2019 www.21stcenturypostal.org A POSTAL PRIMER: THE BASICS AND PIVOTAL ISSUES AFFECTING THE FUTURE OF THE UNITED STATES POSTAL SERVICE KEY TAKEAWAYS The Postal Service is self-sustaining: it receives no taxpayer dollars, deriving its revenues from postage. The Postal Regulatory Commission serves as a check on its rate, classification and some other powers. USPS serves every citizen and business everywhere, every day: 158 million addresses. It is a crucial service in Rural America, and around the country. It delivered more than 146 billion letters, cards, periodicals, packages, prescriptions and much more last year alone. It employs about 500,000 career and 635,000 total personnel, including 100,000 veterans, and is the beating heart of a $1.4 trillion industry. It is in serious financial trouble in part because its core mailing business is steadily diverting online. But its package segment has grown dramatically, generating $7 billion toward overhead, nearly 25% of the total. Notwithstanding the speedy erosion of its mail base, USPS has still managed to cut costs and operate in the black over the past few years. The losses are caused by a statutory obligation to “prefund” its retiree healthcare to 100% - virtually alone among public or private sector entities. Integrating the 20% or so of its retirees who do not now subscribe into Medicare, as laid out in bipartisan legislation in the previous two congresses, would eliminate that obligation. All such retirees are eligible for Medicare, and have paid Medicare taxes for decades.
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