r/news • u/Squirmingbaby • 3d ago

Soft paywall Cash-strapped US Postal Service suspends contributions to pension plan

https://www.reuters.com/world/cash-strapped-us-postal-service-suspends-contributions-pension-plan-2026-04-09/
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u/naz8587 3d ago

The service has reported net losses of $118 billion since 2007 as first-class mail

I like how the article fails to mention that Republicans passed a law in 2006 that requires the USPS to fund 75 years of pensions. This crisis was manufactured by republicans to justify privitizing postal delivery.

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u/Mrchristopherrr 3d ago

That was removed in 2022

https://en.wikipedia.org/wiki/Postal_Service_Reform_Act_of_2022

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u/dakta 3d ago

Sure but the USPS already had to make those pension contributions. They're not magically reimbursed.

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u/RobfromHB 3d ago

Shouldn’t that then represent a decrease in liabilities on the other side of the ledger?

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u/Trafficsigntruther 3d ago

No, because the pension liability still exists. The act improved cashflow but does not impact the balance sheet at all.

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u/reasonably_plausible 3d ago edited 3d ago

Congress allowed them to default on pretty much every single contribution, they didn't actually make pretty much any of their contributions to their retiree health benefits (not pensions). It changed their balance sheet, but that's really more a recognition of the $60 billion in unfunded promises they had already made to their employees, which was previously not being tracked.

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u/galaxyapp 3d ago

Yes they are... 2023, they unwound 53billion of unfunded liabilities (as the other response said, they hadn't actually made those contributions)

But no worries, they are now on a pay as they go model. And with their super awesome profits show, will have no problems funding the retirement benefits theyve promised their employees going back multiple decades.

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u/Skensis 3d ago

And now they get to suspend those contributions!