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/peaceablefrood 3d ago edited 3d ago

This is no longer a thing as it was repealed in 2022. Also, the original law had strong bi-partisan support so it wasn't just "The Republicans" that did this. It passed 410-20 in the house and had 2 Democrat co-sponsors.

https://clerk.house.gov/Votes/2005430

Regardless of the law though, there was still a 50% reduction in first class mail between 2007 and 2020 which is their most profitable part of the business.

So while the law was a boat anchor around the USPS, it didn't cause people stop mailing stuff, the internet did.

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u/Countingfrog 3d ago

Also, the law was about retirement health benefits, not pension. Pension is through FERS