The article outlines the significant financial challenges facing the USPS, focusing on its massive pension and healthcare liabilities totaling $409 billion against only $290 billion in assets. The agency's retirement costs, comprising 12% of total expenses, cannot be managed effectively due to external control on their investment allocations. The report suggests that if USPS had the autonomy to invest in diversified assets, it could have changed its financial outlook dramatically, turning a substantial deficit into a significant surplus. Notably, unlike other federal agencies, USPS does not receive Congressional funding for necessary employer contributions, further complicating its financial struggles.
The Post Office's long-standing pension and healthcare liabilities, totaling $409 billion, highlight the financial struggles faced by the agency, exacerbated by Congressional inaction.
Retirement costs account for 12% of USPS's total expenses, but the agency lacks control over these funds, leading to significant financial constraints.
The USPS could have transformed a $155 billion deficit into a $963 billion surplus had they been permitted to invest their funds in a diversified portfolio.
Unlike other federal agencies, USPS does not receive necessary employer contributions from Congress, creating a stark contrast in financial support.
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