Paying future benefits now is USPS’ crisis

Is the U.S. Postal Service really in such dire straits as contract negotiations begin with the letter carriers' union? Not really. During the last four fiscal years, the USPS actually had a profit of $611 million. The root cause of the USPS financial melodrama is the prepayment of 75 years worth of retirees' health benefits over 10 years, which was mandated by Congress in 2006. These payments total $5.5 billion a year.

To put it in layman's terms: It is like you paying for a car now, which you will not own until 30 to 50 years from now. It just does not make sense. No other corporation or government entity is required to do this. If Congress is willing to correct this situation, the needless rumors of stopping Saturday delivery can be laid to rest.

Without the oppressive burden of the annual $5.5 billion payment the USPS would be more likely to make it through these times of nationwide financial difficulties unscathed.

Greg Januska

Cedar Rapids