Prefunding is synonymous with saving and investing for retirement. It is a responsible, time-tested, and essential practice to ensure today’s more than 600,000 postal employees and nearly 500,000 postal retirees receive low-cost, quality health care for years or even decades after they retire. As with quality pension plans for state government workers, money is put into a dedicated fund where the assets grow in value.
In the early 2000s, USPS, the Postal Regulatory Commission (PRC), and the U.S. Government Accountability Office (GAO) all recognized the need to protect the Postal Service’s retiree health benefits. The best way to do this, while also lowering costs, was to set aside money and invest it, or prefund. And Congress overwhelmingly agreed.
Yeah, I figured this was the case: ‘The Lexington Institute believes in limiting the role of the federal government to those functions explicitly stated or implicitly defined by the Constitution. The Institute therefore actively opposes the unnecessary intrusion of the federal government into the commerce and culture of the nation, and strives to find nongovernmental, market-based solutions to public-policy challenges. We believe a dynamic private sector is the greatest engine for social progress and economic prosperity.’
“We believe a dynamic private sector is the greatest engine for social progress and economic prosperity”, are you saying that the Post Office should be privatized? That’s not what America what’s for OUR Post Office. I believe that’s DeJoy’s devious plan and has been all along. To destroy the Post Office and somehow profit off of it’s downfall. He has a definite stake in his shipping businesses profiting if USPS fails.
But not 75 years into the Future
Jake Black, you didn’t read the entire article. Continue reading……… Many falsely charge PAEA mandated pre-paying 75 years of benefits. Another common claim is that prefunding is part of a deliberate, nefarious plot to harm USPS so that it would be privatized. There is no basis to either claim, as this report documents. Postal employees earn significant retiree health benefits for each year they work. As such, a portion of these benefits should be paid by USPS as they are earned and then invested. Without USPS contributions to the RHB Fund, there is a high likelihood that benefits would be… Read more »