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Fixing the US Postal Service's Finances
CNBC.com | October 28, 2011 | 10:42 AM EDT

The battle over the U.S. Postal Service's "pre-funding" of future retiree health care benefits shows no signs of weakening.

Earlier this week, C-Suite Insider obtained a memorandum between the Congressional Research Service and House Oversight Chairman Darryl Issa (R-CA) which said the USPS was not obligated to pay for retiree health care benefits of future workers, even though it could be interpreted that way. But the memorandum is not changing the opinion of the National Association of Letter Carriers. (Ed. Note: See below)

I caught up with Fredric Rolando, President of the 300,000 member association, asking him if Congress did indeed create the USPS fiscal crisis.

FR: Yes, that’s precisely what it did. The congressional notion was that the Postal Service was making lots of money selling its products and services, and so it might be a good idea to put those profits into pre-funding future retiree health care benefits for the next 75 years and do so in a decade. No one else, public or private, does this – but it would put the Postal Service that much more ahead of the game in terms of future liabilities. And so, in 2006, Congress mandated that the USPS do so, at a price tag of about $5.5 billion a year.

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