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Old 01-04-2015, 08:16 PM
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Michael
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Location: Austin, TX
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Quote:
Originally Posted by kilo View Post
USPS is required to put $xxx amount into their retirement fund each quarter, a percentage of which is matched by the federal gov, (These funds are also available to the federal government to help fill some holes in their quarterly budget, but thats a different issue). When there isnt enough profit to contribute that preset mandated amount, they call it an "operational loss". USPS has been running self-sufficient since the 70's....
I believe the USPS was mandated to fund $5.5 Billion a year starting in 2007 (with $5.8 Billion due in 2016) for future retirees. 2016 was originally supposed to be the last year, but one year they were allowed to put up only $1.4 billion and they did not meet the federal mandate a few other years so they are behind. And yes, this is above and beyond what they pay to meet their current obligations. In essence, it's funding the retirement program of people who haven't even been hired yet.
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