Postal Service would have broken anyway
08/12/2014 10:08 AM
08/13/2014 8:55 AM
Re "Postal Service losses mount in spring" (Business, Aug. 11): The Bee reported that the U.S. Postal Service lost $2 billion in the third quarter of its 2014 fiscal year. While the piece did note that much of this loss was attributable to a requirement imposed by Congress that the system prefund its retiree health benefits, it would have been useful to also point out that the prefunding requirement has little or no precedence in the private sector. It also uses assumptions on health care cost growth that are far above recent growth rates.
Without the prefunding of retiree health benefits, the system would not have shown a loss for the third quarter. Excluding these charges, it would have shown a profit of $1 billion for the first three quarters of the year.
In the future, please print news stories and not propaganda.
-- Gary Fitzgerald, Carmichael
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