Postal Service’s $15.9-Billion Loss Highlights Urgent Need for Legislative Reform

Besides resolving the accelerated schedule to prefund retiree health benefits and allowing the Postal Service the flexibility to sponsor its own healthcare program for employees and retirees, the USPS Business Plan includes these other actions that require legislative action:

• Allowing the Postal Service to determine delivery frequency
• Allowing the Postal Service to offer non-postal products and services
• Developing a more streamlined governance model for the Postal Service that would allow for quicker pricing and product decisions
• Instructing arbitrators that, during labor negotiations, they must take into account the financial condition of the Postal Service when rendering decisions
• Resolving the overfunding of the Postal Service’s obligation to the Federal Employees’ Retirement System (FERS).

Results of Operations
The Postal Service continues to grow its package services business. Revenue from that business increased by $926 million, or 8.7 percent, on a volume increase of 244 million pieces compared to the same period last year. Higher consumer spending, higher e-commerce retail sales plus increased marketing efforts drove much of the growth in this segment of the Postal Service business during the last year.