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Pre Funding Obligation Not the Cause of Postal Service Losses

Created on October 10, 2013

Pre Funding Obligation Not the Cause of Postal Service Losses

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Beginning in 2007, the U.S. Postal Service was required to prefund the Retiree Health Benefit Fund (RHBF). While those funds have been substantial—$29 billion through 2012—the Postal Service would still have lost billions over the past four years even if it did not have to pre-fund the RHBF.

Keywords: gains, losses, pre-funding

Sources: Government Accountability Office, “U.S. Postal Service: Status, Financial Outlook, and Alternative Approaches to Fund Retiree Health Benefits,” December 2012, p. 14, http://www.gao.gov/assets/660/650511.pdf (accessed October 3, 2013); U.S. Postal Service, “Five-Year Business Plan,” April 2013, p. 3, http://about.usps.com/strategic-planning/five-year-business-plan-2012-2017.pdf (accessed October 3, 2013); and Government Accountability Office, “U.S. Postal Service: Strategies and Options to Facilitate Progress Toward Financial Viability,” April 2010, http://www.gao.gov/assets/310/303034.html (accessed October 3, 2013).

CHART 1 • B 2848 • heritage.org

Article ID: b2848