9 thoughts on “Forbes Post, “Why AOC Is (Mostly) Wrong About Post Office Pensions: An Explainer”

  1. This woman is a threat to common sense and financial well-being everywhere.
    We need laws to prohibit morons like her from serving elected office. She can’t perform surgery or practice law without being licenses, why should she be allowed to screw up a $20 trillion economy and wreck $100 trillion in financial assets owned by Americans ?

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    1. The Postal Service is not a ” Solvent Entity ” or private enterprise. It is part of the US Government. The reality is no other Federal agency has to pre-fund retiree benefits. Not the Army, Navy, Air Force or Marines, the Secret Service, Not Congress. No other part of the Federal Government has been forced to do this. The entire intent of the PAEA was and is to bankrupt the US Postal Service so it can be privatized for profit. In the hands of Vulture Capitalists the $70 billions dollar non profit will be become $100 billion dollar plus enterprise at the expense of the citizens of the US. Increasing cost and decreasing service. Precedent in the Privatization of the UK Royal Post has shown that postage will more than triple. There is an effort to privatize postal systems around the world., not just the US. The USPS is service to the American People, just like Social Security, Medicare, your library, ect; not a business enterprise. The PAEA was passed in response to Congressional hearings several years prior,in which Fed-Ex and UPS claimed the US Postal Service was unfair competition.

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      1. The mandate was not for retirees benefits but retirees health benefits 75 years into the future. No private company OR federal government agency is required to do this. Congress wanted to make the USPS a cash cow for the U.S. deficit. I think the author with her extensive education should be able to do a little research on the subject before writing a false narrative.

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  2. Are there any public companies that have similar funding requirements as the USPS? I know FedEx and UPS have some kind of pension funds, but I don’t understand the topic well enough to figure out how similar they are. According to some random googling it looks like neither have fully met their pension funding obligations. I’ve seen a few articles comparing the existing financial obligations of the three together but it never explains how the obligations are found/defined. Are they using the same metric, so to speak?

    Each ‘side’ seems to give people the bits of the information that fit their narrative best. Since this topic is so convoluted and complicated for the typical lay person, it’s difficult for me to figure out what the actual situation is.

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    1. Hi, Shawn,

      (I usually don’t reply to comments but I’m having that putzing-around sort of day.) All public companies – all companies regardless of public or private – which sponsor pensions are required to fund them. It is unusual for the USPS to be required to fund its retiree medical, but there’s some justification for that, since FedEx or UPS, to the extent that they provide medical benefits for retirees, can end it at any time, but the USPS can’t. It used to be acceptable to just say, “the Post Office isn’t going anywhere, so why prefund?” but when e-mail started replacing letters, it became clear that this wasn’t a good approach.

      Jane

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  3. Namecalli g by your commentors shows the lack of respect by the right and fundamental misunderstanding of what she said.

    The author even agreed with her and you all missed it. Prefunding 50 years of pensions affects cash flows he said. Of companies did that they would never grow, nor be able to compete.

    Now stop namecalling and actually make a good argument if you can.

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    1. What is the truth in the statement that the post office was unfair competition? Thx and what about the distinction that the prefunding was actually for medical benefits not pension benefits?

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