New postal workers would no longer earn a pension under preliminary business plan

The U.S. Postal Service, facing pressure from Congress to propose initiatives to ensure the agency’s long-term viability, is floating a business plan that would include significant cuts to employees’ take-home pay and benefits.

USPS included a hike to the employee contribution level for pensions in a first draft of a 10-year business plan presented to lawmakers and stakeholders, according to multiple people who were briefed on it, as well as phasing out pensions altogether for new hires in favor of a defined-contribution system only. The Postal Service is looking to cut the amount of paid time off employees receive by merging annual and sick leave and pitched a popular proposal with demonstrated bipartisan backing to require all postal retirees to enroll in Medicare as their primary insurance provider.

The mailing agency suggested it resume closures of mail processing plants, according to those briefed by management, a controversial practice it has used to reduce its vast physical footprint and shed workers. USPS stopped closing the facilities amid congressional pushback and intensifying talks for a legislative overhaul to the agency. Last year, the Postal Service inspector general found the agency realized just 5% of its projected savings from the consolidation plan.

USPS told those briefed on its plan that it was still subject to change. At a hearing in April, lawmakers grilled Postmaster General Megan Brennan on why the agency had failed to produce a 10-year business plan and indicated they would not move forward on legislative reforms USPS has said it desperately needs without first viewing the document. The details of the business plan were first reported by HuffPost.

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It’s just to bad these big shots don’t start the cuts with themselves. That’s where the biggest part of the money goes. So…it will never be fixed. And good luck getting anybody to want to work for the PO.

The number of people making huge salaries is a drop in the bucket compared to the burden a defined benefit pension plan imposes on the finances of the USPS.

many ways the po could add to revenue..postal banking..addmail…before digging into the pockets of the workers..

Managers and district heads are the ones making the failed financial decisions…why does the pmg refuse to fire poor performing managers?

Exactly…. Start from the top. Those up there in charge can never do what the employees do. Get rid of the non worthy management and you will see how much is saved throughout the country.

This is what has happened to our country all along big business has taken and taken from employees. Now no one is paid what they deserve, and the only ones able to live are the rich. Leave our us post office alone!

I agree, George Bush made them go in red by making them fund pensions 75 years in advance, no other company has to do this, the GOP way of destroying a service we all benefit from.

Who’s paying these people to make the USPS so bad? Has to be people who would profit if it was privatized! Who would want to be a carrier with no benefits? Why management, are you trying to run USPS into the ground? The mail binds the country, it’s mandated in the Constitution. Do the right thing. Make Ben Franklin proud!

Blame Congress and the lobbyists.

How about cut the none workers( management, bean counters , people that do not touch the mail.)

perhaps they should stop making them fund their retirement plans 75 years in advance, this came under George Bush, remember him, the war criminal. This is why they are in the red, this is how GOP destroys a good service that helps people like me in small business. Fedex executive Mr Smith and other private companies want to put them out of business, fedex rates are out of control and think of how much they will charge when there is less competition. Members of congress need to live on SS and medicare, see how well it works for them. Wake… Read more »

Let’s not forget the Unions backed that plan at the time. They act like they had nothing to do with it now. If they want us to run like a business then congress and other companies lobbying for our rates to be so low should let us set our rates. We started making money again when we had the rates temporarily raised but the big mailers didn’t want to have to pay those few pennies extra per letter so they lobbied to get rid of it.

They are doing it for their rich donors who want to buy the Post Office after they kill it and make ALL rates skyrocket and service go straight to hell.

If you take away the benefits that make the job worth keeping, you lessen the sanctity of the mail. You get what you pay for. The TRUE problem is the redundant levels of management employees and the money THEY spend. Relocations ALONE cause a huge hemorrhage of finances. Not to mention the requirement to fund health insurance for retirees who haven’t even been hired yet, 75 years in the future.

One has to ask why they are losing their pension since it was being funded for 75 years into the future and is the major reason for deficits now. Where in hell has that money gone to if it’s not being used for it’s supposed purpose? That’s the real question.

It wasn’t the pensions that was being funded 75 years into the future, but retirees health benefits.

Now’s the time Union sisters and brothers…..walk out, demand the new hires be treated fairly! Go out on a limp….Protest, fight! Oh wait, you wont, you will just shrivel up and blame Trump, the Govt., or something else. Now the time.

Would be nice. But the mou to the contract back in 1971 makes it to where postal workers can’t strike.

You know that trump would pull a reagan and fire them all. A lot of them really need those jobs. They don’t all have steel balls like you think that you have.

NEWMAN!

Bernie Sanders will save the US postal service and return banking services to it, who will be a win win. We need the comprehensive policies of Bernie 2020

Such BULLSHIT!!

Looks like its time to find another job. Taking away whats in place and working these hours with one weekend off in a month is a no when I can work at another job with better
and my weekends. BYe!!!!!

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