Monterey, CA Postal Service May Default On More Than $10 Billion In Retiree Benefit Payments

by Richard Kuehn on 07/20/12

View From A Non-Profit Serving Carmel, Carmel Valley, Carmel-by-the-Sea, Gonzalez, Greenfield, King City, Marina, Monterey, Pacific Grove, Pebble Beach, Salinas, Seaside And Soledad California

 

There was a time in this country when getting a federal job, or one with the U.S. postal service, was a great long-term career plan ending up with a nice pension and great medical benefits.  Those days are disappearing quickly.  The city of Stockton, for instance, recently filed for bankruptcy and is trying to get out of paying some retiree benefits.  And just this week, the U. S. Postal Service said that mounting losses will cause them to default on making their annual payment for retiree benefits.  This is the first time in history it's happened, and shows what a sad state of affairs this institution is in.  The USPS is supposed to pay a whopping $5.5 billion by August 1, and another payment of $5.6 billion is due in September.  They also need to pay $1.5 billion to the department of labor for workers compensation costs.  This organization needs to be radically restructured.  It seems ridiculous that postal rates go up by pennies at a time when clearly the 44 cent stamp doesn't come anywhere near covering costs.  Hopefully, the U.S. Congress will come in and do something to save these retirees.

 

http://www.montereyherald.com/rss/ci_21105011?source=rss

 

http://www.ideamarketers.com/?pension,_retire,_monterey,_salinas,_&articleid=3363870

 

 

About Richard Kuehn & Hands to Help Seniors:

 

After more than a decade of caregiving, both in a professional environment and for a 97 year old family member, it became clear to me that there are many seniors that can't afford to pay for a private duty caregiver, not to mention medical expenses, food and property taxes on their home.  I decided to form a non-profit to help seniors with any service they might need to get by, should they be unable to afford this themselves.  From putting on a new roof to providing a hot meal, Hands to Help Seniors is there to help.  Please visit my blog where I talk about important senior issues at:

 

http://www.h2hs.org/news-and-media.html

 

Please note that this blog reflects my personal opinion and may or may not reflect the opinion of HandsTo Help Seniors and the individual members comprising the Board of Governors.