Before you complain about USPS price increases, please understand why it's happening.

[kyleespapa]

There's one aspect of the Post Office I haven't seen mentioned here.  It's called the  Postal Accountability and Enhancement Act and was signed into law on Dec. 20, 2006. 

In accordance with the law, the Post Office is required to pay almost $5 BILLION dollars EVERY YEAR to the federal government.  Basically, it requires the Post Office to prepay employee retirement and health insurance benefits for the next 75 years over a 10 year year period for employees who haven't even been born yet. 

So, when you hear that the Post Office lost 5 Billion dollars last year for example, the reality is that if it weren't for this 5 Billion a year mandate, the Post Office would have made almost $1 Billion in profit last year.  To date, the Post Office has paid almost 40 Billion to the federal government.  No other company in history has ever been forced to do this. 

This mandate was designed to starve the Post Office.  Service cuts are being made, hubs are closing, the quality of service is declining, and prices are rising, exactly what the bill was designed to do.   

Why?  There are several main reasons.

The Postal Union is one of the largest unions in the country.  If the Post Office can be put out of business, the union would go out of business as well. 

The hope is that the functions of the Post Office will be turned over to Fedex and UPS.  However, currently, Fedex and UPS don't deliver to approx. 40% of the addresses in the country.  For these deliveries, they have an agreement with the Post Office and the PO finishes the delivery.  

So, for all of you who live in rural areas, the plan is for you to lose your Post Office and Postal service.   Do you really think Fedex and UPS will deliver a letter for 48 cents.  Do you really think Fedex and UPS will visit every address in the country 6 days a week like the Post Office currently does?  And if you live on a rural delivery route, do you really think Fedex or UPS will drive out to you.  Yea, neither do I. 

Before this law was passed, the Post Office was doing fairly well.  In fact, they were seriously considering going to 100% electric vehicles.   Imagine the shot in the Arm that would have given to the Electric Vehicle industry, and our environment.

And, to make matters worse, what the Post Office can and can't do is controlled by Congress.  The Post Office gets NO government money, 100% of what they earn is by selling postage.  If they could, they would offer all kinds of additional services, such as pack and ship services, computer terminals, and even banking services for unbanked americans.   

The PO has been saddled with this never before seen mandate with the hopes of forcing it to close.  Do you really want to live in a country with no Post Office?  That's what third world countries do, not us.

Virtually every year since the law was passed and signed in 2006, Democrats have sponsored bills to repeal this law.   In most cases, those repeal laws were filibustered in the Senate.  To date, there is an excess of $40 BILLION dollars of Post Office money in the federal coffers.  Democrats have also tried to have those funds refunded to the Post Office to no avail. 

Before you attack me, look it up.  Search and read about the Postal Accountability and Enhancement Act.   We're all entitled to our own opinions, but not our own facts.  What's been happening to the Post Office is a fact, again, look it up.   

As Ebay sellers, shipping rates are critical to our businesses.  If you aren't happy with proposed PO rate increases, contact your Congress reps and Senators and tell them you want an end to the Postal Accountability and Enforcement Act.  Also tell them you want the $40+ Billion dollars already paid refunded to the Post Office.   Imagine what that sudden influx of capital would do for our Post Office. 

[scstool]

Here is a USPS Inspector General Report on the Chinese E-packet shipments.

I found some white papers from the Post Office, but it appears they consider the actual pricing data confidential.

There are a lot of good references at the end of the report. The report even refers to Ebay community discussions about E-packet shipments. So we at least we know the USPS Inspector General's Office looks here.

https://www.uspsoig.gov/sites/default/files/document-library-files/2015/RARC-WP-16-003.pdf

[books...forthememories]

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@sapphireseal wrote:

To be honest, I think the post office does an amazing job.  Considering the size of the United States, it's crazy that we can send stuff from coast to coast as cheaply and quickly as we can.  Especially when it includes packages going to Alaska, Hawaii, and I believe the US possessions like Puerto Rico.

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Amen.

I have shipped over 10,000 packages in the last 15+ years, and only ONE arrived damaged.

That's pretty darned impressive.  

[unscrupulousintangibility]

The small biz mom and pop online sellers will continue to be victimized for the gluttony of the USPS retiree system.

So... contributing 35-40 years to their Civil Service pension they should recieve what... a hearty handshake for their six figure contribution?

They don't qualify for Social Security thru USPS employment.

It will all be water under the bridge thru attrition. All USPS employees hired from 1984 on are under Social Security.

It's basically a death watch for USPS Civil Service pensioners.

[crescent_vinyl]

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@unscrupulousintangibility wrote:

It was a 10 year plan, set to expire next year, which will secure retirement benefits for their employees over the next 75 years (estimated).   If the act was repealed, why should they get the money paid back? The money is going to their employees.

Actually it's a slush fund for the government to tap anytime they wish. They have and will continue to do so. No worries, the shoe wll drop on someone

else's administration.

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It's like a bank. 

Do you think that the money you have saved is sitting there in a vault? They are investing it, they are using it, they are playing with it how they wish and making money off of your money (thats why I have issues with account fees).  It's not so much the fact what they are doing with the money NOW...it's what the money is set asside for. 

The money isn't meant to be there to pay for government expendature, thats just a 'bonus".  It's meant to be there for retirements.  So when a retired USPS needs to tap into the money, it will be guaranteed there by the US governement.  Asking the government to return that money is counterproductive.  It's already there and has its intended purpose.

What I want to know is what act will take it's place next year.  It'll be interesting to see that come to play, knowing what we know now 10years later.  It's a whole different world now.

[kyleespapa]

Again, I see a post calling for a boycott of the USPS.  As I read the thread, there is no mention of the Postal Reform act.  

This is the problem, plain and simple.  When you starve a government agency, or USPS as is being done in this case, and it stops working effectively and has to raise prices, that's exactly the plan.  if you haven't read this thread, take a few minutes and maybe you'll get a better understanding of why this is being done. 

[best_vintage_photos]

Yes, the REAL criminals have set up shop in Washington DC.

[funkyfreshmike.2013]

I am not a government employee and therefore i am not entitled to the great retirement benefits that the postal (or any other govt) employee get - that being said why does the ordinary taxpayer who has little or no retirement benefit (except for what i save and SS) have to constantly subsidize these government employees? 

I'm tired of paying extra taxes and tolls to pay for everyone elses benefits - it shouldn't be my problem.

Let them pay into the system and be responsible for there own benefits...

[cutefunstuff]

I think Americans should be glad we don't have to pay 22% VAT on many items like they do in Europe.   We take for granted many things and complaining over a .50 postage increase should be the least of anyone's worries, especially for items that are NOT NECESSITIES.  If I can't afford to pay an extra whopping .50 cents in shipping, maybe I shouldn't be buying the item.   For the price, USPS does a good job.  My mail main scans my scan sheets when he picks up  my first class packages and most of them get delivered on time.   

[llllady]

Thoughts on the USPS:

1. Overall, they do a very good job.

2. Do we really need delivery 6 days per week? No problem if they drop Saturday, especially if it will save money.

3. Why do they never talk about how much MORE money they are making delivering packages, particularly attributable to e-commerce? Let’s see: (1) Small Flat Rate Box @ $5.95 vs. (12) First Class Letters @ $0.49?  How about (1) Large Flat Rate Box @ $17.90 vs. (36) First Class Letters @ $0.49.

4. They need to make cuts where cuts are long overdue. As an example, there is one post office here in northern NJ where the ratio of SUPERVISORS to all other employees is 1:3.  Do they really need 1 supervisor for every 3 employees?  

5. Why is there no transparency about what it is costing them (actually, the American citizens) to subsidize the Chinese with e-packet?

6. If the pre-funding of the pensions stops, the USPS better be able to dig its way out of the hole, if they do the right things.  If not, they are sure going to have some explaining to do...

[kyleespapa]

Postal Employees already pay into their own retirement.   This act is forcing the USPS to pay retirement and Health Ins costs 75 years in advance for people not even born yet.  No other company or Gov agency has ever had this kind of mandate. 

This act was designed to do exactly what it's doing, decrease service and raise prices, with the end result of privitizing the Post Office.  Do you think Fedex or UPS will deliver a 4 oz package for $2.54.  We as Ebay sellers need to realize what's happening to our Post Office. 

[best_vintage_photos]

I am not a government employee and therefore i am not entitled to the great retirement benefits that the postal (or any other govt) employee get - that being said why does the ordinary taxpayer who has little or no retirement benefit (except for what i save and SS) have to constantly subsidize these government employees? 

I'm tired of paying extra taxes and tolls to pay for everyone elses benefits - it shouldn't be my problem.

Let them pay into the system and be responsible for there own benefits...

funkyfreshmike, 

Simply put, it is because those who rule over the USA and most of the world are not only criminals, but they are the very worst criminals on the planet! They have absolute control over the US Congress, the UK parliament, many other European governments, Tel Aviv, etc.

They are the reason the US and others have been involved in perpetual wars without end, because they profit greatly from those conflicts. There is no other purpose for wars other than massive profits. That is the sad reality. And taxpayers foot the bills while they profit. All soldiers give some, some soldiers give it their all, while guys like Dick Cheney made billions -sad.

The very same criminals that start and profit from all the wars, also manipulate the world's financial markets. For example, the Great Depresion of 1929 did NOT happen by accident, and what happened in 2008 also did NOT happen by accident. All financial crisis have been orchestrated by the world's biggest criminals. That is just another way the rich keep getting richer. while the masses find themselves in situations of distress, the wealthy criminals swoop in buying up their homes, businesses and other assets at pennies on the dollar. And taxpayers are asked to foot the bill for the big bank bailouts. This system is as gangster as it gets!

I could go on and on about this, but promise that i won't. But yes, you are right. The taxpayers also foot the bill for the lavish retiremnet deals for members of congress, and their top notch healthcare, which, btw, is NOT Obamacare.

They control pretty much everything from what people see on TV, read in newspapers, magazines, etc. to basically how everyone is allowed to live. They have the power to force each and every one of us into dire poverty, but they are smart enough to allow enough of us to live in various levels of comfort to avoid any possible chaos and revolt. But they do keep squeezing us little by little. Some of can see what has been going on, but many do not. Some of us know just who the real bad guys are in this world, and they are not the ones sitting in prisons. Simply put, they are the wealthiest 'people' on the planet. And they did NOT get their money by working hard. They became wealthy from treachery, theivery on grand scales, and profiting massively via acts of genocide. They are smart. I will grant them that, but their intelligence is only outdone by their greed and evilness.

They already have so much, so a reasonable person would ask: why do they keep doing what they are doing? They DO already have more money than God! The answer is simple. They eventually want it all. Your house, my house and every single asset on the planet! Their end game - most of us will either be dead or enslaved to them. If things keep going the way they have been going, we will own nothing, and they will own everything.

[scstool]

Lillady,

Good questions, I especially like #5. As I have mentioned before the USPS is secretive about the actual rate structure for the E-packets.

As far as #2, The USPS claims that First class mail delivery is their most profitable service at I think 52 or 54%. 

Now there are others who have speculated that this crisis of funding the pension plans was actually an attempt going back 45 years by Pitney Bowes and FMC to completely privatize the Postal Service and make the operation look so unprofitable that no other business would want the contract. In other words forcing the funding of the pension plan was a deliberate attempt to sink the ship. And there is no doubt the ship is sinking.

If you are bored and want a good, but lengthy read here is the link for the Complaint by Frederick Foster to the Postal Regulatory Commission . Basically Foster claims and seems to have evidence that he submitted concepts for the Virtual Post Office Box/Internet Passport back in 2007 that were illegally passed on to Pitney Bowes. This read goes off into other areas such as illegal campaign contributions by Federal Contractors and a lot more. It would take me a week of spare time to read everything. All the legal proceedings are there. It might make a good book. Maybe even a good movie if someone gets whacked.

http://www.prc.gov/docs/92/92583/COMPLAINT%20OF%20FREDERICK%20FOSTER%20PRC%20a.pdf

One of the interesting things in the document is the concept of what I call "back dock" operations that would apply to small sellers. I think the concept would remove the need for service counter operations for small sellers, but unlike the current system we would have absolute proof of shipment without relying on a Postal worker scanning the package.

[rschissler]

A lot of whiners here, always complaining about what someone else has, that they don't. Like it's better to bring someone else down. "Why should anyone have better retirement benefits than I have?  Why should anyone have better health benefits than I do?  Why should I have to pay for someone elses Social Security?  Why should someone else get free coffee when I don't?   Why can't they lower the minimum wage here, so we can  compete with China, India, Pakistan, Vietnam, etc.?  Why can't we bring back slavery?

[scstool]

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@rschissler wrote:

A lot of whiners here, always complaining about what someone else has, that they don't. Like it's better to bring someone else down. "Why should anyone have better retirement benefits than I have?  Why should anyone have better health benefits than I do?  Why should I have to pay for someone elses Social Security?  Why should someone else get free coffee when I don't?   Why can't they lower the minimum wage here, so we can  compete with China, India, Pakistan, Vietnam, etc.?  Why can't we bring back slavery?

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Why can't someone else answer all those questions?

[my_boston_baked_beans]

Wow! Sounds like we should all apply for USPS jobs or any government job that meets those requirements as the other business community's are not held responsible for any of that!