The US government plans to reform the bill! Cut USPS spending by $50 billion!

The U.S. House of Representatives will vote on Tuesday on a bipartisan reform bill that would cut the U.S. Postal Service’s (USPS) financial burden by about $50 billion over a decade and require future retirees to participate in the government’s health insurance program.

The USPS has reported a net loss of more than $90 billion since 2007. One reason is that 2006 legislation required it to pre-fund decades of retiree health benefit premiums, which amounted to $120 billion. House Oversight Committee Chairwoman Carolyn Maloney said on Monday that the bill would help the USPS get back on its feet and save about $50 billion over 10 years.

The bill eliminates the USPS's pre-funding requirement for 75 years of health benefits for current and retired employees (applies only to the USPS, not other federal agencies and private companies). The USPS expects it will significantly reduce its pre-funding liabilities and save about $27 billion in fiscal spending over 10 years.

In addition, the bill requires future retirees to join health insurance. So far, about 25% of USPS retirees do not participate in health insurance even if they are eligible, which causes USPS to pay higher premiums than other employers. USPS estimates that this change will cut about $22.6 billion over 10 years.

The White House and the postal workers union and the Greeting Card Association all support the bill, and Amazon, one of USPS's largest customers, has also expressed strong support for the legislation. If approved, the bill will go to the U.S. Senate for consideration.

Editor✎Irene/

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