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DeFazio And Allies Target 'Ridiculous' Pre-Funding Mandate For USPS Retirees

Kim Brookes
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Flickr.com

The pre-funding of health benefits for U.S. postal retirees would end, if a bill backed by Oregon Congressman Peter DeFazio becomes law.

Since 2007, the U.S. Postal Service (USPS) has been required to make annual payments of more than $5 billion to its health benefits fund, under the Postal Accountability and Enhancement Act of 2006. 

The USPS Office of Inspector General says of $62 billion lost in a ten-year period, $55 billion is due to the mandate.

Credit Brian Bull / KLCC
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KLCC
Oregon Democratic Congressman Peter DeFazio.

DeFazio calls it “ridiculous.”

“There’s no other part of the federal government, no corporation in America, no one that I’m aware of, is pre-paying health care for people who work for them, who might someday retire from that agency.”

DeFazio says the USPS can’t invest in services and technology, because of the mandate. The bill has bipartisan support in the House.

Copyright 2019, KLCC.

Brian Bull is an assistant professor of journalism at the University of Oregon, and remains a contributor to the KLCC news department. He began working with KLCC in June 2016.   In his 27+ years as a public media journalist, he's worked at NPR, Twin Cities Public Television, South Dakota Public Broadcasting, Wisconsin Public Radio, and ideastream in Cleveland. His reporting has netted dozens of accolades, including four national Edward R. Murrow Awards (22 regional),  the Ohio Associated Press' Best Reporter Award, Best Radio Reporter from  the Native American Journalists Association, and the PRNDI/NEFE Award for Excellence in Consumer Finance Reporting.
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