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Politics & Government

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

Kim Brookes

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
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.

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