The Government Accountabilty Office released a report Thursday endorsing the U.S. Postal Service's idea to withdraw its retirees and current employees from the Federal Employee Health Benefit Program and start its own health plan.
The GAO said the Post Office would save a great deal of money in doing this and eliminate its unfunded retiree health benefit liability.
The Postal Service has been plagued by financial problems over the past few years as more communication goes digital and first-class mail volumes fall. But the two areas that have contributed the most to the financial crisis within the USPS are retiree and health benefits — both of which have drowned it in unfunded liabilities. Under a 2006 congressional mandate, the Postal Service is required to make billions of dollars in advance payments to cover expected health care costs for future retirees.
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