USPS Still Contending with Staggering Deficit, Despite Revenue Gains

The United States Postal Service posted impressive revenue gains in the second quarter of 2015, though the agency is still losing money and contending with a Congressional mandate that forces it to prefund retiree healthcare benefits.

According to the USPS, the agency finished its second quarter of fiscal year 2015 (January 1 – March 31) with an operating revenue increase of $223 million and an operating expense decline of $160 million.

Overall, however, the postal service posted a net loss of $1.5 billion, which officials mostly blame on the forced retiree healthcare benefit mandate by Congress.

In other words, the agency’s loss would have been $44 million, if it didn’t have to provide advance funding to that benefit to offset future liabilities, according to its latest quarterly report.

“We also took significant steps during the quarter to improve our long-term operating model, which will help drive greater long-term efficiencies throughout our network,” Postmaster General and Chief Executive Officer Megan Brennan said in a statement.

Ultimately, the USPS continues to face staggering declines in total mail volume — a loss of 420 million pieces of mail sent in Q2 Fiscal 2015 (37.7 total billion pieces) compared to 38.2 billion pieces sent during the same financial reporting period last year.

First class and standard mail volumes fell 2.1 percent and 1.1 percent, respectively, in Q2 Fiscal 2015, compared to the same financial reporting period last year.

While the fiscal outlook for the postal service has improved, the agency is also hamstrung by declining consumer demand and Congress’ lack of action to help it overcome its fiscal woes.

Do you work for the postal service?

If you are currently working for the postal service, we tell you this because we don’t want the USPS fiscal house of cards, ostensibly, to affect your benefits and retirement.

In the past, the agency and Congress has proposed significant changes to your pay and benefits. Workers have been laid off. If historic trends are any indication, additional labor cutbacks are fairly certain.

We urge you to begin taking a close look at your pay and benefits today and decide whether you can realistically secure the retirement you desire. It’s best to be prepared, especially if some new rule, or modification to your retirement package, is handed down by USPS executives or from Washington.

We can help you get this process started