Date: February 5, 2020
Subject: Increasing Unfunded Liabilities by Removing a Fiscal Safeguard at the U.S. Postal Service
Description: The USPS Fairness Act, sponsored by Rep. DeFazio (D-OR), would impose enormous additional unfunded liabilities on taxpayers by removing a critical fiscal safeguard at the United States Postal Service (USPS). Specifically, the bill would repeal a provision of the 2006 Postal Accountability and Enhancement Act which requires USPS to prepay the future retirement benefits of its employees. As a result, taxpayers would be exposed to even greater unfunded liabilities. Encouraging the USPS to further deviate from wise fiscal management is especially reckless considering the Postal Service Retiree Health Benefits Fund has an abysmal funding ratio of merely 41%. ACU has long-opposed Congress' nasty habit of "kicking the can down the road" and supports reining in and reforming the USPS rather than recklessly driving up taxpayer burdens.
Result: Agreed to, 309-106
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