This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

10 Remedies for an Ailing Postal Service

Legislative action
The 800-pound gorilla in the room regarding the Postal Service deficit is a Congressionally mandated schedule -- of about $5.5 billion in pre-funding payments each year -- to stave off potential liabilities in its employee pension fund.

A statement by unions taking part in the rally Tuesday stresses that the current shortfall "doesn't result from mail delivery."

"The $20 billion in postal losses you've heard about stems from a 2006 congressional mandate that the Postal Service pre-fund future retiree health benefits for the next 75 years and do so within a decade -- a burden no other public agency or private firm faces," the statement reads. "The Postal Service is actually paying, out of its operating budget, for the future retiree benefits of people who haven't been born yet. That cost -- $21 billion since 2007 -- accounts for 100% of the agency's red ink over that period."

"The importance of dealing with the pension system, first and foremost, cannot be overstated," Hutkins says. "This deficit is an imaginary thing that was created by Congress demanding how the Postal Service funds its pension and retiree health care programs. So what you have is, essentially, a manufactured crisis, not a real one."

"The other big financial problem, which also has nothing to do with the mail, is that the Postal Service doesn't have access to tens of billions of dollars of earned revenue that are sitting in surplus funds," the statement by postal unions adds. "As a quasi-public agency, it needs Congress to give it access to its own money."

The various postal unions have voiced their support of H.R. 1351, the United States Postal Service's Pension Obligation Recalculation and Restoration Act of 2011, filed by U.S. Rep. Stephen Lynch, D-Mass. The bill, which has bipartisan support and more than 200 co-sponsors, seeks to remedy the pre-funding issue by restructuring the annual payment and refunding nearly $7 billion critics say was overpaid. The Obama administration favors the refund.

3 of 12

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,106.70 +29.83 0.17%
S&P 500 2,000.02 +2.10 0.11%
NASDAQ 4,570.6370 +13.29 0.29%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs