Home Finance Why FedEx and UPS Could Benefit From the Post Office’s Pension Problem

Why FedEx and UPS Could Benefit From the Post Office’s Pension Problem

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Why FedEx and UPS Could Benefit From the Post Office’s Pension Problem

Just how much money the CBO and other agencies say that was stolen by congress from the USPS retirement system? Estimates ranged from $80 billion to 110 billion. FERS, which every employee hired since 1984 is on, 35 years since the inception. That it pays only 1% vs. the nearly 2% that CSRS pays its retirees. Most CSRS employees are retired, or nearing retirement. Many are entering advanced age and will not be drawing for the far future.

140,000 are non-career and get nothing in retirement. The age for full retirement has risen, meaning most will collect less for their remaining years. FERS employees contribute to both FERS retirement and to Social Security. The reduction in force of 400,000 career employees in the past 10 years, or so. That FERS employees hired after 2013 contribute 10.6 percent of their pay to Social Security and the complete USPS retirement system. In 2018, those under CSRS in the retirement system had already dropped to 69% and drops in percentage every year. 70% of those that retired that year were FERS. Between dying and the continued drop in numbers of CSRS eligible the percent will be less than 20 percent in 10 years.

No, the answer is the United States Postal Service. For starters, the USPS loses about $400 million each month, but the losses aren't its biggest problem. Fixing the financial standing of the mail service isn't easy, but it could turn into a big benefit to publicly traded parcel shippers—a benefit that would dwarf current concerns, such as new competition from (AMZN) (AMZN).

Full article here.