President Obama’s Postal Service Rescue Plan

President Obama and his administration has a plan that would rescue the United States Postal Service which includes cutting Saturday mail delivery and sell non-postal products. This plan was introduced along with a deficit reduction package which would refund six point nine billion dollars the mail carriers claims they overpaid into a federal retirement fund and restructure a big annual payment to prefund health benefits for retirees.

With this plan, in the next few years, the United States Postal Service would save more than twenty billion dollars. The core business of the Postal Service has diminished as consumers are using online bill paying and email more than regular mail services. They are still planning on reducing the payroll by two hundred thousand twenty by 2015 and also at its three hundred processing facilities and thousands of post offices for possible closures.

The Postal Service is saying that the weekend mail traffic is not heavy enough to support delivery of mail on Saturday. In Congress many lawmakers support a five day a week mail delivery but they are still not in agreement as to how to overhaul the United States Postal Service agency.

The Postal Service relies on getting its money from the sale of stamps, mailing packages, and other services but not tax dollars and in the last quarter they have lost more than three billion dollars. At the end of September the Postal Service will default on the five point five billion dollar retiree health payment if Congress does not provide relief.