Cummings Issues Statement on Postal Service's Quarterly Earnings
Washington, D.C. (Feb. 7, 2014)— Today, Rep. Elijah E. Cummings, Ranking Member of the House Committee on Oversight and Government Reform, issued a statement on the U.S. Postal Service’s announcement that the agency experienced a net loss of $354 million in the first quarter of 2014, which includes $1.4 billion in accrued expenses for the legally mandated prefunding payment of retiree health benefits. Currently, USPS has $16.7 billion in defaulted payments that were due for 2012 and 2013.
“If not for the mandate requiring the Postal Service prefund its retiree health care benefits, the Postal Service would have reported a substantial profit in the first quarter of fiscal year 2014,” Cummings said. “Congress should pass comprehensive bi-partisan reform legislation that restructures the prefunding requirement. Such legislation should also enable the Postal Service to introduce new products and services, including financial services, which the Postal Service’s Inspector General recently concluded could provide a significant new revenue stream to the Postal Service while saving consumers money.”