Operating revenues in the fourth quarter were down just 1%, to $17.7 billion as holiday cards and packages boosted sales. Package shipments rose 4.7% in the quarter, but first-class mail dipped 4%.
The recent announcement that the USPS would end Saturday mail delivery is expected to save $2 billion a year, but that decision still needs Congressional approval and that is not something the USPS can assume will be forthcoming. Congress has expressly denied the Postal Service’s attempts to shut down its Saturday delivery on every previous ocassion.
The biggest problem the USPS faces is the pension pre-funding requirement established in 2006, which forces the Postal Service to provide for the retirement benefits it may have to pay for employees it hasn’t even hired yet. No other entity, public or private, must meet such a requirement. The USPS currently allocates more than $5 billion a year to its pension requirement.
Sponsored: Find a Qualified Financial Advisor
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.