WASHINGTON -- Rep. Darrell Issa on Wednesday called for the U.S. Postal Service to clean itself up to avoid a potential taxpayer bailout, after the broke mail service announced it is suspending its employer contribution to its pension plan.
The post office said it has informed the Office of Personnel Management that the $115 million payment to the Federal Employee Retirement System made every two weeks will be suspended effective Friday. The action is expected to free about $800 million in the current fiscal year. The post office's FERS account currently has a surplus of $6.9 billion, the agency said.
"We will continue to transmit to OPM employees' contributions to FERS and also will continue to transmit employer automatic and matching contributions and employee contributions to the Thrift Savings Plan," said Anthony Vegliante, chief human resources officer for the post office.
Issa, R-Calif., pointed out that the $800 million in savings doesn't even account for 10 percent of USPS' $8.3 billion deficit last year.
"The United States Postal Service, our nation's second largest employer, is now past the brink of insolvency," said Issa, chairman of the House Oversight and Government Reform Committee.
"This would not be tolerated in a private company. ... USPS needs fundamental structural and financial reforms to cut costs and protect taxpayers from an expensive bailout," Issa said.
Read more: http://www.foxnews.com/politics/2011/06/22/issa-warns-new-bailout-as-postal-service-suspends-pension-contributions/#ixzz1Q6n8qqS8
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