Washington, D.C.—Postmaster General Patrick Donahoe appealed to a Senate oversight committee Tuesday to make a “collaborative effort” with the U.S. Postal Service to help it avoid default and to shore up its future ability to function effectively.
Anticipating a record $10 billion loss for its fiscal year ending Sept. 30, Donahoe requested congressional action that would eliminate the Postal Service's annual $5.5 billion prefunding of retiree health benefits, refund to it what he characterized as other retirement fund overpayments totaling $6.9 billion, allow the Postal Service to determine mail delivery frequency (and possibly eliminate Saturday delivery) and permit it to determine its own pricing and product development processes and restructure its healthcare and pension systems.
“The Postal Service has a proven track record, especially in the past decade, of removing costs from the system,” said Donahoe in a statement.
“Our actions alone will not be enough, however. This must be a collaborative effort, one which includes legislative changes.”