Historic Juncture for the USPS and Mailers

USPS Closing

The struggle between the USPS and bulk mailers is far from over and it seems that mailing reform needs to start sooner rather than later. The issue is the decrease of mailing and the increase of prices to cover many of the expenses and pensions for the USPS. Below we outlined some staggering numbers from the article by Al Urbanski at DM News.

Take a look and let us know what you think.

Did you know?

Of the $46 billion dollars USPS collected in postage for market-dominant products in which it owns a monopoly, nearly $36 billion was accounted for by Standard Mail, Flats, and presort First Class Mail paid for by business mailers

Some critical numbers in today’s situation for both direct mailers and the Post Office:

4.3% Amount of the exigent increase that went into effect in January, along with a 1.6% increase attached to the Consumer Price Index

This first-ever exigent—or emergency—increase was approved by the Postal Regulatory Commission with the stipulation that it be removed in two years or with the collection of $2.8 billion in incremental income. The USPS has filed suit to make the increase permanent, while mailers have gone to court to have it removed.

$40 billion Amount by which Postal Service liabilities exceed its assets

This was brought on by declining mail volumes, as well as obligations to pref-und its Retirees Health Benefits (RHB) well into the 21st century and its over-funding of the Federal Employees Retirement System (FERS).

$5.6 billion Approximate amount the USPS is required to pay into the RHB fund annually, a payment it has failed to make in each of the last three years

The pre-funding program mandated by the Postal Accountability and Enhancement Act in 2006 heavily preloaded payments in the first 10 years of the plan.

$15 billion Amount the Postal Service owes to the U.S. Treasury—its lending limit

0 Amount of tax dollars USPS receives from the federal government

$487 million Increase in 2013 Standard Mail postage that contributed to the Postal Service’s first revenue increase since 2008


Source: DM News

Leave a Reply

Your email address will not be published. Required fields are marked *