A new report from the Government Accountability Office
cites the postal services financial liabilities and
obligations of about $70 to $80 billion, including about
$50 billion to $60 billion in unfunded retiree health
benefits as one pressing need for reform.
“Progress is needed to move toward pre-funding these
benefits, and to increase productivity to offset rising
costs, rationalize the service’s infrastructure and
workforce, and implement more market-based and
performance-oriented compensation systems for all
employees,” according to GAO-05-453T.
It said that limited flexibility and the limited
incentives under current law hamper that process.
