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Search Tags: Joe Corbett
The U.S. Postal Service said Friday it lost $1.9 billion over the last three months and warned that losses would continue to mount without help from Congress. The loss for the financial quarter ending March 31 was narrower than a $3.2 billion loss for the same period last year, thanks to slightly higher revenues and lower payments towards health benefits for workers who will retire in the future.
Surplus payments the Postal Service made to the Federal Employee Retirement System are much smaller than once thought. Last year, the surplus was estimated to be $11.4 billion. But because of a reduction in projected long-term interest rates, OPM estimated the surplus would drop to $2.6 billion. SPS had wanted to use those overpayments to pay down some of its debts
The Postal Service's revamped five-year business plan, which is aimed at putting the troubled agency on firmer financial ground, is made up of a number of elements. But Joe Corbett, the USPS chief financial officer, said that all of the changes the agency recommends need to be taken up in order to restore the Postal Service to financial stability.
The Postal Service's strategic five-year plan proposes cutting the workforce by 155,000 by 2016 and creating its own health benefit program for employees and retirees to return to financial stability.
The Postal Service said large losses would continue until the agency can trim its workforce, close some facilities, and restructure its healthcare program. The Postal Service posted a total loss of $5.1 billion in fiscal 2011.
Despite cutting 100,000 jobs over the past two years, CFO Joe Corbett tells Federal News Radio the USPS may not be able to stay liquid much past the next year.