The U.S. Postal Service delivery workforce consists of city and rural letter carriers, who perform similar duties, but have differences in compensation and work rules. City letter carriers typically work routes that are high density and low mileage. These routes are classified as either “mounted” routes (for those that require a vehicle) or “walking” routes (for those that are done on foot). City letter carriers are also given a $371 per year uniform allowance.
Rural letter carriers typically work routes that have a lower density of delivery points and higher mileage than those of city letter carriers. They work mounted routes, leaving their vehicles only to deliver to grouped mailboxes or to deliver an item that must be taken to a customer’s door. However, rural routes have expanded to suburbs and exurbs, which are more densely populated and urbanized. These routes are similar to mounted “city” routes.Read More
To borrow a saying often attributed to Yogi Berra, “It’s tough to make predictions, especially about the future.” Whenever people make estimates about liabilities for long- term expenses, such as pension and retiree health payments, they’re making predictions about the future. The problem is that predictions are based on the present, and the present is always changing.
Since 1992, the Postal Service has had a surplus in the Federal Employees’ Retirement System (FERS) program, according to the Office of Personnel Management (OPM). A surplus occurs when assets exceed the amount of the liability. In October, the OIG released a white paper called Causes of the Postal Service FERS Surplus. The paper, produced with the assistance of Hay Group actuarial firm, examined the reasons behind the FERS surplus.Read More
The U.S. Postal Service is about the best in the world at providing its core service of mail delivery. In fact, its ability to deliver mail and return undeliverable mail to the sender effectively makes the United States government one of the most efficient in the world, according to a working paper by National Bureau of Economic Research.
A group of economists rated the efficiency of the world’s governments with a simple test of their postal systems. The group mailed fake letters to nonexistent businesses in 159 countries and waited a year to see which were sent back to a professor at Dartmouth College in New Hampshire. The goal was to use a simple, universal service to explore why, other than corruption, developing countries tend to have poorly performing governments. All the letters went to countries that subscribe to the Universal Postal Union, which requires that incorrectly addressed mail be returned within a month.Read More