USPS OIG Report: Analysis of Historical Mail Volume Trends
The decline in Market Dominant mail volume discussed in this paper has fundamental effects on the Postal Service’s financial health.
Tag: USPS OIG White Paper
USPS OIG Report: Trends in the Postal Service’s Workforce Composition
The Postal Service is facing a possible retirement wave, with many employees currently eligible to retire or approaching retirement eligibility in all five crafts.
USPS OIG: The Price of a Stamp – An International Comparison
In part due to the scale and scope of the U.S. Mail market as well as differences in regulatory frameworks — such as universal service obligations and price caps — the 2023 price of a standard domestic letter in the U.S. was nearly half the average price in our 31 sampled countries. Stamp prices in…
Postal Retirement Funds in Perspective: Historical Evolution and Ongoing Challenges
Retirement-related costs were 11.7 percent of operating expenses in FY 2023, a significant cost for the Postal Service. USPS has higher retirement liabilities than other agencies and must pay these costs through revenue rather than through congressional appropriations. The Postal Service has no control over levers that might decrease costs or generate higher fund balances….
USPS OIG White Paper: Examining Alternative Inflation Indices for Regulating Market Dominant Price Increases
The Postal Accountability and Enhancement Act capped price increases for Market Dominant products (such as First-Class Mail) at the rate of inflation as measured by the Consumer Price Index for All Urban Consumers (CPI-U). The OIG examined the potential impact on USPS’s price authority, revenue, and inflation cost coverage if, since fiscal year (FY) 2011,…
USPS OIG Report: Industry Trends – Major Investments in Postal Processing Networks
Changing market conditions have created a challenging environment for the Postal Service and other postal and logistics operators, specifically in handling the increasing share of packages in the mail mix. Established operators are also facing increased competition from local and regional players. Operators are at various stages of responding to declining mail revenue by investing…
USPS OIG Report: Historical Analysis of USPS Retirement Fund Returns
April 26, 2023 By law, the Postal Service’s retiree assets are invested exclusively in U.S. Treasury securities, which pose little risk and generate low investment returns. If the Postal Service wanted to invest in other assets, congressional action would be required. An OIG analysis found the Postal Service could have had $1.2 trillion in retirement…
The Postal Service in the 21st Century: A Recent History
The Postal Service weathered enormous challenges since the turn of the new millennium, including the 9/11 and anthrax attacks, the Great Recession, and the COVID-19 pandemic. Declining mail volume accelerated by electronic diversion strained USPS finances, and the agency made substantial investments in its package business. Efforts to restore the Postal Service to financial health…