- The Postal Service ended F2005 with a $1.4 billion surplus AND debt free (compared to the $11 billion debt a few years ago)
- The millions of dollars raised through this increase goes to the U.S. Treasury because
- Congress passed a law in 2003 requiring the Postal Service to create a $3 billion escrow account and the use of these funds to be determined later by Congress (without this new law rates would not have increased last month)
- The Postal Service is now responsible for paying military pensions for former armed services personnel who either work for or are retired from the Postal Service
- If the current system does not change then we can expect more rate increases in shorter periods to fund the escrow account and military benefits
And I thought it was just another cost of living increase or because of income shortfalls of the Postal Service due to the plethora of alternative means of mailing something.
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