by Brianna Panzica, Wealth Wire:
The United States Postal Service is struggling to maintain its services.
The USPS reported tripled losses in the 2012 fiscal year, which ended September 30, losing $15.9 billion compared to last year’s $5.1 billion.
Competition from private groups has hurt the Postal Service in recent years. The group also cited issues with retirement benefit funding as one of the main contributions to its losses.
It was able to stay ahead of competitors like FedEx and UPS in parcel delivery, bringing in $11.5 billion in revenue – 8.7 percent higher. But mail volume was down 5.1%.
Under its retirement plan, the Postal Service has to fund into the future, preparing for heath obligations for future retirees. This sort of funding is different from most other agencies, and it has weighed on the service, particularly in recent years.