PMG Says Post Office Is Running Out of Money

The Associated Press is reporting that Postmaster General John Potter told Congress that the post office will run out of money this year unless it gets help. Potter also sought permission to cut delivery to five days a week in testimony before the Federal Workforce, Postal Service and the District of Columbia subcommittee hearing on the financial stability of the Postal Service.

The agency lost $2.8 billion last year and is looking at much larger losses this year. Reducing mail delivery from six days to five days a week could save $3.5 billion annually, Potter said.

Lawmakers also raised questions regarding recent news reports that Potter is paid as much as $800,000 a year. That is not correct, Potter said. He said his salary, set by Congress, is $263,575. He said the news reports were counting his retirement fund, the cost of his security detail and a $135,000 bonus that would be paid over 10years after he retires.

The bonus is based on improved delivery rates and customer satisfaction, he said. Under the current financial conditions, Potter said, he would not be eligible for a bonus this year.

Shown above, Postmaster General John Potter testifying on Capitol Hill.

To read the entire article, click here.