Escrow Contribution Drives Up USPS July Loss
The U.S. Postal Service posted a net loss of $268 million for July. When taking into account a $250 million monthly escrow allocation, the net loss was $518 million.
According to the USPS, the Postal Civil Service Retirement System (CSRS) Funding Act, enacted in 2003, required it to hold $3 billion in an escrow account by Sept. 30, to cover the difference between the CSRS retirement costs before and after the implementation of this law. As a result, the USPS has allocated $250 million per month to cover this cost.
The USPS reported net revenue of $5.5 billion for July, a 4.1 % increase over $3.7 billion last year.
Standard mail revenue was $1.48 billion for July, a 3.8% increase over $1.42 billion last year.
The postal service posted July standard mail volume of 7.62 billion pieces, a 0.9% decrease from 7.7 billion for the prior-year period.
