If you have heard the words "75 years" and "Post Office" recently you may enjoy a brief digression about how to account for pension liabilities:
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"The Post Office would be profitable if only..." is, to be blunt, a lie. It is an accounting fiction. The Post Office was never profitable. It can never be profitable. The interesting argument to have is "OK, then who covers the shortfall here? We lied. We can lie no more."
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This is not a situation unique to the Post Office. It will apply to almost every public pension. It is hitting the Post Office first because the Post Office is constrained by statute to lie a little less blatantly than most public pensions.
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For more reading on pensions, which are going to be the largest financial crisis the world has ever seen, see http://pensiontsunami.com The site is 15 years old, and this was generally well understood the day they opened and for decades before that.
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