According to reports, disgraced cyclist Lance Armstrong is in discussions with the United States Postal Service to return some of the sponsorship monies earned during his tenure on the team. It remains unclear how much Armstrong, who in recent months was stripped of his seven Tour de France titles and banned from cycling for his role in team-organized doping, might return or even how much the USPS paid him and his teammates during its sponsorship. During the team's peak years of 2001 to 2004, however, the USPS likely spent at least $30 million to underwrite the team.
Whatever the amounts that Armstrong may ultimately return, they pale in comparison with the $15.9 billion loss suffered by the USPS in its last fiscal year and the estimated $42 million it loses per day. Part of the problem is that, in 2006, Congress passed legislation requiring the USPS – unlike any other government agency or corporation – to pre-pay its future pension and retiree medical obligations to the tune of approximately $5.5 billion per year. So, while some actuaries predict the demise of the USPS by the end of 2013, it is worth noting that at least the USPS pension funds are currently overfunded by around $11 billion.
For further information visit Waller
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
