Forever Stamps "Forever?"

I just read an on-line article about the new 2011 Alan Shepard stamp and it concluded with the following statement about its denomination:




I suppose it makes sense, but has anyone else heard of these plans?

There was a little write up on this in Linns, and maybe the final issue of SSM? I don't think I've noticed it in the mainstream media.

Sounds like an accounting nightmare, to me. I would think the USPS will have to keep an ever-larger amount on the books for the potential redemptions, but I'm not sure how that works.

Anyone know how long the liability has to be accounted for?

One could create an equation based on total stamps sold and total stamps used (this could be found by taking total revenue and subtract mail label and ancillary mail service sales). Then one can extend the calculation to apply to the remainder of unused postage over the next several years. Using this formula you would quickly find the point of greatly diminishing returns and could then give a decent estimate of the amount of unused postage that is likely to be used in the ensuing time period. I have not been able to get my hands on all the requisite information to complete this calculation.

Who- or whatever it is that audits the USPS must not get too hung up on this, or USPS wouldn't be expanding the program.

One further thought that occurred to me. If the USPS converts to all "Forever" stamps, then they eliminate the need to have to print "make up" postage stamps for the old denomination. The savings there alone could be considerable.

I should have posted this before, but here's the link on where I got this info. It looks like they used Linn's as their source also:

http://www.collectspace.com/news/news-112310a.html

One other thing: Does anyone know why the USPS "quietly announced" these space issues for 2011? Wouldn't a news blitz about them be more effective to get people interested in the stamps and/or in a topical space collection? (Maybe it has to do with the poor PR that might be generated as the USPS still seeks a postage rate increase?)

"Forever" only applies to first class, so they would still need some makeup stamps for adjustments to the 61c and 64c rates, among others (I would think...unless I don't understand how the new Forevers interrelate with the other rates).

In the USPS philately mag they do mention other "Forever" stamps. Some of them will be for the Christmas season. They noted four floral types.

The UK and many other European countries have had this for some time for many stamps - so in the UK there is a Machin definitive labelled "1st" which will cover the first class postage for an ordinary sized letter for the first weight step (currently 100 g, ie about 3.5 oz). When postal rates change, the letter is still valid. I have no idea how the accountants deal with this in terms of stock value when prices go up - but I guess that they ignore the issue of whether users have bought the stamps at the old price or new price, too complicated to bother with . . .

Stanley Gibbons calls this "NVI" ("no value indicated"). Other UK NVIs are 2nd, "1st large" and "2nd large" (for larger or thicker envelopes). In the past they have also had "E", for basic rate into the European Union, but not any more. And there was one Machin issue for airmail rates. Most UK commemorative issues have numeric values, but the Christmas set has the four basic NVIs, and sometimes other definitives have 1st or 2nd class NVIs. France, Sweden, Poland etc all have similar systems.

Canada too, with our <P> Permanent non-denominated stamps meant for up to 30 grams within Canada and can be used also to make up larger rates.

Actually Picture Postage personalized stamps were non-denominated starting years ago (2000?), but for general consumption the flower, flag, Olympic and Queen definitives (I think of them that way as they are small-sized) were not changed until just a few years ago

We still have small 1c to 25c definitives (insects now) as rate make up stamps.

But the UK stamps may not be forever ! So it may not quite be the same as the USA and elsewhere.

It depends on what decisions are taken when there is a change of monarch.

Londonbus1....will we see Wills on stamps?

There is another article about this in the recent Linn's (11/29)






Butch

LB1, I think William would make a better profile than Charles.

Everyone nose that !

Londonbus1....right you are Russ. But will it happen?

I am

A forever stamp?
Are other countries totally different to Australia's postage stamp usage?
In Australia we can use any decimal stamp for postage. No matter if the stamp was printed in 1966. Which is the first of the decimal stamps.
Am I totally out of touch with this topic?
I am very interested to know. John

A very simple explanation: The "Forever" stamp is valid for first class postage "forever" regardless of what the current first class mail rate may be. In the US, if one were to buy a Forever stamp today, the cost would be 44 cents. If the postage rate goes up next year (perhaps to 46 cents), the same stamps would be sold at the higher rate at the post office. However, if anyone had stamps they purchased at the old (lower) rate they would still be valid for the same first class postage regardless of what amount they originally paid for it.

John,

Forever or Permanebt or simialr kinds of stamps are all non-denominated, that is, they do not have an amount stated for how much they are worth.

Some say 1st, or Domestic Postage Paid, or <P> or other markings.

It means they will pay the stated postage rate (domestic, 1st, E = European) every year even if the actual value of that rate increases, the stamps will still be valid for that rate.

One of my 2004 Pictrure Postage non-denominated Domestic rate stamps that was worth 49 cents to buy in 2004 is now worth 57 cents because that is now the rate for domestic letter postage. ext year it will be worth 59 cents (plus taxes, whatever they may be).

I don't have to worry about adding all my older decimal stamps up to the correct rate. I just put one of these on a letter and hey, presto, it pays for whatever the rate is.

Same with USA Forever stamps which pay the rate for a letter within the US, or GB 1st stamps which pay the rate for a first class letter within GB.

Sounds nice for the consumer but the actual price doesn't keep pace with inflation and interest rates so you actually lose money in the long term.