If this were a Private Sector Business none of this would be happening. For starters you would not give major discounts for "Bulk Junk Mail" that cost more to deliver than what you were charging for it. You would not offer Gold Plated Retirement Plans with Lifetime Paid Health Insurance that was not competitive with other similar competitors. You would not have people retiring at age 55 and drawing more in retirement than they made while they were working. You would charge a rate that was at least "Break Even" or made a profit or you wouldn't do it.
Just Privatize it and let it sink or swim. IF it sinks someone will come up with a better way and replace it.