Posts Tagged ‘Newman’

Postal Service Looking To Default In 4 Months Blame Future Retirees, Hello Newman

May 18, 2011

The Postal Service will begin to default on its financial obligations just over four months from now unless Congress takes action to relieve it of its obligation to pre-fund retiree health care accounts, its leader told lawmakers Tuesday.

Despite our aggressive cost cutting and revenue generating efforts, we are in serious financial predicaments today,” he said. “As things stand, we do not have the cash to make the $5.5 billion prepayment for future retiree health benefits due on September 30. And we may be forced to default on other payments. This could extend to operational expenses.”

USPS contends the prepayment for future retirees is a financial obligation that none of its competitors, nor any government agency, has to live with. The requirement came along with a 2006 postal reform bill that was passed when mail volume was at its peak.

USPS blames future retirees. Hello Newman