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Post Office Might Miss Retirees’ Payment

Posted By admin On July 19, 2012 @ 3:12 am In U.S. News | Comments Disabled

JENNIFER LEVITZ
Wall St Journal [1]
July 19, 2012

While lawmakers continue to fight over how to fix the ailing U.S. Postal Service, the agency’s money problems are only growing worse.

The Postal Service repeated on Wednesday that without congressional action, it will default—a first in its long history, a spokesman said—on a legally required annual $5.5 billion payment, due Aug. 1, into a health-benefits fund for future retirees. Action in Congress isn’t likely, as the House prepares to leave for its August recess.

The agency said a default on the payment, for 2011, wouldn’t directly affect service or its ability to pay employees and suppliers. But “these ongoing liquidity issues unnecessarily undermine confidence in the viability of the Postal Service among our customers,” said spokesman David Partenheimer.

The agency says it will default on its 2012 retiree health payment as well—also roughly $5.5 billion, due Sept. 30—if there is no legislative action by then.

Full article here [1]


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URLs in this post:

[1] Wall St Journal: http://online.wsj.com/article/SB10000872396390444097904577535322022316422.html?mod=WSJ_hppMIDDLENexttoWhatsNewsSecond

[2] Mandate By Congress Forces Post Office Into Default: http://www.prisonplanet.com/mandate-by-congress-forces-post-office-into-default.html

[3] Post Office Rekindles Overblown Anthrax Attack in Minneapolis: http://www.prisonplanet.com/post-office-rekindles-overblown-anthrax-attack-in-minneapolis.html

[4] Obama and the Post Office: http://www.prisonplanet.com/obama-and-the-post-office.html

[5] Postal Service Is Nearing Default as Losses Mount: http://www.prisonplanet.com/postal-service-is-nearing-default-as-losses-mount.html

[6] Caught on camera: SEIU activists discuss $20 payment for Obamacare protest: http://www.prisonplanet.com/caught-on-camera-seiu-activists-discuss-20-payment-for-obamacare-protest.html

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