A statement said operations will not be affected and employees will continue to have health benefits. Some processing plants have been shut down and they want to end Saturday service, but the rural areas of the US would be the first to suffer. Congress needs to act and so far nothing.
On Friday Congress leaves for their break until after Labor Day. The mail service takes no taxpayer money but is regulated by Congress. Another $5.6 billion payment for future retiree’s benefit is due September 30. If benefits are not pre-funded they may not be there in the future for retirees and employees in the future. BD
Congress is sitting idly by Wednesday as the U.S. Postal Service prepares to default on $5.5 billion in retiree health care payments.
The postal service confirmed in a statement Monday that it would default on its payment to the U.S. Treasury due at midnight on Wednesday. It is also prepared to default on a $5.6 billion tab due Sept. 30 to pre-pay retiree health benefits "absent legislation enacted by Congress."
The postal service has reported multi-billion dollar losses in part due to the current economic climate and a decrease in mail. Additionally, the service is required by law to pre-pay billions in health care benefits every year into a retiree health benefit fund. The postal service wants Congress to help lower this pre-fund burden and help them via other avenues, but Congress doesn't appear to be acting anytime soon.
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