The Postal Service has announced that in the second time in two months it is defaulting on a mandated $5.6 billion payment to pre-fund retiree health benefits, and maintains that absent legislative action it will remain unable to meet these obligations.
Congress failed to finalize postal reform legislation prior to going into recess and a package is unlikely to be resolved before the November elections determine the landscape going forward. However, USPS says service will continue uninterrupted. “We will continue to deliver the mail and pay our employees and suppliers,” said USPS, adding that retirees and employees would continue receiving health benefits as well.
