National

US Postal Service may be forced to close for the winter


The United States Postal Service (USPS) is going to have to find a way to make up for hemorrhaging financial losses (which has already rendered them incapable of making a $5.5 billion payment to its employee healthcare plan by the Sept. 30 due date) or face the possibility of closing shop for the winter.  Their unique situation raises two questions: first, how did it come to this? Second, how should it be addressed?  Read more at TheBlaze.com

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Discussion

One thought on “US Postal Service may be forced to close for the winter

  1. From the USPS website: http://about.usps.com/future-postal-service/envision-ques0324.htm

    Q: The real RHB payment issue is the scoring – What’s realistic? What if there is no relief this year?
    A: Scoring has posed a significant challenge. However, no other entity – public or private – is required to prepay this health benefit obligation at these extremely high levels. The Postal Service simply does not have the ability to continue to make these pre-payments at this level. We believe Congress will address this issue, in whole or in part, this year. If Congress does not change the statutory payment schedule, the Postal Service will have to consider withholding all or part of the required payment to ensure liquidity in FY2011.

    I read somewhere else (looking for it) that they would have been in the black for several years if it wasn’t for this health insurance issue.

    Posted by Jeremy D Adams | September 11, 2011, 7:00 pm

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