CNN Money Writes: Postal Service defaults on $5.6 billion payment

 

The U.S. Postal Service has defaulted on a $5.6 billion payment for retiree health benefits that was due on Monday, just as the Postmaster General had warned it would.

“We have not made the required $5.6 billion Retiree Health Benefits prefunding payment due Sept. 30, 2013,” wrote USPS spokeswomen Patricia Licata in an email to CNNMoney. She added that the default has absolutely nothing to do with the federal government shutdown. “We have been saying for several months that we will be defaulting on this payment. This is the third time we have [done so],” Licata wrote.

At the time, he said the Postal Service was “in the midst of a financial disaster” and that it is “burdened by an outdated and inflexible business model” that prevents it from making payments.

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Another wonderful service being destroyed  by the US Government.

Believe it or not but it is believed that the US Postal Service is very profitable if you take out Retiree Health Benefits out of the equation. It is unclear why they have to contribute so much and/or why the situation hasn’t been fixed yet. Is it simple complacency or something more sinister than that. Is there a conspiracy to destroy USPS? I have no idea, but the Postmaster General had begged Congress on numerous occasions to remove business killing Retiree Health Benefits prefunding that no one else has to pay.  

As far as I am concerned this is just another perfect illustration of why the US Government representatives are totally incompetent. Perhaps our officials have a good reason for killing USPS. Just as they did for the US Government shutdown.  

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