US Postal Service Defaults on $5.6 Billion Retiree Benefits Payment

As predicted--government solvency related, not government shutdown related

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.

Comments

[Sevo]

And since it is a quasi-government operation, nothing else happened.

[SweatingGin]

I think that makes it $16 billion in the hole to the pension fund.

"Without passage of comprehensive legislation as outlined in our Five-Year Business Plan, current projections indicate that we will have a dangerously low level of liquidity in the foreseeable future."

They're looking for a 3 cent stamp hike, but I wonder when the checks just bounce...

[Sevo]

If I recall correctly, on another board, I was told that the reason the USPS was so far in the hole was the 'rethuglican' requirement that the retirement fund be fully funded out some totally reasonable amount of time (shame on them!).
I guess that's just one more lefty myth.