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Do you think there is a way to fix the post office at this point?

Posted by on Jul. 19, 2012 at 8:25 AM
  • 4 Replies

Post Office might miss retirees' payment, as first ever default looms



Read more: http://www.foxnews.com/politics/2012/07/19/post-office-might-miss-retirees-payment-as-first-ever-default-looms/?test=latestnews#ixzz214Rbo4K9

While lawmakers continue to fight over how to fix the ailing U.S. Postal Service, the agency's money problems are only growing worse.

The Postal Service repeated on Wednesday that without congressional action, it will default—a first in its long history, a spokesman said—on a legally required annual $5.5 billion payment, due Aug. 1, into a health-benefits fund for future retirees. Action in Congress isn't likely, as the House prepares to leave for its August recess.

The agency said a default on the payment, for 2011, wouldn't directly affect service or its ability to pay employees and suppliers. But "these ongoing liquidity issues unnecessarily undermine confidence in the viability of the Postal Service among our customers," said spokesman David Partenheimer.

The agency says it will default on its 2012 retiree health payment as well—also roughly $5.5 billion, due Sept. 30—if there is no legislative action by then.

Most everyone agrees the Postal Service needs an overhaul. It had a loss of $3.2 billion in the second quarter of this fiscal year; it is to report third-quarter results on Aug. 9. The agency blames factors including declining mail volumes and the unusual 2006 mandate by Congress that it annually set aside billions for future retirees. But while the Senate has passed legislation to overhaul the agency, the House says it doesn't expect to take up its own proposal until after August.



Read more: http://www.foxnews.com/politics/2012/07/19/post-office-might-miss-retirees-payment-as-first-ever-default-looms/?test=latestnews#ixzz214RX5ZUj
by on Jul. 19, 2012 at 8:25 AM
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Replies (1-4):
SisterPeach
by on Jul. 19, 2012 at 2:30 PM

I wonder what the house is doing instead?

StephanAndCoral
by Stephanie on Jul. 19, 2012 at 3:21 PM
I don't know much about this.
Posted on CafeMom Mobile
momofsixangels
by on Jul. 19, 2012 at 3:50 PM

 Not sure what to think.I had heard they were thinking of having mail only 4 days a week.

gmadiane
by on Jul. 20, 2012 at 11:47 AM

I dont know what they can do, awful situation

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