“The Postal Service attributed the net loss mostly to a 2006 law requiring that the agency prefund future retirees’ health benefits, amounting to a $5 billion payment each year for 10 years. The agency defaulted on a $5.5 billion payment due at the beginning of this month that was deferred from last year. It is also expected to default on another $5.6 billion payment that is due in September. While the agency failed to make the August payment and does not expect to make the payment next month, it said it still accounted for a portion of the cost in the quarter. It also accounted for a $1.4 billion workers’ compensation payment to the Labor Department that is due in October.”
Post Office Troubles Mount With $5.2 Billion Quarterly Loss, NY Times, August 9, 2012
What if the Post Office just doesn’t pay the $5B/year retirement prepayment? What would happen? Would Congress shut them down? I doubt it because how can you have a country without a Post Office. Would Congress re-nationalize them? I hope so. I think that’s the best thing that could possibly happen, so DON’T PAY IT, POST OFFICE. Just say no!