Postal Service Could Default on Retiree Health Benefits
During a Senate Homeland Security and Governmental Affairs Committee hearing on Tuesday, U.S. Postmaster General Patrick Donahoe said the U.S. Postal Service is on "the brink of a default." Donahoe warned that if the problem is not resolved by Sept. 30, USPS will be unable to pay a $5.5 billion retiree health benefit payment due this month. Office of Personnel Management Director John Berry, who also testified at the hearing, said the White House will include a financial rescue plan for USPS in its upcoming deficit-reduction package. Berry added that the Obama administration is seeking to delay the retiree benefits payment deadline by 90 days.
- "U.S. Postal Service Seeks Reprieve From Congress To Avert 'Default'" (Haq, Christian Science Monitor, 9/7).
- "Obama Administration Moves To Save Debt-Ridden Postal Service From Default" (Becker, The Hill, 9/6).
- "Postal Service Financial Rescue Plan in Works at White House" (O'Keefe, Washington Post, 9/6).