U.S. Postal Service to default its second multi-billion payment, twice in two consecutive monthsBy Angel Cuala on Sep 30, 2012 in Business, United States •
Updated: October 14, 2012 12:04 a.m.
The U.S. Postal Service is set to default its multi-billion payment, the second time in two consecutive months for the agency to fail in providing funds for the health-care costs of retirees, which is being mandated by the U.S. Congress via a 2006 law.
U.S. Postal Service logo
Image Credit: USPS.com
According to a post at the official website of the U.S. Postal Service on Wednesday, September 26, 2012, the agency will default its $5.6 billion payment to the U.S. Treasury office being scheduled this Sunday, September 30, which they also did for the $5.5 billion payment due last August 1.
As noted in the press release, the agency will still continue to deliver mails and pay their employees and suppliers. Health benefits for their retirees and employees will also continue, despite its second miss on their payment and a reported $5.2 billion loss for the quarter that ended last June 30.
“Comprehensive reform of the laws governing the Postal Service is urgently needed in order for the Postal Service to fully implement its five-year business plan and return to long-term financial stability. The Postal Service continues to encourage comprehensive legislative action in this Congress.” A statement reads at USPS.com.
“The Postal Service additionally remains focused on implementing significant cost reduction and revenue generating strategies that it currently has the authority to pursue.” The self-supporting government enterprise added, with hundreds of mail processing facilities closing as to save millions of dollars.
Late last month, the U.S. Postal Service announced that their energy-saving projects in 2011 reduced costs by $22 million annually or about 1 trillion BTUs. The agency considered their two green roofs, each with an expected lifespan of up to 50 years, as major contribution for their costs savings project.
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