1 August 2012 0 Comments

The Madison Project: USPS Monopoly Going Bankrupt – A Continuing Fiscal Embarrassment

The Madison Project brings us up to date on the USPS

At present, it appears that the USPS will not have enough moneyto make the schedule August 1 payment of $5.5 billion into a health-benefits fund for future retirees.

As part of the 2006 agreement for USPS to recoup some of the money they had paid into the Treasury for their employees’ retirement health benefits, the Postal Service was required to prefund its future retirees’ health benefits with $5.6 billion per year to the Treasury for 10 years. Yet, Postal Service revenue has declined so precipitously over the past few years that Congress granted them a deferment from paying those prefunded obligations in 2009 and 2011.

READ MORE The Postal Insanity Continues July 19, 2012

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