USPS Defaults on Retiree Health Benefits…Again

WASHINGTON, DC—The United States Postal Service (USPS) once again has defaulted on its $5.6 billion prepayment for future retiree health care benefits as it teeters on the brink of not having enough cash to conduct daily business, Reuters reported.

"Without passage of comprehensive legislation as outlined in our five-year business plan, current projections indicate that we will have a dangerously low level of liquidity in the foreseeable future. Therefore, we will be unable to make the required $5.6 billion retiree health benefits prefunding payment due today," the USPS wrote in an e-mail.