USPS says inability to make mandated end-of-year payments to prefund retiree health benefits won’t impede operations

10/02/17 – Similar to prior years since 2012, USPS did not make mandated end-of-year payments to prefund retiree health benefits. In addition, USPS did not make payments on liabilities to the Federal Employees’ Retirement System and the Civil Service Retirement System.

The Postal Service will continue to deliver the mail and will pay employees and suppliers, but said that it could not make scheduled payments of $6.9 billion to the U.S. Treasury on Sept. 30 to prefund health and pension benefits for retirees while ensuring its ability to continue achieving its primary mission.

The Postal Service’s inability to make these payments does not affect the receipt of these benefits. Retirees and employees will continue to receive their health benefits. In addition, retirees will continue to receive their pension benefits, and employees will continue to accrue those benefits.

The Postal Service said, “We continue to seek comprehensive, fundamental legislative and regulatory reform, while also continuing to aggressively manage our business, in order to ensure that all of our legal obligations are met in a financially sustainable manner.”

USPS said the deferred payments are “being addressed at the highest level of the organization” so that employees can focus on day-to-day operations and “ensuring we provide the best possible service to our business and residential customers.”

Source: USPS News Link

One Response to "USPS says inability to make mandated end-of-year payments to prefund retiree health benefits won’t impede operations"

  1. Postal Joe   October 2, 2017 at 7:41 pm

    Don’t believe this crap….the USPS is using the same BS they’ve used during every contract negotiation for the past 30 years!!! The USPS has always done this during contract negotiations (cry poverty) now they’re using the same crap to try and get the Postal Reform pushed thru!!
    You really can’t blame them for trying….what business entity with any business savvy would not want to get $50 billion written off their bottom line and have their retirees dumped onto Medicare, it’s a win-win for them!! Top Postal and Union management lacks a conscience, that’s the only way they can go thru with this Postal reform bill!!!
    The only answer to this fiasco is to end the Prefunding, Period!!!

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