By Ian Smith – February 4, 2020
The Congressional Budget Office predicts that the Postal Service will continue defaulting on mandatory payments to the Postal Service Retiree Health Benefits Fund for the next decade.
CBO said in a recent report that it expects the Postal Service to continue defaulting on the payments for the next decade (2020-2030). The report noted that the agency hasn’t made any of the required payments since 2010 because of its poor financial situation, and the retiree fund is on pace to be depleted by 2030 at its current burn rate according to a recent GAO report.
The report was a cost estimate for the USPS Fairness Act (H.R. 2382). The bill would eliminate the pre-funding requirement for the Postal Service Retiree Health Benefits Fund.
CBO said that it expects the bill to have no impact on the federal budget: “Because the bill would not affect any USPS payments or receipts nor change any underlying eligibility for retiree health care benefits, CBO estimates that enacting H.R. 2382 would have no effect on the federal budget.”