USPS: Inability to make payments won’t impede operations

The Postal Service did not make mandated end-of-year payments to prefund retiree health benefits, but the organization will continue to provide benefits to employees and suppliers.

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

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