Postal Service Must Borrow to Pay Retiree Health Benefits by End of Month
Monday, September 07, 2009
By the end of this month, when its fiscal year ends, the U.S. Postal Service will have lost $7 billion in 2008-2009, and it will need a loan from the U.S. Treasury just to pay for health benefits for retired postal workers. USPS’s cash on hand, which will be $700 million in the red by September 30, will make it impossible to meet a $5.8 billion obligation to cover retiree health benefits unless Congress adopts emergency legislation raising the Postal Service’s ability to borrow more money.
The “good” news contained in the USPS’s July financial statement showed the postal operation lost $865 million that month, compared with the $1.3 billion loss it posted at the end of June.
-Noel Brinkerhoff
USPS Reports Loss Of $865 Million In July 2009 (PostalReporter.com)
USPS Preliminary Financial Information (Unaudited) (U.S. Postal Service) (PDF)
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