Carmel, CA Postal Service Tapped Out : What Will Happen To Retirees?by Richard Kuehn on 10/19/12
I've written before on my blog about the woes at the U.S. Postal Service and the problems current and future retirees may have with their pensions. More bad news arrived this week, when it was announced that the organization has hit its $15 billion borrowing limit with the U.S. Treasury for the first time in history. The Postal Service has added another $2.4 billion to its overall debt load since June, despite the fact that it hasn't contributed two payments which are now past due for future retiree benefits. These total over $11 billion. It was able to make a $1.4 billion payment for workers compensation last week but that tapped out their credit line. "Being at the limit is a serious situation because our limited liquidity does not give us operating flexibility," David Partenheimer of the Postal Service told a reporter. Something must be done to get the Postal Service on firm financial footing. Despite a massive restructuring, it still lost $5.2 billion in the quarter ending June 30. At this point, the future of the organization appears to be in the hands of Congress, but they have been slow to act.