Monterey, CA Postal Service Continues To Be In Financial Crisisby Richard Kuehn on 10/01/12
Retired and soon-to-be retired postal workers must be biting their nails once again after the news that the U.S. Postal Service is defaulting on a second multi-billion dollar payment. Postmaster General Patrick Donahoe said that the agency has squeezed all of the costs it could out of the service and now would have to wait for a potential bail-out from Congress. The $5.6 billion payment for future retiree benefits was due on Sunday, and it's the second $5+ billion payment for retiree benefits which has been missed this year. Donahue told a reporter that the agency will hit a low point in cash next month but it has few tools to avoid bankruptcy if Congress doesn't do something soon. He had urged moving to a five day service but these efforts have been fought because they would hurt rural areas and elderly which depend on the mail for prescription drugs and other items. I am hopefully that this crisis will get Congress to do something during their lame duck sessions (just after the elections but before a new Congress takes office in January). The point about prescription drugs is a good one, many consumers have no choice but to buy through mail order or face much higher charges.