U.S. Postal Service financial rescue plan in works
The U.S. Postal Service is in serious danger of losing billions of dollars at the end of its fiscal year. Now, the White House is working on a financial rescue plan to aid the USPS.
The Washington Post reports that, in the meantime, the Obama administration is asking Congress to give the U.S. Postal Service a 90-day extension to pay mandatory annual retirement payments.
The proposed plan would be part of a greater $1.5 trillion deficit reduction package.
As the Post details, the U.S. Postal Service’s employees draw benefits from the federal government’s health-care, retirement and workers’ compensation fund. These payments, the U.S. Postal Service says, are killing the entity’s finances. The U.S. Postal Service proposal would involve the USPS withdrawing from the government’s health-care and retirement funds.
Postmaster General Patrick R. Donahoe said the the Postal Service could lose up to $10 billion and have little left at the end of its fiscal year at the end of this month.
Read more about the U.S. Postal Service’s situation here.