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U.S. Postal Service $5.5 Billion Payment To Retiree Fund In Doubt

U.S. Postal Service $5.5 Billion Payment to retiree fund in doubt, but there are fewer employees to need it.

U.S. Postal Service $5.5 Billion Payment to retiree fund in doubt, but there are fewer employees to need it.

As is the case in Canada and other countries, the United States Postal Service is struggling to make ends meet due to a reduction in the amount of mail being sent, and it is very doubtful that they will be able to pay the $5.5 billion into a retiree health care trust fund which is required by 30 September. However, even if there is a default on this payment, there will be no interruption in mail delivery, payroll payments or the payments to suppliers, according to officials.

The fund was ordered by the postal reform act in 2006, but postal officials now say that it does not reflect reality now, due to a reduced number of employees as the postal service has had to downsize, trimming some 250,000 jobs, and it is bringing in less revenue.

The postal service is still looking at trimming jobs and perhaps delivering mail 5 days a week instead of the present 6. This is possible because there is no longer the same volume of mail as in the past because of email options.

Spokeswoman Yvonne Yoerger said that “We want to have the pre-funding mandate eliminated, and have the money already paid into it used for those purposes of covering health care benefits for future retirees. We’ve overpaid into our retirement funds, and we’d like some of those overpayments refunded and used for future funding.”

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Anthony has more than 35 years business experience as an employee, manager, entrepreneur, and consultant. A Trivia buff, Anthony is one of the major contributors to the General News category, too.

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