USPS Defaults on Billions in Retirees’ Pension Payments

"...The U.S. Postal Service has yet again failed to make mandatory payments into accounts for its retirees’ pensions and health care, sparking a renewed call for legislative reform aimed at relieving the financial stress on the cash-strapped agency...

It is not the first time the Postal Service has missed its required payments to prefund retirees’ health benefits. From 2012 through 2016, the agency failed to deliver nearly $34 billion toward its pool for retirees’ health care.

The 2006 law requiring the prefunding scheduled the lump-sum payments to last 10 years, meaning they expired in 2017. USPS must still make its “normal costs” payments for the retiree health benefits, as well as an amortization of its future liabilities. It is now also facing amortized payments to cover its unfunded liabilities in the Civil Service Retirement System and the Federal Employees Retirement System. All told, USPS must pay out $6.9 billion by Sept. 30..."

Read more at Government Executive