According to various news reports, the Postal Service might not pay the $5.5 billion annual obligation to the Treasury Department for the prepayment of healthcare benefits for future retired employees.
“We’ll pay our employees, we’ll pay our suppliers, and we won’t pay the government,” PMG Pat Donahoe said at the National Postal Forum. “We have contention as far as owing that. Disruption in mail delivery won’t serve the government or the stakeholders.
Under the Postal Accountability and Enhancement Act of 2006, the USPS is required each year to prepay about $5.5 billion to cover the health care benefits of retired employees until 2016.
What do you think? It looks like the only way to comply with the law is not make payroll or not pay our suppliers. What other options should we consider? Is this a good idea? Leave your thoughts here.