USPS May Get 90 Day Extension

A new House bill would give the Postal Service a 90-day extension to make a $5.5 billion pre-payment to its retiree health benefit fund — originally due Sept. 30th. USPS said it wants to suspend advance payments into FERS so it can have cash on hand to pay employees and bills. But the 2006 Postal Accountability Enhancement Act requires the Postal Service to make these pre-payments. The Government Accountability Office has recommended the Congress restructure the pre-payments so that USPS pays smaller amounts in the short-term and larger amounts later on.The Postal Service is anticipating a $6 billion loss this year. In the past five years, USPS has lost $20 billion.