USPS: $11B in benefits payments to be missed

Without legislative intervention, the U.S. Postal Service says it will default on a $5.5 billion payment due today and a $5.6 billion payment due Sept. 30 to the U.S. Department of the Treasury. The payments are meant to prepay mandated retiree health benefits.

"This action will have no material effect on the operations of the postal service," the USPS said in a July 30 statement. "We will fully fund our operations, including our obligation to provide universal postal services to the American people.

"We will continue to deliver the mail, pay our employees and suppliers and meet our other financial obligations."

In April, the U.S. Senate passed the 21st Century Postal Service Act of 2012, which among other initiatives, looked to reduce the postal service's annual pension obligation of $5.5 billion.

The House hasn't yet passed similar legislation, according to Money.CNN.com.

The Postal Accountability and Enhancement Act of 2006 required the USPS to pay future retiree health benefits annually for 10 years. USPS officials have requested the requirement end in any reform package, according to Springfield Business Journal archives.

The USPS relies on the sale of postage, products and services to fund its operations and doesn't receive tax dollars for operating expenses, according to the statement.[[In-content Ad]]