The recently passed spending package, funding the government until September, has helped prevent the U.S. Postal Services from defaulting on its multi-billion retiree health care benefits.
The Postal Service now has until August to pre-fund the retirement packages to its employees, according to the Washington Post.
âWe are pleased that the action taken by Congress and the president once again prevents the Postal Service from defaulting on the $5.5 billion payment to pre-fund retiree health benefits,â USPS spokesman David Partenheimer said according to the Post. âWe hope this latest deferral gives Congress time to pass comprehensive legislation to address this and other critical issues to help the Postal Service return to profitability.â
While awaiting possible legislative changes to its work process, the Postal Service will continue to deliver mail six days a week and look forward to the House and Senate reforming the organization to in turn help save about $20 billion in the coming years.