USPS Defaults on Multi-Billion-Dollar Retiree Payment
By Emily Roehler, Weekend Meteorologist - bio | email
The U.S. Postal Service
defaulted on a $5.6-billion retiree benefits payment last month.
Postmaster General Patrick
Donahue had warned a senate committee that it would happen.
During that testimony
Donahue said the Post Office was "in the midst of a financial
disaster" and that it is "burdened by an outdated and inflexible
business model" that prevents it from making payments.
Unlike other federal
agencies the Postal Service is not funded by taxpayers but is intended to
function more like a private business.