Monterey, CA Postal Service May Default On More Than $10 Billion In Retiree Benefit Payments

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There was a time in this country when getting a federal job, or one with the U.S. postal service, was a great long-term career plan ending up with a nice pension and great medical benefits.  Those days are disappearing quickly.  The city of Stockton, for instance, recently filed for bankruptcy and is trying to get out of paying some retiree benefits.  And just this week, the U. S. Postal Service said that mounting losses will cause them to default on making their annual payment for retiree benefits.  This is the first time in history it's happened, and shows what a sad state of affairs this institution is in.  The USPS is supposed to pay a whopping $5.5 billion by August 1, and another payment of $5.6 billion is due in September.  They also need to pay $1.5 billion to the department of labor for workers compensation costs.  This organization needs to be radically restructured.  It seems ridiculous that postal rates go up by pennies at a time when clearly the 45 cent stamp doesn't come anywhere near covering costs.  Hopefully, the U.S. Congress will come in and do something to save these retirees.

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Please note that this blog reflects my personal opinion and may or may not reflect the opinion of HandsTo Help Seniors and the individual members comp