Sarah Klein- U.S. Postal Service defaults on $5.6 billion for future health benefits

The U.S. Postal service defaulted on more than $5 billion dollars on Monday. This money is mandated annually by Congress to prefund the healthcare cost of future Postal Service retirees. The requirement was set in the thriving, pre-crisis economy of 2006, but these mandates, along with a sharp decline in mail volume, have put the agency's finances in jeopardy.

The agency has begged Congress for legislative reforms that would lead to the removal or revision of the healthcare mandates. Leaders of the Postal Service have also proposed allowing the agency itself to run its own healthcare system, which would no doubt cut down on costs and provide more effective services.

http://news.yahoo.com/u-postal-defaults-5-6-billion-future-health-215529284.html