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Friday, August 19, 2011

'Postal Service will be insolvent by next August, deputy PMG says'

from federal times..........

"The U.S. Postal Service will be broke by next summer even if it skips an upcoming $5.5 billion payment for retiree health care, its No. 2 leader said Thursday.

"We're really up against the wall here in terms of stabilizing the finances of the Postal Service," Deputy Postmaster General Ronald Stroman said in an interview with Federal Times.

The health care "prepayment," due Sept. 30, is mandated under the 2006 Postal Accountability and Enhancement Act to ensure coverage for future USPS retirees. The Postal Service, which is losing profitable first-class mail volume faster than expected, has so little cash on hand that it cannot make any of that payment, Postmaster General Patrick Donahoe said Wednesday"................READ MORE

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