Wednesday, December 5, 2012

Postal Service posts record $16 billion loss for 2012 | Essentials

Postal Service posts record $16 billion loss for 2012

Excerpt:

NEW YORK (CNNMoney) -- The U.S. Postal Service announced a record loss of $15. 9 billion for the fiscal year 2012, which it blamed primarily on a mandate to set aside billions of dollars for a retirement heath fund. The Postal Service said that its loss includes $11. 1 billion in payments it owes to "prefund" its retiree health benefits. Postal officials have complained for years about these prepayments, which are required by Congress, arguing that its Federal Employees Retirement System is overfunded by $11 billion dollars as of October. They also point out that other federal agencies don't have similar mandates for prefunding. The Postal Service defaulted on two prefunding payments during its 2012 fiscal year, which ended on Sept. 30. Its total losses of $15. 9 billion are more than triple the $5. 1 billion in losses it posted in the prior year, the Postal Service said.

Postal Service posts record $16 billion loss for 2012

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Organization: U.S. Postal Service

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