Do as the government says not as the government does.
The U.S. Postal Service on Monday defaulted yet again on a prepayment for the healthcare of its future retirees as its finances remain in the red and legislative reform remains elusive.
The agency has blamed the payments, more than $5 billion a year as mandated by Congress to prefund the Postal Service’s future retirees’ healthcare, for contributing to annual losses of billions of dollars.
The requirement was set in 2006 when the agency was still thriving and before the economic crisis. But those massive payments, along with tumbling mail volumes, have since pushed the agency’s finances to a precarious position.
Last year, the mandate accounted for a large portion of the Postal Service’s $16 billion net loss.
Guess they’re not very good at math either. $5.6 billion is about 1/3 of $16 billion. So “a large portion” of their losses comes from where again?