Postal Service expects to miss health benefits payment

The annual $5.5 billion payment, due Aug. 1, is to a health benefits fund for future retirees. The Postal Service is warning that it will default without congressional action. 

The New York Times: Postal Service Set To Default On Billions In Health Fund Payments
The Postal Service, faced with continuing financial losses because of a drop in mail volume, expects to default for the first time on its annual payment for future retiree health benefits. ... Missing the health care payment will not cause immediate disaster, nor will it affect current retiree benefits. The Postal Service will still be able to pay its employees and buy fuel for its trucks to deliver mail on time, postal officials said (Nixon, 7/18).

The Wall Street Journal: Post Office Might Miss Retirees' Payment
The Postal Service repeated on Wednesday that without congressional action, it will default-;a first in its long history, a spokesman said-;on a legally required annual $5.5 billion payment, due Aug. 1, into a health-benefits fund for future retirees. Action in Congress isn't likely, as the House prepares to leave for its August recess (Levitz, 7/18).