The Postal Service asked Congress to examine our retiree health benefits prefunding obligations and to consider legislation to address overpayments to the Postal Service's Civil Service Retirement System (CSRS) pension fund.
Restructuring retiree health benefits payments to the "pay-as-you-go" method used by the rest of government and the private sector would result in an average of $5.65 billion in additional cash flow each year through 2016. Likewise, the transfer of the excess CSRS contributions to the health benefits fund could significantly reduce, or offset entirely, future prefunding requirements.
The Postal Service sought a deferral of this $5.5 billion payment to minimize the risk of defaulting on financial obligations in FY11.
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