Congress won’t rescue postal service as it defaults on health care benefits

Congress is sitting idly by Wednesday as the U.S. Postal Service prepares to default on $5.5 billion in retiree health care payments.

The postal service confirmed in a statement Monday that it would default on its payment to the U.S. Treasury due at midnight on Wednesday. It is also prepared to default on a $5.6 billion tab due Sept. 30 to pre-pay retiree health benefits "absent legislation enacted by Congress."

The postal service stressed that the defaults would "have no material effect on the operations of the Postal Service," which would continue to be fully funded, as would services.

But this first-ever default marks the decline of the postal service, illuminating just how precarious its financial position remains without congressional intervention. Some lawmakers believe that such postal poverty threatens Congress' reputation as well as the future of the mail service and the nation's economic health.

Read more: http://news.yahoo.com/blogs/ticket/congress-won-t-rescue-postal-defaults-health-care-221219388.html