In a letter that was drafted on behalf of the Postal unions sent a letter on Tuesday to Jim Messina (White House deputy chief of staff) asking the White House to intervene with Congress and reduce the Postal Service’s contributions to its retiree health care trust fund. Otherwise the Postal service would run out of cash and have to issue IOU’s by this October. From the Federaltimes.com article:
Its top executives are now saying that the USPS will default on a $5.4 billion payment to prefund future retiree health benefits on September 30, 2009. And its government affairs representatives are now telling Congressional staff that the Postal Service may not be able to make payroll in October and will be forced to issue IOUs instead.
Looks like the whole IOU concept is beginning to take hold in other places besides California…
