Image via WikipediaIn testimony before the US House of Representatives yesterday it was disclosed that the US Postal Service may defaulting on its delivery of workers' compensation benefits. A $1.3 billion payment scheduled for November 2011 just can't be met under present financial plans.
Patrick R. Donahoe, US Postmaster General stated, "Even as we continue to fulfill our commitment to service, we must address one particular area of concern – our liquidity. I would like to discuss this in more detail, to provide a clear picture of our situation and to give some background, especially for the new committee members. Without changes in applicable laws, at the close of this fiscal year, in seven months, the Postal Service will be insolvent, as we will be unable to meet all of our financial obligations."