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Postal Service Set to Default on Pension Payment for First Time, but Congress Could Easily Fix the Problem

Taylor

Published: Thursday 19 July 2012

“A vast majority of postal offices under consideration for closure are located in rural areas, where poverty rates are higher than the national average.”

In 2006, the Republican-led Congress passed an unnecessary law requiring the United States Postal Service to prefund its pension benefits for 75 years through a $5.5 billion annual payment. The Postal Accountability and Enhancement Act of 2006 (PAEA) is theonly one of its kind for a government agency. On August 1st of this year, the Post Office will likely default for the first time in its history on its 2011 pension payment. If Congress does not act, it will also default on its ...

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