From article by Ed O’Keefe in Washington Post
President Obama’s proposed 2012 budget tries to remedy the U.S. Postal Service’s perilous financial condition by recommending about $11 billion in relief. The budget would allow the agency to pay $4 billion less toward future retiree health benefits than otherwise required. The mail agency would have to pay about $1.5 billion of those costs in fiscal 2012 and make up the difference in later years.
Estimates by the Office of Personnel Management suggest that USPS has overpaid the federal retirement fund by about $6.9 billion. Obama’s budget would refund that amount over 30 years, beginning with a $550 million payment in fiscal 2012. Combined, the steps outlined would “provide USPS with the breathing room necessary to continue restructuring its operations without severe disruptions” as it faces pressures that include decreased volume and customer demands for better service, according to the budget. [more]