U.S. Postal Service Defaults on $5.6 Billion for Future Health Benefits

The U.S. Postal Service on Monday defaulted yet again on a prepayment for the health care of its future retirees as its finances remain in the red and legislative reform remains elusive.

The agency has blamed the payments, more than $5 billion a year as mandated by Congress to prefund the Postal Service's future retirees' health care, for contributing to annual losses of billions of dollars.