USPS Records Q2 Loss of $1.9B, Urges Congress to Pass Comprehensive Reform

"We haven't been making the retiree health benefit prefunding payments because we can't. If legislation reduced the required retiree health benefit prefunding payment, it doesn't provide us with any more cash to pay down our debt or put much needed capital into our business," he added. "Only comprehensive postal legislation that includes a smarter delivery schedule, greater control over our personnel and benefit costs, and more flexibility in pricing and products will provide the necessary cash flows."

As recorded in the Postal Service's second quarter results, the volume of high-margin first-class mail continued to decline, a major contributor to the Postal Service's precarious financial position. If a downturn in the economy or other circumstance should further stress the Postal Service's cash flow, the agency would implement contingency plans to ensure that all mail and package deliveries are completed and that employees and suppliers are paid ahead of the federal government.

Regardless of the state of the country's economy, without comprehensive legislative reform, the Postal Service will be unable to make the required $5.7 billion retiree health benefit prefunding payment to the U.S. Treasury, due by Sept. 30, 2014.

Second Quarter Results of Operations Compared to Same Period Last Year