The head of the financially struggling U.S. Postal Service said the agency must be allowed to ease the terms of prepayments into a retiree health-care fund and eliminate general mail delivery on Saturday.
Patrick Donahoe told “CBS This Morning” the agency isn’t asking Congress for money.
The 2006 lame-duck Congress passed a mandate requiring the Postal Service to prefund 75 years’ worth of future retiree health benefits within 10 years. No other entity — public or private — has ever been subject to such a draconian requirement. Congress created the problem, and Congress needs to fix it
PAEA law passed in 2006 requires prepayment to fund for health
benefits for future retirees. 10 year plan 2007-2016. About $5.5 [...]
From Barclay’s Joseph Abate
Since last August, the Fed has reinvested its MBS prepayments into Treasuries. And it has always fully reinvested its maturing Treasury holdings. The April FOMC minutes indicate that the first step in the normalization process will be a decision about re-investments – initially with respect to MBS. The minutes also suggest that Treasury reinvestment could be adjusted or terminated simultaneously [...]