The U.S. post office will need $5.5 billion in order to stay afloat….
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A default, not a bankruptcy. And the default is on an obligation to make a large prefunding payment into the pension fund. It isn’t a missed payment of any current expense or debt.
Legislation passed in 2006 gave the Post Office 10 years to prefund the next 75 years of pension benefits – to have enough money on hand after 10 years to cover 75 years of retirement benefits without having to add another penny to the pension fund for 75 years.
That’s an extremely unusual requirement, to say the least.