White House To Propose Short Term Plan To Bail Out The Post Office

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President Barack Obama will propose a plan to allow the U.S. Postal Service to push off a scheduled $5.5 billion health care payment until the new year, The New York Times reports.The move would prevent an immediate crisis threatened to have the agency — which is running a nearly $10 billion deficit this year — shut down as soon as this winter. Major structural reforms are needed to put the USPS on sound fiscal footing, as declining mail volume and rising labour costs squeeze the agency.

John Berry, the Director of the Office of Personnel Management, said the administration would soon put forward a plan to stabilise the postal service — but stopped short of endorsing Postmaster General Patrick R. Donahoe’s call for laying off over 100,000 employees and the elimination of Saturday delivery.

Testifying before the Senate Homeland Security an Governmental Affairs Committee, Berry said the White House would support the independent agency’s attempt to recover nearly $7 billion it overpaid into a pension fund.

Read the full report at The New York Times.