The struggling U.S. Postal Service expects to default this weekend, the second time in recent months the cash-strapped agency will have missed a deadline to set aside funds for future retiree health benefits.
The mail agency, which relies on its own revenue from the sale of stamps and other products rather than taxpayer funds, has lost billions of dollars each quarter as Americans move to online communications. It has struggled for years to make the massive annual payments.
The Postal Service has said for months that it could not afford two payments into a fund for future retiree benefits. The first was a $5.5 billion payment initially due in September 2011 but which lawmakers allowed the service to default on it on Aug. 1. The second is due on Sept. 30.
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