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The Postal Service defaulted on two health care prefunding payments during its 2012 fiscal year, which ended on Sept. 30.
Its total losses of $15.9 billion are more than triple the $5.1 billion in losses it posted in the prior year, the Postal Service said.
Fredric Rolando, president of the National Association of Letter Carriers, blamed the Congressionally mandated prefunding for the bulk of the Postal Service's financial woes.
"The mandate has depleted Postal Service funds, forcing the [agency] to give up any quarterly or annual profits, empty its bank accounts and exhaust its borrowing authority ... to satisfy an unfair political mandate," Rolando said in a written statement.
He said that without the mandate, the Postal Service would have lost $2.2 billion this year. While that's still a deficit, he said it's about half the $4.9 billion it lost last year.
SOURCE: Aaron Smith