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Right because we -- move on -- this Postal Service -- and -- a lot of people are also talking about first time in history Postal Service expected to defaults.
Billions of dollars in payments that are due to the treasury -- of Shapiro's been covering attend he joins us now from the big post office in New York City at a.
-- the Farley post office -- here's what's at stake a five point five billion dollar default today.
It's a prepayment the law passed in 2006 requires -- Postal Service.
To make these payments towards their retiree health benefits but the other situation that the Postal Service faces running out of money.
As soon as October joining us to discuss this and a possible way out of this mess is Mike Gallagher from the American postal workers union.
You've been with the Postal Service over thirty years.
At the end of the day.
As an American citizen -- letters of going to be delivered or are we looking at a prices and October with no mail service.
Well it's seriously a crisis that has to be averted and the only way for to be averted as through congressional action.
Currently the postal employees over -- to retirement accounts to the tune of almost eighty billion dollars.
And that when he could be used to offset the onerous requirements -- -- The postal accountability and enhancement act -- I'm gonna stop you there that what he's talking about her funds that have been paid into these prepaid retirement accounts I've not seen eighty billion I've seen eleven billion.
That the amount that we saw Tom Carper who was on Fox Business the senator from Delaware actually talked about roughly eleven billion which had been overpaid.
Let's take that money out of the picture -- even if that weren't the case.
Postal Service is still losing money every day because volume is down email is killing the Postal Service so how do you get out of that mess -- -- you say to the American people.
You're not going to be left holding the bag.
Well first I'd like to talk about civil service retirement systems overpaid by fifty to seventy billion to actuarial firms have found.
But in answer your question -- full service is in the process of downsizing installations currently.
The -- services examining examining their systems of operation.
Process and shrinking their footprint for processing installations and also shrinking the hours of availability it Tom Carper Tom Carper is actually saying cut Saturday service and retire a 100000 of your fellow postal workers go from a workforce of 550 to 325000.
-- -- -- Well we're not exactly for it but if conditions exist that the -- service volume doesn't come back.
At because of the our recession and that's the employer's obligation to look at that municipal go about that got to wrap up well very quick cancer it doesn't look like planes ever gonna come back email is -- -- -- While it yes a lot electronic diversion hurts but there's also what their alternatives available out there.
Are we don't have time to talk about those alternatives we face that deadline in October Postal Service runs out of money back to you -- Adam Adam Shapiro in New York.
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