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November 15, 2012 2:00 PM, EST
Postal Service Loses Record $15.9 Billion

The U.S. Postal Service ended its 2012 fiscal year with a record loss of $15.9 billion, compared with a loss of $5.1 billion for the same period a year earlier.

The loss for the year ended Sept. 30 included expenses of $11.1 billion related to two payments to pre-fund retiree health benefits.

The Postal Service, which is required by law to prefund these obligations, was forced to default on these payments.

USPS said Thursday eliminating the prefunding requirement, which made up 70% of the loss, and providing more operational flexibility are among legislative changes needed for the postal service to achieve financial stability.