The Labor Department warned Friday that a fund compensating federal employees for work-related injuries could run out of money in the last quarter of fiscal 2012 if the U.S. Postal Service fails to make its scheduled payment in October.
The Postal Service is scheduled to make a $1.2 billion dollar payment in October to a fund covering federal employees under the Federal Employees’ Compensation Act.
USPS spokesman David Partenheimer told Reuters the Postal Service still plans to make the payment. The Postal Service faces no penalty if it does not make the payment, the Labor Department said in the letter.
The Postal Service announced in August it lost $3.1 billion in the third quarter and warned of a potential default if Congress did not intervene.