will be required to fund the RHBF with payments consisting of the normal cost, as determined by OPM, and any unfunded portion of the RHBF liability amortized over 40 years. The RHBF will then pay the government share of postal retiree health benefit premiums. With this change, the Postal Service will no longer be required to pay the annual government share of retiree health benefit premiums. Table II-19 on the next page shows the funded status of the RHBF, including the assets and liabilities, as determined by OPM. Table II-19 Retiree Health Benefit Fund Status ($ in Billions) As the table above shows, the Postal Service had an unfunded liability of $54.8 billion at the end of FY 2015. Over the last 5 years, the Postal Service has not paid the statutorily scheduled payments into the RHBF. Through FY 2015, the Postal Service missed a total of $28.1 billion in payments. This sum is reported on the Postal Service’s Balance Sheets as a current liability, contributing significantly to its negative working capital. The statutory payment due for FY 2016 is $5.8 billion; however, the Postal Service represented that there will be no resources available to make that payment into the RHBF. Analysis of Statement of Cash Flows At the end of FY 2015, the Postal Service’s cash and cash equivalents totaled $6.6 billion, $1.7 billion higher than in FY 2014. With an average daily cash requirement of $275 million, this balance represents 24 days of operating cash, an increase of 5 days from the end of FY 2014. Table II-20 compares the Postal Service’s cash flow from FY 2007 to FY 2015. Table II-20 Postal Service Cash Flow, FY 2015 - FY 2007 ($ in Millions) The Postal Service reached its statutory borrowing limit in FY 2012. This includes a revolving credit line of $3.4 billion and an overnight line of $600 million. As of September 30, 2015, the Postal Service’s fixed interest rate obligations consist of fixed rate borrowings from the Federal Financing Bank of $10.1 billion, which are due within 1 year. Table II-21 illustrates the current liquidity position of the Postal Service. Since the
will be required to fund the RHBF with payments consisting of the normal cost, as determined by OPM, and any unfunded portion of the RHBF liability amortized over 40 years. The RHBF will then pay the government share of postal retiree health benefit premiums. With this change, the Postal Service will no longer be required to pay the annual government share of retiree health benefit premiums. Table II-19 on the next page shows the funded status of the RHBF, including the assets and liabilities, as determined by OPM. Table II-19 Retiree Health Benefit Fund Status ($ in Billions) As the table above shows, the Postal Service had an unfunded liability of $54.8 billion at the end of FY 2015. Over the last 5 years, the Postal Service has not paid the statutorily scheduled payments into the RHBF. Through FY 2015, the Postal Service missed a total of $28.1 billion in payments. This sum is reported on the Postal Service’s Balance Sheets as a current liability, contributing significantly to its negative working capital. The statutory payment due for FY 2016 is $5.8 billion; however, the Postal Service represented that there will be no resources available to make that payment into the RHBF. Analysis of Statement of Cash Flows At the end of FY 2015, the Postal Service’s cash and cash equivalents totaled $6.6 billion, $1.7 billion higher than in FY 2014. With an average daily cash requirement of $275 million, this balance represents 24 days of operating cash, an increase of 5 days from the end of FY 2014. Table II-20 compares the Postal Service’s cash flow from FY 2007 to FY 2015. Table II-20 Postal Service Cash Flow, FY 2015 - FY 2007 ($ in Millions) The Postal Service reached its statutory borrowing limit in FY 2012. This includes a revolving credit line of $3.4 billion and an overnight line of $600 million. As of September 30, 2015, the Postal Service’s fixed interest rate obligations consist of fixed rate borrowings from the Federal Financing Bank of $10.1 billion, which are due within 1 year. Table II-21 illustrates the current liquidity position of the Postal Service. Since the
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